...Empowerment OF MSME INDEX: 1. What is MSME & Its role in country 2. Problem facing by MSME 3. Solution to the problem 4. Empowerment of macro & micro economy Empowerment of MSME The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: (I) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below: (i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh; (ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and (iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. (II) Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below. (i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh; (ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10...
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...MSMEs in India Chapter I The Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in the economic and social development of the country, often acting as a nursery of entrepreneurship. They also play a key role in the development of the economy with their effective, efficient, flexible and innovative entrepreneurial spirit. The MSME sector contributes significantly to the country’s manufacturing output, employment and exports and is credited with generating the highest employment growth as well as accounting for a major share of industrial production and exports. MSMEs have been globally considered as an engine of economic growth and as key instruments for promoting equitable development. The major advantage of the sector is its employment potential at low capital cost. The labour intensity of the MSME sector is much higher than that of large enterprises. MSMEs constitute more than 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. In India too, MSMEs play an essential role in the overall industrial economy of the country. In recent years, the MSME sector has consistently registered higher growth rate compared with the overall industrial sector. With its agility and dynamism, the sector has shown admirable innovativeness and adaptability to survive the recent economic downturn and recession. The MSME sector in India is highly...
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...PROLOGUE: An MSME (Micro, Small and Medium Enterprise) is defined by RBI/GOI differently for the Manufacturing and the Services Sector, as follows: * Manufacturing Sector: Manufacturing sector refers to enterprises engaged in manufacture or production, processing or preservation of goods. The definition of Micro, Small and Medium Enterprises under the manufacturing sector is as below: | | * A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs.25 lakh; | | * A small enterprise is an enterprise where the investment in plant and machinery is more than Rs.25 lakh but does not exceed Rs.5 crore; and | | * A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. | * Services Sector: Services sector refers to enterprises engaged in providing or rendering of services. These will include small road & water transport operators, small business and professional & self-employed.The definition of Micro, Small and Medium Enterprises under the services sector is as below: | | * A microenterprise is an enterprise where the investment in equipment does not exceed Rs.10 lakh; | | * A smallenterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs.2 crore; and | | * A medium enterprise is an enterprise where the investment in equipment is more than Rs.2 crore but does not...
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...Preamble: | The Micro, Small and Medium Enterprises (MSME) Sector, particularly the tiny segment of the small enterprises, faces huge challenges as under: * Competition from both domestic & multi-national companies. * Inadequate access to finance due to lack of financial information and non-formal business practices * Lack of access to private equity and venture capital * Lack of access to inter-state and international markets; * Limited access to secondary market instruments * Fragmented markets in respect of their inputs as well as products * Vulnerability to market fluctuations * Limited access to technology and product innovations * Lack of awareness of global best practices * Considerable delays in the settlement of dues/payment of bills by the large scale buyersThe MSME sector therefore looks to the Banks for * Single window dispensation. * Quick decision with least Turnaround Time, and above all, * Better service.It is therefore the Bank’s priority:- * to provide timely and adequate credit to the MSMEs, * to encourage their Technology Upgradation, for better quality and competitiveness of their product(s), and * even pro-actively detect sick and viable units in time, so as to nurse them back to health through appropriate restructuring.With the deregulation of the financial sector, the ability of the bank to service the credit requirements of the MSME sector depends on the underlying transaction costs, efficient recovery processes and...
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...Diagnóstico Sectorial de la MIPYME no Agrícola en Honduras Enero 2013 CRÉDITOS Autor Colaboración Aportes Especiales Cesar Valenzuela, Ph.D. Irma Romero, M.G.P. Daniela Cruz, M.G.P. Marco Ramos, Ph.D. Leónidas Rosa Suazo, LL.M. AGRADECIMIENTOS Al personal de la Secretaria de Industria y Comercio (Sr. Adonis Lavaire, Sr. Gunther Laínez, Sr.Oscar Narváez, Sr. Rene Salgado,): Por el apoyo y conocimientos brindados tanto en la etapa de diseño de la investigación como a lo largo de todo el proceso, así como, su permanente asistencia cuando requerimos el apoyo de otras instituciones públicas como la Empresa Nacional de Energía Eléctrica (ENEE) y el Instituto Nacional de Estadísticas (INE). Al personal del Banco Interamericano de Desarrollo (principalmente a la Sra. Gladis Morena Gómez): Por el apoyo y aportes relevantes desde la etapa de diseño de la investigación hasta la revisión del informe final. Al Comité Técnico: Por los aportes relevantes hechos durante todo el proceso de revisión de informes y discusión de resultados. A la Mesa de Cooperantes: Por los aportes relevantes hechos durante todo el proceso de revisión de informes. A las Instituciones Financieras y de Servicios de Desarrollo Empresarial que nos brindaron su tiempo y conocimientos. A los Micro, Pequeños y Medianos Empresarios encuestados A la Empresa Nacional de Energía Eléctrica (ENEE) y al Instituto Nacional de Estadísticas (INE). INDICE INTRODUCCIÓN ...................................................
