MSMEs vs Startups: The key differences businesses must know

MSMEs vs Startups: The key differences businesses must know

MSME

MSME

A Micro, Small, and Medium Enterprise (MSME) is a business entity that is independently owned and operated with the primary goal of generating profit by offering familiar products or services to well-defined customers within regional markets

A Micro, Small, and Medium Enterprise (MSME) is a business entity that is independently owned and operated with the primary goal of generating profit by offering familiar products or services to well-defined customers within regional markets

Startup

A startup is an entity incorporated as a private limited company, an enterprise in a partnership or as an LLP (Limited Liability Partnership) in India whose revenue is up to Rs 25 crores

A startup is an entity incorporated as a private limited company, an enterprise in a partnership or as an LLP (Limited Liability Partnership) in India whose revenue is up to Rs 25 crores

MSME

MSME

For Microenterprise, Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover; not more than Rs. 5 crore

For Microenterprise, Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover; not more than Rs. 5 crore

Startup

Startup

The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership

The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership

MSME

For small enterprises, Investment in Plant and Machinery or Equipment:Not more than Rs.10 crore and Annual Turnover; not more than Rs. 50 crore

For small enterprises, Investment in Plant and Machinery or Equipment:Not more than Rs.10 crore and Annual Turnover; not more than Rs. 50 crore

Startup

Startup

Turnover should be less than Rs. 100 Crores in any of the previous financial years

Turnover should be less than Rs. 100 Crores in any of the previous financial years

MSME

MSME

Investment in Plant and Machinery or Equipment:Not more than Rs.50 crore and Annual Turnover; not more than Rs. 250 crore

Investment in Plant and Machinery or Equipment:Not more than Rs.50 crore and Annual Turnover; not more than Rs. 250 crore

Startup

An entity shall be considered as a startup up to 10 years from the date of its incorporation

An entity shall be considered as a startup up to 10 years from the date of its incorporation

MSME

To access advantages such as skill development and training, as well as obtain long and medium-term loans, working capital loans, seed loans, and bridge loans offered by the Ministry of MSMEs, a business must undergo MSME registration

To access advantages such as skill development and training, as well as obtain long and medium-term loans, working capital loans, seed loans, and bridge loans offered by the Ministry of MSMEs, a business must undergo MSME registration

The Startup should be working towards innovation/improvement of existing products, services and processes and should have the potential to generate employment and / or wealth creation

The Startup should be working towards innovation/improvement of existing products, services and processes and should have the potential to generate employment and / or wealth creation

Startup

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