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Micro Small and Medium Enterprises

Presented by:
Stuti Nuwal
Tushar Aggarwal
Content….
 Meaning
 Latest proposal- Meaning
 Importance
 Contribution to Indian economy
 Problem MSME’s facing
 Schemes for MSME’s
 Awarded MSME’s India
Meaning at the time of introduction
The Government of India has enacted the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006.
Enterprises engaged in the manufacture, processing or preservation of goods as
specified below:
Micro enterprise - where investment in plant and machinery does not exceed Rs. 25
lakh;
Small enterprise- where the investment in plant and machinery is more than Rs. 25
lakh but does not exceed Rs. 5 crore;
Medium enterprise- where the investment in plant and machinery is more than Rs.5
crore but does not exceed Rs.10 crore.
In case of Service enterprises:-
Micro enterprises:-Investment thresholds upto Rs 10 lakh.
Small enterprises:- Investment between Rs 10 lakh to Rs 2 crore.
Medium enterprises:-Investment between Rs 2 crore to Rs 5 crore.
Latest Definition
The proposed thresholds are:
 Micro enterprises- up to Rs5 crore.
 Small enterprises- Rs5 crore-Rs75 crore.
 Medium enterprises- Rs75 crore- Rs250 crore.
Importance
Create a large scale employment:
 Employment opportunity has employed more than 50 million peoples. But India
produces 1.2 million graduates per year and out of total 0.8 million are engineer.
Economic stability in term of Growth and leverage exports:
 MSME growth drivers contribute 8 % to GDP.
 MNC’s are buying semi finished and auxiliary products from small enterprises
 Its create a linkage between MSME and big companies. Even after the implementation
of the GST 40% MSME sector
 It also applied GST Registration which increase the government revenue by 11%.
 MSME is termed as “engine of growth”
Conti…
Encourages Inclusive Growth:
 About 50% of wealth in India in owned by just 100 people which is due to
unequal distribution of wealth.
 MSME is on the top in ministry of agenda on this IG for several years
Cheap Labour and minimum overhead:
 Large organization requires effective and huge labour. But in MSME the
labour req is less and low skilled can also work.
Conti….
Simple Management Structure for Entreprises :
 MSMEs do not require a huge capital to start. With limited resources available
within the control of the owner, decision-making becomes easy and efficient.
 The owner himself/herself can manage it. Therefore, it can be run single-handedly.

Plays an important role in making “Make in India” possible:


 incorporating a new business has been made easy.
 MSME is the backbone in making this dream a possibility, the government has
directed the financial institution to lend more credit to enterprises in MSME
sector.
Contribution to Indian economy
(Source: The Economic Times)

There are close to 51 million MSME units in the country that


Employ about 117 million people across various sectors, constituting 40% of the workforce.
The MSME share to the total Gross Domestic Product (GDP) is about 37%.
Contribute 43% of exports based on the data maintained by Ministry of Commerce.
Top two MSME states in India:-
MSME contributes about 45% to manufacturing sector, and perhaps 40% to Exports, it forms the
highest share of Employment sector in India, contributing around 69% to it.
West Bengal(11.62%)
Maharashtra(4.89%)
Problem MSME’s facing
 Scarcityof raw material
 Inadequate credit assistance
 Problem of skilled manpower
 Low level of technology
 Lack of marketing skills
 Limited access to equity capital
 Export challenges
Schemes for MSME
 Prime Minister Employment Generation Programme(PMEGP)
 Credit Guarantee Scheme for micro and small enterprises.
 Credit linked capital subsidy scheme(CLCSS)
 Pradhan Mantri Mudra Yojana.
 Development of Micro Units Development and Refinance
Agency(MUDRA).
 Training programme on packaging for exports
 Ministry has established Technology Centers across India.
Awarded MSME’s of India
Chai Point (Medium enterprise)-Food and beverages
DreamHunt India(Micro-enterprises)-Education
Moha atelier(Micro-enterprises)-Consumer
Nature organic(Micro- Enterprise)-Agri Business
Cleantech water(Micro- enterprise)-Manufacturing
MSME’s Clip
Bangles Factory
Rugs Factory Jaipur
Paper Mache Industry
Suggestions…
 Availability of credit
 Assistance in marketing
 Technology upgradation
 Improvement in infrastructure
 Fixing tax related issues
 Resolving sector specific problems