Micro, Small and Medium Enterprises play an important role in the growth of the Indian economy. This sector has emerged as a highly dynamic and vibrant sector of the economy. In a country like India, where the industrial sector is blooming, these small and medium enterprises are creating employment opportunities and also helping in industrialization of rural and backward areas. It contributes to the socio-economic development of the country.

Here's a snapshot from the "Economic Survey of Odisha 2019-20":

SMEs are widening their domain across sectors of the economy, producing diverse range of products and services to meet demands of domestic as well as global markets.

With effect from 1st July, 2020:

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: --

For registration of MSME, you need to take "Udyam Registration".

Challenges faced by Micro, Small and Medium Enterprises:

• Lack of capital and credit from banks and financial institutions
• Lack of good infrastructure
• Lack of capital and credit from banks and financial institutions
• Lack of advanced technology
• Lack of competitiveness with the multi-national companies
• Lack of proper training and skills
• Lack of effective marketing channels

To deal with the above mentioned issues, the Government of India has come up with many incentive schemes for these enterprises. Various schemes have been designed like credit guarantee scheme, subsidy scheme, infrastructure support schemes, etc.

Documents required for MSME registration:

For Individual

• PAN Card/ Aadhar Card
• Address proof of an proprietorship firm
• Mobile No./ Email Id
• Bank Statement
• Passport Size Photo
• Trade name of proprietorship firm

For Company

• Aadhaar card of Authorised Signatory
• Business category: PVT, LLP, OPC, Partnership Firm, HUF etc.
• Address proof of the entity
• Bank Statement
• Incorporation certificate
• Trade name of proprietorship firm
• No of person employed
• Investment in Plant , Equipment & Machinery
• Previous Registration details, if any registered.
• NIC wise activity of the business whether in service/ manufacturing.