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Listening Window Odisha Knowledge Hub Lecture Series 37

Finance is the life line of business and it should be trend is going to go up in the upcoming years. The
made accessible to small and medium enterprises. advent of new technologies has made it possible to
Studies have shown that there has been a rise in understand and monitor these lending patterns.
lending figures to micro and small enterprises by Small banks are more comfortable in lending to
public sector banks and the private banks have small enterprises because they can easily assess the
doubled their lending between 2012 and 2015. This borrower’s credit-worthiness at a local level. Most of
is proof of the fact that there is money to be made these enterprises barely have their audits in place.
at the bottom of the pyramid.
Local decision facilitates lending capacity by taking
Angel funding in high end tech start-ups has into account local habits, ways and reputation of
increased 13 times from 2011 to 2015 and Venture the borrowers. So overall, there are newer ways
Capital funding has also risen 22 times i.e. $250 of financing small enterprises which need to be
million to $5.5 billion during the same period. This tapped and explored and encouraged.