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Micro enterprises in india

Micro Enterprises in india by Rajat jaiswal

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Micro enterprises in india

  1. 1. Micro Enterprises in India By Rajat Jaiswal
  2. 2. What is micro enterprises? “A Micro enterprises can be a small business employing 10 or less, microenterprises are based on family business or lower scale business”, we can say that microenterprises are the asset-Building Strategy. According to RBI “A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh”.
  3. 3. Aims and objective of Microenterprises • The objectives of small business and microenterprise programs— economic development, job creation, or self sufficiency in poor people. • To provide large employment in rural backward and urban areas. • To promote growth and development of the Khadi, village and coir Industries. • To provide employment those people who has limited skills and education.
  4. 4. • To provide services such as marketing, training in basic business skills, and technology transfer. • Increased income of women is invested in health, education and housing for their families welfare. • To erase micro business difficulties. • To provide supervision and business regulation for microenterprises. • Increase women's participation and local communities involvement in small business sectors.
  5. 5. • To provide business loans for microenterprises. • Microenterprises target tribal, poor, and unemployment population. • To formulate Micro business policy's for planning commission and governments poor elevation programs. • To provide small business workshop and training program for uneducated and unskilled people.
  6. 6. Micro enterprises in tourism sector • In tourism context it promote to open souvenirs and handy crafts small units. • Microenterprises also help to open a travel agency. • Pashmina shoal, glass work on clothes, jari sari, handlooms, khadi and wooden products are some Microenterprises products in tourism. • Microenterprises help to open a small transportation service in tourism like they provide taanga and auto.
  7. 7. • Micro enterprises help in to promote gastronomy and cousins of a destination like it help to open a restaurant. • Microenterprises promote rural tourism and develop rural art and hand made things like mud pots, paintings, statues and jury work on clothes. • Organized training and development program for less educated and unskilled people for to survive in tourism industry. • Microenterprises organize many programs for to promote art and cultural quality of local community's like dance, painting, folk singing and handicrafts.
  8. 8. Types of enterprises in India Enterprises manufacturing service 25 lack 5 core 10 core 10 lack 2 core 5 core medium small micro
  9. 9. MICRO & SMALL ENTERPRISES - CLUSTER DEVELOPMENT PROGRAMME The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises. Source of information is
  10. 10. The helping hand IFC (international finance corporation) Forty million new jobs need to be created in South Asia by 2016[1] to absorb newcomers in the labor market. Small and medium enterprises will be the main providers of these jobs. Improving performance is critical to their success, making it easier for them to operate, expand, and generate business opportunities. IFC has a decade of experience working with small and medium enterprises in this region, providing scalable and replicable solutions throughout the lifecycles of small businesses. In 2002, IFC established the South Asia Enterprise Development Facility to enhance performance, competitiveness, and growth of small and medium sized firms in Bangladesh, Bhutan, Nepal, and North East India.
  11. 11. • IFC provides investment and advisory services to help small and medium enterprises through their entire life cycle - right from inception to growth and maturity. We do this by assisting in introducing regulatory reforms, building management skills and supporting access to finance and markets. • IFC trained 233,000 entrepreneurs to be more efficient and productive. • More than 150,000 small and medium enterprises have received improved access to financial services. Source of information IFC (international finance corporation)
  12. 12. Case study on Bihar the Indian state of Bihar to simplify tax laws and procedures to reduce compliance issues and encourage small businesses to register as taxpayers, thus widening tax base, and improving business climate. Bihar state adopted several progressive measures such as a fixed rate of tax for micro and small enterprises with no routine scrutiny, online filing of returns for larger enterprises, simplified admission of appeals, and faster resolutions and refunds. The project started in 2009 and by its closure in September 2013, the project recorded a 24 percent increase in the tax payer base. The number of tax payers filing e-returns has increased to 22,000 (from a base of 149 in 2009). 93 percent of tax revenue is collected electronically in Bihar now.
  13. 13. The number of small tax payers registered under a special, simplified scheme for small tax payers is at 6,800. According to an appraisal by Indian Market Research Bureau, an international market research and consultancy firm, businesses in Bihar agree that tax compliance is less burdensome after reforms, and ease of doing business has improved. Source of information IFC (international finance corporation)
