Generally, the obstacles thet MSMEs face in the finance department is that most organizations are started with the entrepreneur's own money and more often than not, that money is not sufficient for growth.Many financial institutions are wary of extending credit to MEMEs due to lack of faith in business model or lack of collateral.Fortunately, the government now has credit schemes directly benefiting MSMEs.

The small and medium enterprises in India are responsible for generating the highest rate of employment amongst all sectors and are also a very big part of the industrial production and exports of the country.
As on 2008 MSME contributed 8 percent to the countries GDP.According to MSME , 45 % of total exports of the country , employing about 59 million persons in over 26 million units through out the country.