Page 24 - MSME BULLETIN 2022 NEW LAYOUT 19082022.indd

MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

2.02. Small Enterprises: Small enterprises cover by taking birth, growth, getting matured and then later
like detergents, personal care, small equipment, decline starts. Similarly in case of an enterprise also,
fertilizers, etc. Means most of the items required for we have various stages like, ideation, evolution, growth
trade and profession fall under this category. The & maturity. In human life deterioration of health is
investment limit for this sector is Rs.10 crores and inevitable after a certain age but in case of MSME,
maximum turnover is Rs. 50 crores. depending upon the performance of the enterprise at
maturity stage, 2 options are available. Either we take
2.03. Medium Enterprises: Units with an investment it for expansion or decline. Because life cycle curve
of more than Rs.10 crores but less than Rs.50 crores cannot be in straight line. It will actually depend on the
and turnover of more than Rs.50 crores but less than decisions we have taken in the course of business and
250 crores fall under this category. Enterprises like the available support system.
Edible oils, Frozen foods, Paper, Textile, Distillery,
Chemical, Pharmaceuticals, Glass, Leather, etc., Looking at the potential of MSME sector,
pertain to medium enterprises. This list is inclusive Government of India has launched various schemes to
not exhaustive. be implemented through various national government
agencies like MSME-DI, SIDBI, NABARD, NSIC,
It can be concluded that anything and almost etc. These agencies support Micro Small & Medium
everything required to run a regular daily routine, is Enterprises at various stages through their designated
supplied by MSME sector. schemes & programmes. These include programmes
for Entrepreneurial development, Credit support,
3.00. MSME Life Cycle Marketing support, Design support, technical up-
Life of an enterprise is similar to life of a human gradation, etc. Stage wise available schemes have been
being. Human life begins with conception, followed listed below:

• Ideation

• Commencement

• Growth

• Maturity

• Grow to next level or

Decline

This diagram shows that if a micro unit is successful, it gets upgraded into a small unit and then small unit will

become medium scale enterprise, later on which can be converted into a large enterprise. The difference between
these four categories is that of magnitude. So, if a micro unit is managed well it can emerge as a large enterprise
in due course of time. Many success stories like Amul, Nirma, etc., are visible.

3.01. Ideation and Commencement: machinery, raw material, utilities, statutory
compliances, etc. Along with these support services,
Ideation, this is the fi rst & most important stage an entrepreneur also needs to be created by inculcating
in an entrepreneurial journey. During this phase basic entrepreneurial skills and mind set of an
an entrepreneur requires support services related to entrepreneur. This is more important especially in case
availability of technology, finance, infrastructure, of fi rst-generation entrepreneurs.

24 The Institute of Cost Accountants of India