State Bank chairman Arundhati Bhattacharya today urged small and medium enterprises (SMEs) to focus on raising funds through equity instead of debt to drive their businesses in a healthier manner.
She said SMEs’ relying more on debt for their growth capital in the initial stage of their business put pressure on their balance sheets.
“One of the major problems facing SMEs in our country is lack of equity. Equity capital is a much-neglected area in the SME sector,” Bhattacharya told an SME summit and asked them to learn from technology players which have sourced large amount of equity to ramp up their business and market share.
Quoting the examples of e-commerce companions like the Flipkart and Amazon, she said these firms have done…
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