Microfinance Companies In Digital Space
Digital technology, including mobile-based digital technology, provides wonderful opportunities to improve financial inclusion for small and medium (SMEs) enterprises in nations that are still part of a developing economy.These SMEs globally number about 200 million in these countries, many of which do not have a proper system of credit services and basic savings in place. Often, one is forced to pay exorbitant fees for a limited amount of financial services. In this scenario, digital technology can definitely play an important role. An enhanced knowledge of how microfinance institutions can benefit from a technology-based digital financial system can help SMEs evolve. Some of the factors benefitting SMEs are as follows:
1. Operational efficiency:
Digital channels can be utilized for improved operations and to reduce cash risk. Cash-intensive lending models make an institution vulnerable during phases such as transit and storage. This also entails extra costs. Managing the various aspects of this risk factor also is a time-consuming process, when this time could have been put to more productive use. Mobile-based digital technology enables clients to repay loans with a few clicks, thereby avoiding cash-based risks.
2. Establishing channels of communication:
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Esta historia es de la edición February 2018 de Small Enterprise.
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Job Creation: Startups Starting Up!
Do startups create jobs? This could unarguably be one of the most sought after questions in recent times. While it is out and clear that startups make way for employment opportunities, the discussion boils down to the importance of startups in creating jobs. The startup ecosystem indeed plays a major role in job creation and is touted as an economic panacea.
Importance Of Technology For SMEs
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As per the 2019-20 annual report of the MSME ministry, among 63.3 million MSMEs that India has, women–owned 20.4% of them up from 13.72 % in 2013-14. This data supports the fact that there has been growing acceptance of women in entrepreneurial roles but it hasn’t always been the case.
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