The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs), which contribute significantly to the national economy in terms of production, employment and exports. MSME sector is an important pillar of Indian economy as it contributes greatly to the growth of Indian economy with a vast network of around 3 crore units, creating employment of about 7 crore, manufacturing more than 6,000 products, contributing about 45% to manufacturing output and about 40% of exports, directly and indirectly.
In addition to extending Direct assistance to MSMEs in niche areas viz. Energy Efficiency, Cleaner Environment and Receivable Finance for addressing delayed payments besides units in service sector, SIDBI also extends Direct Risk Capital assistance to MSMEs in the form of sub-debt to address various needs such as promoter’s margins requirement, intangibles etc. This is treated as quasi equity enabling them to raise additional term loans. SIDBI also provides equity assistance to units including new age start-ups through Venture Capital funds.