Microscope | May 2024

In this issue, we bring forth the most decisive matters for humanity at this point of time, e-commerce for businesses, going digital for each one of us, and the climate change. By presenting empirical research and evidence-based insights, we strive to enrich the ongoing discourse on how to address challenges, harness opportunities, and devise strategies for the unorganised sector within the evolving entrepreneurial landscape.

This essay by Dr. Kiran Limaye explores the complex relationship between nano ventures and the vast world of e-commerce, highlighting the unique challenges nano-entrepreneurs face in accessing wider markets through digital platforms.

In this article,?Hrishikesh Jain?discusses how integration of technology that enhances interoperability, reliability, and speed with finance can significantly enhance financial access to nano-entrepreneurs, reduce default rates and also increase lenders' returns.

This article by Shrey Goyal highlights the crucial role of MSMEs in global supply chains and the importance of their active participation in environmental initiatives to achieve broader climate goals.

Infographic Corner

Report of the Month

State of Enterprise Finance - Impact on the ‘Missing Middle’ of Women Entrepreneurs in India

by The Udaiti Foundation

The Micro, Small and Medium Enterprises (MSME) landscape in India grapples with a notable ‘missing middle,’ marked by a prevalence of micro and large enterprises, while medium-sized ventures, particularly those led by women, lag behind.

Despite their strong potential, women-owned enterprises face heightened challenges due to gender- specific hurdles in accessing finance, networks, and resources that make it even more difficult for women entrepreneurs to traverse the missing middle.

In Udaiti’s research through stakeholder consultations and ecosystem mapping, some key insights have also emerged:

1. Regional rural banks are the drivers of growth, mobilising banking for rural women but the rate of growth is not increasing as expected.
2. There is a huge gap in demand and supply with access to credit - in what women want in terms of ticket sizes and the actual loans that are dispersed to them.
3. There are more bank accounts than ever, but visibility on informal and semi-formal small businesses remains low.

A better understanding of contexts within which women’s enterprises operate, coupled with a greater appreciation of specific non-financial services needed by women entrepreneurs, can assist financial institutions, policymakers, and support organisations in engaging with them in a more fruitful manner.

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