What are Micro, Small & Medium Enterprises? Definitions of Micro, Small & Medium Enterprises In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Enterprises (MSME) are classified in two Classes: 1. Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. 2. Service Enterprises- The enterprises engaged in providing or rendering of services.
With over 42 million MSMEs (Registered and Non Registered) in India, this sector has been growing at a stable pace over the last 5 years providing largest direct & indirect employment after Agriculture
However, MSMEs continue to face headwinds during startup as well as during operational cycle. According to the World Bank, India has slipped 63 ranks in its Ease of Doing Business Index – which raises deep concerns to address the business related challenges
