What is the full form of MSME?
The full form of MSME is the Ministry of Micro, Small and Medium Enterprises. The MSME is the apex body for the formation and implementation of micro, small and medium enterprise legislation, regulations and laws in India. MSME is a Government of India division. Depending on the region, the turnover and workforce of micro, small and medium-sized companies vary.
Mission and vision of the MSME organization
Mission – Promoting the growth of micro, small and medium-sized companies, including the Khadi, village and coir sectors, to build new companies and produce more jobs.
Vision – Sustainable growth of micro, small and medium enterprises that are internationally competitive as the most significant contributors to the Indian economy.
Goal – Promoting the country’s manufacturing base by enhancing MSME efficiency through the development of skills and entrepreneurship.
Duties of MSME
To identify micro, small, and medium enterprises, different countries use different parameters. In India, under section 7 of the Micro, Small and Medium Enterprises Development Act 2006 (MSMED), micro, small and medium enterprises are specified based on invested capital in plants and machinery.
- Assistance and the flow of credit to MSMEs
- Allow MSME competitiveness
- Improving the manufacturing base via the latest technologies
- Promoting MSMEs via the approach of cluster bases
- Marketing assistance to MSMEs
- Education for skill development & entrepreneurship creation
- Creating new micro-enterprises via the PMEGP(Prime Minister’s Employment Generation Program)
- Promoting the sector of Khadi & Village Industries (KVI) and Coir Industry.
Manufacturing Businesses Criteria:
- The Manufacturing Enterprises are referred to as Micro Enterprises where expenditure in the plant & equipment does not surpass Rupees 25 lakh.
- Manufacturing Enterprises, where there is more than Rs. 25 lakhs of investment in the plant and machinery, but less than Rs . 5 crore Rupees called Small Enterprises.
- Manufacturing Enterprises, which range from Rs . 5 crores to Rs . 10 crores for expenditure in plants and equipment are described as Medium Enterprises.
Requirements for Service enterprises
- In the case of Service Enterprises, the company is defined as a micro-enterprise if the investment in equipment does not cross Rs. 10 lakh.
- The company is defined as Small Enterprise if the expenditure falls from Rs . 10 lakh to Rs . 2 crores.
- The company is defined as a medium enterprise if the expenditure varies from Rs . 2 crores to Rs . 5 crores.