by Yogi P - August 21, 2023

What is the full form of MSME?

MSME full form is the Ministry of Micro, Small and Medium Enterprises.

What does MSME stand for?

MSME stands for the “Ministry of Micro, Small, and Medium Enterprises.” It’s a key department under the Government of India that handles policies and regulations for small-scale businesses. MSMEs vary in size, turnover, and number of employees, based on the region.

What’s MSME’s Purpose?

Mission: The main aim of MSME is to encourage the growth of smaller businesses, which includes sectors like Khadi, village, and coir, to foster innovation and create more employment opportunities.

Vision: To create a robust platform where small businesses can compete on a global level and significantly contribute to India’s economic development.

Goal: Strengthen the nation’s industrial foundation by increasing the efficiency of MSMEs through enhanced skill and entrepreneurship training.

Key Responsibilities of MSME:

• Categorizing businesses based on their investment in machinery, as per the Micro, Small and Medium Enterprises Development Act 2006 (MSMED).
• Ensuring easy credit availability for MSMEs.
• Enhancing competitiveness among these enterprises.
• Adopting new technological advancements to bolster the industrial base.
• Promoting MSMEs through cluster-based strategies.
• Assisting MSMEs in marketing.
• Providing education to nurture skills and promote entrepreneurship.
• Launching new small-scale businesses via the Prime Minister’s Employment Generation Program.
• Boosting sectors like Khadi & Village Industries and the Coir Industry.

Criteria for Manufacturing Businesses:

• Micro Enterprises: Businesses with a machinery investment of up to Rs. 25 lakh.
• Small Enterprises: Those investing more than Rs. 25 lakhs but below Rs. 5 crores in machinery.
• Medium Enterprises: Businesses where machinery investment ranges from Rs. 5 crores to Rs. 10 crores.

Criteria for Service Enterprises:

• Micro Enterprises: If the equipment investment is under Rs. 10 lakh.
• Small Enterprises: If the equipment costs range from Rs. 10 lakh to Rs. 2 crores.
• Medium Enterprises: Companies with equipment investments between Rs. 2 crores and Rs. 5 crores.