Funding is the main roadblock for SMEs. Hence, it is a good opportunity for banks/FIs to target untapped markets that have substantial SME presence. However, to tap this huge unorganised and widely scattered market, a focused approach needs to be adopted. A well-defined roadmap that takes into account geographies, sectors and the like is to be laid out.

Acuité's rich experience will help identify potential SME clusters and factor in the following:

• Analysis of the SME rated clients' profile geography wise and industry wise
• Analysing information from other credit rating agencies (CRAs)
• Total number of SME units and their growth in the last couple of years
• Total investments made by players (new and incumbent) in clusters
• Estimated business/revenue size
• Industry coverage (including sub-sectors)
• Infrastructure and economic profile

Additionally, Acuité will consider infrastructure, number of employees, export potential of the cluster, investments to name a few.