SME and MSME are the sectors that have slow but steady growth in their business and avails employment to the people.
Small Medium Enterprises, shortly known as SME is widely used in India, European Union, World Bank, United Nations and World trade organization. This sector is responsible to create competition and innovation in many business sectors. We frame the company as SME based when it has less than 50 employees with minimum turnover. The sector needs low budget investment for startup and maintenance.
The SMEs provide better base for the industrial growth as well as to the economical development of the country by their involvement in domestic production. These enterprises contribute better to the foreign exchange of nation with low import operations. The Sector was formed previously to support the core industry and now it has turned into biggest earning sector which accounts for about 40% of nation’s industrial development, 35% to the Indian Export. SME contributes 98% of industries, 65% of employment and 50% in the GDP of Nation. The SME Companies can provide support to the new startups and stabilize their existing foundation.
MSME comprises for all three Micro, small and medium enterprises that has many similar advantages as SME and contributes in developing country’s economy. The sector falls under two major categories, manufacturing sector that invests in plant and machinery items, while service sector renders business service to the core industry.
The Medium enterprises play a better role in providing job and encourage the person to become an entrepreneur. The proportion of labor used in this sector is very high compared to the large enterprises, which gains high productivity and yield to the business prosperity.
The sector gives tax concessions to the industry people by the available schemes that are operated under control of development commissioner. MSME accounts for 55% of India’s GDP, job security to more than 42 million people, 45% contribution in the total manufacturing and 40% in the Country’s export.
How b2b support SME and MSME?
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