
Financial
Management
in
SmaU
Busines
s
incomplete form, inadequate information
or
docume
nt
s as sufficient grounds for
rejecting the loan application irrespective
of
the "purpose". This may provide room
for emergence
of
corruption in financial institutions.
Bank
s
in
sist that the borrower maintain proper books
of
accounts and submit
monthly, quarterly, and annual
repom
. Small entrepreneurs. particularly proprietary
organisations, would find this
in
co
nvenient and costly. Though third party guarantee
is not to be insisted upon
in
case
of
sma
ll
loans, it is almost compulsory. Many small
entrepreneurs who take up self-employment for the sake