9 A STUDY ON PERCEPTION OF SME ENTREPRENEURS TOWARDS SMES LOAN RENDERED BY NATIONALISED BANKS WITH SPECIAL REFERENCE TO COIMBATORE DISTRICT
International Journal of Advanced Trends in Engineering and Technology (IJATET) Impact Factor: 5
The small and medium scale industries (SME) are the back bone of a developing country. They need lower investment to provide higher employment opportunities near located people. SME (Small and Medium Enterprises) are relatively suitable for smaller markets because smaller markets need quantity of products. Small scale industries stimulate growth of Industrial entrepreneurship and promote a diffused pattern of ownership and location. Introduction: SME (Small and Medium Enterprise) generate
... onal income and additional savings which help in capital information in the economy. SME make possible transfer of of manufacturing activity from congested cities to rural and semi-urban areas in regional development. Small and medium enterprises have been receiving considerable favour from the policy makers in almost all the economies in view of their significant contribution in the process of industrialization, generation of employment, contribution to the export and bringing the regional balance. A close scrutiny of the cross country support programmers reveal that the development efforts targeted at the sector are based on two basic premises. There are Small and medium enterprises are the engine of growth and Market imperfections affect their growth. Thus the government support is essential and justifiable for the growth of the sector. As regards SMEs (Small and Medium Enterprises) contribution to the national economy the cross country data reveal that SMEs are the emerging private sector in poor countries and thus from base for private sector growth. The share of SMEs in manufacturing has been around 85% in Greece, around 80% in Italy. Around 60% in Brazil and approximately 50% in Mexico. SMEs contribute around 60% of the total employment in manufacturing sector countries. The passing of Micro small and Medium Enterprises Development Act in 2006 by the Government of India was a great Watershed in the development of micro and small enterprises in the country. The Act empowered and provided space for the vertical growth of the sector. The draft 11 th five year plan recognizes the importance of this sector in the national economy. The micro and small enterprises have a share of over 40% of the gross industrial value added in the economy. About 44% of the total manufactured exports of the country are directly accounted for the small scale industries. For the credit dispensation the micro and small enterprises enjoy the priority status for the institutional finance though there is no separate target fixed for the Indian banks. The incremental flow of term loan to the micro and small sector is estimated at Rs148720 crore which translates into a growth rate of an average 24.1%per annum for the plan period. The promotion of micro and small medium enterprises has been thrust areas of Governments developmental policies and programmes. The research work undertaken mainly to analysis the perception of SME towards credit rendered by the nationalized banks in Coimbatore District. Objectives of the Study: To study the major constrains perceived by SME entrepreneurs in accessing the credit from nationalized banks. To study the reasons for preferring nationalized banks by SME entrepreneurs To find out the level of satisfaction of SME entrepreneurs with nationalized banks.