Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.

India has got tremendous scope for investors and entrepreneurs as far as business opportunities are concerned. Especially India has always been in the limelight in terms SME business. The SME business opportunity in India can be seen in possibly every sector - financial services, telecom, education, automobiles, media, food, real estate and so on.

Small and medium sized enterprises play a central role in the Indian economy. They are a major source of entrepreneurial skills, innovation and employment. SME businesses are the biggest contributor to the economy of any country and the same goes with Indian economy. In fact, SME is one of the most crucial sectors of Indian economy as far as the number of employments generated from this segment. As more than 65% of Indian population lives in rural and semi-rural areas, small business becomes a major source of income for many residing in these areas. After agriculture, small business in India is the second largest employer of human resources.

The SME business market of India is large and bubbling with newer opportunities. Increased purchasing power and consumerism is what drives the business scenario in India. Thus, there is an opportunity for competitive advantage that can benefit investors and entrepreneurs to a large extent. An investment in any best small business opportunity promises lucrative returns and success in less time.

Reasons behind growth in SME business

There are various reasons due to which the small scale business in India has witnessed a spurt of growth. Some of these factors are:

•    High contribution to domestic production

•    Low investment requirements

•    Significant export earnings

•    Capacities to develop appropriate indigenous technology

•    Operational flexibility

•    Contribution towards defense production

•    Technology - oriented industries

•    Import substitution

•    Location wise mobility

•    Low intensive imports

•    Competitiveness in the domestic market

•    Competitiveness in the export markets

“Growth and Performance of Micro, Small and Medium Enterprises in India”

Over last 5 decades MSME sector emerged as extremely effervescent and vigorous segment of Indian economy. MSME plays dual role of providing employment and industrialization of rural/backward areas, thereby reducing regional imbalance and equitable distribution of national income. MSME’s are harmonizing to large industries as supplementary units, which adds to socio economic development. It consists of 36 million units, providing employment over 80 million persons with 8% contribution to GDP.

Leading Industries of MSME Sector:

Ø  Retail trade (except of motor vehicle & motor cycles) and Repairs of personal and household goods - 39.85%

Ø  Manufacturing of wearing apparels- 8.75%

Ø  Manufacturers of foods and beverages-6.94%

Ø  Other services activities -6.2%, other business activities – 3.77%

Ø  Hotels and restuarents-3.64%

Ø  Sales maintenance of motor vehicles and cycles – 3.57%

Ø  Furniture manufacturing -3.21%, Textile -2.33%

Ø  Fabricated metals except machinery and equipment-2.33% and others 19.4%.  Three sub sectors demonstrates promising picture: food processing- high potential because of agro linkage, textiles-innovation, and electronics- linkage with ITES

SMEs employ around 40% of India’s workforce, which is an estimated 80 million people, who are given an opportunity for livelihood and employment via low-skilled jobs. Around 1.3 million SMEs contribute 45% to India’s manufacturing output and 40% of India’s total export. In a way, they form the backbone of the Indian economy. At 48 million, India has the second largest number of SMEs in the world, edging close to China which has around 50 million SMEs.

There are around 6000 products manufactured by 31.7% SMEs while the remaining 68.2% are engaged in delivering various services. This sector, if extended the right support, has the potential to spread industrial growth throughout the country.

MSME- an abbreviation of Micro, Small & Medium enterprises- is the pillar of economic growth in many developed, and developing countries in the world. Often rightly termed as “the engine of growth” for India, MSME has played a prominent role in the development of the country in terms of creating employment opportunities-MSME has employed more than 50 million people, scaling manufacturing capabilities, curtailing regional disparities, balancing the distribution of wealth, and contributing to the GDP-MSME sector forms 8% of GDP.

The advantage of this sector is it requires less investment, thus creating employment on a large scale, and reducing the employment and underemployment problems. Moreover, this sector has survived almost all threats emerging out of still completion from both domestic and international market.

