DO YOU FALL UNDER MSME CATEGORY??

Are You a Micro, Small or Medium Enterprise???

Let’s have a look at it.. !!!As per MSMED Act 2006, parameters to identify MSME are…

Manufacturing Enterprises

(Investment in Plant & machinery)

Service Enterprises (Investment in

Equipment)

Micro Enterprises Less than 25 lakhs Micro Enterprises Less than 10 lakhs

Small Enterprises 25 lakhs to 5 crores Small Enterprises 10 lakhs to 2 crores

Medium Enterprises 5 to 10 crores Medium Enterprises 2 to 5 crores

Now you must have got where do you fall in.. Lets see what is your contribution to our economy

MSME: A HELPING HANDyour contribution towards economy…

MSME to Indian EconomyMost of us do not have a clear idea about these sector that is an enormous contributors to the economy.. Lets have a look at their stand…

• Contribution to GDP• Ancillary to large Industries• Shiners from a large crowd• Steps in international market• Backbone of economy

Lets have a look how to get registered your business as MSME

Government has taken several steps to boost this sector, but 70% of them could not avail the benefits and that’s because they are not registered as MSME

REGISTRATION OF MSMEGet registered and avail all schemes and benefits…

Registration of MSMEs MSME registration is not statutory, but it is beneficial as it provides a range of benefits and other support to the enterprises that are registered.

After registrations, any enterprise becomes qualified to reap the benefits offered under MSMES Act

So, if you want to get your business registered as MSME, you need to file your business with Udhyor Aadhaar Memorandum (UAM) once your business has started operations, so that using the UAM number you can access other services.

Earlier it was a two way process:• EM – I = Registration before setup of unit• EM – II = Registration after commencement of operationsBut after amendments, the EM-I is abolished and EM-II has been replaced by UAM

Benefits from Central Government

• Easy sanction of bank loans• Lower rates of interest• Excise exemption scheme• Exempt under Direct tax Laws and statutory support• Reservations

Benefits from State Government

• Development of specialized industrial estate• Tax subsidies• Power tariff subsidies• Capital investment subsidies and other support

Now, once you are registered, you can reap the benefits offered by different schemes by MSME ministries and other government bodies

SCHEMES FOR MSMEInitiatives to enhance MSMEs …

MAKE IN INDIA

Recent initiatives by Government bodies are aimed towards encouraging entrepreneurs and empowering MSMEs to overcome hurdles and flourish.

Initiatives such as Make in India, MUDRA, CGTMSE, etc introduced by the Government will further encourage entrepreneurs and accelerate growth across sectors.

• Domestic manufacturing and thus set up of more units creating jobs opportunities

• More investments means access of finance in the sector• Upgradation of technology• Quicker ways of project clearance

Make in India is a campaign whose mission is to manufacture products in India and focuses on helping and attracting companies to invest and put up their units of manufacturing in India.

• Security free financial aid up to 10 lakhs.• Increase liquidity and access of funds• To be repaid in suitable installments with suitable memorandum periods as per cash

flow of the business

MUDRAMudra Bank is Micro Units Development Refinance Agency which will act as a regulator of all ‘Micro-Finance Institutions’.

• Loan up to 1 crore to start up/ existing business as Term Loan or Working Capital Loan• Eligible to Manufacturing and Service sectors• Collateral free loan• Loans with less risk as the lender is supported by the scheme in case of default of

borrower

CGTMSEMinistry of MSMEs and SIDBI established a trust named CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises). Its main objective is giving importance to project viability rather than financial capability.

MSMEs are still not able to push themselves forward to showcase their potential. There are still obstacles in their path...

MSME: KEY CONCERNSKey hindrances faced…

Concerns to the sector

Whatever yardstick one uses, the importance of MSMEs cannot be overlooked. They are showing the results much below their potential, mainly because they are unable to showcase their strength.

• Easy Access to Finance• Bank reluctance in offering loans/ credit• Lack of access to new technology• Poor Infrastructure• Immense Competition • Lack of Management Skill• Challenge of identifying market

For benefits out of the schemes to reach to this sector, there should be • Proper co-ordination implementation of the schemes• Awareness to them

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