SMEs, MSMEs, MSEs and even SMBs or small businesses are the common terms you may have come across in news and articles discussing their challenges and growth opportunities
SMEs, MSMEs, MSEs and even SMBs or small businesses are the common terms you may have come across in news and articles discussing their challenges and growth opportunities
Aug 23, 2023
Girish Khurana
While they all may sound similar, do you think their meanings are also the same?
While they all may sound similar, do you think their meanings are also the same?
No, they are not exactly the same. The difference lies in the focus on micro and small enterprises
No, they are not exactly the same. The difference lies in the focus on micro and small enterprises
For instance, SMEs are small and medium enterprises while MSMEs include micro, small and medium enterprises
For instance, SMEs are small and medium enterprises while MSMEs include micro, small and medium enterprises
On the other hand, MSEs are micro and small enterprises while small business is a broader term to define MSMEs
On the other hand, MSEs are micro and small enterprises while small business is a broader term to define MSMEs
Ideally, only SMBs, which mean small and medium businesses, can be interchangeably used with SMEs
Ideally, only SMBs, which mean small and medium businesses, can be interchangeably used with SMEs
Particularly for MSEs, there are dedicated govt schemes such as Mudra loans and CGTMSE
Particularly for MSEs, there are dedicated govt schemes such as Mudra loans and CGTMSE
Micro enterprises are those with investment in plant and machinery or equipment less than Rs 1 crore and turnover under Rs 5 crore
Micro enterprises are those with investment in plant and machinery or equipment less than Rs 1 crore and turnover under Rs 5 crore
For small enterprises, the limit is up to Rs 10 crore and Rs 50 crore respectively and for medium enterprises, the limit is under Rs 50 crore and Rs 250 crore respectively
For small enterprises, the limit is up to Rs 10 crore and Rs 50 crore respectively and for medium enterprises, the limit is under Rs 50 crore and Rs 250 crore respectively