National Institute of micro, small and medium enterprises

1. NATIONAL INSTITUTE FOR MICRO,
SMALL,AND MEDIUM
ENTERPRISES(NIMSME)
BY ANISH KUMAR

2. INTRODUCTION
• Small & medium Enterprises are
the back bone of Industrial
Development.
• Ministry of Micro Small &
Medium Enterprises Contributes
Nearly 8% in GDP, 40% in
Manufacturing output & 45% in
Exports.
• They provides the largest share
of employment after agriculture
• They have emerged as a
dynamic and vibrant sector of
economy.

3. • They are widely dispersed
across the country and
produces a diverse range of
product and service.
• It helps in the growth of a
country
• They are the nursery for
entrepreneurship and
innovation

4. EMERGENCE OF MSME
• Based on Gandhian model
• Encouraged by MSME act 2006
• During pre liberalization before 1991
India adopted Industrial policy
resolution 1948 that defined the role of
state in industrial development for the
first time
• At that time India accorded high
priority to small and medium
enterprises
• Despite numerous protection and
policy measures MSME has
remained mostly small &
technologically backward

5. • The scenario of small scale sector
changed with industrial policy
establishment in 1991
• Liberalization came into existence
• It was the post liberalization era
(1991 to 2006)
• This reflected the growth of SSI’s
• In 1991 the growth rate of SSI was
almost 3 times of the total
industrial sector from 1992 to 1995
• However in 1995 the growth rate
was slightly lower but again it
increased in 1996

6. OVERVIEW OF
TYPES

7. MANUFACTURING ENTERPRISES
MICRO ENTERPRISE
• Micro enterprise generally refers to a small
business employing 10 people or less
• It is an enterprise in which investments in
plant and machinery is between 5lakh to 25
lakh.
• These enterprises works and operates not by
choice but out of necessity

8. SMALL ENTERPRISE
• Small enterprise generally refers to a
business employing 50 persons or less
• It is an enterprise in which investments in
plant and machinery is between 25 lakh
to 5 crores.
• These enterprise works and operates to
earn a small amount of profit.

9. MEDIUM ENTERPRISE
• Medium enterprise refers to a business
employing maximum to 250 employees
• It is an enterprise in which investment in
plant and machinery is between 5 crores to
10 crores
• These enterprises works and operates to
earn a fair amount of profits to increase their
standard of living.

10. SERVICE ENTERPRISES
MICRO ENTERPRISE
• An enterprise in which investment in plant
and machinery is up to 10 lakhs
SMALL ENTERPRISE
• An enterprise in which investment in plant
and machinery is from 10 lakhs to 2 crores
MEDIUM ENTERPRISE
• An enterprise in which investment in plant
and machinery is from 2crores to 5 crores.

11. CHARACTERISTICS
• Low cost
production
of Greater flexibility
• High capacity to
innovate exports
• High employment
generation
• Reduction of regional
imbalance
OF MSME’S

12. ROLE OF MSME’S IN INDIA
• EMPLOYMENT GENERATION
• PRODUCTION
• EXPORT CONTRIBUTION
• UTILISING RESOURCE OPTIMALLY
• INCREASE GDP

13. PROBLEMS OF MSME’s
• Financial Problem- Credit
facility only up to 30%
• Raw material improper
• Technological problem –
Less Advertisement
• Managerial problem of
MSME

14. SUGGESTIONS FOR IMPROVEMENT
•Supply of technology
•Conduct of survey
•Awareness creation
•Involvement of stakeholders
•Venture capital
•Interaction with research and
development sector
•Incrimination vehicle

15. CONTRIBUTION & PERFORMANCE OF
MSME’s
31 Million
Employment
13 Million MSME’s
producing more
than 8000 Products
10 % Exports
45 % Industrial
production MSME’s

16. Leading banks providing loans to MSME’s

17. EMPLOYMENT IN MSME’s SECTOR
700
600
500
400
300
200
100
0
800
2009-10 2010-11 2012-13 2013-14
EMPLOYMENT
number in
lakh person
595.66 626.34
695.38
695.40 732.24
2011-12
YEAR

18. NUMBER OF EMPLYOMENT GENERATION IN
MSME
7%
69%
24%
2009-10
MEDIUM MICRO SMALL

19. SECTOR OF MSME
This chart shows the percentage of types of MSME enterprises
13% enterprises are engaged in service sector and 87 % enterprises are
engaged in manufacturing sector
SERVICE
MANUFACTURING
13%
87%

20. MSME’s CLIPS…..

21. Manipur handicraft factory…..

22. RUGS FACTORY- JAIPUR

23. BANGELS FACTORY……

24. Paper Mache small enterprise