MSME are the essentials for Micro, Small and Medium Enterprises. The most crucial element of the Indian economy is these Micro, Small, and Medium Enterprises. These are the backbone of the Indian economy. But, these Enterprises do not have the appropriate and sufficient technology. That is the resources which the other more significant enterprises have access to. Therefore there is a need to support and assist these enterprises.
The government gave assistance and support provided to these micro, small, and medium enterprises. The assistance provided by the government is in the form of specific MSME schemes. Along with these schemes, there are counseling as well as the provision of rebates.
The micro, small, and medium enterprises have different limits of a threshold. The limit varies for the service sector and production sector. The threshold limits for micro, small and medium enterprises given below –
- Micro – The investment in the manufacturing equipment is of about 10 lakh rupees
- Small – The investment in the manufacturing equipment is in the range of 10 lakh and two crore rupees
- Medium – The investment in the manufacturing equipment is in the range of2 to 5 crore rupees.
- Micro – the investment is of about 25 lakh rupees.
- Small – the investment is in the range of 25 lakh to 5 crore rupees
- Medium – the investment is in the range of 5 lakh to 10 crore rupees
List Of MSME Schemes Launched By Government
The government for the welfare of people introduced many schemes. Through these schemes, a lot of people benefited from different areas. So in the next section, we include a list of MSME Schemes and their benefits.
- Women Entrepreneurship
- Udyog Aadhaar memorandum
- Quality Management Standards and Quality Technology Tools
- Grievance Monitoring System
- Credit Linked Capital Subsidy Scheme
- Zero Defect Zero Effect
All these are the MSME schemes where people benefited differently.
The women entrepreneurship is an initiative, especially for women, with only 14% of women present in the entrepreneur sector and the rest 86% being men. It is a stepping stone for all those women who have a start-up plan and want to lay the foundation of a new business plan. The government provides support and assistance to all the willing women. They provided proper counseling, capital, techniques regarding the delivery of goods and services. It also provides training for the proper establishment of the business.
The main aim of providing the training and other assistance is to empower women entrepreneurs. The women also awarded with a prize as the Outstanding Women Entrepreneur every year to encourage more women to step into the business sector. Also, they recognized for their innovations and achievements as entrepreneurs
The incubation scheme works in the promotion of new designs, products, and ideas by the innovators. They assisted as per their requirements. The incubation scheme of 2023 significantly focused on the new age of innovators. Under the incubation scheme, the innovators who have any new idea or product or design assisted. The micro, small, and medium entrepreneurs are assisted based on their innovative ideas. Therefore, those entrepreneurs who come up with the best of innovative products, designs, or ideas are the ones who are eligible under the incubation MSME schemes of the government.
The innovators assisted in the proper implementation of their product, design, or idea. The government also provides financial assistance. The government aids about 75% to 80% of the total cost of the project. The maximum amount of money supported by the government under the Incubation scheme is up to 8 lakh rupees. It is a very significant assistance to all the innovators. Their ingenious innovations, i.e., products, designs, and ideas, are financially and technologically aided by the government.
Udyog Aadhaar Memorandum
For being a beneficiary under the Udyog Aadhaar memorandum scheme, the applicant must have an Aadhaar card. The Aadhaar card is one of the important documents nowadays. The 12 digits unique identification number is linked to the bank accounts of the aadhaar cardholder. Then the cost of projects, as well as other financial aids from the government, are given through aadhaar card to the entrepreneurs.
Udyog Aadhaar Memorandum Scheme Benefits
Benefits of the Udyog Aadhaar memorandum given below –
- Easy availing of credit
- A Easy availing of loans
- Easy availing of subsidies
The interested applicants can register either through online or offline mode. The registration process of Udyog aadhaar memorandum is free of cost and easy. The registration completes by filling two forms, unlike previously, when several forms required to fill. The forms are –
- Entrepreneur memorandum – 1
- Entrepreneur memorandum – 2
There have a total number of 2 lakh small and medium businesses registered under the category of micro, small, and medium enterprises. The Udyog aadhaar memorandum scheme helps the micro, small, and medium enterprises to become more organized with their work. The micro, small, and medium sector entrepreneurs who belong to SC/ ST categories also equally benefited under the Udyog aadhaar memorandum scheme. They also get an equal amount of financial aid as another micro, small, and medium entrepreneurs.
