MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions.
a. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
b. Service enterprises – engaged in providing or rendering services.
*As per the notification of MSME dated 26.06.2020, Udyam Registration is the new process of MSME/UDYOG AADHAAR Registration launched by the Ministry of Micro, Small, and Medium Enterprises effective from July 1, 2020
Composite Criteria: Investment and Annual Turnover
|Manufacturing & Services||Investment < Rs 1Cr and turnover < 5Cr||Investment < Rs 10Cr and turnover < 50Cr||Investment < Rs 50Cr and turnover < 250Cr|
Micro, Small and Medium Enterprises (MSMEs) have received a lot of attention from the government in recent times in terms of regulatory measures, reliefs and benefits. Consequently, the eligibility criteria and incentives offered to the MSME sector in terms of financing has been attracting the attention of businesses across the country. Additionally, with various schemes being introduced for revival and upliftment of MSMEs, banks and financial institutions have also started focusing on the MSME segment of borrowers.
This usually-overlooked segment of borrowers is now becoming the most targeted customer base, however, there are many uncertainties around the concept of MSME and the benefits associated with MSME financing.
We often hear fellow entrepreneurs complaining that clients are either not paying on time or simply not paying up. This is a significant problem, especially if you are dealing with Indian customers. Thankfully, the Indian government has strong provisions in place to protect the payments of registered Micro, Small or Medium Enterprises (MSMEs). We at IndiQus have successfully handled a couple of such payment issues by exploiting our rights as an MSME.