LOVELY PROFESSIONAL UNIVERSITY

Course Code: Vikash kumar Course Title:Business organization and management

Name of faculty: Dr. Ayeshsa khatun Section: Q2210

Academic Task No.: 1 Subject code: MGN101

Date of Allotment: 05-09-2022 Date of submission:16-09-2022

Student’s Roll no: 64 Student’s Reg. no: 12210840

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student‟s work
or from any other source except where due acknowledgement is made explicitly in the text, nor has any
part been written for me by any other person.

Student’s Signature:

Evaluator‟s Signature and Date:

Marks Obtained: Max. Marks: 30………………

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 Executive summary report

Ministry of MSME ,govt. of india

ABSTRACT: Micro, Small and Medium Enterprises constitute the backbone of an economy in

maintaining an appreciable growth rate and in generating employment opportunities. Thissector has

been regarded as engine of economic growth and social development in many developed and developing

countries.Contribution of MSMEs to the Indian economy in terms of employment generation,

containing regional disparities, fostering equitable economic growth and enhancing export potential of

the countryhas been quite phenomenal. Despite some infrastructural deficiencies and challenges like

flow of institutional credit and inadequate market linkages, this sector has registeredremarkable success

with regard to increase in number, quantum of investment, scale of production and overall contribution

to nationalGDP. The studymakes an attempt to focus on the huge growth potentialand opportunities

available in India for development of MSME sector,to identify important issues and challenges and offer

suggestions to address the same.

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1.Introduction

Micro, small and medium enterprises (MSMEs) in India and abroad have
demonstrated considerable strength and resiliencein maintaining a consistent rate of growth and
employment generation during theglobal recession and economic slowdown. Indian economy
during the recent years has shown an appreciable growth performance by contributing
tocreation of livelihood opportunities to millions of people,in enhancing the export potential and
in increasing the overall economic growth of the country. Prompt and appropriate fiscal
stimulus,effective monetary policy and huge capital inflows were greatly instrumental in the
bounce back situation of the economy.As a catalyst for socio-economic transformation of the
country, the MSME sector is extremely crucial in addressing the national objectives of bridging
the rural-urban divide, reducing poverty and generating employment to the teeming millions.It is
therefore,essential that India adopts a suitable policy frameworkthat provides the required
impetus to seize the opportunities andcreate an enabling business environment in order to keep
the momentum of growth and holistic development.It is equally important that the MSME sector
must address the infrastructural deficiencies and is well empowered to meet the emerging
challenges for its sustainable growth and survival in a globallycompetitive order .

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 ➢ MICRO ENTERPRISE

Micro enterprise also refers to micro business, which starts with a smaller amount of
capital plus employs a small number of people. Generally, microenterprise serves as a trademark of
developing the country as well as its economy. Many people found a shortage of jobs in the formal
sector; however, micro-enterprise help them to find a good job in a desirable sector. Apart from
creating jobs, they increase purchasing power, reduce production costs, and offer convenience.
Even the government encourages microenterprise development in low-
income areas. It helps not only business but also the economy to grow. In addition to it, such
enterprises aim to promote sustainable development. A micro business must get treated in the same
way as any large business from a proper business plan to professionalism. The higher commitment and
good initiative lead to the development of micro-enterprise businesses into bigger entities.
Purposes of a Micro-Enterprise
Microenterprise in India helps in creating large-scale employment in the economy. With the use of
limited finances and investment, micro-enterprises aim to provide good jobs to job seekers.
One of the great objectives of microenterprise is to promote trade and industries in an economically
backward area. As a result, it helps in the development of the economy.
Micro enterprises help in bringing the backward areas into the plan for national
development. They aim to encourage regional development.

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The above picture shows ladies selling food items to earn money and it’s a kind of
micro business. They may work in industry or may start their own
business.Microenterprises help in filling the gap effectively in developing
economies. It helps in improving the mobilisation of plenty of natural resources in
India.Irrespective of where people live and work, micro-enterprise helps in
improving the living conditions of all citizens.
With the emergence of advanced technologies, it is becoming a challenge for micro-
enterprise businesses to balance their reputation. The Government of India has already taken several
steps due to which ease of conducting business for microenterprises has increased.
Types of Micro-Enterprises in India
Microenterprises contribute a considerable portion to the economy. Some of the business types
considered as micro-enterprises are as follows.
• Street vendors
• Independent mechanics
• computer service
• Lawn and landscaping companies
• Small farmers
• Carpenters
• Plumbers
• Machine shop operators
• Shoemakers

