The Small and Medium Enterprises (SMEs) sector requires substantial financial support for its growth. This sector has the potential to generate employment and boost exports. An in-depth study of SMEs will reveal that the most effective model for giving them a boost is by creating a private-public partnership between the entrepreneurs and the funding and guaranteeing agencies, so that the talented technocrats get an opportunity to have a full view of market cycle. In the process, they will also learn about the process of marketing strategy in order to withstand all types of risks.

It is a well-known fact that Small and Medium Enter prises (SMEs) play a catalytic role in the development process in most countries of the world. This is evident from their contribution in the manufacturing industries. They not only generate employment opportunities, but also boost exports. No doubt it has been well-established through various research works undertaken by the UN, the US, and Europe that virtually SMEs have helped in the growth of entrepreneurs from small to medium and from medium to large enterprises both in developed and developing countries.

Despite such worldwide acknowledgment of their contributions, recent research revealed that they are under `continual constrained situation `with regard to access to finance'. In fact, one of the major recommendations of the World Bank in this regard was to develop Trade Finance Clinics for SMEs for Africa (2006) so that their financial needs could be addressed in a comprehensive manner. It may be added further that to make small entrepreneurs become medium and big over the years, one has to ensure that they are funded timely and adequately, despite their fluctuations in prosperity arising from trade cycle or market risk.

However, the problem of providing funds at easy and competitive cost to the SMEs is still not resolved and perhaps more efforts have to be made to address the issue. The problem is felt even more in the developing countries. In fact, the European Commission held four workshops of specialists to identify the key problems and to recommend how the problem of providing funds could be resolved, if not instantly at least over a period.

Professional Banker Magazine, Small and Medium Enterprises , marketing strategy, World Bank, Venture Capital , VC, entrepreneurs, Small Industry Development Bank of India, Trade Finance Clinics , Information technology, IT Projects, private sector, Financial institutions, Equity participation, Marketing management.