About MSME

Mybiz 23-02-2021 03:07:14

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.

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