Role Of Non-Banking Financial Institutions Towards Sustainable Development of Small and Medium Enterprises

Abstract

Introduction: In this essay, we will discuss some of the major challenges that NBFIs face in promoting the sustainable development of SMEs.

Literature review: This section discusses that SMEs face many kinds of issues while accessing finance from traditional financial sources, including high collateral needs, complex loan systems, and limited credit histories.

Methodology: It can be identified that non-financial institutions can design and conduct the targeted financial products that can fulfill the specific requirements of SMEs with the help of primary quantitative data collection and SPSS. These methods will allow the stakeholders to promote sustainable practices and create a completely inclusive environment for SMEs to thrive.

Findings: This section highlights how non-banking financial companies play a critical role in encouraging the overall sustainable growth of both small and medium businesses and SMEs by providing access to finance as well as other financial operations.

Discussion: NBFIs have increasingly focused on encouraging sustainable finance practices that will align with sustainable development goals. Some NBFIs have initiated green financing programs for supporting SMEs in growing and conducting environmentally sustainable projects.

Conclusion: NBFIs play a critical role in promoting the sustainable development of SMEs by promoting sustainable finance development practices. This section discusses the as SMEs continue to develop and contribute to economic development, the effectiveness of nonfinancial institutes has become more significant in assuring their financial inclusion as well as overall sustainable growth.