Industries and Commerce Department of Telangana government initiates a partnership with GlobalLinker and signed a Memorandum of Understanding (MOU) with BSE (Bombay Stock Exchange) to help Micro, Small and Medium Enterprises (MSMEs) to increase equity funds.
In 2019, the Industries and Commerce Department of the state government had launched the Telangana State GlobalLinker portal as a way to digitize MSMEs of the state and to help them with their business growth. The Telangana government focuses on creating a convenient eco-system for assisting the growth of the state MSMEs. To address the challenges, MSMEs face challenges in their daily operations, the Telangana government offers various benefits on the portal like- free e-commerce store with a payment gateway and combined logistic capabilities, the opportunity for buyers and sellers to have a contact, support exports, and more. The partnership with BSE came into existence to address challenges for accessing finance and to increase the credibility of the MSME.
BSE will provide abstract and manpower support to create attention about the importance and benefits of listing. Lack of awareness around the subject has led to a lot of suspicious notions that list increased compliance levels, increased costs, and more. Telangana government is grateful to partner with BSE and provides the necessary hand-holding support and guidance to the MSMEs to expand operations and become an inspiration for others to follow. At present, there are fewer MSME registrations on the stock exchange from Telangana, and are expecting to increase the numbers soon.
Sameer Vakil, Co-founder & CEO, GlobalLinker mentioned that SME growth can be attained to access to capital, and the arrangement with BSE will help Telangana State GlobalLinker members plan the capital raise and prepare better in improvement of managing the businesses in time. Ashish Kumar Chauhan, MD, and CEO, BSE mentioned that the partnership with the Telangana government will help state MSMEs to access equity financing opportunities. The MSMEs in the Telangana state plays a vital role in the economic development of the state and are one of the major contributors to employment. One of the challenges faced by MSMEs is the limited access to an alternative source of finance which increases their dependence on debt capital resulting in distorted capital structures and stifled cash flows.