The Evolution of Financial Innovation and Challenges for Small and Medium Enterprises: A Case Study from South Asian Economies

Abstract

Deprived of reluctance, SME sector has developed the considerable thump of constant, rapid and dynamic growth of South Asian Economies. Furthermore, serve as breeding ground for young entrepreneurs and sheltered the unemployed laborer force by providing them working opportunities. Beside all these facts, due to globalization the Small and medium-sized enterprises fronting incredible variation and concentrated competition. Thus, this research study primarily consists of analyzing the sources of financ avilable for Small and medium firms along with financing challenges confronted by small business traders with the objectives to exploit the innovative ways to improve financing streams for Small and medium enterprises in South Asian Countries. For accomplish this purpose, four major South Asian Countries, India, Pakistan, Bangladesh and Sri lanka have been selected to analysis the growth of SMEs sector with the viewpoint of financial constrained and innovative financial provisions. This Study comprises of qualitative examination of secondary data gather from central banks of the respective countries along with SMEs development authorities in the country.This study suggest that the innovative entrepreneurs should be encouraged by government and financial institutions through the innovative technological education and financial literacy training programs. Moreover, the collaboration between Academia and researchers with innovative entrepreneurs are essential for growth of SMEs sector in the country because they provide referral and laboratory services to SMEs to promote innovation. Beside this, the need of establish business incubation centers are prerequisite in academia. The universities should have set up business centers with collaboration of SMEDA and Financial institutions to promote young entrepreneurs and enhance their business skills.

Keywords: Financial Innovation, Entrepreneurs, Small and Medium-Sized Enterprises.