Nano/Micro Enterprise Finance & Value Chains: Unlocking Capital for the Smallest Firms
- sreenivasanvidyuth
- Jul 7
- 1 min read
This pillar focuses on the critical financial needs of nano and micro enterprises, particularly within informal value chains. Drawing from both lived experience and extensive research, I examine the persistent capital gaps and explore innovative solutions for credit access, capital utilization, and building financial resilience.
My work delves into the nuances of informal credit, social capital as "social credit," and the limitations of traditional credit scoring for seasonal or informal businesses. I explore how tailored financial products, patient capital, and alternative credit assessment models can genuinely serve the smallest firms, moving beyond a one-size-fits-all approach.
A key focus is on understanding the true cost of business failure for these entrepreneurs, where business and household assets are often intertwined. I advocate for mechanisms that provide dignified exit strategies and safety nets, fostering a more resilient entrepreneurial ecosystem. This includes exploring how digital tools can facilitate better financial management and risk mitigation at the first mile.
Areas of Research:
Developing granular typologies of micro and nano enterprises based on their financial behaviors and needs
Designing alternative credit scoring models that incorporate informal transactions, seasonality, and social capital
Exploring mechanisms for dignified exit strategies and safety nets for small businesses to prevent loss of "home and hearth"
Analyzing capital utilization patterns and identifying interventions to optimize productive use of funds
Featured Insight: Are financial needs of job workers & artisan entrepreneurs the same?
Dive deeper into a specific aspect of this pillar by reading my detailed analysis on the distinct financial needs of job workers and artisan entrepreneurs.
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