Despite the fact that the MSME sector is instrumental to the growth and development of the economy, the sector continues to be underfunded and faces significant barriers to growth. [...] Petersen and Rajan (2002) also find that with the coming of credit bureaus, the average distance between the location of the enterprise and the lending bank branch increased, due to the availability of credit bureau scores which helps overcome the constraints of proximity or relationship-based banking. [...] This reinstates the fact that the injection of capital to microenterprises does improve a busi- nesses’ prospects of a return to capital, growth and sustenance of the business in the long term, despite entrepreneurial skill. [...] Squires (2018) evaluated the impact of kinship taxation on microenterprises in Kenya, highlighting that transfers from the business by the entrepreneur to their kinship distorts the productive capabilities of the business in the long-run. [...] The focus of enterprises in the start-up and survival stage is on establishing the busi- ness in the market and breaking even on invested capital, while in the growth stage, it is to expand to more markets.
- Pages
- 48
- Published in
- India
