HOW TO IDENTIFY MICRO, SMALL AND MEDIUM ENTERPRISES?

Dear Friends,

Before presenting the benefits to MSME Enterprises, let us know first the method to categorize the micro, small and medium enterprises. Two different guidelines based on total investments have been notified for manufacturing and services sectors as per Government notifications published in 2006 as described here under:

1.    MANUFACTURING SECTOR

In case of manufacturing sector, total investment on plant and machineries excluding land, building and furniture is considered as the basis as stated below:

·         Micro Enterprises: Plants having total investment more than Rs.   25 lacs and upto Rs. 5 crores are categorized as Micro     Enterprises.

·      Small Enterprises: Plants having total investment more than Rs. 25 lacs and upto Rs. 5 crores are categorized as Micro Enterprises.

·       Medium Enterprises: Plants having total investment more than Rs. 25 lacs and upto Rs. 5 crores are categorized as Micro Enterprises.

2.    SERVICES SECTOR

·   Micro Services Enterprise: If the total investment on plant and machinery is less than Rs. 25 lacs, then the said service sector unit is termed as Micro enterprise.

·  Small Services Enterprise: The enterprise having capital investment more than Rs. 25 lacs and less than Rs. 5 crores is known as Small enterprise.

·  Medium Services Enterprise: The enterprise having capital investment more than Rs. 5 crores but less than Rs. 10 crores is known as Medium enterprise.

    For any clarification, we may be contacted. Your feed back on our published articles will encourage our team.

     Regards.

    Rajendra Kunwar

    CETI Enterprises.