Small and Medium Enterprises (SMEs) constitute the backbone of every developing economy by generating employment, fostering entrepreneurship, promoting innovation, and contributing significantly to industrial and economic growth. However, their sustainability and expansion largely depend on efficient credit management and access to institutional finance. This book, Credit Management and Small & Medium Enterprises (SMEs), has been designed to provide students, academicians, researchers, entrepreneurs, bankers, and policymakers with a comprehensive understanding of credit management practices, financing mechanisms, government support schemes, risk assessment, rehabilitation of sick units, and the evolving financial ecosystem for SMEs. It presents the concepts in a systematic and reader-friendly manner, supported by practical insights and contemporary developments in the SME sector.
The book follows a structured approach covering the fundamentals of SMEs, credit appraisal, lending practices, cluster development, credit guarantee mechanisms, digital transformation, sustainability, recovery management, and emerging financial trends. Every chapter includes well-organized discussions, summaries, review questions, and multiple-choice questions to enhance conceptual clarity and academic learning. It is hoped that this book will serve as a valuable reference for university curricula and professional studies while equipping readers with the knowledge and analytical skills required to understand the dynamic relationship between credit management and the sustainable growth of Small and Medium Enterprises.