➢ SMALL ENTERPRISE

Meaning:
In a way, small and large-scale enterprises are two legs of industrialisation process of a country. Hence,

small-scale enterprises are found in existence in every country. Small-scale enterprises have been given

an important place in the framework of Indian planning since beginning both for economic and

ideological reasons.Today, India operates the largest and oldest programmes for the development of

small-scale enterprises in any developing country. As a matter of fact, small sector has now emerged as

a dynamic and vibrant sector for the Indian economy in the recent years.

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 Therefore, it is in logical order that we should know the major

aspects of this vibrant sector in the national economy. Let us begin with defining

the term ‘Small enterprises’ popularly called ‘Small-Scale Industries (SSIs)’ in our

country.

Definition:
‘What is a small-scale industry?’ In fact, small-scale industry comprises of a variety of undertakings. The

definition of small-scale industry (SSI) varies from one country to another and from one time to another

in the same country depending upon the pattern and stage of development.

Government policy and administrative set up of the particular country. As a result, there are at least 50

different definitions of SSIs found and used in 75

countries (GIT 1955). All these definitions either relate

to capital or employment or both or any other criteria.

Let us trace out the evolution of the legal concept of

small-scale industry in India.

The Fiscal Commission, 1950 (GOI 1950), for the first

time, defined a small- scale industry as one which is operated mainly with hired labour usually 10 to 50
hands. In order to promote small-scale industries in the country, the Government of India set up the

Central Small-Scale Industries Organisation and the Small- Scale Industries Board (SSIB) in 1954-55.

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 ➢ Medium Enterprise

After 14 years since the MSME Development Act came into existence in 2006, a
revision in MSME definition was announced in the Atmnirbhar Bharat package on
13th May, 2020. As per this announcement, the definition of Micro manufacturing and services units
was increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover. The limit of small unit was
increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover. Similarly, the limit of medium unit
was increased to Rs. 20 Crore of investment and Rs. 100 Crore of turnover. The Government of India on
01.06.2020 decided for further upward revision of the MSME Definition. For medium Enterprises, now it
will be Rs. 50 Crore of investment and Rs. 250 Crore of turnover.
The existing criterion of definition of MSMEs is based
on the MSMED Act, 2006. It was different for manufacturing
and services units. It was also very low in terms of financial
limits. Since then, the economy has undergone significant
changes. After the package announced on 13th May, 2020,
there were several representations saying that the
announced revision is still not in line with market and price
conditions and hence it should be further revised upwardly.
Keeping in mind these representations, Prime Minister
decided to further increase the limit for medium Units. This
has been done in order to be realistic with time and to
establish an objective system of classification and to provide
ease of doing business.
Also, a new composite formula of classification for manufacturing and service units has been
notified. Now, there will be no difference between manufacturing and service sectors. Also, a new
criterion of turnover is added.
Ministry officials said that the new definition will pave way for strengthening and growth of
the MSMEs. Particularly, the provision of excluding the exports from counting of turnover will
encourage the MSMEs to export more and more without fearing to loose the benefits of a MSME unit.
This is expected to exponentially add to exports from the country leading to more growth and economic
activity and creation of jobs.
Detailed Guidelines and Clarifications as regards the classification in pursuance of the
changed definition are being issued separately by the MSME Ministry. Ministry of MSME has reiterated

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that it has put in place a very strong handholding mechanism for MSMEs and new
entrepreneurs in the name of Champions (www.champions.gov.in) which was
recently launched by the Prime Minister. Interested Enterprises/People can take
benefit of this mechanism and can also put their queries or complaints. The same
will be attended to with utmost promptness.

