“Starting your own business is like riding a roller coaster. There are highs and lows, and every turn you take is another twist. The lows are really low, but the highs can be really high. You have to be strong, keep your stomach tight, and ride along with the roller coaster that you started”
Every business in its initial days need resources to grow. These resources can be termed as people, money, raw materials, business understanding and many more.
In Indian business environment MSME sector constitutes a major proportion of total population.MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.
Considering the role played by MSME sector and for growth of it, Government has set-up a separate ministry which works towards growth and development of small industries.
Ministry of Micro small & Medium enterprises aims at following two objectives;
- Providing support to existing enterprises &
- Encouraging creation of new Enterprises.
Business building is a an exercise which require multiple avenues to be taken care of. It is not necessary only to have a business idea but how it will be executed and if executed so, the approach should be in right direction. Besides cost benefit analysis is also a relevant factor while making business decision and executing them. Arrangement of finance or procurement of raw material or hiring of employees or marketing of your product, every facet of business decision need informed decision and cooperation of other stakeholders too. The government support in these areas works as an additional external assistance and become quite useful too at the same time.
There are separate department under ministry of MSME viz;
- National Small industries corporation
- Department of MSME
- Coir division
Further enterprises are divided among 02 categories viz;
- Micro Enterprises
- Small Enterprises
- Medium Enterprises
The enterprises are classified among these 03 categories (as mentioned above) in following manner
|Enterprises||Investment in plant & machinery|
|Micro Enterprises||Does not exceed twenty five lakh rupees|
|Small Enterprises||More than twenty five lakh rupees but does not exceed five crore rupees|
|Medium Enterprises||More than five crore rupees but does not exceed ten crore rupees|
|Enterprises||Investment in Equipments|
|Micro Enterprises||Does not exceed ten lakh rupees:|
|Small Enterprises||More than ten lakh rupees but does not exceed two crore rupees|
|Medium Enterprises||More than two crore rupees but does not exceed five crore rupees|
There are separate laid down procedures for calculation of investment in plant & Machineries.
The department of MSME working towards growth and development of small enterprises comes out with various schemes which promises encouragement as well as assistance both
- Prime Minister Employment Guarantee Programme
- Udyog Aadhar
- MSME Samadhan
- Marketing promotion schemes
- Financial Support to MSMEs in ZED Certification Schem
- Credit Linked Capital Subsidy for Technology Upgradation
- MSME DataBank
- Raw Material Assistance
The MSME support is in the form of government incentive and enterprises can have access to all these schemes for betterment of their business and ultimate growth.