Difference Between Micro, Small And Medium Enterprises

Synopsis:

  • MSMEs are classified into micro, small, or medium based on investment limits and turnover.
  • Micro enterprises have investments up to ₹1 crore and turnover below ₹5 crore.
  • Small enterprises invest between ₹1 crore and ₹10 crore, with turnover from ₹5 crore to ₹50 crore.
  • Medium enterprises have investments between ₹10 crore and ₹50 crore and turnover of ₹50 crore to ₹250 crore.
  • Recent updates standardise classification for both manufacturing and service sectors.

Overview

Businesses are classified as micro, small or medium enterprises (MSMEs) based on their nature, scale, investment limit and turnover. These enterprises are covered under the MSME Development Act, 2006 and are broadly of two types- manufacturing or services. Business owners can get registered and get MSME certificates to avail of the benefits made available by the government for the growth and support of such enterprises. The government extends support measures through accessible credit facilities or policy steps to facilitate their growth.

For MSMEs that need funds either for their working capital needs or to finance their growth and expansion plans, HDFC Bank offers Business Loans curated to fit their requirements. Whether you own and operate a construction, education or infotech business, we have you covered when it comes to financial assistance. MSME enterprises can avail themselves of Business Loans of up to ₹50 lakh, provided they meet the eligibility criteria outlined by HDFC Bank.