MATA GUJRI COLLEGE , FATEHGARH

SAHIB

Presentation Of Seminar on Small Business Enterprises &

Recent Development In It

Submitted To :

Assistant Prof. Neha Rani

(PG. DEPARTMENT OF COMMERCE)

Submitted By :

Amandeep Kaur

B.Com(Hons)III

Roll No. 233872

 Declaration

I Amandeep Kaur , Student of B.COM (HONS) III Declare

that this file is an outcome of my own efforts under the
guidance of my teacher Assistant Prof. Neha Rani. This file is
submitted by me to PG Department Of Commerce , Mata
Gujri College Fatehgarh Sahib for the partial fulfilment of the
degree of Bachelor’s Of Commerce (Honours) session 23-24.

I also declare that this file work has not been submitted to any
other university or college.

Amandeep kaur

B.COM (HONS) III

Roll no. 233872

 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to

Prof.Anwar , Head Of Commerce department and my teacher
Neha Rani who gave us the chance to do this wonderful report
on tax procedures.

Who also helped me in completing this report. I came to know

about so many new things I am really thankfull to her.

Secondly I would like thank to my friends who helped me a

lot in finalizing this report within limited time frame.

I am overwhelmed with sense of gratitude which I owe to my

family members for their blessings, for their help and wishes
for the successful completion of this work.

Amandeep kaur

B.COM (HONS) III

Roll no 233872
 CONTENTS

Sr.No Particulars Page

No.

1. Intoduction To Small Business 1-2

Enterprises

2. Role Of Small Business Entp. In 3-4

Economic Development Of India

3. Problem Of Small Scale Industries 5-6

5. Growth And Expansion Of MSME 7-9

6. Emerging Trends For MSME 10-12

7. Challenges Faced By MSME 13-15

8. Conclusion 16-17
 Small Business Enterprises : Introduction

A business which operates on a small scale and required less

capital. Less labour and less machines is called small
business. The goods are produces on a small scale: This
business is operated and managed by the owner of the
business. in India, the village and small Industries sector
consists of both traditional Handlooms. Handicrafts, khadi
and Village Industries. Modern small Industries - Small scale
industries and Power looms. According to MSMED Act,
2006, a small scale enterprise defined as one where the
investment in Plant and Machinery is more than 25lacs but
does not exceed Rs. 5 crore . Several parameters can be used
to measure the size of business. These include the number of
persons employed in business, Capital invested in business,
Volume of output of business and power consumed for
business activities. The definition used by the Government of
India to describe small Industries is based on the investment
in plant and machinery. It can be divided as follows:
 Types Of Industries Investment Features
Limit Rs.
Sr.No

1. Small Scale Industries One Crore For specific production it is

5 crore (71 product)

2. Ancillary Small One Crore 50% of output supplied to

Industrial Unit the permanent unit.

3. Export Oriented Units One Crore It export more than 50% of

(Eous) its production. it can sell
25% in domestic market

4. Tiny Industrial Unit 25 Lakhs Investment limit in plant

and machinery is not more
than 25 lakhs

5. Women Enterprises Any Of The Owned and managed by

Above woman and have capital not
less than 51%

6. Micro Business One Lakh Those whose investment in

Enterprises plant nad machinery does
not exceed rs. 1 lakh

7. Village Industries Investment Location in rural areas

Worker Per produces any goods without
Head Rs the use of power
50000/-
 8. Cottage Industries Not Defined Normally use family labour
By use simple machine,use
small capital

9. Micro Business 25 Lakhs Enterprises engaged in the

Enterprises manufacture of goods
pertaining to any industry
(Manufacturing
Sector)

ROLE OF SMALL SCALE INDUSTRIES IN SOCIO-

ECONOMIC DEVELOPMENT OF INDIA:-

1.Employment:- Small scale Industries are second largest

employers of human resources after Agriculture. It has 95% of
the industrial unit in the country. These enterprises are labour
intensive and labour is available in abundant amount is rural
areas of India.

