What are Micro, Small and Medium Enterprises?

Definitions of Micro, Small and Medium Enterprises According to the availability of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro, Small and Medium Enterprises (MSME) are classified into two categories:

1. Manufacturing Enterprises - 

Enterprises engaged within the manufacture or production of products relating to any industry, call in the First Schedule to the Industries (Development and Regulation) Act, 1951, or plant and machinery within the method useful for the last term 

Employ. Products with a particular name or character or usage. Manufacturing enterprises is defined in terms of all investment in manufacturing plant and machinery.

2. Service enterprises: - 

They engaged in providing electrical services and are defined in terms of investment in equipment.

Manufacturing Sector
Enterprises	Investment in plant & machinery
Micro Enterprises	Does not exceed twenty-five lakh rupees
Small Enterprises	More than twenty-five lakh rupees but does not exceed five crore rupees
Medium Enterprises	More than five crore rupees but does not exceed ten crore rupees
Service Sector
Enterprises	Investment in types of equipment
Micro Enterprises	Does not exceed ten lakh rupees:
Small Enterprises	More than ten lakh rupees but does not exceed two crore rupees
Medium Enterprises	More than two crore rupees but does not exceed five crore rupees

Benefits:-

• Bank Loans (Collateral Free)
• Subsidy on Patent Registration.
• Overdraft Interest Rate Exemption.
• Industrial Promotion Subsidy Eligibility.
• Protection against Payments (Delayed Payments).
• Fewer Electricity Bills.