INDEX1. Introduction2. Emergence of MSME3. Overview of types4. Types of MSME (micro , small & medium)5. Characteristics6. Role of MSME7. Problems8. Suggestions9. Contributions10. Bar chart and pie chart11. 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 lakhsSMALL ENTERPRISE• An enterprise in which investment in plant and

machinery is from 10 lakhs to 2 croresMEDIUM ENTERPRISE• An enterprise in which investment in plant and

machinery is from 2crores to 5 crores.

CHARACTERISTICS OF MSME’S

• Low cost of production

• High capacity to innovate exports

• High employment generation

• Reduction of regional imbalance

• Greater flexibility

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 capitalInteraction with research and development sector•Incrimination vehicle

CONTRIBUTION & PERFORMANCE OF MSME’s

31 Million Employment

13 Million MSME’s producing more

than 8000 Products

10 % Exports45 % Industrial production MSME’s

Leading banks providing loans to MSME’s

EMPLOYMENT IN MSME’s SECTOR

2009-10 2010-11 2011-12 2012-13 2013-140

100

200

300

400

500

600

700

800EMPLOYMENT

number in lakh person

595.66 626.34695.38

695.40 732.24

YEAR

NUMBER OF EMPLYOMENT GENERATION IN MSME

7%

69%

24%

2009-10

MEDIUM MICRO SMALL

SECTOR OF MSMEThis chart shows the percentage of types of MSME enterprises

13% enterprises are engaged in service sector and 87 % enterprises are engaged in manufacturing sector

SERVICEMANUFACTURING

13%

87%

MSME’s CLIPS…..

Manipur handicraft factory…..

RUGS FACTORY- JAIPUR

BANGELS FACTORY……

Paper Mache small enterprise