Introduction to MSME Banking

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of economies worldwide, where they play a pivotal role in driving growth, driving innovation, and addressing socio-economic challenges. According to the International Finance Corporation (IFC), MSMEs account for about 90% of businesses and over 50% of employment worldwide.

However, they face high failure rates, with studies showing that approximately 70% of them fail within the first five years because of challenges such as limited access to finance, poor management skills, and inadequate infrastructure.

This module provides candidates with a comprehensive understanding of MSMEs, their contributions, and the critical role retail banks can play in supporting their success and growth.