How To Start MSME
How To Start MSME
ENTERPRISE
DECIDING TO GO INTO
BUSINESS
MOST CRUCIAL
EMPLOYMENT/SELF EMPLOYMENT
DECISSION TO BE SELF EMPLOYED
(ENTREPRENEUR)
ANALYSING STRNGTHS AND
WEAKNESSES
VARIES FROM PERSON TO PERSON
ENABLES TO KNOW WHAT TYPE AND
SIZE OF BUSINESS WOULD BE
SUITABLE
(ENTREPRENEUR)
MSME DEFINITIONS
Manufacturing Enterprises:
Defined in terms of investment in plant and
machinery (excluding land & buildings) and
further classified into:
Micro Enterprises - investment up to Rs.25
lakh.
Small Enterprises - investment above Rs.25
lakh & up to Rs.5 crore.
Medium Enterprises - investment above Rs.5
crore & up to Rs.10 crore.
Classification of Enterprises.
Service Enterprises:
Defined in terms of their investment in equipment
and further classified into:
Micro Enterprises - investment up to Rs.10
lakh.
Small Enterprises - investment above Rs.10
lakh & up to Rs.2 crore.
Medium Enterprises - investment above Rs.2
crore & up to Rs.5 crore.
PRODUCT SELECTION
ENVIRONMENTAL SCANNING
ESSENTIAL TO STUDY TO ENSURE ENTERPRISE
SUCCESS
TO KNOW THE BUSINESS OPPORTUNITIES
INCENTIVES
TO KNOW THE THREATS
WILL ASSIST IN PROJECT IDENTIFICATION AND
SELECTION
DIPS REPORTS
AVAILABLE PROJECT REPORTS
CONSULTING RELATED ORGANISATIONS
MEDIA
CONTACTING EXISTING ENTREPRENEURS
(MSMEDI, DIC, APITCO, KVIC, COIR BOARD, CSIR, CFTRI,
IICT, MAGAZINES, TCOs etc.,)
MARKET SURVEY
SHOULD BE DONE ON OUR OWN
SURVEY ON DESIGN AND COSTING
PRESENT MARKET SHARE
DEMAND-SUPPLY GAP
FUTURE DAMAND
DISTRIBUTION POLICY
COMPETETORS
TRAINING
WILL DEVELOP
SKILLS FOR ENTREPRENEURSHIP
TECHNICAL/TRADE SKILLS FOR
PROPOSED PRODUCT/PROJECT
EDPs, ESDPs, MDPs etc.,
(MSMEDI, APITCO, NIMSME,
NIESBUD, EDI etc.,)
FORMS OF OWNERSHIP
DEPENDS UPON TYPE, PURPOSE AND
SIZE OF YOUR OWNERSHIP
PROPRIETORSHIP
PARTNERSHIP
LIMITED COMPANY
CO-OPERATIVE SOCIETY
LOCATION
AVAILABILITY OF RESOURCES
MUST BE ACCESSIBLE
TRANSPORTATION FACILITIES
POWER AVAILABILITY
COST EFFECTIVENESS OF LAND
(APIIC)
TECHNOLOGY
EVALUATE ALL TECHNOLOGIES
AVAILABLE
CHOOSE THE BEST BASED ON FINANCIAL
CAPABILITY
HELPS IN CHOOSING RIGHT MACHINERY
AND OTHER TECHNICAL PARAMETERS
(CSIR, CFTRI, CLRI, IIP, ICAR, MSMEDI
etc.,)
PROJECT REPORT
PREPARATION
TO GET FINANCIAL ASSISTANCE
TO GET SOME APPROVALS
PRODUCTION DETAILS
MACHINERY DETAILS
MARKET ANALYSIS
WORKING CAPITAL MANAGEMENT
PROFITALBILTY
REGISTRATION
ENTREPRENEURSHIP MEMORONDA
PART I
At initial stage
Useful to initiate the work approach
to various organisations
ENTREPRENEURSHIP MEMORONDA
PART II
At production stage
FINANCE
APSFC
NATIONALISED BANKS
KVIC
COIR BOARD
PMEGP
AND OTHER GOVERNMENTAL
SCHEMES
PMEGP FEATURES
Funding:
Age: 18 years above
Qualification: 8
th
pass for units with project cost more than
5Lakhs(Service) and 10Lakhs(Mfg.)
Only for new projects
No income ceiling
Categories of
benefeciaries
Beneficiarys
contribution
(of project
cost)
Rate of
Subsidy (of
project cost)
Area(Location of
project/unit)
Urban Rural
General category 10% 15% 25%
Special (including SC/ST/
OBC/Min/W/Ex-ser/PH/
NE/Hill & border areas etc
5% 25%
35%
GETTING APPROVALS
SINGLE WINDOW SCHEME
QUALITY CERTIFICATIONS
BIS, AGMARK, FPO ETC.
SALES TAX REGISTRATION
POWER CONNECTION(AP TRANSCO)
MACHINERY AND EQUIPMENT
IDENTIFY THE RIGHT SUPPLIERS
GET THE QUOTATIONS
EVALUATE AND FINALISE.
BASED ON QUANTITY TO BE PRODUCED
& QUALITY OF PRODUCTION
(SUPPLIERS, NSIC etc.,)
* INSTALLATION OF MACHINERY
(as per plant layout)
RECRUITMENT OF MANPOWER
SKILLED, SEMI-SKILLED,
UNSKILLED, ADMINISTRATIVE etc.
ITIs
TECHNICAL INSTITUTIONS
MANAGEMENT INSTITUTIONS
EMPLOYMENT EXCHANGES
MAN POWER SUPPLY
ORGANISATIONS
RAW MATERIALS
INDIGENOUS
IMPORTED
(SUPPLIERS, GOVT. AGENCIES FOR
SCARCE RAW MATERIALS)
PRODUCTION
TRAIL PRODUCTION
COMMERCIAL PRODUCTION
MARKETING
TEST MARKETING
COMMERCIAL MARKETING
And Finally.
MONITORING
PURCHASING
PRODUCTION
MANAGEMENT
FINANCIAL
MARKETING
PERSONAL Etc.,
DIC KVIC KVIB APIIC
APPC
B
TECHNOLOGY
DEVELOPMENT
ORGANISATIO
NS
DEPART
MENT OF
TAXES
MANPOWER
DEVELOPMENT
ORGANISATIO
NS
RAWMATERIAL
SUPPLY
DEPARTMENTS
EXPORT
PROMOTION
COUNCILS
TRADE FAIR
ORGANISATI
ONS
INDUSTRIAL
DEVELOPMEN
T BANKS
INDUSTRIAL
DEVELOPMENT
CORPORATION
S
COMMERC
IAL
BANKS
TECHNICAL
CONSULTANCY
ORGANISATIO
NS
QUALITY &
BRAND
CERTIFICDA
TION
ENTERPRIS
E
DIC- District Industries Centre
Located at District Head quarters in
every district entire India.
It looks every aspect in set up of an
Industry or Service enterprises.
It implements Governments Industrial
Policy's and benefits.
KVIC-Khadi Village and Industries
Commission
It is Central government body
Located at District Head Quarters
It looks and support to rural Industries
Prepare policies for rural Industries
and its growth.