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...Financial support for MSME in Bangladesh The SMEs worldwide are recognized as the most effective vehicle for sustainable economic growth. In Bangladesh , a sustainable level of development of small and medium enterprises (SMEs ) is highly needed to reach the targets set by The United Nations (UN) in the millennium Development Goals (MDGs) to alleviate poverty . This urgency is reflected in the Government’s pro-poor policies, especially in the poverty reduction strategy paper (PRSP) . Small and Medium Enterprises in Bangladesh have recently been considered as an important vehicles of poverty reduction strategy. For the first time, the comprehensive Industrial Policy 2005 highlighted SME development as a flagship policy area for balanced and sustainable industrial development in Bangladesh. Availability of finance is thought to be a major constraint to formation and growth of SMEs in Bangladesh. Banks are reluctant to expand their SME credit portfolio because they do not consider SME lending an attractive and profitable undertaking. This is so because SMEs are regarded as high risk borrowers because of their low capitalization, insufficient assets and their inability to comply with collateral requirements of the banks. Administrative costs are also higher because close monitoring and supervision the SME operation becomes necessary. Despite all these facts banks and financial institutions have been providing finance to the SME sector and the volume of finance is showing...
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...Vol . IV : Issue. 14 ISSN:0975-9999 MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) IN INDIA: AN APPRAISAL Dr.S,Ganapathy Associate professor C.Mayilsamy Doctoral research scholar, Department of International Business and commerce, Alagappa University, karaikudi. ABSTRACT Micro small and medium enterprises help in promoting economic growth and employment opportunity. Before 2006 this sector was called as a Small Scale Industry. Thereafter it was converted as an MSME sector. The MSME growth is incomparable by the help of bank credit. Micro small and medium enterprises and their role in economic growth and employment generation in the Indian context .the article how policy environment for promoting MSMEs changed from ‘protectionism ‘during the pre-1990s to ‘export orientation’ during the post-1990s. The key constraint faced by the MSMEs including access to credit and technology, redtapism and the like. The MSEs to promote the rural economy for in general and rural women empowerment in particularly the rural women are taken ,economic improvement ,social development, and individual decision making through the . MSEs.the MSEs are promoting the rural entrepreneurship. Key words: MSME, SME , SSI, Credit Rating Introduction Indian economy based on rural economy .Father of nation mahatma Gandhi told India “lives in village”. T he r eal national development through the rural economy .the development of rural economy through the r ur al bas ed micr o, small a nd medium enterprises...
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...Pengembangan UKM ANALYSIS AND COMPARATIVE STUDY OF THREE MICRO SMALL MEDIUM ENTERPRISES (MSME) IN BOGOR Anaiza Azlia | Ariansyah | Aditya P. Nugraha Business Profile Business Profiles : Cotton Candy Industry. This cotton candy sweets business, based on the information during the interview, was established in 1998. Monetery crisis that hit Indonesia had caused previous business collapsed and went bankrupt, causing the business owner started to sell cotton candies on the street… Cont’d to Page 4 Business Profile Busines Profile : Bening Jati Anugrah Food; A Frozen Food Manufacturing Company Bening Jati Anugrah Food is a small medium enterprise manufacturing frozen food from ocean fish as raw materials. Using Bening Food as its brand, this business is located in… Cont to Page 4 Business Profile Business profile : Hot Crispy Hot Crispy is a food processing business that was established in 2005, or roughly about 10 years ago. Products offered are …Cont’d to Page 5 December 15, 2015 http://metrovaartha.com Background M i c r o , S m a l l a n d Me d i u m E n te r p r i s e s (MSMEs) in Bogor are one among various economic sectors that have contributed in regional revenue and also in employment sectors. Approximately 11.297 MSMEs in Bogor City (kotabogor.co.id, 2015) that employ 19.035 workers, and around 15.000 people involved in MSMEs in Bogor regency (business.com, 2015). As a follow up on this significant development, Bogor...
