Role of Andhra Pradesh State Finance Corporation (APSFC) in the Growth of Micro, Small and Medium Enterprises (MSMES) in Andhra Pradesh – A Study
Keywords:
Small scale industry, Financial assistance, disbursement, labour intensive, Recovery PerformanceAbstract
Micro, small and Medium Enterprises (MSMEs) play a key role in promoting economic growth in developed, developing and backward countries. The MSMEs with less investment contributes towards enhancement of industrial output, employment generation, exports and reduction of capital cost. MSMEs also help for removal of social imbalances and poverty in the country. In India at present the MSME sector represent almost 90 per cent of the total enterprise population in the country and contributes 8 per cent of manufacturing output, 40 per cent of total exports, and employs close to 40 per cent of India’s total workforce. The MSMEs are basically labour intensive and are making remarkable progress in various industries like engineering, pharmaceutical, food processing, textiles & garments, information technology, agro and service sector. In most developing countries including India the SMEs have been facing financial, technical and human resource problems. The APSFC occupied a prominent place among all SFCs in the country due to its performance in sanctions and disbursements of finance to the small scale industry. However, shortage of working capital, high rate of interest, competition from large scale enterprises and lengthy approval process to get the financial assistance from APSFC are the problems faced by SSI units. This paper is an attempt to evaluate the role of APSFC in the growth and development of small scale industry in Andhra Pradesh during the period 2008-09 and 2016-17.
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