SME finance is the funding of small and medium-sized enterprises, and represents a major function of the general business finance market – in which capital for different types of firms are supplied, acquired, and costed or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; and asset-based finance such as factoring and invoice discounting.
I. Setting up SME
Evolution, Definition of SMEs, Characteristics, Role in Economic Development., Needs of SMEs Forms of Organisations; Proprietary, Partnership, HUFs, Company etc., Establishing SMEs : Environmental Scanning, Market Assessment, Technology, Selection of Site, etc., - Organisational Structures - Rules & Regulations - Gender & Entrepreneurial Development.
II. SMEs : Policy, Regulatory and Legal Framework
Policy Framework for SMEs - Policy Shifts since 1991 - Regulatory Framework - Laws and Regulations for SMEs - SME Development Bill, 2005 - LLPAct, Changing Policy Framework & SME Strategies
III. Institutional Framework & SME Financing
Institutions - Central Government - SSI Board, SIDO, SISI, PPDCs, RTCs, CFTI, NISIET, NIESBUD, NSIC - State Government : Directorate of Industries, DICs, SFCs, SIDC / SIIC, SSIDC - Financial Institutions & Banks; SIDBI, Commercial Banks, RRBs and Co-op. Banks etc., - Enterprise Perspective - Banker’s Perspective.
IV. Financing Options & Modes
Sources of finance and methods of financing SMEs, relevance of quasi capital and own money in business - Venture Capital, Hybrid Capital, special financial products for SMEs, Assessment of Term Finance / Working Capital for SMEs - Credit Risk Management of SMEs - Appraisal, assessment, collaterals, documentation, inspection, follow-up and monitoring and review, Credit Scoring models, Standing and liquidity assessment, Credit pricing of SMEs
V. SME Development
Business Development Service Providers - Role & Responsibilities - Improving Competitiveness of SMEs through Enhancing Productivity - Market Promotion and Development - technological Development in SMEs - Environmental Impact Assessment, Modernisation issues (technological and quality upgradation)
VI. Clusters and Cluster Development
What are Clusters? - Why Clusters - Types of Clusters - Advantages and Disadvantages - Role of Clusters - Setting up of Clusters - Approaches to Develop Cluster Strategies - Measuring Cluster Development - Critical Success Factors (lending economics to clusters from the angle of bankers and borrowers) - Policy Environment - Successful Clusters; India and Global.
VII. SME : Rehabilitation
Sickness-symptoms, warning signals, diagnosis and prescriptions, rehabilitation, restructuring, holding on operations, work out, NPA management, recovery options, legal aspects / options, securitization and exit options / alternatives
VIII. Future of SMEs
Micro Finance Approach to SMEs - Linkages with Agriculture and industry - IT and SMEs - Relationship banking and its impact in SME development - WTO issues, impact on SMEs - BASEL NORMS - globalizationissues, impact, intermediation opportunities and Emerging issues affecting SMEs.