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