INDEX

1. Introduction
2. Emergence of MSME
3. Overview of types
4. Types of MSME (micro , small & medium)
5. Characteristics
6. Role of MSME
7. Problems
8. Suggestions
9. Contributions
10. Bar chart and pie chart
11. MSME clips from all over India
 INTRODUCTION

• Small & medium Enterprises are

the back bone of Industrial
Development.
• Ministry of Micro Small &
Medium Enterprises Contributes
Nearly 8% in GDP, 40% in
Manufacturing output & 45% in
Exports.
• They provides the largest share
of employment after agriculture
• They have emerged as a
dynamic and vibrant sector of
economy.
 INTRODUCTION

• 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
EMERGENCE OF MSME
• Based on Ghandhi model
• Encouraged by MSME act 2006
• During pre liberalization before
1991 India adopted Industrial policy
resolution 1948 that defined the role
of state in industrial development
for the first time
• At that time India accorded high
priority to small and medium
enterprises
• Despite numerous protection and
policy measures MSME has
remained mostly small &
technologically backward
• The scenario of small scale sector
changed with industrial policy
establishment in 1991
• Liberalization came into existence
• It was the post liberalization era
(1991 to 2006)
• This reflected the growth of SSI’s
• In 1991 the growth rate of SSI was
almost 3 times of the total
industrial sector from 1992 to 1995
• However in 1995 the growth rate
was slightly lower but again it
increased in 1996
OVERVIEW OF TYPES
 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 5lakh to 25
lakh.
• These enterprises works and operates not by
choice but out of necessity
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 25 lakh
to 5 crores.
• These enterprise works and operates to
earn a small amount of profit.
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 5 crores to
10 crores
• These enterprises works and operates to
earn a fair amount of profits to increase their
standard of living.
 SERVICE ENTERPRISES
MICRO ENTERPRISE
• An enterprise in which investment in plant
and machinery is up to 10 lakhs
SMALL ENTERPRISE
• An enterprise in which investment in plant
and machinery is from 10 lakhs to 2 crores
MEDIUM ENTERPRISE
• An enterprise in which investment in plant
and machinery is from 2crores to 5 crores.
 CHARACTERISTICS OF MSME’S

• Low cost of• Greater flexibility

production
• High capacity to
innovate exports
• High employment
generation
• Reduction of regional
imbalance
 ROLE OF MSME’S IN INDIA

• EMPLOYMENT GENERATION
• PRODUCTION
• EXPORT CONTRIBUTION
• UTILISING RESOURCE OPTIMALLY
• INCREASE GDP
 PROBLEMS OF MSME’s

• Financial Problem- Credit

facility only up to 30%
• Raw material improper
• Technological problem –
Less Advertisement
• Managerial problem of
MSME
SUGGESTIONS FOR IMPROVEMENT

•Supply of technology
•Conduct of survey
•Awareness creation
•Involvement of stakeholders
•Venture capital
Interaction with research and
development sector
•Incrimination vehicle
CONTRIBUTION & PERFORMANCE OF MSME’s

13 Million MSME’s
producing more
than 8000 Products

45 % Industrial
10 % Exports
production MSME’s

31 Million
Employment
Leading banks providing loans to MSME’s
 EMPLOYMENT IN MSME’s SECTOR
EMPLOYMENT
800 695.40
732.24
695.38
700 595.66
626.34

600
500 number in
400 lakh person

300
200
100
0
2009-10 2010-11 2011-12 2012-13 2013-14

YEAR
NUMBER OF EMPLYOMENT GENERATION IN
MSME
2009-10
MEDIUM MICRO SMALL

7%
24%

69%
 SECTOR 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

13%
SERVICE
MANUFACTURING
87%
MSME’s CLIPS…..
Manipur handicraft factory…..
RUGS FACTORY- JAIPUR
BANGELS FACTORY……
Paper Mache small enterprise