Title: Impact of credit guarantees on entrepreneurship

Authors: Rajeev Roy

Addresses: Xavier Institute of Management, Xavier Square, Bhubaneswar 751013, India

Abstract: The paper explores the performance of the loan guarantee scheme in India. For entrepreneurs without access to own collateral, a loan guarantee scheme allows access to bank loans with the state acting as a guarantor. Such schemes have been successfully implemented in most of the developed nations like UK, France, Canada and USA. The schemes are generally viewed as helpful for entrepreneurs. In India too, the Credit Guarantee Fund Trust for Small Industries (CGTSI) has been set up by the Government of India, with this objective in mind.

Keywords: government policies; credit guarantees; loan guarantees; policy evaluation; India; collateral; emerging economies; bank loans; banks; banking; state guarantors; developed nations; United Kingdom; UK; France; Canada; United States; USA; fund trusts; small industries; CGTSI; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship.

DOI: 10.1504/IJESB.2011.037342

International Journal of Entrepreneurship and Small Business, 2011 Vol.12 No.1, pp.101 - 108

Available online: 03 Dec 2010 *

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