The Government of India introduced the concept of MSME (Micro, Small, and Medium Enterprise) which is regarded as the backbone of the economy of the country. For the economy the contribution of the MSME is significant.
MSMEs in India is managed by the Ministry of Micro, Small, and Medium Enterprise. It categorized the firms which are engaged in the production, manufacturing, processing and preservation of goods and commodities.
Accordingly, firms or businesses are categorized as Micro, Small, or Medium based on the investment amount and annual turnover of the businesses, irrespective of the nature of the business which may either be manufacturing or service sector, or both.
A firm or enterprise having an investment and annual turnover less than Rs. 1 Crore and Rs. 5 Crore respectively will be termed a Micro Enterprise.
A firm or enterprise having an investment and annual turnover less than Rs. 10 Crore and up to Rs. 50 Crore respectively will be termed a Small Enterprise.
A firm or enterprise having an investment and annual turnover less than Rs. 50 Crore and Rs. 250 Crore respectively will be termed a Medium Enterprise.
The Government of India introduced various MSME schemes for the benefit of the Micro, Small, and Medium Enterprises operating in India. However, most of the time, the owners of MSME businesses are not aware of the MSME schemes introduced by the Government of India. Thus, it is obvious that most of the enterprise's owners fail to obtain the benefits of the MSME Schemes provided by the Government of India.
These MSME Government schemes have various benefits that a business owner can get and run his or her business smoothly and effectively. Some of the advantages of the MSME schemes provided by the Government of India are mentioned below;
• These MSME Schemes provide clarity and a sense of security to the Micro, Small, and Medium Entrepreneurs.
• MSME Schemes also provide financial security to the Micro, Small, and Medium Entrepreneurs and also to the individual businessman.
• Some of the MSME schemes provide guidance and technical support to the Micro, Small, and Medium Entrepreneurs and also to the individual businessmen.
• These Government MSME Schemes also help the businessman and Micro, Small, and Medium Entrepreneurs to improve their livelihood.
However, most MSME enterprises fail to take the advantage of the aforesaid MSME schemes which are specifically designed for them due to a lack of knowledge regarding these schemes.
has been a support system for the well-being of the entrepreneurs and is working towards the growth and development of the Micro, Small, and Medium Enterprises. It also helps the Micro, Small, and Medium enterprises to be aware of the government MSME schemes and their advantages.
The aforesaid platform is an easy and convenient platform for small businesses to become aware of the various MSME schemes offered by the Government of India. It helps the entrepreneurs also to apply for the benefits of the MSME schemes promptly and assists in the required paperwork as well.
The following are some of the MSME schemes introduced by the Government of India for the benefit of the Micro, Small, and Medium Enterprise owners.
The MSME Samadhan is an online portal meant for Micro, Small, and Medium Enterprises for filling out online applications in respect of any sort of delay in payment.
The Digital MSME scheme is introduced to encourage the Micro, Small, and Medium Enterprises towards ICT adoption and cloud computing in the manufacturing and processing of their business.
The SAFE Plus Scheme was launched to meet the needs of working capital for Micro, Small, and Medium Enterprises against the government orders.
The objective of the ECLGS Scheme offers a 1005 coverage guarantee to Non-Banking Financial Corporation (NBFCs) as well as banks to enable them to provide credit facilities to Micro, Small, and Medium Enterprises to meet their additional working capital and term loan requirements in case of emergency and more specifically during the recent pandemic.
Secured Business Loan offers dispensation of credit to Micro, Small, and Medium Enterprises as soon as possible, especially the MSMEs which are engaged in the manufacturing and service sector whether it may be planned or unplanned business-related expenses.
The PMEGP refers to a subsidy scheme that is credit-linked. It is meant to promote employment generation opportunities with the help of the establishment of micro and small enterprises in urban as well as rural areas.
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