MSME refers to Micro, Small, and Medium Enterprises, which are governed by the Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India. Their primary purpose and responsibility of the Ministry were to the apex executive body, and it was responsible for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
The statistics provided by the annual reports of Ministry of Small and Medium Enterprises (MSME) shows a rise in the plan amount spent on the khadi sector from ₹1942.7 million to ₹14540 million, and non-plan amounts from ₹437 million to ₹2291 million, in the period from 1994–95 to 2014–2015. The interest subsidies to khadi institutions increased from ₹96.3 million to ₹314.5 million in this period.
All businesses and establishments start as smaller companies with some of them eventually making their way up to becoming larger ones. In the stages that they are scaling, sometimes they need assistance in keeping up with the competition, and that is what the various MSME schemes provide. The details of the company decide which specific category they come into. Only companies that are working on creating products or providing the general public with service fall under these categories.
Companies working in manufacturing, like those working to provide service, are split into different categories in terms of investments. Companies with investments of Rs 2,500,000, fall into the category Micro industries. Small industries, on the other hand, have investments of less than Rs 50,000,000, while medium ones have the largest investments as compared to the other two, with amounts of less than Rs 100,000,000.
The amounts do not stay the same when working with services and MIcro service industries need to have investments of less than Rs 10,00,000. Small industries in the service sector need investments of less than Rs 20,000,000, while medium enterprises are less than Rs 50,000,000.
The registration process when it comes to companies is quite simple, and the documents that they need to get through with it are quite easy to acquire as well.
Additionally, there are plenty of benefits that the companies applying for the documents would receive.
When it comes to working through the system, not having the above benefits to your side makes the process quite tedious. That's not all, it would be challenging for companies and people to catch up since they would be spending a lot of their time running through the system to collect the necessary paperwork.