Question

For the economic and industrial development Micro, Small and Medium Enterprises play an important role such as _____________.
(1) They have the capacity to absorb skilled and unskilled labor available in the country.
(2) Such institutions provide lots of employment and allow income to get concentrated in few hands or in few areas.
(3) They help in eradication of poverty by providing self-employment opportunities.
Select the correct option.

• A. Only (1)
• B. Only (2)
• C. Only (3)
• D. Only (1) and (3)

Answer 1

The correct option is D Only (1) and (3)

According to the MSMED Act, 2006, the definition of Micro, Small and Medium Enterprises are defined based on their investment in fixed assets. The Act mentions their role as follows:

1. They have the capacity to absorb skilled and unskilled labour available in the country.
2. They help in the eradication of the poverty by providing self-employment opportunities.