  14. 14. Case study on India Udyogini Udhyam Jagaran Sansthan (UJAS). Udyogini has helped establish women-owned and operated associations called UJAS, to provide production, training and business support services for the producer members. UJAS is also the brand created by Udyogini’s members. In Bikaner, the UJAS brand of embroidery and appliqué products are sold in exhibitions in India. In Pugal, UJAS have initiated (and are managing) an embroidery production, training and business centre, with about 900 women members of the embroidery association. The main activities include provision of raw material kits, the collection of finished products, quality control, dispatch of finished goods to suppliers, and disbursement of payments. Udyogini facilitates linkages with fashion institutes. to provide beneficiaries with intensive training. Beneficiaries’ participation in exhibitions is encouraged to establish linkages with buyers and traders. Value chain approach. In Udyogini’s experience, the value chain approach is useful to promote enterprises, and to take advantage of particular existing market opportunities to the advantage of the poor. The organization’s experience in Mandla, Saharanpur and Bikaner, has shown that aggregation is a key requirement to obtain the necessary volumes to reduce costs and compete in the market. Impact on target group. The project is reaching the poorest women. Discussions with Udyogini’s project team have indicated that beneficiaries’ monthly income increased from USD 33 to 66.
  15. 15. The case of a woman entrepreneur Savitri Bai. Savitri Bai used to cultivate maize on her land, earning a seasonal income of USD 11-18. After the awareness-raising campaign initiated by Udyogini on business potentials, technical aspects and market information of vegetable cultivation, Savitri Bai started cultivating Brinjal. Her seasonal gross profit rose to USD 417. Initially, she took her vegetables to the market by bicycle; after realizing that her profits and productivity were increasing, she started hiring a car for the purpose. Key features Effective governance. Udyogini is a dedicated development-oriented organization. The successful implementation of its projects is attributable to its success in boosting beneficiary incomes. Coordinated delivery of services. Projects undertaken by Udyogini have provided a coordinated delivery of services, including capacity building, technology transfer, provision of credit, access to market.
  16. 16. Value added/Vertical integration. Value adding activities such as product aggregation, grading and weighing are undertaken by the women producers’ association. Vertical integration was adopted in selected products. UJAS is the brand under which members’ associations sell their products. Trust. The formation of producers’ associations contributed to building trust amongst members. However, it is not evident whether other trust building measures such as workshops, have been used. Horizontal integration. Producer organizations have been formed. Provision of credit. SHGs are used to channel micro credit towards beneficiaries. Diversification. Producers are encouraged to engage in income generating activities for products that • Capacity building. Change in the psychological mindset: encouraging women to become business entrepreneurs, and to understand, for instance, the need to take risks. Two stages are required for women to increase their market control: a) livelihood security; and b) enterprise growth. The first one trains women to understand market channels and operations, and the requirements for creating sustainable micro-enterprises. The second one aims at increasing women’s entrepreneurial skills, so that their enterprises become their primary source of income, reducing their dependence on intermittent labouring .
  17. 17. • Chain efficiency/Competitiveness. Products are competitive with other generic items in the market. However, it is not evident whether the products would be able to compete with other stronger actors or brand competitors. • Inputs. In the case of UJAS in Pugal, members are provided with the required raw materials. • Technology transfer. Udyogini encourages and trains members to adopt improved production technologies. • Market linkages. In the case of UJAS in Pugal, beneficiaries are encouraged to participate in exhibitions, especially to establish linkages with buyers and traders. • Sustainability. It cannot be judged at this point but the interventions seem to require the ongoing presence of Udyogini. source of information India Udyogini
  18. 18. Importance of Microenterprises • Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. • It is an export oriented skim and having greater potential to enhance exports by value addition through technological interventions and diversified products.
  19. 19. • Microenterprises really helpful to improve economy of county as well as it develop local and poor population for example a small shop can change life of a whole family in rural and urban area. • • today there are many county's and NGOS running campaign for to promote Microenterprises . • Microenterprises are the hope for hapless and unemployed people . • Microenterprises need again a powerful policy for promotion and development of low interest loan and finance help.