This presentarion includes Introduction Organisation structure,MSMED Act 2006,Objectives of MSMED act 2006,Classes of MSE's ,Characteristics of MSE's,Objectives of MSE's,PEST analysis on MSE's

1. SME's in INDIA
AKASH GHANATE
2018BBA01
ENTREPRENEURSHIP DEVELOPMENT AND
SMALL BUSINESS MANAGEMENT

2. Points to be Covered
Introduction
Organisation structure
MSMED Act 2006
Objectives of MSMED act 2006
Classes of MSE's
Characteristics of MSE's
Objectives of MSE's
PEST analysis on MSE's

3. Introduction

4. Small & Medium
Entreprises
The total no. of employees
total net assets owned
Total sales
Investment level
The Commonly used criteria at
international level is to deifne
SME's are

5. Small & Medium
Entreprises
The Micro Small & Medium Enterprises
(MSMEs) are defined in India under the
MSMED Act 2006 on the basis of
capital investment made in plant and
machinery, excluding investments in
land and building.

6. Organisational Structure

7. MSMED act 2006
Micro, Small & Medium Enterprise
Development

8. An Act to provide for facilitating the promotion and
development and enhancing the competitiveness of
micro, small and medium enterprises and for matters
connected therewith or incidental thereto.
MSMED
Act 2006
Enactment Date: 16-06-2006
Enforcement Date: 02-10-2006

9. MSMED act 2006 criteria for MSME
Micro : Rs. 25 lakhs
Small : Less than Rs. 5 crores
Medium ; Less than Rs. 10 crores
Manufacuring Enterprises Services Enterprises
Micro : Less than Rs. 10 lakhs
Small : Less than Rs. 2 crores
Medium ; Less than Rs. 5 crores

10. Objectives of MSMED Act 2006
Introduce statutory consultative & recommendatory bodies
on MSME policies.
Improve registration procedure on MSME's.
Statutory basis for purchase preference and credit policies
Improve realization of payment of MSMEs
1.
2.
3.
4.

11. INDIAN MSMEs can be divided in
three classes
Predominantly rural,
Traditional
houshold industries
1 2
Small and medium
industries functioning
with obsolete
technologies
Modern, Small and medium
enterprises which are
owned and operated by
mostly young techno-
entrepreneurs operating in
relatively newer fields like
Bio-Technology
3

12. Traditionally Indian SMEs have had the
following characteristics :
Born out of individual initiatives and skills
Greater operational flexibility
Low cost of production
High capacity to export
High employment orientation
Utilisation of locally available human and material
resources
High prospensity to adapt technology
Critical for poverty reduction.
1.
2.
3.
4.
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6.
7.
8.

13. Objectives of SME's
To create permanent employmet oppurtunites to public at
large relatively small costs.
To meet a major part of the increased demand for consumer
goods and simple producer goods.
To ensure more equitable distribution of national income to
society at large scale.
To facilitate the mobilisation of resources.
1.
2.
3.
4.

14. PEST analysis
Political factors Economic factors
Socio cultural factors Technological factors

15. Political factors
How stable is the political environment ?
Political System is reponsible for law making
Government's position on marketing ethics
Government's policy on the economy
Government's view on culture under religion
Enivirontmental Protection Law
Controls if any on marketing strategies
like marketing / adverstising of Cigarettes, tobacco, Alcohol etc..
Most important influence on the regulation of any business

16. Economic factors
Government outlook towards
Bank Financing
Interest Rates
Incentives for exports
Inflation
Labour policies
Restrictions for import

17. Demographics
Distribution of Income
Social mobility
Life style changes
Consumerism
Education Level
Socio cultural factors

18. Advantage of Technology
New Discoveries & Innovations
Speed and Cost of Technology transfer
Technological factors

19. Thank You!