The Role Of Financial Institutions In Promoting Entrepreneurship And Economic Growth

Abstract

Financial institutions have a significant role in fostering entrepreneurship, economic development, and the expansion of small and medium-sized businesses. They provide entrepreneurs with funding options such as loans, venture capital, and crowdfunding so that they can invest in new technology, expand their operations, and create employment. In addition to providing entrepreneurs with counselling, training, and networking opportunities, financial institutions also offer support services such as business mentoring. In addition, they manage both their own and their customers' risks by adhering to regulations and policies. In addition to collaborating with other organisations, financial institutions cultivate an entrepreneurial ecosystem that encourages innovation and entrepreneurship. Financial institutions assist SME entrepreneurs in launching and expanding successful businesses, thereby generating jobs and contributing to economic expansion.