What does MSME stand for?

Q.  'E' in MSME sector stands for?
- Published on 15 Feb 17

a. Entrepreneurs
b. Enterprises
c. Entities
d. Establishments

ANSWER: Enterprises
 
MSME stands for Micro, Small and Medium Enterprises.

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

  • Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:

    • 1. A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
      2. A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and
      3. A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

  • Enterprises engaged in providing or rendering of services and whose investment in equipment and other items not directly related to the service rendered as:

    • 1. A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
      2. A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; and
      3. A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

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