Despite the Pradhan Mantri Mudra Yojana and the Mudra Bank, for providing institutional finan-cing of MSEs, micro enterprises are facing difficulty in accessing institutional finance.

Though their working capital needs are as low as 15 per cent, a study by CRISIL and Assocham of 12,000 CRISIL-rated firms shows that nearly 60 per cent of them relied heavily on promoters’ contribution and 26 per cent on supplier credit.

Institutional finance accounted for only seven per cent of the working capital needs of those with a turnover of less than Rs 50 lakh, which is the lowest in the entire micro and small enterprise (MSE) category.

Mr V. Srinivasan, business head, SME, CRISIL Ratings, said “The time has come for concerted efforts by the government, financial institutions and other stakeholders to improve the financial inclusion of micro enterprises by not just formulating the right policies and processes, but also ensuring relentless implementation.”