- Title
- The Small Industries Development Bank of India: a retrospective on SME financing
- Creator
- Bisman, Jayne; Goela, Neelam
- Relation
- Indian Journal of Economics & Business Vol. 9, Issue 4, p. 803-820
- Relation
- http://serialsjournals.com/journal-detail.php?journals_id=16
- Publisher
- Serials Publications
- Resource Type
- journal article
- Date
- 2010
- Description
- An extensive body of literature, internationally, is concerned with exploring the role of small and medium enterprises (SMEs) in generating employment and contributing to regional economic growth. In India, one of the peak bodies charged with supporting the development and financing of the SME sector is the Small Industries Development Bank of India (SIDBI). Both the policies of the Indian government and the mandate of the SIDBI call for the financing of regional development initiatives and assistance to so-called ‘backward’ areas in efforts to correct existing regional economic imbalances and promote more equitable levels of development on an intra-national basis. This paper presents the results of a study of financing provided by the SIDBI during the watershed period from 1996 to 2003, including an evaluation of the bank’s responsiveness to SMEs in regional areas. On a longitudinal basis, we examined the quantum of state-wise assistance provided by the SIDBI to assess the distribution of finance to support SMEs, on a comparative basis, across the more developed and less developed states of India. The results revealed statistically significant differences in the SIDBI financing on a state-wise basis, to the detriment of the less developed regions. We explore a range of possible explanations for the apparent inability of the SIDBI to correct regional imbalances in the financing of Indian SMEs.
- Subject
- SMEs; financing; development banks; India; SIDBI
- Identifier
- http://hdl.handle.net/1959.13/932813
- Identifier
- uon:11463
- Identifier
- ISSN:0972-5784
- Language
- eng
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