Growing India's Nano Entrepreneurs

India’s 11 million nano enterprises are a testament to the country’s innovative spirit and limitless potential. This large subset of small businesses, mainly composed of retail or kirana shops, serve local communities and generate annual sales of between INR 1-10 million (about $12,000-$120,000).

However, because many nano entrepreneurs do not have the collateral or credit history to qualify for a loan, they often cannot access resources to grow.

In 2020, we began working with partners across India to design and scale customized solutions, expanding nano entrepreneurs’ access to financial services.

To help nano entrepreneurs grow their businesses, support their communities, and secure a stable livelihood, we focus on two things:

• Enabling innovative lending models and customized financial solutions: Many nano entrepreneurs lack formal banking records, but alternative credit scoring models use alternate data to assess repayment ability, expanding access to credit and offering tailored products.
• Reducing risk to encourage investments in nano enterprises: Credit guarantees help reduce the risk of investing in nano enterprises, motivating finance companies to make more credit products available to these entrepreneurs.

India’s 63 million MSMEs are the backbone of the economy, contributing nearly 30% of GDP and employing a third of the workforce. Among them, 11 million nano entrepreneurs—running small shops and manufacturing units—have the potential to drive incredible growth.

By unlocking the estimated $25 billion market for small business credit, we can help them expand expand their businesses, create millions of jobs, and fuel India’s economic future. Unlocking this credit will empower them to thrive, transform their communities, and accelerate economic progress.