Raising Funds for Microenterprise: An Elusive Reality

Abstract

The case pertains to entrepreneurship and the struggles of microentrepreneurs in raising adequate funds. It highlights the insufficiencies in implementation of government’s financing schemes for microenterprises. The case also throws light on the difficulties faced by microentrepreneurs in raising capital through banks and more so if the entrepreneur happens to be a woman. This case revolves around a young woman microentrepreneur, from a humble background, who is determined to expand her orthopaedic-support manufacturing unit. It brings out the enormous difficulties faced by her in obtaining an adequate financing through banks despite many laid out government policies to provide relief and stability to microenterprises. The ardent pursuit and the innovatively designed marketing strategy helped the entrepreneur achieve a reasonable success, in spite of the lack of capital. Her revenue for the financial year 2014–2015 rose to Rs. 9 lakhs/per annum. Her projected revenue for 2015–2016 was Rs. 24 lakhs. The ambitious target seemed difficult if additional funds were not forthcoming. With no help from the banks, the entrepreneur was in a dilemma where to raise the funds from. Her long-term plans for growth would be badly affected.

Citation

Sharma, T. and Mandan, R.K. (2019), "Raising Funds for Microenterprise: An Elusive Reality", Ramesh, M.A., Grover, P. and Dasgupta, S. (Ed.) Start-up Marketing Strategies in India, Emerald Publishing Limited, Leeds, pp. 143-159. https://doi.org/10.1108/978-1-78756-755-920191009