Entrepreneurship Development and Communication Skills

7.2.3.MSMED Act

The “Micro, Small and Medium Enterprises Development (MSMED) Act, 2006” is the first single comprehensive legislation in India, covering micro, small and medium enterprises.  Under the Act, the terms “medium sector” and “micro enterprises” have been defined for the first time.  Also, the concept of ‘Industries’ has been widened to that of ‘Enterprises’.  Enterprises have been classified broadly into two categories, namely, enterprises engaged in the manufacture/production of goods pertaining to any industry; and enterprises engaged in providing/rendering of services.  The term “enterprises” has been defined in terms of investment in plant and machinery/equipment (excluding land & building). 

In order to protect, support and promote small enterprises as also to help them become self-supporting, a number of protective and promotional policy measures have been undertaken by the Government. 

The promotional measures cover:-

 (i) industrial extension services;

 (ii) institutional support in respect of credit facilities;

 (iii) provision of training facilities;

 (iv) supply of machinery on hire-purchase terms;

 (v) assistance for domestic marketing as well as exports;

 (vi) technical consultancy and financial assistance for technological upgradation; etc.