Quality Management Standards and Quality Technology Tools
Under the quality management standards schemes, the entrepreneurs assisted with the implementation and understanding of modern technology and standards of quality. The government conducts various activities, seminars, and campaigns to guide the entrepreneurs with the quality standards required to follow.
If the standards of quality not met, then the product, design, or idea may get rejected. The government also conducts these campaigns and seminars to aware of the entrepreneurs about various modern technologies. These advanced technologies can prove to be very significant for micro, small, and medium enterprises.
Grievance Monitoring System
Under this scheme, the business persons can register their complaints. The Grievance monitoring system scheme is significant for the applicants. They can easily get the chance to put forth their complaints about various issues. Also, they can check the status of the complaint. The Grievance monitoring system also helps in case if the solution is not justifiable. If the complainant is not satisfied with the solution, then they can open and take help from the authorities directly.
It is essential to have a system that looks after the grievances of the entrepreneurs. It ensures communication between the entrepreneurs and the government. Also, addressing the complaints and demands of the entrepreneurs will promote healthy and efficient working by these entrepreneurs. It is also crucial because the micro, small, and medium enterprises are the backbone of the Indian economy.
Credit Linked Capital Subsidy Scheme
Many or maybe most of the entrepreneurs utilize old modes of technology, which have mostly become obsolete now. These technologies were inefficient and ineffective, which resulted in the decline of the micro, small, and medium enterprises. To give micros, small, and medium enterprises ahead starts the credit linked capital subsidy scheme launched. Under the credit linked capital subsidy scheme, the business owners or entrepreneurs offer with latest and modern technologies.
It helps them to increase their production and develop their business. The entrepreneurs also provided the capital subsidy as financial aid for their business. The entrepreneurs can use financial assistance effectively to upgrade their equipment, which will ultimately increase the productivity of the company. Hence the market will grow as a result of aid from the government. To obtain the capital subsidy under the credit linked capital subsidy scheme, the micro, small, and medium enterprises can directly reach their respective bank branch and get their allowances.
Zero Defect Zero Effect
When manufactured goods exported from India due to some factors, sometimes they are rejected, or, in some cases, the products sent back to India. The rejection of these goods could be due to improper handling or manufacturing or some other defects. For the manufactured products to be eligible for export, they have to follow specific guidelines. These guidelines or standards are necessary for export procedures.
The Zero Defect Zero Effect model of scheme deals with the same concept. Under it, if the manufactured goods do not follow the certified guidelines, then they are rejected and sent back. It launched by the Central government of India. Under the Zero Defect Zero Effect scheme, if in case an exported manufactured goods rejected and posted back by the authorities, then concession will be made. The authorities have to pay some amount of money as per the Zero Defect Zero Effect scheme.
The Micro, Small, and Medium Enterprises are crucial for the balanced Indian economy. The growing business of large scale industries and companies is pushing these enterprises against the wall. Therefore, to overcome the pressure of survival and to sustain their position in the market, the government launched specific schemes.
There are several MSME schemes for the upliftment of the micro, small, and medium enterprises. The schemes provided with rebates and counselling for their better functioning. Like women entrepreneurship, credit linked capital subsidy scheme, Udyog aadhaar memorandum, zero defect zero effect, grievances monitoring system, quality management standards, and quality technology tools, incubation.
These schemes launched by the government majorly focuses on the betterment of the micro small and medium enterprises in India. Along with these schemes, there are various other schemes and plans. The business owners or entrepreneurs can take advantage of these schemes. For additional updates, check Timesalert.