Andhra Pradesh State Financial Corporation- The Entrepreneurial Analytics


Mr. P. Siva Reddy
Asst.Prof, SMS Dept., Lakireddy Bali Reddy College of Engineering,, and Research Scholar, Acharya Nagarjuna University, Guntur, AP, India.

Prof. S. Vijaya Raju
M.B.A, Ph.D.(Retd) Dean Faculty of Commerce & Management Studies, Acharya Nagarjuna University, Guntur, AP, India.


India’s Micro, Small and Medium Enterprise (MSME) sector is a vital contributor to the country’s growth story. Today, more than six crore MSMEs contribute 8 percent to India’s GDP, 6.11 percent to its total manufacturing output, and 24.6 percent in services.1India’s MSMEs are at the heart of India’s growth story. There are more than 6.3 crore MSMEs in the country generating employment for nearly 111 million Indians and creating nearly 1.3 million jobs every year .The entrepreneurial growth and development they contribute are not restricted to the urban areas only. Of the 55.8 million MSMEs, 59 per cent are based in rural India. The segment contributes close to 45 per cent to India’s manufacturing output, over 40 percent to our exports, and about 8 percent to our GDP. Despite being a major and valued contributor to India’s success, MSMEs face a host of challenges. This includes raw material concerns, inadequacy of skilled resources, inflationary pressures, scarcity of capital and technology barrier. The State Financial Corporations (SFCs) are State-Level Financial Institutions play a vital role in the development of SMEs in the respective States in tandem with national priorities. In pursuant to the above, Andhra Pradesh State Financial Corporation (APSFC), a State-Level Development Financial Institution (DFI), was established in 1956 for promoting Small and Medium Enterprises (SMEs) in the State of Andhra Pradesh under the provisions of the State Financial Corporation’ (SFC) Act,1951, with a prime focus on infusing entrepreneurial spirit among entrepreneurial class. It also provides term loans, working capital term-loans, and special-seed capital assistance to SMEs thereby contributing Balanced Regional Development (BRD) of the State of Andhra Pradesh