Tushar Gupta

Micro, Small and Medium Enterprises 2014-01-28

Micro Small and Medium Enterprises act 2006

  1. Tushar Gupta
    What is a Micro, Small or Medium Enterprise?

    The earlier concept of ‘Industries’ has been changed to ‘Enterprises’
    • Enterprises have been classified broadly into:
    (i) Enterprises engaged in the
    Manufacture / production of
    Goods pertaining to any industry; &
    (ii) Enterprises engaged in providing
    / Rendering of services.

    • Manufacturing enterprises have been defined in terms of investment in plant and machinery (excluding land & buildings) and further classified into :
    - Micro Enterprises - investment up to Rs.25 lakh.
    - Small Enterprises - investment above Rs.25
    lakh & up to Rs. 5 crore
    - Medium Enterprises - investment above Rs. 5
    crore & up to Rs.10 crore.

    Service enterprises have been defined in terms of their
    investment in equipment (excluding land & buildings) and further
    classified into:
    - Micro Enterprises – investment up to Rs.10 lakh.
    - Small Enterprises – investment above Rs.10 lakh & up to Rs.2 crore.
    - Medium Enterprises–investment above Rs. 2 crore & up to Rs. 5 crore

    It is not necessary to engage in manufacturing activity for self-employment. One can set up service enterprises as well .