The Micro, Small and Medium Enterprises\\n(MSME) sector comprises large number of business\\nunits involved in various manufacturing and service\\noriented activities. It has presence in urban and rural\\nareas. Through its contribution to economic growth,\\nemployment generation and exports, it has great\\npotential to bring about overall economic development,\\neliminate regional imbalances, provide employment\\nopportunities and contribute to poverty alleviation.\\nSeveral concerted efforts were made by the Government\\naimed at furthering its development and growth. The\\nstudy examines the size and characteristics of the sector,\\nits significance in terms of its contribution to the growth\\nof the economy, employment generation,\\npolicymeasures adopted, constraints to its growth,\\nspecific reasons for lack of formal funding in the form\\nof bank finance. While it is necessary to address the\\nspecific constraints to low bank credit, it is equally\\nimportant to explore alternative sources of funding for\\nthe sector.

Keywords : Bank Credit, Credit Gap, Informal Sources of Finance, Non-Banking Financial Sources, Venture Capital, Private Equity.