2. SEMINAR ON
MICRO , SMALL AND MEDIUM
ENTERPRISES
PUNEET CHAUDHARY
M.B.A. GEN .A
16101024
2
3. 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 3
4. 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. 4
5. • 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.
5
6. 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. 6
8. Objectives Of Msmes
1. To create permanent employment opportunities
to public at large at relatively small costs
2.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 .
8
9. Role Of MSME’s In India
• Employment generation
• Export contribution
• Utilizing resource optimally
• Increase GDP
• Equitable distribution of
National income.
9
10. Types Of Enterprises
Manufacturing 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
10
11. 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
11
12. 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.
12
13. Service Enterprises
Micro 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
13
14. 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 msmes14
15. 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
15
17. Threats Of MSME’S
• Improper Raw Material
• Technological Problem
• Less Advertisement
• Infrastructure
• Marketing Problem.
• Delayed Payments
• Problem Of Sickness.
• Lack Of Industrial Work Culture
17
18. 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,
18
19. Suggestions For Improvement
• Supply Of Technology
• Conduct Of Survey
• Awareness Creation
• Involvement Of
Stakeholders
• Venture Capital
• Interaction With Research
And
Development Sector
• Advertisement
19
20. CONTRIBUTION & PERFORMANCE
OF MSME’s
31 Million
Employment
13 Million MSME’s
producing more
than 8000
Products
10 % Exports
45 % Industrial
production MSME’s
20
22. Employment In MSME’S Sector
0
100
200
300
400
500
600
700
800
2009-10 2010-11 2011-12 2012-13 2013-14
EMPLOYMENT
number in
lakh person
595.66
626.34
695.38
695.40
732.24
YEA
22
23. Number Of Employment Generation
In MSMES
7%
69%
24%
2009-10
MEDIUM MICRO SMALL
23
24. Sectors Of MSME
This chart shows the percentage of types of MSME enterprises
13% enterprises are engaged in service sector and 87 % enterprises are engaged in
manufacturing sector
SERVICE
MANUFACTURING
13%
87%
24