SMEStreet Survey Report: ‘MSME Definition Amendment’
The Ministry of MSME has proposed amendment to the MSMED Act 2006 in the definition of Micro, Small and Medium Enterprise. On such background, SMEStreet initiated an industry wide survey among while reaching out to MSMEs in order to know their mandate toward such change.
SMEStreet reached out to it’s readers & network of MSMEs across the country and asked them about their feedback on this important change that is going to happen.
These MSME are from diverse background and represent a variety of industry segments. For example: this survey includes MSMEs from Manufacturing, automotive, garments, steel fabrication, oil & gas, retail, banking, education, technology, BFSI, knowledge services, pharmaceuticals , healthcare, medical equipment and much more.
The majority of MSMEs are spread across close to 35 important important industry clusters.
The survey was conducted through online and offline modes. And it was conducted during the period of January 2015 to April 2015.
Here are some key findings:
On manufacturing category-
On the recommendation of capital ceiling for micro enterprises of manufacturing domain from Rs 25 lakh to RS 50 lakh:
- 58 % of respondents expressed that they are in favor of this move.
- 23 % of respondents are not in favor of this suggestion.
In the Manufacturing sector, on the suggestion of raising the capital ceiling of small enterprises from RS 5 Cr to RS 10 Cr:
- 67% of respondents agreed to this point.
- 19% expressed that this category should not be touched.
On the suggestion of considering medium enterprises of manufacturing sector from Rs 10 Cr to Rs 30 Cr:
- 42% of MSMEs who responded to the survey agreed to this suggestion
- 28% says that this element should not be touched
- 14 % opted to stay quite on this point.
On the Services sector:
On the suggestion of raising the ceiling for capital investment from Rs 10 lakh to Rs 20 lakh in micro category:
- 51% respondents showed that they are in favor of this suggestion
- 23% did not supported this suggestion
- 19% preferred their silence on this topic
On the suggestion of increasing the capital size from RS 2 Cr to Rs 5 Cr for the small enterprise category:
- 41% said that they are in favor of the suggestion
- 38 % said they would like to remain at 2 Cr
On the suggestion of raising the bar for medium sized service enterprise from Rs 5 Cr to Rs 15 Cr:
- 35% agreed to the suggestion
- 31% disagreed to this suggestion
- 24% expressed not to share their opinion on this point.