The Office of the Development Commissioner, under the Ministry of MSME, Government of India issued specific guidelines for prospective entrepreneurs. It carries all the details related to Micro, Small and Medium Enterprises.
From what is MSME to the availability of support facilities for these enterprises and all other general information, the guideline has it all.
Prospective entrepreneurs can thus have a look at these guidelines and know all the requirements they need to follow. It will help them set up a business belonging to the MSME category. The guideline aims to equip the youth of India with self-employment opportunity as well as propel growth for the economy.
Have a look at the essential details you need to know about related to what is MSME and what are the support structures available.
What is MSME?
Enterprises today have been classified into two broad categories.
Enterprises that are engaged in the production or manufacture of goods related to all industries. It has a further categorisation as per the investment in plant and machinery.
Micro – Up to Rs. 25 lakh of investment
Small – Between Rs. 25 Lakh and Rs. 5 Crore investment
Medium – Between Rs. 5 Crore and Rs. 10 Crore investment
Those that engage in providing services. They are also further classified based on the amount of investment in equipment installation.
Micro – Up to Rs. 10 Lakh of investment
Small – Between Rs. 10 Lakh and Rs. 2 Crore of investment
Medium – Between Rs. 2 Crore and Rs. 5 Crore of investment
Choosing a suitable activity for entrepreneurship
You should consider specific aspects before choosing a suitable activity for entrepreneurship. It may include consideration of the market where you want to promote the enterprise, availability of resources in the desired location, etc. You should also consider the available infrastructure, the availability of capital like MSME loan – the efficient financing solution for MSMEs, utilisation of available contacts and more.
Acquiring the necessary financial assistance
Procuring financial assistance requires special consideration as it comes off as one of the biggest hurdles for prospective entrepreneurs to establish a business. The availability of finance is no longer a roadblock to making the self-employment dreams of millions of Indians into reality.
Once you have a proper idea of what is MSME and what are its requirements, you may proceed to find the correct source of finance. At present, the financial market comes with numerous funding options for MSMEs.
Financial institutions like SIDBI, , NICs, SFC, and NBFCs, offer business loans and advances on meeting specific requirements.
Creating a project report for the business
A project report is a detailed proposal that provides an assessment of the proposed activity/plan’s feasibility. You may acquire a model proforma for project report preparation from DICs, MSMEDIs or financial institutions and fill in the necessary details regarding the project.
After this follows a training guideline to acquire the necessary entrepreneurship skills. Proceed with a marketing plan to gain recognition for your products or services. The guideline also includes promotional schemes you may utilise for your MSME’s success.
Hence, with the necessary guidelines on what is MSME, choice of activity, fund acquisition, and more, prospective entrepreneurs can start with their ventures successfully.