Page 28 - MSME BULLETIN 2022 NEW LAYOUT 19082022.indd

MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

MSME -

THE (BACK) BONE NEEDING

CALCIUM

Avinash Chandra Jha, has been serving the MSME sector for over a decade and half as
a Banker, Risk Information and Rating executive, an Export Manager and now a Fintech
Professional. The opinions expressed are personal.

Shri Avinash Chandra Jha,
Fintech Professional

Been there done that: goods and services”. The MSME Development Act
Inadequate funding to MSMEs has always been a 2006, had these points crystal clear under the heading
burning issue in this country. Several committees, “DELAYED PAYMENTS TO MICRO AND SMALL
formed by the Government of India, Ministry of MSME ENTERPRISES” (Chapter-V). Covid period was just
and RBI, have submitted their fi ndings mentioning the an extension and aberration of this under the carpet
‘access of credit’ as one of major hindrances towards pain point of MSMEs.
the development of this sector over the years.
Covid throttle:
Ignore at own peril: A huge number of MSEs have closed down their
Though there are some other signifi cant challenges units, many were forced to sell off their properties,
facing them for a long time now. One of them, which hundreds and thousands are trying hard to stay away
is very crucial and hampers MSMEs’ working capital from going to ARCs and lakhs of them are putting up
needs, has been seldom discussed and addressed, out a brave fi ght to stay afl oat.
of fear of losing business by MSMEs themselves. That
is “Delayed payment made by the buyers (Corporate Prolonged Covid-19 period created havoc to business
segment, PSUs, etc.) to the MSMEs for supply of houses world over but more damage was done to

28 The Institute of Cost Accountants of India