MICRO SMALL & MEDIUM

ENTERPRISES
1. Overview of MSME sector
 nd
2 largest
manpower
employer in the
45% 40% country. Employs m
ore than
of India’s of India’s total
Manufacturing output Exports
80 million
people
Nurseries
For entrepreneurship and innovation Constitutes

Over 13 million people are required every

95% of the
no of

year in 90 skill categories

industrial units
in the country
Value proposition: MSME

 Low capital requirement for business

 Potential to engage and employ large human resource

 Effective in channelizing savings and attracting investments

 Promoting trade and commerce, thereby revenue generation

 Assisting export surge, while augmenting local demands

 Adaptability and resilience to survive in economic downturn

MSMEs are complementary to large industries as this sector

contributes enormously to the socio-economic development of the
country.
2. Assessment of MSME
in Chhattisgarh
Key Indicators

Parameters All India Chhattisgarh % contribution

Number of Working
Enterprises 1563974 22768 1.5%
Employment (Person) 9309486 75094 0.8%
Original value of P & M (Cr) 105024.6 579.64 0.6%
Market value of Fixed
(Cr)Assets 449138.4 2193.57 0.5%
Gross Output (Cr) 707510.3 6182.27 0.9%
Total Input (Cr) 443313.7 4487.24 1.0%
GVA (Cr) 264196.6 1695.03 0.6%
Export (Cr) 67913.85 89.22 0.1%
Net Worth (Cr) 415303.4 3813.36 0.9%
Act Local – think Global

Germany: MSME forms the China: Thriving economy

backbone of economy 99% of the total firms
99% of all businesses 60 % of country's GDP
67% of total workforce 70% of employment
50% to country’s GDP 60% of exports

Malaysia: SMEs account for 93.8 % of companies in manufactur

ing sector
USA: Small business sector in USA constitutes 99.7% of US firms
3. Strategy for promoting
MSME
Strategy for promoting MSMEs

 Stakeholder consultation

 Integrated approach among stakeholders

 Leveraging strengths and capabilities of MSME stakeholders

 MSME facilitation process

 Monitoring and evaluation

Stakeholders

 Ministry of MSME, Govt. of India

 Dept. of Commerce & Industries

 Directorate of C & I

 MSME DI

 NSIC

 KVIC/ Coir board

 Financial institutions like SIDBI

 MSME facilitation cell

Role of various stakeholders

1. District officials - industries

 Encouraging setup of various MSME
Choice of legal entities
Connecting potential scheme/ support beneficiaries
Helping with project profiles/ documentations
 Ease of doing business
MSME Registrations (UAM)
Leveraging reform initiatives like SIPB (single window) for
clearances/ permissions
 District profiling to be done to identify strengths
 Identifying cluster and assisting in development
District official to act as a facilitator/ guide than regulator
Role of various stakeholders

2. MSME-DI/NSIC/KVIC/Financial inst.

 Focus approach to connect MSMEs to various benefits/

schemes
 Extending support and facilities
Credit/ Financial
Infrastructure related
Marketing & IPR
capacity building etc

Connect programs
Organizing outreach, trainings and workshops at state & district level
 4. MSME facilitation
(Integrated approach)
Various components of facilitation

 MSME: choices of various entities for starting business

 Ease of registration (UAM)

 Focused approach for linking schemes to eligible units

 Identifying and developing clusters

 Institutional capacity building

 Data collection and MIS generation

 Monitoring and evaluation

 MSME: Choices of various business entities
Limited
Sole Liability Private limited Public limited
S. N Features Partnership
proprietor Partnership company company
(LLP)
Same entity Separate entity Separate entity
Separate entity Separate entity
1 Legal Status as from from
from owner from owner
owner owner owner
Require Require
Ease of Require filing
2 Very easy Easy professional professional
Formation with ROC
assistance assistance
Drafting and
Govt. fee -Min
registration of Govt. fee -Min Govt. fee -Min Rs.
3 Registration Cost Low Rs.
partnership deed Rs. 5500 5500
1000
cost
As per Board of
As per partnership Board of Directors
4 Management Owner partnership Directors (Min
agreement (Min 3 directors)
agreement 2 directors)
Terminates Cessation of
with business, death of
5 Continuity of Life Perpetual Perpetual Perpetual
death of partners, or
owner dissolution of firm
Number of
Min 2 partners, Min 2 partners, Min 2 partners, Min-7 partners,
6 Owners/Shareho Single
max to 20 max- no limit Max up to 200 Max- no limit
lders
S. Limited Liability Private limited Public limited
Features Sole proprietor Partnership
N Partnership (LLP) company company

Limited up to Limited upto

Limited up to the
7 Owner Liability Unlimited Unlimited share of the share
share of partner
member of the member

Transferability Non Non Transferable with Transferable with

8 Transferable
of Ownership transferable transferable some restriction some restriction

Limited to Limited to Limited to

Can raise capital Can raise capital
owners assets partners assets partners
Ability to Raise by and invite public
9 and & assets &
Capital further issuing for
borrowing borrowing borrowing
shares subscription
ability abilities abilities
Compliance is
1 Detail compliance Detail compliance
Compliance Easy Easy easier to
0 required required
company
Dissolution as per
Very difficult- As
Dissolution as partnership Difficult- As per
1 Easy as only one per Companies
Ease of exit per partnership agreement, & Companies act
1 person involved act
agreement approved with applicability
applicability
ROC
Suitability Small and
1 Good for micro Medium Medium to large
(indicative medium Large enterprises
2 enterprises enterprises enterprises
only) business
The new way to
Ease of Doing Business
Dedicated portal for schemes

• http://msme.gov.in/web/portal/Scheme.aspx