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...Responsibility & MSMEs: A study of Corporate Social Responsibility Trends and Practices in India”. Author: Prof. (Mrs.) Mrinal Sanjay Rao Associated with Sinhgad Institute of Business Administration & Research, Pune, as Assistant Professor. Educational Qualifications: LL.M, M.P.M., D.L.L. & L.W. (Pune University) Work Experience Details:- Industry: 3 years. Academics: 4.5 years. Contact: C/o P R Kashikar, flat no. 206, Om Alankar Housing society, Opp. Chintamani Nagar, Bibwewadi, Pune- 411037. Maharashtra. India Ph.- 020- 24281627/ 9049241146. Email: mrinal.rao241@gmail.com Title of Paper: “Social Responsibility & SMEs: A study of Corporate Social Responsibility Trends and Practices in India”. ABSTRACT: The past twenty years have seen a radical change in the relationship between business and society. Key drivers of this change have been the globalization of trade, the increased size and influence of companies, the repositioning of government and the rise in strategic importance of stakeholder relationships, knowledge and brand reputation. Businesses have come under increasing pressure to demonstrably engage in activities which are described as corporate social responsibility (CSR). The term CSR can be defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations, is one outcome of these developments. The contribution of MSMEs to the economic...
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...MGMT 114 Introduction to Entrepreneurship Entrepreneurship and Economic Growth The Philippine Economy The Economy of the Philippines is the 39th largest in the world, according to 2013 World Bank statistics, and is also one of the emerging markets in the world. The Philippines is considered as a newly industrialized country, which has been transitioning from being one based on agriculture to one based more on services and manufacturing. It is currently one of Asia's fastest growing economies. However, major problems remain, mainly having to do with alleviating the wide income and growth disparities between the country's different regions and socioeconomic classes, reducing corruption, and investing in the infrastructure necessary to ensure future growth. Fundamental Economic Problems 1. Unemployment Unemployment rate in the Philippines which is 7.1 per cent as of January 2013 remains the highest in Southeast Asia. Unemployment creates social problems – housing, health and sanitation, prostitution, robbery, crime etc. 2. Poverty remains a critical social problem that needs to be addressed. Philippines' poverty line marks a per capita income of 16,841 pesos a year. According to the data from the National Statistical Coordination Board, more than one-quarter (27.9%) of the population fell below the poverty line the first semester of 2012, an approximate 1 per cent increase since 2009. This figure is a much lower figure as compared to the 33.1% in 1991. ...
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...international organizations to launch a G-20 Financial Inclusion Experts Group and asked the private sector to come up with ideas through G-20 SME Finance Challenge. This increased attention to micro, small and medium-sized enterprises (MSMEs) begs the question -- what, exactly, should be considered an MSME? With the issue of MSMEs playing out on an international level, it is tempting to try to find a universal MSME definition. A universal MSME definition would ease the design of loans, investments, grants and statistical research. One such effort is IFC’s SME Definition Deep-dive Analysis and Recommendations, although it's currently on hold because of internal restructuring. As part of the G-20 follow-up work, IFC is currently working on a 2010 update of the Micro, Small, and Medium Enterprises: A Collection of Published Data. While recording the various definitions of MSME used in 120+ of the most populous world economies, I was struck by the wide range of approaches governments take to define what exactly an 'MSME' is in their economy. For example, in China an MSME can be an enterprise with 1 to 3000 employees; total assets from ¥ 40 to 400 million and business revenues from ¥10 to 300 million depending on the industry. Meanwhile, the EU considers an MSME an enterprise with up to 250 employees and turnover of no more than €50 million or a total balance sheet of no more than € 43...
