For a successful product offering detailed market research and professionally managed product development process are the important pre requisites. Micro and small enterprise lending is no exception and for a successful MSME product the institutions first need to know their clients' needs. Strategic issues that need to be on the top priority of the higher management of an MFI venturing into the business of MSME include:
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Institutional mission,
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Industry and competitive environment
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MSME client segmentation
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Institution's capacity to deliver the product
This note attempts to highlight the importance of these strategic issues in detail.