Proceeding - Promoting Green and Inclusive Entrepreneurship Stakeholder Dialogue Between Financiers and Entrepreneurs
This document is the outcome of the stakeholder's workshop titled 'Promoting Green and Inclusive Entrepreneurship Stakeholder Dialogue Between Financiers and Entrepreneurs'. The workshop was organised with a broader objective of providing a platform to initiate dialogues among the micro-entrepreneurs and financers to discuss the prevalent challenges in entrepreneurship and address the gaps in the business ecosystem of the micro-entrepreneurs in a holistic way. The ultimate goal was to promote green and inclusive entrepreneurship.
The Micro, Small and Medium Enterprises (MSME) sector is considered as the backbone of the Indian economy and a major contributor to the naon’s socio-economic development. As of 2020-21, there exist over 6.3 crore registered MSMEs in India, absorbing 111 million into the workforce and contribung 30.27% to India’s GDP. Considering the reach and scale, it is but an imperave to engage them in India’s vision of achieving net zero by the year 2070, and in the move, developing a successful case for local and green enterprises (LGEs). Aligned to this is the fact that the customer senments are increasingly moving towards greener and more sustainable products – thus, providing for a strong business raonale for the MSMEs to transion to LGEs, as well as raising the need of establishing a favourable ecosystem to sustain and expand these LGEs or green MSMEs. An iniave in this direcon is the 'Make in India' programme, launched by the Government of India to encourage SMEs to upgrade their quality standards without harming the environment. However, the greening of these enterprises is sll mostly limited to using renewable energy, especially solar energy. In addion, policymakers and other stakeholders must realise that despite several programs designed to support MSME in moving towards greener operaons, lack of access to finance remains a crical roadblock – not only for greening but for overall business connuity too. As per the UK Sinha Commiee (June 2019) Report, the overall credit gap in the MSME sector is esmated to be INR 25.8 trillions. As of the same year, only 15.7% of the total credit supply to MSMEs was derived from formal sources. This gap in the demand and supply of formal credit for MSMEs need to be studied holiscally if the sector is to progress in an inclusive and sustainable manner.