“Even as the Medium, Small and Micro Enterprises (MSME) sector of the country is contributing largely to the economy of the country, their requirement was met only upto three per cent”, said Rahul Priyadharshi, General Manager of Small Industries Development Bank of India (SIDBI) Bank, Mumbai.
Speaking at the Scale Up Series, a special session jointly organised by Coimbatore District Small Scale Industries Association (CODISSIA) and Coimbatore Chapter of The indus Entrepreneurs (TiE) at the CODISSIA trade fair complex on Saturday, Rahul Priyadharshi also explained about the importance of Growth Capital to emerging entrepreneurs. The session was titled ‘Scale Up Funding’.
“We see many start ups emerging in the country. But not all of them succeed and often fail to produce positive results consistently. This is because of various reasons including the fact that the requirements of the MSMEs are not met fully,” he said.
Priyadharshi was citing a report about the condition of MSMEs in the country. He added that the being compiled and that it was to be released soon.
“There is a huge gap in the system and the system requires many changes. Though it directly affects the MSMEs, they have not failed to contribute to the country’s growth,” said Priyadharshi.
Talking about the importance of Growth Capital, he informed that only Growth Capital helped entrepreneurs to rise after grave fall in business. “Every entrepreneur is subject to face growth in the beginning and business will come down at a certain period. Many give up and disappear in this phase. But if they have the Growth Capital, provided by financing units like SIDBI, they are sure to succeed,” he claimed.
Explaining the procedure to get Growth Capital from SIDBI, Priyadharshi informed that a minimum of one to two years of business experience should be there for the capital apart from having a proper management structure.
“A good management structure would also impress investors who wish to invest in a start up,” he opined.
He further advised the entrepreneurs to be aware of the business eco system urging them to constantly update about the changes in the ecosystem.
Other speakers including Anup Kuruvilla from 1 Crowd and K. Mahalingam, Partner and Director of TSM Group of Companies also spoke about Crowd Funding and Angel Investing respectively.