Finance is one of the factors which plays an important role in industrial development particularly MSMEs and contributes effectively in growth of economy. Hence, financing of MSMEs contributes to the development of industrial sector. Easy access to finance allows industrial units to undertake productive investments to expand their businesses and to acquire the latest technologies, thus ensuring their competitiveness and that of the nation as a whole. In the developing countries like India the role of MSMEs has been widely recognized as an instrument for the economic and social development as well as balanced regional and sectorial development of any country. Economic growth and development of any country depends upon a well-structured financial system. Financial system includes a set of sub-systems of financial institutions like financial markets, financial instruments and services which help in the formation of capital. The APSFC is a State level financial institution. It has gained prominence and has been promoting rapid industrial growth in the state. It offers a package of financial assistance to entrepreneurs to enable them to translate their ideas into reality.

About the Author

Dr.S.Dilli is currently working as Teaching Faculty, Dept. of Management Studies, BIMS,Bangalore. He has published 16 articles in reputed journals and presented papers in 29 national and 5 international conferences. Dr.K.Jayachandra Reddy is Asso. Professor of Commerce, SVU, TPT. He has published 2 books, 20 articles and attended in 40 seminar.

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