MSME’s In

India
Prepared and presented by,
Mind Benders…
Roll Numbers are, 03,07,08,16,21,23,28,73
Submitted To
Dr. Jenifur
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 1
 Contents
S. No. Topic Presenter Roll No.
01 Introduction Aijaz Ahmad Bhat 16
02 Types Aijaz Ahmad Bhat 16
03 Role of MSME’s Shayesta Sidiq 07
04 Characteristics Irfan Ahmad Bhat 28
05 MSME Policy In India Adil Ibn Ahad 73
06 Sources of Finance Arooj Mir 08
07 Industries Under MSME’s Irfan Nazir 21
08 MSME’s In J&K Zubair 03
09 SWOT of MSME’s Enayat Farooq 23
10 Problems Aijaz Ahmad Bhat 16
11 Solutions & Suggestions Aijaz Ahmad Bhat 16
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 2
 INTRODUCTION
● MSME stands for micro, small and
medium enterprises
● It plays an important role for economic
development for our country
● They are backbone of industrial
development & country growth
● They contribute 9% in GDP, 45% in
manufacturing output & 40% in
exports, employment (42m in 13m
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 3
 CONT…
● It satisfies the demand of local customers
● They are widely dispersed across the
country & produces a diverse range of
product and service
● They provide the largest share of
employment after agriculture
● They are nursery for entrepreneurship and
innovation.
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 4
Types Enterprises

Manufacturing
Service

Ceiling on investments Ceiling on investment

In plant & machinery in equipment

Rs 25 lakh Micro Rs 10 lakh

Rs 5 crore Small Rs 2 crore

Rs 10 crore Medium Rs 5 crore

SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 5

 Manufacturing Enterprises
1. Micro Enterprises
◦ Small business employing 10 people or less
◦ Investments:- plant & machinery b/w 5 to 25 lakh
◦ They do not work & operate by choice but out of necessity.

2. Small Enterprises
◦ Employing 50 or less people
◦ Investments:- b/w 25 lakh to 5 crore
◦ to earn a small amount of profit.

3. Medium enterprises
◦ Employing max. 250 employees
◦ Investment:- b/w 5 to 10 crore
◦ To earn fair amount of profits to increase their standard of living.
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 6
 Service Enterprises
1. Micro Enterprises:-
● Investments up to 10 lakh

2. Small Enterprises:-
● investments b/w 10 lakh to 2 crore

3. Medium Enterprises:-
● investments b/w 2 to 5 crore
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 7
 ROLE OF MSMEs
● Employment generation
✓ They’re generally labour-intensive. For every Rs. 1 lakh of fixed
investment, MSME sector provides Employment for 26 persons
as against 4 persons in the large scale sector.
● Export contribution
✓ Exports sector in India constitutes about 40% of contribution
from MSME alone.
● GDP contribution
✓ Contributes 9% in the GDP of the country
● Platform for low capital cost
✓ Provides more employment at lesser capital costs
compared to large enterprises TOPIC:- MSME’s IN INDIA
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM 8
 CONT…
● Equal distribution of wealth
✓ Reduces inequalities in the economy
● Plays an important role in making “Make in India”
possible
✓ The government has directed the financial
institution to lend more credit to enterprises in
MSME sector.
● Production
✓ More than 6000 products are manufactured by
the Indian MSMEs
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 9
 CHARACTERISTICS OF MSMEs
● They are generally organized and run by individual
entrepreneurs.
● They require less capital.
● They are fundamentally labour-intensive units facilitating
greater utilization of man power.
● They involve the use of simple technology, intensive
utilization of individual skill leading to professional
specialization.
● They cater the individual tastes and fashions and render
personalized service to consumers.
● They are highly localized industries. Using local resources
MSMEs are decentralized and dispersed to rural areas.
● They
SUB:- are eligibleDEVELOPMENT
ENTREPRENEURSHIP for govt. assistance and
IN TOURISM TOPIC:-patronage
MSME’s IN INDIA and for
10
Evolution of MSME Policy.
1948-1990

• Expanding employment opportunities.

• Equitable distribution of the national income.

• Effective mobilization of private sector resources of capital

and skills.

• Reservation of items for their exclusive manufacture.

• Access to bank credit
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 11
 CONT…
1991-1999

• New Policy for Small, Tiny and Village Enterprises were in August 1991, laid the
framework for government support in the context of liberalization.

• Small Industries Development Bank of India (SIDBI) and a Technology

Development and Modernization Fund to accelerate finance and technical
services.

• Delayed Payment Act enacted to facilitate prompt payment of dues to MSEs

• Industrial Infrastructure Development (IID) scheme launched to set mini

industrial estates for small industries.

SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 12

 CONT…
In 2006
● Micro Small and Medium Enterprises Act was passed to improve
competitiveness of this sector and it defined “medium enterprises” for the first
time.

● It provided a legal framework for the concept of enterprise, both

manufacturing and service industries.

● The Act provides statutory consulting mechanism at the national level and
defines three levels of enterprises i.e., micro, small and medium.

● With this ACT “Ministry of Agro and Rural Industries” & “Ministry of Small Scale
Industries” were merged into a single Ministry, namely, “Ministry of Micro,
Small and Medium Enterprises”(MSME).
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 13
CONT…

SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 14

 SWOT of MSME’s
Strengths
● Contribution to economy:- 9% GDP, Manufacturing sector
45%, exports 40%
● Can be started at a very low cost. Caters customers needs.
Based on local resources.
● Employment to 42m people, in last 5yrs 3500+employed
● Ability to innovate ideas & modify products and services.

Weakness
● Lack of funds- banks not keen due to risk
● Lack of managerial skills.
● Less access to technology. Difficult to reach potential buyers.
Less
● SUB:- use of internet. Not offer well known
ENTREPRENEURSHIP DEVELOPMENT IN TOURISM
brands.
TOPIC:- MSME’s IN INDIA 15
 CONT…
Opportunities
● Bilateral and multilateral trade agreements
● Enhancement in credit & financial support
● Support for technology upgradation
● Marketing assistance

Threats
● Lack of support from banks
● Quality concerns
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 16
 Problems of MSME’s
● Financial problem- credit facility only up to
30%
● Technological problem- less advertisement
● Managerial problem
● Poor infrastructure
● Problem of raw material- scarcity, poor
quality, high cost
● Run on traditional line
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 17
Solutions and suggessions for
improvement
● Supply of technology
● Conduct of survey
● Awareness creation
● Involvement of stakeholders
● Availability of credit
● Assistance in marketing
● Skill development
● Infrastructure improvement
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 18
 Thank You
SUB:- ENTREPRENEURSHIP DEVELOPMENT IN TOURISM TOPIC:- MSME’s IN INDIA 19