Knowledge Nugget | Why does a dedicated growth fund matter for SMEs?
Why does a dedicated growth fund matter for SMEs? The Union Cabinet recently approved a Small and Medium Enterprise (SME) Growth Fund (SGF) with a budget of Rs 10,000 crore. The fund's primary objective is to provide equity support to small and medium enterprises, which has been identified as a critical financing gap. According to the government, while several existing funds offer equity support, they generally focus on early-stage businesses and largely cater to micro enterprises, leaving a gap in long-term risk capital for growth-stage SMEs.
The SGF aims to address this by providing patient growth equity capital to high-potential SMEs with demonstrated business viability and scalability. This will enable the enterprises to expand capacity, adopt advanced technologies, achieve greater scale, and improve productivity and export competitiveness.
Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