Share of MSME in Manufacturing, Exports and Employment sectors in India:

Sector Percentage (%) share

1        Manufacturing     45%

2        Exports                 40%

3        Employment         69%

The contribution of MSME to other sectors has been immensely instrumental. It is the biggest employer after agriculture sector, despite the fact that agriculture sector’s contribution to GDP is less than MSME. While it contributes about 45% to manufacturing sector, and perhaps 40% to Exports, it forms the highest share of Employment sector in India, contributing around 69% to it.

Here are few Projects for Startup:

PISTON FOR INTERNAL COMBUSTION ENGINES

Piston is one of the most important item in the automobile industries. There are mostly disc like structure of the piston. Now a day’s piston are made of cast iron or by aluminium in presence of 10% sand in it. There is a vast demand of piston and it is directly related to the two-wheeler production. Read more

NON GLAZED CERAMIC TILES

The world ceramic is taken to cover those articles that are made from inorganic substances first shaped and then hardened by fir. The characteristics are the wall tiles with colourless or pastel shade glaze with on-glaze decoration. Decorative tiles, frequently in a number of shapes and with relief designs and in a range of sizes. Read more

ABRASIVE & FLINT PAPER

Abrasive is a mixture of granular corundum or dark colour, having impurities of magnetite and hematite. It is a very strong and hard material, therefore, used as an abrasive for varying purposes. The paper or cloth coated with emery is known as emery paper or cloth. Emery is a natural mineral, corundum having certain impurities. Read more

MATCHBOX

Matchbox is one of the most important items. Though it is looked upon as small and insignificant, earlier it was a big problem. In the 17th century, people used phosphorous and sulfur together using flints or sticks of woods. It was then found in the 19th century that using non-provisions red phosphorous on the match head instead of white phosphorus. Read more

STRAW BOARD SLATES

The straw board slate is an important item for school. They are economical as they can be used again and again. They are used particularly by primary school students to improve their handwriting. Read more

CEMENT ROOFING TILES

Roofs are basic element of shelter to protect the people themselves from cold, wind rain and sun. Tiles are thin slabs of baked clay used for construction of roofs, walls or floors. They may be plain or ornamented, and glazed or unglazed. Tiles are also made from marble, cement or plastic materials. Read more

DISPOSABLE PLASTIC CUPS, PLATES AND GLASSES

The plastic in India plays a very important key role in industrialization. A wide spectrum of plastics and its articles have touched the life of every Indian is many ways through consumer plastics. Disposable cups, glasses and plates are used in daily life now a days. In addition to be used at home these are largely used in parties and other functions. Read more

OXYGEN AND NITROGEN GAS PLANT

Oxygen (CO2, gas at 00/1 matm., 1.429g./l, crit. Pressure, 49.7 Matm.) is a colorless, odourless, and tasteless gas, somewhat heavier than air. It is one of the most active elements and plays on essential part in the respiration of living cells and in combustion. Read more

WOODEN LABORATORY FURNITURE

The most common, versatile and oldest material that is used for making furniture is wood. Almost all varieties of furniture can be made of wood. Wood is a soft material and can be easily shaped. The finish obtained is very good and occasional polishing can make it look like new at all times. Read more

DISPOSABLE PLATES FROM BANANA LEAVES

Disposable cutlery and containers are products that are a part of our day to day life. Disposable items like cups, plates, saucers are being increasingly used. Such disposable items are made with natural materials like leaf as well as man made products like paper, plastics. Leaf cups, plates have greater hygiene value. Read more

WOODEN FURNITURE

The furniture making is an ancient art in India before centuries. The expertise of India in manufacturing furniture was accepted by all the parts of the world. Wooden furniture is made in cottage and households industries. It is also made in small to large scale sectors. Read more

CHIP BLOCK (COMPRESSED WOOD)

Wood waste is, by far, the largest portion of the waste stream generated from wood working Industry. Almost everyone in the woodworking business has a problem with wood scrap, chips and sawdust occurring as a by-product of woodworking. From the mill to the finished product, this offal represents an impressive amount, Read more

NATURAL COLOURS