2. Variety of product:- Small scale Industries produce an

enormous Variety of goods e.g. ready-made garments ,
stationery, soaps, Leather's goods Plastic and rubber goods.
3. Export :- The share of product from SSI is 45% of total
export from India So it earn valuable foreign exchange and
solve the problem of balance t payment.

4. Complementary to large scale Industries:- S.S.I (small

scale industries) supply various types of components spare
parts. tools etc. which are required by large scale enterprises.

5. Low cost of production:- S.S.I. also enjoy the advantage

of low cost of production because they used local resources in
their product.

6. Quick and timely decision :- Due to the small size of the

organization quick and timely decisions can be taken without
consulting many people.

7. Development of entrepreneurship :- S.S.I. provide

opportunity of young men and women to start their own
business.

Growth and Expansion of MSMEs in India

The MSME sector is important for a number of reasons. First,
it provides jobs to millions of people, especially in rural areas.
Second, it helps to promote entrepreneurship and innovation.
They also help to diversify the Indian economy and to reduce
poverty and inequality. The Indian government has taken a
number of steps to support the MSME sector, such as
providing loans, tax breaks, and training programs. These
measures have helped to boost the sector's growth and
contribute to the country's economic development. The
MSME sector is a critical part of the Indian economy. These
small enterprises contribute significantly to the country's GDP,
exports, and employment. According to the Ministry of
MSMEs, there are over 63 million MSMEs in India. These
enterprises employ over 113 million people, which is about
40% of the country's workforce. MSMEs also contribute
about 30% of India's GDP and 45% of its manufacturing
output.

Digital Age and MSMEs

With the advent of the digital age and technological
advancements, MSMEs in India witnessed a new era of
growth and innovation. E-commerce platforms and digital
marketing enabled small businesses to reach a wider customer
base and compete in the global marketplace. The
government's Digital India initiative further accelerated the
digital transformation of small firms, facilitating online
registrations, access to credit, and various e-governance
services.

MSMEs in Present Day

MSMEs have long been seen as being the foundation of
India's economy, making substantial contributions to the
creation of jobs, innovation, and inclusive growth. Small
businesses continue to play a significant role in the current
environment despite a number of obstacles.
 Challenges Faced by MSMEs
Despite their resilience and government support, MSMEs face
significant challenges:

Access to Finance: Limited access to formal credit remains a

major hurdle for MSMEs. High interest rates, complex loan
procedures, and inadequate collateral deter financial
institutions from lending to them. Encouraging more inclusive
lending practices and promoting alternative financing options
can help address this challenge.

Skill Development : MSMEs often struggle to find skilled

labour, particularly in emerging technologies and specialized
areas. This can lead to problems such as poor financial
management, inefficient production processes, and a lack of
marketing skills. Bridging the skill gap through vocational
training programs and industry-academia collaboration is
crucial for sustainable growth.Tax Compliance : MSMEs
often find it difficult to comply with India's complex tax laws.
This can lead to penalties and fines, which can put a strain on
their finances.

Conclusion
The history of MSMEs in India reflects their resilience,
adaptability, and contribution to the nation's economic growth.
From their humble beginnings to the present day, they have
played a pivotal role in employment generation, inclusive
development, and fostering entrepreneurship. The
government's continuous support and proactive measures will
be crucial in nurturing and empowering MSMEs.

Moving forward, it is crucial for policymakers, financial

institutions, and industry stakeholders to collaborate in
addressing the challenges faced by MSMEs. Streamlining
access to finance, enhancing skill development programs, and
improving infrastructure will be instrumental in unlocking the
full potential of small businesses.

In conclusion, small businesses in present-day India embody

the entrepreneurial spirit. They have the potential to contribute
significantly to economic growth, job creation, and inclusive
development. With continued support from the government,
stakeholders, and society at large, MSMEs can overcome
challenges and emerge as a vital force in shaping India's
prosperous future.