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    Chapter 2 Literature Review: Mehul Kapadia (2011) Every Bit of Capital Investment Is Crucial For An SME

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    Mohit Singh
    The document summarizes literature on micro, small, and medium enterprises (MSMEs). It discusses how research has found MSMEs contribute to economic development by enhancing standards of living, reducing crime, increasing income, and boosting GDP growth. However, the sector faces challenges accessing timely and adequate credit. While credit ratings could help MSMEs obtain funding, many are reluctant to pursue ratings due to fears over poor ratings or financial statements not accurately reflecting performance. Establishing an SME stock exchange is proposed as a way to provide MSMEs with greater access to capital.

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    Chapter 2 Literature Review: Mehul Kapadia (2011) Every Bit of Capital Investment Is Crucial For An SME

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    Mohit Singh
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    The document summarizes literature on micro, small, and medium enterprises (MSMEs). It discusses how research has found MSMEs contribute to economic development by enhancing standards of living, reducing crime, increasing income, and boosting GDP growth. However, the sector faces challenges accessing timely and adequate credit. While credit ratings could help MSMEs obtain funding, many are reluctant to pursue ratings due to fears over poor ratings or financial statements not accurately reflecting performance. Establishing an SME stock exchange is proposed as a way to provide MSMEs with greater access to capital.

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    Chapter 2 Literature Review

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    The document summarizes literature on micro, small, and medium enterprises (MSMEs). It discusses how research has found MSMEs contribute to economic development by enhancing standards of living, reducing crime, increasing income, and boosting GDP growth. However, the sector faces challenges accessing timely and adequate credit. While credit ratings could help MSMEs obtain funding, many are reluctant to pursue ratings due to fears over poor ratings or financial statements not accurately reflecting performance. Establishing an SME stock exchange is proposed as a way to provide MSMEs with greater access to capital.

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    Download as docx, pdf, or txt
    38 views2 pages

    Chapter 2 Literature Review: Mehul Kapadia (2011) Every Bit of Capital Investment Is Crucial For An SME

    Uploaded by

    Mohit Singh
    The document summarizes literature on micro, small, and medium enterprises (MSMEs). It discusses how research has found MSMEs contribute to economic development by enhancing standards of living, reducing crime, increasing income, and boosting GDP growth. However, the sector faces challenges accessing timely and adequate credit. While credit ratings could help MSMEs obtain funding, many are reluctant to pursue ratings due to fears over poor ratings or financial statements not accurately reflecting performance. Establishing an SME stock exchange is proposed as a way to provide MSMEs with greater access to capital.

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    of 2

    CHAPTER 2 LITERATURE REVIEW

    INTRODUCTION

    There is an enormous literature present on Micro, Small and Medium enterprises.


    Research scholars throughout the world have carried out intensive research on the
    Sector. This fact given us an idea of importance of the sector in the economic
    development of any nation. The review of literature which has been reviewed has
    highlighted the contribution of the sector in the enhancement of the standard of
    living, reduction in crime rate, increase in per capita income as well as rapid
    growth in the GDP among other effects. The review of the literature is an
    important aspect of the research programmes, as it helps us in the identification of
    the research gap which has been left behind by the researchers and helps us to give
    the future research scope which could be used by the researchers in future to
    enhance the sector further. Therefore an effort has been made within time and
    resources available to critically analyze the available literature. Crux of the
    literature reviewed is under:-

    Mehul Kapadia (2011) Every bit of capital investment is crucial for an SME.
    Seasonal peaks are one of the greatest reasons for companies under-provisioning or
    over-provisioning. This can later result in a heavy loss and idle resources. All
    businesses undergo a transition at various points. Whether you run a full-fledged
    enterprise, a medium-sized business venture or even a smaller, relatively newer
    business, updating business IT processes is a critical step in your enterprise life
    cycle. In fact, some businesses even have to undergo multiple transformation
    phases. Large enterprises have the capability and the resources to execute such
    transformations smoothly, but SMEs face a significant challenge in doing so, given
    their limited resources and capital.

    B. Yerram Raju (2011) The problem which continues to be a big hurdle for the
    development of the sector is lack of access to timely and adequate credit. The Abid
    Hussain Committee on SSIs (1997) examined the problems of the SSI sector and
    recommended a package of policies to restructure the industry in the context of
    current global economic changes. The Expert Committee was of the view that the
    existing institutional structure for delivering credit to SSEs needs a thorough
    overhaul. It endorsed the recommendations of the Nayak Committee and urged the
    RBI to implement the same. The Committee recommended restructuring of
    financial support through SFCs and SIDCs, tapping of other sources of funding for
    SSEs, extending credit rating services to small units, and addressing the credit
    needs of tiny units to ensure that they are not bypassed by the commercial banking
    system.

    Rajesh Dubey (2010) The author says Actually, Private Equity and Venture
    Capitalists firms would be interested in investing in a listed company. Credit
    ratings would help an entity to get an exposureFirst of all, the fear is that the
    MSME may not get a good rating. Second is probably the financial statements that
    they have prepared to get rated do not reflect their true and fair picture of their
    performance. And, the rating agencies will not look beyond that. These could be
    the two main reasons why SMEs may not be interested while going for a rating.
    We need to look at what is their management and how sound a promoter is, or how
    resilient the SME has been and their overall performance.

    C.B.Bhave(2010) In is opinion the MSME’s are a catalyst in most of the


    economies and constitute a major part of the industrial activity. MSME’s generally
    face financial crisis. He foresees that the SME Stock Exchange will be a great boon
    to this sector as it will provide a wide pool of capital, increased status and
    credibility and other benefits.

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