SMALL ENTERPRISE FINANCE CENTRE
The Small Enterprise Finance Centre was established in 2006 with the mission to advance the research and practice of SME financing and entrepreneurship growth in India and South Asia. The SEFC team seeks to study how financial markets and private market forces can foster the growth of SMEs and the role that SMEs play in the alleviation of poverty.
We conduct projects that develop insights and products to improve SMEs’ access to financial services, and to resolve existing blockages in the financial system such as labour turnover, market inefficiency, and poor infrastructures. The lack of growth of SMEs in India is seen as a serious hindrance to job creation, social mobility and poverty elimination. Lack of access to efficient and adequately structured financial services has been identified as one of the primary impediments to the growth of SMEs. Other constraints to firm growth include regulatory and legal constraints, limited access to well-trained employees as well as lack of infrastructure.
After formulating the problems commonly faced by SMEs, we ideate innovations, practices and products for SMEs. We partner with academics from leading universities, public and private sector organizations and financial institutions. We test the ideas through on-the-ground implementations such as randomized impact evaluation, audit studies, and large-scale econometric analysis. Finally, we disseminate our findings to relevant policymakers and practitioners.
SEFC aims to serve the SME sector by studying best practices and designing robust mechanisms that ameliorate or circumvent obstacles to firm growth within this critical sector of the economy.