Centre of Excellence
For Aspiring SMEs

A Joint Initiative by IFCI & FISME

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Message from IFCI MD & CEO

It is with immense pleasure and a deep sense of purpose that IFCI has partnered with FISME to launch Center of Excellence (COE) For Aspiring SMEs. IFCI and FISME have the dual advantage of deep understanding of challenges faced by SMEs, especially in accessing adequate finance in the form of equity and debt and large outreach. The SME sector plays a pivotal role in our nation’s development, making substantial contributions to our Gross Domestic Product (GDP) and serving as a key driver for employment, innovation and inclusive economic growth. However, this sector is beset with challenges including lack of availability of adequate and timely credit and limited access to equity capital. SMEs have primarily relied on bank finance to meet their capital requirements, however, equity capital has to be brought in by the promoters of these enterprises. This becomes a challenge at the growth stage where small enterprises graduate into medium enterprises and often require significant amount of capital which cannot be brought in by the promoters themselves.

Most SMEs in India are not aware of the long term growth benefits of bringing in external equity or listing on the SME exchanges. Apart from equity, there is a huge unaddressed debt requirement of SMEs. Therefore, IFCI and FISME have felt the need for a dedicated mechanism which can handhold and build capacity of mainly small and medium enterprises so as to ensure their smooth graduation to medium enterprises and large corporates respectively. The Center of Excellence (COE) For Aspiring SMEs conceptualized by IFCI and FISME shall provide support services to help SMEs grow. This shall include resource mobilization, facilitating partnerships, joint ventures etc.

As IFCI and FISME embark on this journey with Centre of Excellence for Aspiring SMEs, our hope is that it will aid aspiring SMEs in navigating the challenges of external equity and making strategic decisions that help them emerge stronger, more resilient, and ready for exponential growth.

team

Manoj Mittal

MD & CEO, IFCI