MSME

PRESENTATION ON
MICRO, SMALL &

MEDIUM ENTERPRISES
By- Harshit Batra (85)

Puneet Kaur (109)
Shreya Jain (127)
Sangam Gill (238)
INTRODUCTION
• MSMEs are the backbone of the economy in a developing
country like India.
• They contribute to 45% Total Industrial Employment and
more than 6000 types of products are produced in these
industries.
• MSME Act became operational on Oct 2,2006
• It was established to promote , facilitate, and develop the
competitiveness of these enterprises.
• It provides a lot of benefits in terms of taxation , setting up
business , credit facilities, loans etc.
MEANING
MICRO ENTERPRISES - Investment in plant & machinery not more than 1

crore
Annual turnover not more than 5 crore
SMALL ENTERPRISES - Investment not more than 10 crore and annual

turnover not more than 50 crore
MEDIUM ENTERPRISES - Investment not more than 50 crore and annual

turnover not more than 250 crore.
CLASSIFICATION OF MSMEs
MANUFACTURING SERVICE
ENTERPRISES ENTERPRISES
The enterprises engaged in manufacturing or production of goods

constitute
Manufacturing Enterprises.
The enterprises engaged in providing or rendering services

constitute
Service Enterprises.
STEPS IN REGISTRATION PROCESS
1) START REGISTRATION PROCESS :
-MSME Registration is to be done in Government Portal of Undyamregistration.govt.in.
-New registration of MSME is done by entering the Aadhaar Card number with or without PAN
Card.
-There is no fee for filing the registration.
-In case of a company or pvt ltd, trust or a society shall provide its GSTIN and PAN along with
Aadhaar no.
-No enterprise shall file more than one Udhyam registration… provided any no. of activities inc.
manufacturing or service both may be specified or added in one Udhyam registration.
-Whoever intentionally misrepresents or suppress self declared facts shall be liable to penalty
specified under Sec27 of the MSME Act.
2) FILL APPLICATION FORM :

-At this step, applicants have to fill basic details in MSME Registration form that will include
all the necessary details of business such as COMPANY NAME, REGISTRATION
NO. ,GST NO. and so on
3) ENTER PERSONAL DETAILS:
At this stage, applicant is required to fill in all his personal details such as NAME,
ADDRESS, PAN CARD, BANK ACCOUNT DETAILS and some other common
information that is mandatory during the MSME registration process.
4) EXECUTIVE WILL PROCESS APPLICATION:

Now an MSME executive will review the application. In case of any discrepancy,
applicant will be notified about the process and make relevant changes.
5) RECEIVE CERTIFICATE OF MAIL:

After filling the complete form ,applicant will get the certificate for MSME
Registration.
To know how it would be, applicant can download a copy of the sample MSME
certificate.
The Ministry will not issue any hard copy for it.
Applicant will get a virtual certificate for MSME registration.
MSMES : SEEDBED OF
ENTREPRENEURSHIP
 Seedbed refers to preparing the soil for sowing of seeds
for a good crop.
 In same way, MSME as a bed of entrepreneurship
means that when any person start the business then
always start in a MSME.
 This sector plays a prime importance in industrial
sector.
 It needs low investment, simple technology, to meet only
local demands.
FEATURES OF MSMES
 SMALL CAPITAL INVESTMNT is required to set up a MSME.
 MSMEs are generally LABOUR INTENSIVE. They do not require
costly tools & techniques.
 MSMEs can be established in SHORT PERIOD.
 They use LOCALLY AVAILABLE raw material in agriculture,
forest and mineral resources.
 Helps to earn and SAVE VALUABLE FOREIGN CURRENCIES
by producing and exporting goods.
 They are TRAINING GROUND for local entrepreneurs. Helps in
transferring the knowledge and skill to other enterprises.
 The development of MSMEs will CREATE JOBS in rural areas and
thus will reduce the problem of poverty & unemployment.
 MSMEs meet the increased DEMAND OF CONSUMER GOODS.
 MSMEs are more change susceptible due to FLEXIBLE NATURE.
 These industries are GROWING AT FASTER RATE even than large scale
industry.
 LOW RATE OF RISK is involved.
 Do not require HEAVY & COSTLY INFRASTRUCTURE.
 MSMEs offer a method of ensuring EQUITABLE DISTRIBUTION OF

