The Hindu Business Line : Development of SMEs

The Central and State governments have not taken notice of significant role played by the State industrial development corporations in the early stages of development banking as mandated by Nehruvian Model.

Though there is much talk of development in the SME sector and all lenders pledge support for its development the crux of the problem is lack of seed money in the hands of potential entrepreneurs.

Even though we read in the media about increased VC activity, few of them actually support first generation entrepreneurs.

The venture capital industry is driven by commercial considerations and development of first generation entrepreneurs is definitely not a priority for them.

If the government is sincerely committed to the developing the SME sector, there is an urgent need to revitalise the State industrial development corporations and restructure them as venture capital funds with a clear mandate to nurture and develop a new class of globally competent business people.

P. V. Subrahmanyam

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