MSME՚s: Meaning and Process of Setting MSME՚s Management YouTube Lecture Handouts

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MSME՚s: Meaning and Process of Setting MSME՚s Management

Meaning

  • Micro: Investment in Plant and Machinery or Equipment: Not more than ₹ 1 crore and Annual Turnover; not more than ₹ 5 crores
  • Small: Investment in Plant and Machinery or Equipment: Not more than ₹ 10 crore and Annual Turnover; not more than ₹ 50 crores
  • Medium: Investment in Plant and Machinery or Equipment: Not more than ₹ 50 crore and Annual Turnover; not more than ₹ 250 crores

Process of Setting MSME՚s

Project Selection

  • A lot of ideas are generated either with the help of employees, experts or through the entrepreneur himself.
  • After the filtering process, feasible ideas are chosen and further the 4 Ps of marketing viz. Product, Price, Place and Promotion strategies are planned.

Technology and Machinery

After we have decided the marketing strategies, we need to comprehend on the capital items required, the level of employee skills required, the quantity of water and electricity required and also the process and patents needs need to be taken care of.

Arranging Finance

  • After we have decided what will be our marketing strategies, our technology to be used and various things, we need to arrange the adequate finance.
  • The sources can be commercial banks, RRBs, SIDBI, SFCs and SIDCs. Certain institutions are formed exclusively for financing MSME needs

Unit Development

After the finance is arranged from a suitable institution under a scheme for availing certain benefit, the construction of the unit starts. The electricity, water connection is obtained and the men, material and machinery are arranged at the location eventually.

Udhyog Aadhar Memorandum

After the business unit is set up, UAM is filled for promoting the ease off carrying out the business. The best part is it can be filled online. There is no fee and also no documentation is required and many UAM՚s can be filed using the same Aadhar number.

Clearances

It is very important that the business gets a nod or clearance from appropriate authorities to be able to function smoothly without any hindrance in the future. The clearance could be related to taxation, environmental factors, or project specific clearances

Quality Certification

  • ISO-9000 Certification is indispensable because related to the quality norms to followed while manufacturing a product.
  • These a reimbursement mechanism in which 75 % or max 0.75 lakhs per unit can be refunded back from the certification fee

MCQs

Which of the following is quality standard?

1. ISO 6000

2. ISO 9000

3. ISO 24000

4. None of the above

Answer: 2

For the concerns regarding environment, which body՚s clearance is important?

1. Central board of Pollution control

2. Aarogya Setu

3. National Green Tribunal

4. NPCC

Answer: 3

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