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SEMINAR ON MICRO , SMALL AND MEDIUM

ENTERPRISES

PUNEET CHAUDHARYM.B.A. GEN .A16101024

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Table Of Contents• INTRODUCTION• INDUSTRIES UNDER MSMES• CHARACTERISTICS , OBJECTIVES OF MSME• ROLE OF MSME• TYPES OF ENTERPRISES• MSMED ACT • CATEGORIZATION OF ACTIVITIES UNDER THE ACT• THREATS AND CHALLENGES OF MSME• SUGGESTIONS FOR IMPROVEMENT• CONTRIBUTION OF MSME• LEADING BANKS PROVIDING LOANS TO MSMES

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Introduction• They provides the largest

share of employment after agriculture• They have emerged as a

dynamic sector of economy.• Ministry of micro small &

medium enterprises contributes nearly 8% in GDP, 40% in manufacturing output & 45% in exports.

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• They are widely dispersed across the country and produces a diverse range of product and service. • It helps in the growth of a

country.• They are the nursery for

entrepreneurship and innovation.

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Industry Under MSME• Food processing(kfc Product,berger,pasta)

• Agricultural inputs(seeds, fertilizer)

• Textiles and garments

• Meat products

• Sports goods

• Plastics products

• Electronic products

• Computer software etc.

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Characteristics Of Msme’s

• Low cost of production•High employment generation•Greater flexibility

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Objectives Of Msmes

1. To create permanent employment opportunities to public at large at relatively small costs2.To meet a major part of the increased demand for consumer goods and simple producer goods .3.To ensure more equitable distribution of national income to society at large scale .

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Role Of MSME’s In India

• Employment generation• Export contribution•Utilizing resource optimally• Increase GDP• Equitable distribution of National income.

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Types Of EnterprisesManufacturing Enterprises

Micro Enterprise•Micro enterprise generally refers to a small business employing 10 people or less• It is an enterprise in which investments in plant and machinery is between Rs 5 lakh to Rs 25 lakh.• These enterprises works and operates not by choice but out of necessity

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Small Enterprise

•Small enterprise generally refers to a business employing 50 persons or less• It is an enterprise in which investments in plant and machinery is between Rs 25 lakh to Rs 5 crores.• These enterprise works and operates to earn a small amount of profit.

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Medium Enterprise

•Medium enterprise refers to a business employing maximum to 250 employees• It is an enterprise in which investment in plant and machinery is between Rs 5 crores to Rs 10 crores • These enterprises works and operates to earn a fair amount of profits to increase their standard of living.

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Service EnterprisesMicro Enterprise• An enterprise in which investment in plant and machinery is up to Rs 10 lakhs

Small Enterprise• An enterprise in which investment in plant and machinery is from Rs 10 lakhs to Rs 2 crores

Medium Enterprise• An enterprise in which investment in plant and machinery is from Rs 2crores to Rs 5 crores.

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Micro, Small And Medium Enterprise Developmental Act, 2006

• This act was passed on October 2 , 2006.The main features of this act are-• Setting up of a national board for msmes.• Classification of enterprises• Advisory committees to support msmes• Measures for promotion , development and

enhancement of msmes• Schemes to control delayed payments to

msmes

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Categorization Of Activities Under Manufacturing Or Services Under

The MSMED Act 2006-

Manufacturing.

• Beedi/ cigarette manufacturing and other tobacco products

• Medical equipment

• . Printing

• Generation of electricity though windmill.

• Ayurvedic product

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Service

• Publishing

• Hospitals

• Restaurant

• Hotels

• Education

• Software service

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Threats Of MSME’S• Improper Raw Material • Technological Problem• Less Advertisement • Infrastructure • Marketing Problem.• Delayed Payments• Problem Of Sickness.• Lack Of Industrial Work Culture

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Challenges For MSMES

• Problem of skilled manpower.• Inadequate credit assistance.• Irregular supply of raw material.• Lack of machinery and equipment.• Absence of adequate infrastructure.• Other problems like poor project planning, managerial inadequacies,

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Suggestions For Improvement

• Supply Of Technology• Conduct Of Survey• Awareness Creation• Involvement Of

Stakeholders• Venture Capital• Interaction With

Research And Development Sector• Advertisement

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CONTRIBUTION & PERFORMANCE OF MSME’s

31 Million Employment

13 Million MSME’s producing more

than 8000 Products

10 % Exports45 % Industrial production MSME’s

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Leading Banks Providing Loans To MSME’S

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Employment In MSME’S Sector

2009-10 2010-11 2011-12 2012-13 2013-140

100200300400500600700800

EMPLOYMENT

number in lakh person

595.66 626.34695.38

695.40 732.24

YEAR

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Number Of Employment Generation In MSMES

7%

69%

24%

2009-10MEDIUM MICRO SMALL

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Sectors Of MSMEThis chart shows the percentage of types of MSME enterprises

13% enterprises are engaged in service sector and 87 % enterprises are engaged in manufacturing sector

SERVICEMANUFACTURING

13%

87%

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MSME’S Clips…..

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Manipur handicraft factory…..

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Rugs Factory- Jaipur

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Bangles Factory……

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Paper Mache Small Enterprise