2025, Vol. 6, Issue 1, Part D
A systematic review on the role of financial institutions in promoting small enterprises in India and Afghanistan
Author(s): Merwais Maiwand and MA Azeem
Abstract: The role of banks in promoting small enterprises is crucial for economic growth, employment generation, and financial inclusion. This study explores the effectiveness of banking policies, financial instruments, and support mechanisms for small enterprises in India and Afghanistan. While India's well-developed banking sector, supported by the Reserve Bank of India (RBI) and government initiatives like the MUDRA scheme and CGTMSE, has enhanced financial access for MSMEs, challenges such as collateral requirements and high interest rates persist. In contrast, Afghanistan’s banking sector, constrained by political instability, weak regulations, and limited financial infrastructure, relies on international financial aid and microfinance institutions to support SMEs. This study employs a systematic review of national and international research to identify financing gaps, challenges, and opportunities for small enterprises in both countries. By comparing the banking frameworks of India and Afghanistan, the study offers policy recommendations to enhance SME financing and financial inclusion in Afghanistan.
DOI: 10.22271/27084515.2025.v6.i1d.472
Pages: 307-311 | Views: 231 | Downloads: 72
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How to cite this article:
Merwais Maiwand, MA Azeem. A systematic review on the role of financial institutions in promoting small enterprises in India and Afghanistan. Asian J Manage Commerce 2025;6(1):307-311. DOI: 10.22271/27084515.2025.v6.i1d.472
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