IRJC International Journal of Marketing, Financial Services & Management Research Vol.1 Issue 7, July 2012, ISSN 2277 3622 www.indianresearchjournals.com 22 ENHANCING SMES ACCESS TO GREEN FINANCE DR. J. VENKATESH*; MS. R. LAVANYA KUMARI** *Associate Professor, School of Management Studies, Anna University of Technology Coimbatore, Jothipuram Post, Coimbatore, Tamil Nadu, India. **Ph.D Research Scholar, Rayalaseema University, Kurnool, Andhra Pradesh, India. School of Business Management, JB Institute of Engineering & Technology, Yenkapally, Moinabad (Mdl), Andhra Pradesh, India. ABSTRACT Many governments of developing countries perceive micro, small, and medium enterprises as engines of employment, poverty alleviation, and broad-based economic growth. Growth and development of micro and small enterprises in developing countries can increase poor people‟s opportunities, security, and empowerment. Small and medium-sized private enterprises are expected to play a major role in creating jobs and maintaining economic dynamism in any countries. In transition economies, however, they are faced with a host of obstacles in their business activities. They include a multitude of administrative barriers, lack of entrepreneurship, limited access to finance, lack of skills and technologies, etc. Among these constraints, financing difficulty is often the most serious particularly for smaller businesses. Financing is necessary at every stage of a business life cycle. It is required to help MSMEs set up and expand their operations, and to develop new products. India has a well developed financial system, comprising banks, financial institutions, non banking financial companies and also venture capital companies. All these institutions through various schemes cater to the diverse financial needs of the industry. Green Finance is a market-based investing or lending program that factors environmental impact into risk assessment, or utilizes environmental incentives to drive business decisions. KEYWORDS: Finance, Green finance, MSMEs, SMEs & SIDBI. ______________________________________________________________________________ INTRODUCTION Small business is human scale. And human scale is often green or at the least, sustainable. Small and medium size businesses are the backbone of communities and often generations of families. But small and micro businesses that are starting up often face economies of non-scale that large businesses don't face. Large businesses receive preferential treatment, quantity discounts and other perks that size provides. Yet both large and small are part of our ecosystem of human productivity, and "green" is a process that can bring them together. The key to poverty alleviation is economic growth that is inclusive and reaches the majority of people. Improving