SUMMER INTERNSHIP PRESENTATION

ON
A review of alternative sources of finance for small business in India

Post graduation diploma in management

(PGDM Batch 2019-21 )

PREPARED BY: Rahul Narayan Singh

SECTION B
ROLL NO. GM19133
 OUTLINE
1. Introduction of topic
2. Justification of topic
3. Objective & hypothesis of study
4. Research methodology
5. Major findings
6. Hypothesis testing
7. Conclusion
8. Recommendations
9. Reference list
 INTRODUCTION TO TOPIC
• Every person wants finance as like there are many sources gives finance for their betterment as
well as development.

• Small business in India have gained increased attention in India in recent times, considering their
strategic importance to the economy and the country.

• MSMEs play an important role in generating employment—48.8 million MSMEs in the country
provide employment to 111.4 million people.

• MSMEs in the services sector contribute 27.4% of the country’s GDP.

 JUSTIFICATION OF TOPIC
• In today’s world, the different source of income globally acknowledged as being a
key component of being aware of how any business increase their standard of
living in a country though different sources of income.

• Sources of capital are the most explorable area especially for the entrepreneurs
who are about to start a new business. It is perhaps the toughest part of all the
efforts.

• Sources of finance for business are equity, debt, debentures, retained earnings,
term loans, working capital loans, letter of credit, euro issue, venture funding etc
OBJECTIVE & HYPOTHESIS OF STUDY
• Research objective:-
• To identify the different sources of finance used and the purposes they are used for at different stages
of the MSME life cycle,
• To identify challenges faced by MSMEs while accessing finance from different sources at different
stages of their life cycle, and
• To identify factors that lead to higher financial awareness.

• Hypothesis:-

• Hypothesis or significance testing is a mathematical model for testing a claim, idea or hypothesis
about a parameter of interest in a given population set, using data measured in a sample set.which
enables a systematic way to test claims or ideas about the entire dataset.
 RESEARCH METHODOLOGY
Research Design:
1. Sample Unit:
In the present study a sample of customers is taken from India .
2. Sampling techniques:
For the purpose of study, data was collected on random basis. A Convenient
and purposive sampling techniques were followed for selecting sample of the
study.
3. Sample Size:
The sample size was restricted to 100 respondents. The respondents belong to
different income group and profession.
4. Exploratory research design is been taken
 CONTI…
Data Collection

1. Primary Data:
The study to collect all the relevant information regarding the small business
strategy with structured questionnaire was adopted for the collection of
primary data.
2. Secondary Data:
Secondary data has been collected through the various internet sites by surfing
on Internet and from the records available in financial services.
 MAJOR FINDINGS
1. Which type of financial statements does this business have?
45

40
40

35

30

25 26

20 22

15

10 12

0
Balance sheets Income statement Cash flow statement Other (specify)
2. Are you aware of the existence of government support programs for
your business?

65

21

14

YES NO Dont know

3. What is this firm‘s current legal status?

9%
Shareholding company with shares traded in the stock market

23%

15% Shareholding company with non-traded shares or shares traded

privately

Sole proprietorship

Partnership
20%

33%
Other (SPECIFY)
4. Does your business keep written financial records or accounts for
your business?

60

21
19

YES NO Refused
 CONCLUSION
• The study found that the source of finance utilized by an MSME
depends on its current stage in the enterprise life cycle. Four stages were
identified: start-up, survival, growth, and sustenance.

• The major challenges in accessing finance were a lack of knowledge

about available schemes, high service fees for processing loan requests,
difficulty in providing collateral or a guarantee, and high interest rates
.
• The main conclusion to provide a better source of finance to every small
business though various banks,money landor etc.
 RECOMMEDATIONS FOR FINANCIAL INTITUTIONS

• Relax the need for collateral. Explore alternatives to requesting collateral,

especially from enterprises in the early stages of the life cycle.

• Focus on more customer satisfactions and awareness.

• Reduce documentation requirements.

• Company should consider the customer feedback form to know about the small
business satisfaction level and improve the things which are not so good.
 RECOMMEDATIONS FOR ENTREPRENEURS

• Use proper accounting practices. Maintain a proper and robust accounting

system, as this can increase the chance of accessing credit by providing a
transparent basis for a lender to assess the viability and profitability of the
enterprise.

• Register the enterprise. Ensure that the enterprise is registered and that all
registrations and licenses are renewed periodically.

• Develop networks and markets. Entrepreneurs should participate actively in

trade fairs and industry events for both showcasing their products or services and
for enhancing their financial awareness.
 REFERENCES
• www.praedico.com
• www.investopedia.com
• http://www.traderji.com
• www.researchgate.com

THANK YOU