Small Medium Enterprises Have XL Problems

What’s causing a damper on Indian SMEs?

They may be small but they pack in a mighty punch. (Photo: iStockphoto)

India is home to 51 million small medium enterprises that contribute 45% of the industrial output. They account for 17% of India’s GDP and are essentially the backbone of the economy. And yet the SME sector ails from a major problem - cash crunch. Here’s a look at the problem and an effective solution that could change the way SMEs operate.