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...Enterprise Week. — In order to institute continuing awareness of the primacy of small business in nation-building and in people empowerment, and to celebrate and espouse the firm commitment of the State in the promotion, growth and development of small business, the second week of July of every year shall be declared as the “Micro, Small, and Medium Enterprise Development Week”. The MSMED Council, the Department of Trade and Industry, and the SB Corporation shall be jointly responsible in organizing activities for the event.” Mayor declares 2nd week of July as MSME week in Davao City http://www.pia.gov.ph/news/index.php?article=1561341210151 (posted July 3, 2012) Spearheaded by the Davao City MSME Development Council, several activities are lined up for the celebration slated from July 9 to 13. 1. MSME Week Exhibit at the Davao City Pasalubong Center and Abreeza Ayala Mall, 2. Seminars and trainings for MSMEs, financing forum and food safety seminar in public markets: * Solid Waste Management Seminar by the City Environment and National Resources Office; * Knowing Your Currency and Briefing on the Credit Surety Fund by the Bangko Sentral ng Pilipinas, * Techno-Demo on Scented and Decorative Candle Making by the Department of Science and Technology XI, * Financial Management Seminar by Department of Trade and Industry – Davao City Field Office; * Branding and IPO Seminar, How to Start a Business and Simple Bookkeeping Seminar; * and Anti-Corruption...
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...ni-msme - the premier institute ni-msme, the pioneer institute in the field of MSME is playing a major role in providing probusiness environment to foster the progress of MSME towards success and prosperity. The raison detre of this Institute is to assist the Government in formulating policies for micro, small and medium enterprises and to help the practising and potential entrepreneurs through a host of services like training, research, consultancy, information, education and extension. The Institute is a training ground for senior technocrats, bureaucrats and bankers who come here to gain expertise and knowledge in order to equip themselves with the latest practices and streamline their operations. Set up in 1960, ni-msme has made valuable contributions by creating an impressive record of achievements beyond the Indian shores, enabling other developing countries to get the benefit of the Institute’s facilities and expertise. ni-msme’s activities are changing from time to time to meet the needs of enterprises in the context of globalisation. Training Programme on MARKETING STRATEGIES FOR SHG PRODUCTS IN THE MODERN ERA (16-18 March 2016) Located in a sprawling and enthralling campus amidst a rich natural setting, ni-msme is well equipped with both physical and academic infrastructure. In keeping with the changing times and technological changes, the Institute has updated its style of functioning by focusing on the use of IT in every aspect of its activities...
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...SUITABLE MECHANISM FOR REVIVAL OF SICK MSMEs *Dr. Sadiqua Tabassum Asst. Professor The Crescents College of Business Management e-mail: sadiquatabassum@yahoo.com ABSTRACT In the pursuit to create a vibrant MSME sector Ministry of MSME, Government of India has taken multi-pronged strategy. The focus is not only on the issues related to starting and growth of MSMEs but ensuring that they sustain their business. However, due to various reason MSMEs are prone to sickness. There has been an increase in MSME sickness. There have been internal causes relating to Planning, Implementation & Production and external causes like Infrastructural bottlenecks, Finance Constraints, Marketing Constraints...
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...retail bank in Nigeria, has been commended by Pan-Atlantic University’s Enterprise Development Centre (EDC), for its robust and unwavering support for young and upcoming entrepreneurs in the country. Speaking at the Global Entrepreneurship Week in Lagos where the bank was recognized as a sponsor at a National Scale, Peter Bankole, Director, EDC, said that Diamond Bank, through its array of MSME-friendly products and propositions, has contributed significantly to the development of the sector in recent years, noting that the Bank’s robust initiative for MSMEs has aided a lot in stimulating employment in the country. “Diamond Bank has done a lot in the development of the economy through her support for the Micro, Small and Medium Scale Enterprises (MSMEs). The initiatives of the bank have positively impacted areas such as employment generation, advisory support services to MSMEs and access to finance for entrepreneurs,” he said. Speaking on the Bank’s itch for entrepreneurial development, Ayona Trimnell, Head Corporate Communication, stated that Diamond Bank is very passionate about MSMEs development in the country, and drives the initiative through its Building Entrepreneurs Today (BET). According to her, the programme is structured for capacity building, business education training aimed specifically at generating interest in entrepreneurship and driving employment and entrepreneurship in the economy. “This initiative has contributed immensely to the pool of skilled small...
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