Government Schemes for Starting MSME

Last Updated at: January 07, 2020
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Government schemes for starting MSME

MSME stands for micro, small and medium enterprises. The micro, small, medium enterprises were formed in the year 2006, by which we can define what are micro, small and medium enterprises. Enterprise is nothing but it is the same as a company or a business.

Micro, Small and Medium

Production sector

According to the MSME Act 2006,  the term microenterprise can be given to a company that has an investment within 25 lakhs; a small enterprise where the investment is between 25 lakhs and five crores. On the other hand, a  medium enterprise is a company where the investment is anywhere between five to ten crores.

These investments excluded the land and building expenditures along with other items which are clearly mentioned in the ministry of small scale industries on the serial number NO.S.O1772(E) dated October 5, 2006. This investment is only for the original cost and this is only for production or manufacturing sector.

Service sector

Investment in service sector for micro enterprises should not be more than 10 lakhs, for smaller ones should not exceed 2 crores, taking into account the medium enterprises, it should not be more than 5 crores, but the minimum expense made should be at least 2 crores.

MSME Schemes Under Government       

Udyog Aadhaar Memorandum

As it is common knowledge by now, Aadhar card is a must for everything and to start an MSME Registration, it is mandatory. To start the MSME you would have to first and foremost start with the registration process, and for the registration, process Aadhar is a must.

The benefit of registering in this scheme will help you avail credits, loans, and subsidies from the government. The procedure for the registration can be done online as well as in the respective offices.

Register your MSME for FREE

Zero Defect and Zero Effect

The goods that are manufactured and exported must be with the appropriate standards so that they are not rejected and sent back again. If the goods are exported, then they are the eligible goods and some concession will be given.

Quality Management and Quality Technology Tools

To start the MSME, we have to register under Udyog Aadhaar scheme which will help the micro, small and medium enterprises to understand the standards that has to be maintained as well as to adhere with the new technology. Many eye-opening sessions are conducted to make the starters understand the new technology through various seminars, campaigns and activities.

Grievance Monitoring System

Registering under this scheme will be of great benefit to the business owners as it is the platform which addresses the complaints of the owners. They can also have a check on the status of their complaints.

Incubation

This is where we can show all our innovation by implementation of new design, ideas etc.. if the idea is really innovative and effective, the project cost will be funded by the government which will cover 75 to 80 percent of the cost that is going to be incurred. So registering under this scheme is very essential.

Credit Linked Capital Subsidy Scheme

Under this scheme, the old and obsolete technology can be replaced by the new ones and subsidy will also be given by the government to replace the old ones. These subsidies can be directly obtained from the bank itself.

Women Entrepreneurship

Last but not least, this scheme is especially for women who are willing to start their own businesses. The government provides all training as to how to move on with the work and to expand the business.

These are some of the schemes with which the government tries to improve the overture of MSMEs in India. Following all these schemes will help you run the business effectively as the government schemes are like a pillar of support for starting the micro, small and medium enterprises.

Read Also: What is MSME Registration and how to get it

Government Schemes for Starting MSME

1609

MSME stands for micro, small and medium enterprises. The micro, small, medium enterprises were formed in the year 2006, by which we can define what are micro, small and medium enterprises. Enterprise is nothing but it is the same as a company or a business.

Micro, Small and Medium

Production sector

According to the MSME Act 2006,  the term microenterprise can be given to a company that has an investment within 25 lakhs; a small enterprise where the investment is between 25 lakhs and five crores. On the other hand, a  medium enterprise is a company where the investment is anywhere between five to ten crores.

These investments excluded the land and building expenditures along with other items which are clearly mentioned in the ministry of small scale industries on the serial number NO.S.O1772(E) dated October 5, 2006. This investment is only for the original cost and this is only for production or manufacturing sector.

Service sector

Investment in service sector for micro enterprises should not be more than 10 lakhs, for smaller ones should not exceed 2 crores, taking into account the medium enterprises, it should not be more than 5 crores, but the minimum expense made should be at least 2 crores.

MSME Schemes Under Government       

Udyog Aadhaar Memorandum

As it is common knowledge by now, Aadhar card is a must for everything and to start an MSME Registration, it is mandatory. To start the MSME you would have to first and foremost start with the registration process, and for the registration, process Aadhar is a must.

The benefit of registering in this scheme will help you avail credits, loans, and subsidies from the government. The procedure for the registration can be done online as well as in the respective offices.

Register your MSME for FREE

Zero Defect and Zero Effect

The goods that are manufactured and exported must be with the appropriate standards so that they are not rejected and sent back again. If the goods are exported, then they are the eligible goods and some concession will be given.

Quality Management and Quality Technology Tools

To start the MSME, we have to register under Udyog Aadhaar scheme which will help the micro, small and medium enterprises to understand the standards that has to be maintained as well as to adhere with the new technology. Many eye-opening sessions are conducted to make the starters understand the new technology through various seminars, campaigns and activities.

Grievance Monitoring System

Registering under this scheme will be of great benefit to the business owners as it is the platform which addresses the complaints of the owners. They can also have a check on the status of their complaints.

Incubation

This is where we can show all our innovation by implementation of new design, ideas etc.. if the idea is really innovative and effective, the project cost will be funded by the government which will cover 75 to 80 percent of the cost that is going to be incurred. So registering under this scheme is very essential.

Credit Linked Capital Subsidy Scheme

Under this scheme, the old and obsolete technology can be replaced by the new ones and subsidy will also be given by the government to replace the old ones. These subsidies can be directly obtained from the bank itself.

Women Entrepreneurship

Last but not least, this scheme is especially for women who are willing to start their own businesses. The government provides all training as to how to move on with the work and to expand the business.

These are some of the schemes with which the government tries to improve the overture of MSMEs in India. Following all these schemes will help you run the business effectively as the government schemes are like a pillar of support for starting the micro, small and medium enterprises.

Read Also: What is MSME Registration and how to get it

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