NATIONAL INCOME.
I
M
P
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T
A
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e
PROBLEMS OF MSMES
OTHER
PROBLEMS
MARKETING
PROBLEMS
FINANCIAL
PROBLEMS
HUMAN RESOURCE
PRODUCTION PROBLEMS
PROBLEMS
MARKETING PROBLEMS
 POOR PRODUCT QUALITY-There is generally low demand of products
produced by SSIs due to its poor quality. Several reasons are; Lack of skilled
workers, Lack of technical knowledge etc.
 POOR SALES PRMOTION- Many MSMEs do not want to spend any amount on
sales promotion, advertisements etc as they lack resources & awareness about
importance of such methods.
 LACK OF KNOWLEDGE OF MARKETING-MSMEs do not adopt modern
marketing techniques and are unable to employ personnel having adequate
experience & knowledge in marketing due to limited financial.
 LACK OF MARKETING OPPORTUNITIES- MSMEs set up in rural &
backward areas have to face this problem and are also unable to avail institutional
incentives or to exploit local resources.
 ABSENCE OF SUITABLE MARKETING CHANNEL-Marketing problems of
SSIs vary not only by the size of these units but also by the pattern of distribution
channels necessary to reach the consumers.
PRODUCTION PROBLEMS
 MAINTENANCE OF DELIVERY STANDARDS-Many MSME units
do not care to maintain delivery schedules with the result that they lose
their customers after the non-fulfillment of their order.
 SHORTAGE OF RAW MATERIALS-Some of the raw materials are
chronically in short supply, some are scarce and there may be great price
fluctuations .This results in creating artificial scarcities.
 QUALITY CONTROL- It is an imp aspect which has a significant
bearing upon marketing success of a product. Any disregard to it can
cause heavy marketing hardships to the seller.
 IGNORANCE OF SCIENTIFIC METHODS-Ignorance of production
method can cause high cost & comparatively cheap quality of products.
 ELECTRICITY-This problem relates to ;
Getting new connections Inadequate supply
Frequent power cuts High costs
FINANCIAL PROBLEMS
 REQUIREMENTS OF CAPITAL & CREDIT- MSMEs lack
their own capital. They heavily depend upon the institutional
finance for their capital requirements.
 INAPPROPRIATE FINANCIAL STRUCTURE-In small units,
the usual course of sickness is due to under-capitalisation ,
inappropriate finance mix & high cost of capital.
 HURDLES IN GETTING LOANS-Financial institutions
generally demand a lot of information & data for sanctioning loans
to small units. Another problem arises due to lack of security to
raise term loans.
 IMPROPER UTILISATION OF FUNDS- A financially
disciplined company uses long term funds for long term needs and
short term funds for short term needs. But if a unit is not able to
manage its working capital effectively or utilise its fixed assets
optimally, it may get sick.
PROBLEMS OF HUMAN RESOURCES
 NON AVAILABILITY OF SKILLED MANPOWERS
 LABOUR PROBLEMS
- An industry located in a backward area may get abundant

supply of unskilled labour , but difficult to get skilled
manpower. As skilled manpower is not willing to work in a
remote & backward place. If they do take up then turnover
among them is very high.
- Labour related problems are absenteeism ,turnover, high
wage rate , indiscipline have led to low productivity,
deterioration of quality, increase of wastes , rise in overhead
costs resulting in decline in profitability.
OTHER PROBLEMS
 TECHNOLOGICAL CHANGES-There is a change in consumer
habits, tastes and product decisions. So entrepreneur has to cope with
all these changes.
 INFRASTRUCTURAL FACILITIES- It provides the industry with
basic services necessary to the production process. Non availability of
it results in concentration of industries.
 LICENCE SYSTEM-It is a big problem to obtain licence from the
concerned authority. Alot of time & energy is wasted in persuading
these officials to perform their duties.
 MACHINERY & OTHER EQUIPMENTS- Equipments in many
small industries grow obsolete over period of time. The result is high
cost of production, cheap quality, high labour turnover and low
productivity.
 LACK OF TECHNOLOGICAL UPGRADATION-The technology
used by SSB is generally not globally competitive. Without
technological upgradation these units may not survive globally
THANK YOU

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PRESENTATION ON

MICRO, SMALL &

By- Harshit Batra (85)

MICRO ENTERPRISES - Investment in plant & machinery not more than 1

SMALL ENTERPRISES - Investment not more than 10 crore and annual

MEDIUM ENTERPRISES - Investment not more than 50 crore and annual

The enterprises engaged in manufacturing or production of goods

The enterprises engaged in providing or rendering services

2) FILL APPLICATION FORM :

4) EXECUTIVE WILL PROCESS APPLICATION:

5) RECEIVE CERTIFICATE OF MAIL:

 LOW RATE OF RISK is involved.

 Do not require HEAVY & COSTLY INFRASTRUCTURE.

 MSMEs offer a method of ensuring EQUITABLE DISTRIBUTION OF

- An industry located in a backward area may get abundant

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