Financial literacy is literally absent in a majority of Micro, Small and Medium Enterprises (MSMEs) in Karnataka, said C.A. Shashidhara Shetty, president, Karnataka Small Scale Industries Association (KASSIA).
Mr. Shetty said majority of MSMEs in the State had no financial literacy due to various factors, with the primary reason being lack of focus as entrepreneurs mostly multi-task, do most of the responsibilities on their own therefore left with little scope or having no inclination for them to learn finance-related functions.
Echoing similar sentiments, Sudatta Mandal, Deputy MD, SIDBI, said, lack of financial awareness was a major impediment which contributed to the MSMEs missing out on many benefits available to them.
“The Union and State government as well as SIDBI are introducing various schemes, subsidies, incentives, initiatives, etc. for the benefit of MSMEs. However, they are missing out on the benefits due to lack of awareness,’‘ he added.
To combat the financial illiteracy among MSMEs in the State, KASSIA, in collaboration with Small Industries Development Bank of India (SIDBI) and the Government of Karnataka launched an outreach campaign here on Wednesday. Under this, around 19 different programmes are expected to be conducted in 31 districts of between August 2023 and March 2024 with follow up events scheduled at Yadgir, Vijayapura and Kalaburagi in September 2024.
SIDBI would act as the MSME partner for Karnataka and work on designing of schemes, suggesting modifications and improvements in schemes, enabling digital interventions, infrastructure development for MSMEs, Mr. Mandal added.
According to Satyaki Rastogi, GM & Regional Head, SIDBI, 95% of MSMEs comprised the micro enterprises, majority of which were proprietary concerns run by a single person, and given their busy schedules, it was difficult for them to keep abreast with the benefits they could avail through various government schemes and initiatives.
SIDBI is also expanding its network in Karnataka and will soon open branches in Mangaluru and Belagavi to serve MSMEs better.
