How Msme Schemes For Entrepreneurs Is Going To Change Your Business Strategies.

Ministry of Micro, Small & Medium Enterprises has launched a number of MSME Schemes For Entrepreneurs from time to time to finance & support the MSME sector of India. MSME sector is the biggest economic platform that positively contributes to the development of the Indian economy. 

The Government of India is directly promoting small entrepreneurs by way of different MSME schemes to set-up new businesses. The government has introduced such schemes to provide them better infrastructure, production assistance, market reach, and quality control to boost their business requirements to compete in the open market. 

The Government of India has recently launched some MSME schemes to support small business entrepreneurs. 

1. Women Entrepreneurship
2. Grievance Monitoring System
3. Zero Defect Zero Effect scheme
4. Quality Management Standards and Quality technology tools
5. Udyog Aadhaar Memorandum scheme
6. Incubation
7. Credit Linked Capital Subsidy scheme

With the help of the above-mentioned schemes, A small business entrepreneur can effectively formulate his strategy to set up a new business. The following are some important points that will reveal how MSME schemes have changed an entrepreneur's business strategy.

Financial Assistance: The ministry of micro, small & medium enterprise has announced many MSME schemes to provide financial support to small business entrepreneurs. Financial assistance is a must for a business to run its business activities, start a new venture, make payments to suppliers, and new business startups, etc.

Grievance Redressal: The Government has launched a Grievance Monitoring System scheme to resolve various MSME Entrepreneur complaints. These schemes closely track & monitor small business owners' complaints and provide timely redressal. 

Quality Production Assistance: The Quality Management Standards scheme has added more value to the production process of a product. This scheme tracks & monitors that all the production standards are followed significantly to reduce production wastage, production time, and maintain quality-control. This scheme also focuses on continuous research & development to add more value to a product and make it available to meet Global competition.

Support Women Entrepreneurship: With the introduction of the Women Entrepreneurship scheme, the Government has recognized women involved in small businesses such as pickle making, garments weaving, and farm production, etc. This scheme helps to provide them a product ready market, value addition, skill development, product training, and small business loans. 

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How To Learn Top 6 Ideas To Boost MSME Sector of India

The MSME sector of India contributes around 30% of the GDP of the Indian economy. This is a huge portion of the GDP as compared to other sectors' contributions to the Indian economy. The MSME sector is considered as the backbone of India’s economy and after knowing the importance of the MSME sector, The Government of India has launched many MSME Loan Schemes. 

The ministry of micro, small & medium enterprises has launched many schemes from time to time to boost the MSME sector of India. MSME sector is the growth engine of the Indian economy, that creates millions of jobs every year.

It is a must to boost the MSME sector for the rapid development of the Indian economy. The Government of India has taken many steps over the last few years to provide financial assistance to the MSME sector,

I would like to suggest some more ideas that will help to improve the MSME sector of India.

Market Reach: Every manufactured or produced commodity needs a ready market for sale. If your products don't have a market reach, then it will negatively affect your business as well as the growth of the MSME industry. The government should do proper planning for every product to provide them a ready market.

Quality Control: Most of the MSME sector products and services are unable to compete with big branded products and services because of poor quality production. For resolving this issue we need to take precautionary steps to offer quality products with maximum customer satisfaction.

Plant & Machinery: Generally small enterprises don,t have sufficient liquidity to install heavy plant & machinery to increase their production scale to meet the required market demand. The Government should provide more financial assistance to those MSME sectors that have more potential with their products.

Land Acquisition: The land requirement to set-up a business is one of the major issues and it negatively affects the MSME sector. It is a difficult task to acquire the desired land with proper road connectivity for micro business owners. For resolving this issue, the Government should revise Land Acquisition rules for the continuous growth of the MSME sector.

Bank Borrowing with minimum interest rates: The Government of India has introduced many MSME schemes to finance the MSME sector of India over the past few years under the prime minister Narendra Modi leadership. Apart from this, the Government should provide an option to those MSME sectors that don,t fall under the Government schemes.

Skilled Manpower: The shortage of skilled laborers always hurts the quality production of an enterprise. The Government of India should take necessary measures to convert unskilled manpower to skilled manpower with proper training & education support.

There are a number of factors that may affect the continuous growth of the MSME sector. Here I have mentioned the major factors that will directly boost the MSME sector of India. However, if you are eager to understand what is the scope & possibilities of the MSME sector in India visit MSME NEWS. 

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Learn How To File MSME Delayed Payment Complaint

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File MSME Delayed Payment Complaint | MSME SAMADHAAN

During this COVID-19 crisis recession period, delayed or not payment has become a common issue for Indian traders. The delayed payment issue has become more critical especially when the automotive sector is down. To solve this issue the Ministry of Micro, Small & Medium Enterprises has launched a new forum called MSME SAMADHAAN for the recovery of delayed payment. 

This forum helps to recover MSME Delayed Payments Complaints because the MSME sector is the backbone of the Indian economy and plays a vital role to boost GDP. The MSME sector occasionally faces issues like where big companies outsource their work to MSME but not make payments on time and this creates a huge loss to MSME. 

MSME SAMADHAAN has been introduced after taking into consideration MSME traders' grievances.  

Let's check the process on how to recover delayed payments through MSME SAMADHAAN forum.

First, we need to understand which sectors are eligible for the MSME sector category.

Production sector: All the organizations whose investment is less than 25 lakh in plant & machinery will fall in the Micro category. The sectors whose investment in plant & machinery is in between 25 lakh to 5 crore will come under the Medium category. 

Service Sector: You will fall in the Miro category if your investment is less than 10 lakh and if your investment is between 10 lakh to 2 crore, you will come under the Medium category.

The organizations which come under the Micro or Medium category can only take the benefits of MSME SAMADHAAN forum to recover delayed payments. If your investment is more than 5 crore under the above-mentioned sectors, then you can't recover your payments under this scheme.

Exception: Under this scheme, only those plant & machinery investment will be considered that are directly involved in production or manufacturing. Generators, pollution control equipment that is not directly involved in the production process will not be considered. Under this exception, if your investment falls below 5 crores after excluding indirect machinery, then you are to take the benefits of MSME SAMADHAAN.  

Documents required to file MSME Payment Complaint under this scheme.

Udyog Aadhaar Card: You must have your Udyog Aadhaar Card to file a complaint under this forum. If you don't have you can easily create it within 10 minutes with the Government website www.udyogaadhaar.gov.in. To create Udyog Aadhaar Card you need to fill your company's basic details as well as you are required to upload the last 3 years' returns of your company. You will get your Udyog Aadhaar Card after filling all the required details of your company. 

After getting your Udyog Aadhaar Card you can file your case under the MSME website. Apart from this document you also have to fill details of your purchase order and invoice.

What are other options if the concerned party don,t make payment after filing MSME complaints

In case the other party doesn't make payment after 15 days of intimation notice, you can take your case to MSME Council. For filing a complaint in the MSME council, you need to send all your documents like- Udyog Aadhaar Card, purchase order, and invoice with RS 3500 demand draft.

After receiving all the documents, MSME Council will send notice to summon both the parties. MSME Council first convinces both parties for mutual compromise and in case of non-compromise, the case is transferred to Arbitration. The Arbitration proceedings undergo Arbitration Conciliation ACT and after hearing both parties' cases if the arbitrator found that the petitioner's claim is valid, then the case awarded to the petitioner favor. 

The petitioner can also claim 3 times of bank rate interest from the respondent as well as compensation and damages. 

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