About MSME
Mybiz
23-02-2021
MSME (Micro, Small
and Medium Enterprises)
The full form of MSME is Ministry of Micro, Small and Medium
Enterprises. The ministry of small scale industries and agro and rural
industries was created in October 1999. In September 2001, the ministry was
split into the Ministry of small scale industries and the Ministry of Agro and
Rural industries. The Ministry was tasked with the promotion of micro and small
enterprises. The small industries development organisation was under the
control of the ministry.
Ministry of Agro
and Rural Industries
The Ministry of agro and rural industries had the objectives
of facilitating coordinated and focused policy and effective implementation of
programmes, projects, schemes, etc., for improving supply chain management,
enhancing skills, upgrading technology, expanding markets and capacity
buildings of entrepreneurs and their groups.
It was headed by the Minister of Agro and Rural Industries
and was based at Udyog Bhawan.
Functions
It provides technical training to artisans and workers which
are sponsored by the government. It also organizes training of Extension
Officers engaged in various developmental Organisation. It also gives summer
training programmes for Degree/Diploma Engineers.
Registration
This sector is the job creator sector which plays a crucial
role to providing large scale employment and industrialization of rural areas.
MSME registration is not mandatory it is optional but it is
a good suggestion for small and medium enterprises and it provide various
benefits.
The benefits of MSME registration include priority sector
lending, capital investment subsidies, power tariff subsidies, excise and
direct tax exemptions.
There are three
types of MSME
1.
Micro Enterprises
2.
Small Enterprises
3.
Medium Enterprises
Micro Enterprises
A micro enterprise is an enterprise where investment in
plant and machinery does not exceeds Rs. 25 lakh.
Small Enterprise
A small enterprise is an enterprise where the investment in
plant and machinery is more than 25 lakhs but does not exceeds Rs. 5 crore.
Medium Enterprise
A medium enterprise is an enterprise where the investment in
plant and machinery is more than 5 crore but does not exceeds Rs. 10 crore.