what is msme

MSME stands for Micro, Small, and Medium Enterprises. These are business enterprises primarily involved in the manufacturing, processing, production, and preservation of goods and commodities, as well as providing services. MSMEs are crucial for a country's socioeconomic development as they create jobs, contribute significantly to GDP, and support exports. For example, in India, MSMEs contribute around 30% to the national GDP, about 40% to total exports, and provide over 110 million jobs. The classification of MSMEs is based on their investment in plant and machinery or equipment and turnover, with specific limits set for micro, small, and medium categories. The government often supports MSMEs with various schemes to foster innovation, financial support, and infrastructure development. MSMEs are important because they help in employment generation, promote entrepreneurship, drive exports, and bring innovation to industries.