Micro, Small

and Medium
Enterprises
(MSMEs)
 Introduction

 MSME stands for “Micro, Small and Medium Enterprises

Development.
 MSMEs have contributed immensely to the country’s socio-
economic development.
 The Government of India has introduced MSMED Act of 2006.
 According to the annual report by the Government (2018-19), there
are around 6,08,41,245 MSMEs in India.
 Definition Of MSME
The Government of India has enacted the Micro, Small
and Medium Enterprises Development (MSMED) Act,
2006 in terms of which the definition of micro, small
and medium enterprises is as under: 
 The New MSME Definition (May 2020)

 Investments alone will no longer

120
characterize MSMEs 100
100

 This may grant a unified

80
description for all things related to
60
taxation, investment, and more. 50

40
 It would further refine the business 20
20
enterprises. 1
10
5
0
Investment Turnover
 13 May 2020 – Center officially
th
Micro Small Medium

revised the definition.

 New MSME Definition based on
Investment and Turnover
(June 2020)
 Revised on 1st June 2020. 300

250
 This was made as a part of the 250

Atmanirbhar Bharat Abhiyaan 200

relief package.
150

 This definition resulted in larger

100
number of medium-sized
enterprises. 50
50 50

10 5
1
0
Investment Turnover
Micro Small Medium
 Importance Of MSME In India
 MSMEs work for the welfare of workers and artisans
 Provides support to banks
 Promote the development of entrepreneurship
 Support upgradation of developmental technology and
infrastructure development
 Assistance to domestic and export markets
 Offer quality certification services
 Support product development and packaging
 Characteristics Of MSME
 The Firm often places little Emphasis on long-term planning
Although the owner Manager
 It may be aware that a formal long term plan is necessary.
 Owners, managers, entrepreneurs are reluctant to make a plan.
 It requires a handful of intellectual Exercise with Past, present
and future data to process the future.
 Normally, the Firms Stock is not listed with a Stock
Exchange.
 The Management of the firm is independent.
 They are not subject to any others supervision.
 Entrepreneurs are the owner managers of small.
 They are the sole authority of the firm to decide about the
organizational Matters.
 A small business should not have a major share of the market.
 Industries Under MSME

 Food Processing
 Agriculture Inputs
 Chemicals And Pharmaceutical
 Engineering
 Textile and Garments
 Sports Goods
 Plastic Products
 Computer Software
 Reasons For Decline in MSME

Shortage of working capital

Lack of balance

Lack of business experience

Fraud or Disaster

Wrong location

Insufficient Inventory Turnover

 Improper mark-up

 Poor credit-granting practice

 Neglect

 Too much investment in fixed assets

 Marketing inefficiency

 Lack of planning
 Marketing Strategies to Promote
MSME Sector
 A lot of MSMEs try to
implementing various online
marketing strategies such as
blogging, email, and social media
according to the needs and
capacities.
 Let us take a look at some of the
best marketing strategies for the
growth of different industries.
 List Of Marketing Strategies

 Establishing a brand name

 Knowledge about customers

 Get listed on Google

 Advertise on Facebook

 Be accessible online 24x7

 Connect with influencers

 Mix them up
 Proven Strategies to promote business
across world
 Content marketing

 Google my business

 Email marketing funnel

 Offer free consultation

 Write a article continuously

Top Challenges Faced During Covid-
19 Pandemic
 Freeze in external funding

 Immense cash crunch

 Offside of the government’s protectionist policies

 Fall in creditworthiness and ratings

 Lack of recapitalization
 Further delay in lockdown and the backlash

 Catching up with the online and digital race

 Balancing the work-life tug of war

 Severe mental health issues

 Fear of shutting down

 Survey On Impact Of Pandemic

 MSMEs are seeking support from the Government to tide over this
crisis
 > 50% of MSMEs expect the government to offer tax discounts
 36% of MSMEs asking for loans at zero interest
 30% of MSMEs started a business website or e-commerce
functionally
 Lack of technical expertise and the perceived costs of developing a
web presence continue to be key challenges web presence.
 Relief Measures By Government
 Rs 3 lakh crore collateral-free auomatic loans for
business & MSME.
 Rs 20,000 crore subordinate debt for stressed
MSMEs
 Rs 50,000 crore equity infusion for MSMEs through
fund of funds
 New definition of MSMEs
The benefits of MSME classification:
 Global tenders to be disallowed up to Rs 200 crores.
 Other interventions for MSMEs.
Interest Rate For MSME in Various Banks
 Union Budget 2021

Union budget 2021 expectations for MSMEs:

 Atmanirbhar Bharat
 Improving Infrastructure
 Rural & labour Development
 Ease in loan application
 Conclusion
 In India, MSMEs contribute nearly 8% of the country’s
GDP, around 45% of the manufacturing output, and
approximately 40% of the country’s exports.

 MSME have helped promote the growth and development

of khadi, village, and coir industries.