- Financial Express
High-tech with ‘Phygital’ model changes credit journey for nano entrepreneurs
Credit and Finance for MSMEs: India is sitting on a gold mine. When tapped, it has the potential to grow the economy exponentially and improve the lives and livelihoods of millions. This gold mine is made up of nano entrepreneurs who run small businesses with an annual turnover of $13,000 (Rs 10 lakhs) to $130,000 (Rs 1 crore). They could be your neighborhood Kirana store shopkeepers, beauty shop owners, small-scale manufacturers, food distributors, or wholesalers. Most of these small businesses in India remain informal and deal with cash. Even the businesses that are fully registered and formalized struggle with access to formal credit, often due to a lack of land or property collateral. The recent pandemic has shown us the vulnerability of nano entrepreneurs who are more prone to revenue loss and closures, especially due to a lack of access to working capital.