An emerging threat to small Enterprises (MSMEs)
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–MSMEs face an identity threat due to economic recession in the FY 2021 in the midst of the Covid-19 pandemic.
- India was moving towards a 15-percent decline in revenue and a 25-percent decrease in earnings before interest, taxes. fortunately, for smaller firms, revenue will also fall by 17-21 percent, while the EBITDA margin would fall by 200-300 basis points ( bps) to 4-5 percent, with weak demand away from lower commodity prices.
- The downward trend at the operational level will also have an impact on creditworthiness. In the meantime, the average interest rate coverage ratio could fall to 1-1.5 times the 2.4-fold between the 2017 and 2020 fiscal years, “the study said.
More read:MSME REGISTRATION – ROLE OF CA COMMUNITY
As a summary to this issue, a three-pronged strategy is now crucial
- Improve job satisfaction with formal and informal employees to confident decisions.
- Speed up the execution of the Rs 3-Lakh Crore Aatmanirbhar scheme to ensure the continuous supply of liquidity to small and medium-sized enterprises.
- Lenders must go further than traditional credit processes because they have a key role to play in recovering.
Also Read : Overview of Medium and Small Entreprises
What is MSME

Category of Micro/Small/Medium Enterprises – Type of Enterprises | Micro-Enterprise | Small Enterprise | Medium Enterprise |
Manufacturing OR Services Sector, Both | Investment up to ₹ 1 Cr AND Turnover up to ₹ 5 Cr | Investment up to ₹ 10 Cr AND Turnover up to ₹ 50 Cr | Investment up to ₹ 50 Cr AND Turnover up to ₹ 250 Cr |
Documents for Udyam Registration MSME

- Adhaar Card – of the prop. (in case of the prop.)
- Of Managing Director/Partner(in case of company/partnership firm)
- Must be linked with mobile no. and pan.
- GSTIN and Pan Card.(RC copy of GST no.)
- Annual Turnover as per Income Tax and GST.
- Plant and Machinery details as per Income Tax Return.
- Self-declared if Income Tax Return not filed.
- Date of Incorporation of business (RC copy of company)
- Income Tax Return Copy with the Balance sheet and Profit and Loss.
- Email id/ Mobile No.
Benefits of Udyam Registration MSME –
– Collateral Free Borrowings
– Subsidized Loan from banks with a low-interest rate
– Participate in the International Trade Fairs
– Benefits from Central Government Schemes
– Preference in the Government Tenders
– Get Subsidy on the Patent Registration
– Protection against delayed payment
– Get Subsidy on Trademark Registration
– Concession in electricity bills
– Easy to get licenses, approvals, and registrations
– Reimbursement of Foreign Exhibition Charges
Govt of India schemes to promote MSMEs
- MSME Samadhaan– The MSME Delayed Payment Portal would allow Micro and Small Businesses (MSMEs) across the country to file their complaints about delayed payments from Central Ministries/Departments/CPSEs/State Governments.
- Digital MSME SchemeIt entails the use of Cloud Computing, in which MSMEs use the internet to access both standard and customised IT infrastructure.
- Micro & Small Enterprises Cluster Development Programme (MSE-CDP)– adopts cluster development approach for enhancing the productivity and competitiveness as well as capacity building of MSEs.
- Credit Linked Capital Subsidy Scheme (CLCSS) is operational for upgradation of technology for MSMEs.
- MSME Sambandh : To monitor the implementation of the public procurement from MSMEs by Central Public Sector Enterprises.
- Revamped Scheme of Fund for Regeneration Of Traditional Industries (SFURTI) : Traditional industries and artisans are grouped together to make them more competitive by increasing their marketability and providing them with better skills.
- Prime Minister Employment Generation Programme: It is a credit linked subsidy program under Ministry of MSME.
- National Manufacturing Competitiveness Programme (NMCP): The National Manufacturing Competitiveness Programme (NMCP) aims to improve Indian MSMEs’ global competitiveness by enhancing their processes, designs, technology, and market access.
- A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE): Creates new jobs and lowers unemployment, encourages entrepreneurship, and facilitates innovative business solutions, among other things.
- Udyami Mitra Portal :SIDBI initiated this initiative to make lending and handholding services more accessible to MSMEs.
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