Micro, Small and Medium Enterprises (MSME) sector is a part of India’s heritage economic model and important supply chain for products and services.
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This area is considered as an employment creator and it plays an important role in providing employment and industrialization on a large scale in rural and backward areas.
According to the 73rd round of National Sample Survey (NSS), in 2015-2016, there were about 633.8 lakh un-integrated non-agricultural enterprises in the country, working in various economic activities providing employment to 11.10 crore workers.
In this article, we will focus on the importance and process for MSME registration. You can also register MSME online as a pioneer because they are leading professional services that help you get the registration.
Importance of MSME
MSME has introduced in India in the year 2006. There are still some service areas which were not yet in this area, in this definition, there was a historic change in the definition of micro, small and medium enterprises. Therefore, taking advantage of the scope of the area, the government has simplified MSME registration with paperless work.
The further Importance of MSME is elaborated below:
Creates Large Scale Employment
Enterprises involved in this field require less capital to start a new business. Apart from this, it makes a huge opportunity to benefit unemployed people.
In India, about 1.2 million graduates are born every year, of which the total number of engineers is approximately 0.8 million. There is no economy till now which can provide a large number of freshers in just one year. MSME is a boon for new talent in India.
Economic Stability In Terms Of Development And Leverage Export
This is the most important driver in India which contributes 8% of GDP. Given the contribution of MSME in manufacturing, export, and employment, other areas are also getting the benefit.
Nowadays, multinational companies are buying semi-finished and subsidiary products from small enterprises, for example, buying clutches and brakes by automobile companies.
It is helpful in establishing a relationship between MSMEs and big companies, even after GST implementation, 40% MSME sector has also implemented GST registration which plays an important role in increasing government revenue by 11%.
Encourages Inclusive Growth:
Inclusive growth is at the top of the ministry’s agenda for many years, medium and small and medium size.
On the other hand, poverty and lack is an obstacle to India’s development. Apart from this, it includes marginalized sections of a society, which is a key challenge before the MSME Ministry.
Cheap Labor And Minimum Overhead:
While in large-scale organizations, one major challenge is to maintain human resources through effective human resources management professional managers.
But, when it comes to MSME, the need for labor is less and it does not require highly skilled workers. Therefore, the indirect costs incurred by the owner are also low.
Simple Management Structure For Enterprises
MSME can start with limited resources in the owner’s control. Making this decision easier and efficient.
Conversely, a large corporation requires an expert for each departmental functioning as it has a complex organizational structure. While a small enterprise does not need to hire an external expert for its management.
The owner can manage himself. Therefore, it can run single-hand.
The Mission Of “Make In India”:
The initiatives signed by the Prime Minister of India “Make in India” has been made easy with MSME. This dream is taken as a spinal cord to make a prospect. In addition, the government has instructed the financial institution to provide more credit for enterprises in the MSME sector.
Procedure For Online Registration Of MSME
- There is an online process for MSME registration. It is always advisable to take help of a professional for MSME registration because knowledge of all the latest updates in this field is required.
- However, the registration of MSME should not be done before starting your enterprise, but it is always helpful to take advantage of the benefits given under MSME
- In the application form, you will have to mention some details about your company and fill the following details: –
- Aadhar number of the applicant
- Name, gender, PAN number, email id and mobile number of the applicant.
- PAN, location, and address of the organization.
- A number of employees and the date, you are planning to start your business.
- Bank account number and IFSC code.
- The basic business activity of the enterprise.
- NIC 2 digit code.
- Investment in plant and machinery/equipment.
So, sadly I have to say that the article comes to an end.
By this article, we can conclude that MSME is the backbone of the Indian economy.
This area proved to be helpful in the development of the nation, took advantage of the export, created huge opportunities for unskilled, new graduates and became unemployed.
It also increased the opportunities for banks to provide more loans to the MSME sector for enterprises.
The government should take special care while addressing the importance of MSME in relation to providing greater benefits to MSME registration by implementing better regulations and giving more financial loans to the financial institutions for the stability of the region at a lower interest rate. Should be enabled.