Abstract
In India, since last many years, the MSME`S are recognized as means of production and service rendering with utilization of limited resources. The effective utilization of resources, greater operational flexibility, mobility and higher innovations and low investment are the strength of MSME`S. MSME`S sector worldwide considered as the growth engine of the economy. In India; much potential are available towards an equal regional development and optimum utilization of scarce resources. More than 95% units belong to MSME sector and about 45%; products produced by MSME sector. The contribution of MSME`S towards this sector is highly remarkable as compared to any other sector of economy. MSME`S contribution towards, investment, employment generation, GDP, production etc., in every area it is very important. Definition of MSME’s: In accordance with the provision of MSME’s development act 2006, the MSME’s classified into two categories: Manufacturing enterprises The enterprises engaged in the manufacture or production of goods, pertaining to any industry specified in the first schedule to the industries (development and regulation) act 1951, having investment in plant and machinery of Rupees up to 25 lacs, above 25 lacs and up to 5 crores. Above 5 crores and up to 10 crores called micro, small and medium enterprises, respectively. Service Enterprises The enterprises engaged in providing or rendering services having investment in equipment of Rupees up to 10 lacs, above 10 lacs and up to 2 crores, above 2 crores and up to five crores called micro, small and medium enterprises, respectively. In India, MSME’s account for more than 80% of total number of industrial enterprises and employs over 6 crores people. As per estimates and statistics, out of 26 million MSME’s, only 1.5 million are registered and remaining unregistered. The state wise distribution of MSME’s is not equal because 55% of MSME’s are in 6 states only, namely, Uttar Pradesh, Maharashtra, Tamilnadu, West Bengal, Andhra Pradesh and Karnataka. Further, women own about 7% of MSME’s and more than 94% of the MSME’s are proprietorship or partnerships.