What is a micro, small and medium enterprise?
Two classes of enterprise –manufacturing and service are recognized by the MSME Act of 2006. The MSMED Act 2006 provides the legal framework for recognizing the concept of enterprise, facilitating its development and enhancing its competitiveness. These can be defined as micro, small and medium depending upon their investment levels. A manufacturing enterprise is termed as micro small and medium based upon its investment in plant and machinery – up to Rs. 25 Lakh for Micro, Rs. 25 lakh to Rs. 5 crore for small and Rs. 5 crore to Rs. 10 crore for Medium Enterprise. For a service enterprise, an investment in equipment up to Rs. 10 Lakh qualifies as micro, Rs. 10 Lakh to 2 Crore as Small and Rs. 2 Crore to 5 crore as medium.