Scaling small businesses with alternative finance Although some platforms are still actively working, there is no proper regulatory framework for equity-based crowd funding and has remained as a grey area awaiting further input from SEBI.
Lack of access to finance is the most widely cited constraint by SMEs for growth and scaling up business. Generally commercial banks perceive SMEs fall in the category of high default risk due to limited collaterals, smaller in asset size and limited historical track record.
Governments in various countries have taken multiple steps such as subsidized interest rates, collateral free loans, partial credit guarantee, credit insurance, matching grants and so on to improve the institutional
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