GOVERNMENT PARAMETERS FOR A MEDIUM ENTERPRISE

Investment in Plant and Machinery or Equipment:

MARICO COMPANY

Marico is one of India’s leading consumer products companies in the

global beauty and wellness space. During FY 2021-22, Marico recorded a turnover of about INR 95 billion

(USD 1.3 billion) through its products sold in India and chosen markets in Asia and Africa. Marico

touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as Parachute, Saffola,

Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed,

Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon and Beardo and Just Herbs. The international

consumer products portfolio contributes to about 23%

of the Group’s revenue, with brands like Parachute,

Parachute Advansed, HairCode, Fiancée, Caivil,

Hercules, Black Chic, Code 10, Ingwe, X-Men, Mediker

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SafeLife, Thuan Phat and Isoplus. Headquartered in Mumbai, we are present in

over 25 countries across emerging markets of Asia and Africa. We operate seven

factories in India, located at Puducherry, Perundurai, Jalgaon, Guwahati, Baddi,

and Sanand. During 2020-21, Marico Recorded A Turnover Of Inr 80.5 Billion (~Usd 1.1 Billion) Through

Sales In India And Other Chosen Emerging Markets Of Asia And Africa. Marico Has Nurtured Over 25

Trusted Brands In The Categories Of Hair Care, Skin Care, Edible Oils, Healthy Foods, Male Grooming

Andfabriccare.

The India Business, Accounting For 77% Of The Consolidated Revenues, Markets Brands Such As

Parachute, Parachute Advansed, Saffola, Saffola Fittify Gourmet, Saffola Immuniveda, Coco Soul, Hair &

Care, Nihar Naturals, Livon, Set Wet, Mediker, Revive And Beardo, That Add Value To The Lives Of 1 In

Every 3 Indians.

CHALLENGE FACED BY THE INDUSTRY POST COVID TIMES

Marico steps up to aid India in its fight against COVID-19

As India combats the unprecedented global pandemic, Marico Limited extends support to the

government, citizens, support workers and medical fraternity. With the rapidly escalating spread of

COVID-19, it is imperative for every member to come together and unite their efforts towards providing

relief to all affected communities. Living by the ethos Marico was built on to ‘make a difference’; our

resources and efforts are directed towards multiple stakeholders. Commenting on this situation Saugata

Gupta, Managing Director and CEO, Marico Limited said, “At Marico, community sustenance has been at

the core of our business for last three decades. As we stand united against COVID-19, we extend our

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support to the communities we live in and to the front-runners in this battle –

medical professionals, the police force, primary healthcare workers, emergency

services staff and fellow citizens who have been worst affected in this crisis. We

are ably supported by our own heroes including our manufacturing teams, supply chain teams, our

distribution partners and sales teams. We have increased the safety measures and adopted necessary

precautions to keep these heroes safe, who are working tirelessly in their attempt to deliver essential

products to our consumers safely in compliance with the government guidelines. We salute their

perseverance and thank them for making a difference.” Our outreach in this fight against COVID-19

encompasses several areas to which we have committed an

initial outlay of INR 8 Crore.

#MaricoUnitedAgainstCovid19

Safety and Hygiene Kits : With a commitment to

safeguard lives of those who are fighting the battle

onground –primary healthcare workers, the police force

and emergency services staff we are providing them with personal protective equipment like face

masks, sanitizers, hand wash, thermometers etc. The distribution of these kits has already begun in

Mumbai and in Jalgaon (Maharashtra) as we continue to expand our reach to include more

beneficiaries across multiple states. We also plan to partner the government in its rehabilitation

initiatives.

Meals program: In partnership with various government agencies we are providing meals and dry

rations for migrant labourers, the police force, and health-workers, poor and elderly people during this

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time. We are working with CII and FICCI under the able guidance of Ministry of

Consumer Affairs and other Government authorities for this initiative. We have

also partnered with Swiggy and Zomato to deliver these meals. The meal delivery

has commenced in Mumbai and dry rations are being provided in Thane District, Aurangabad

(Maharashtra) and Baddi (Himachal Pradesh) as we work together with various industry bodies and our

partners to scale up the delivery of meals and dry rations across multiple states.

Contribution to PM Care Fund

As the government continues its valiant efforts to fight the pandemic, Marico also pledges

contribution to the PM Care Fund.

Innovate2BeatCOVID challenge

With an aim to support our medical infrastructure, Marico Innovation Foundation (MIF) has launched

a unique, nationwide platform called #Innovate2BeatCOVID. It invites med-tech entrepreneurs,

corporates and innovators to share existing cost-effective and innovative solutions to combat short

supply of ventilators, personal protective equipment and other respiratory solutions that can aid the

medical fraternity. As the pandemic progresses, the dynamic grand challenge may expand to other items

of critical need in consultation with medical experts. Marico Innovation Foundation along with the A.T.E.

Chandra Foundation and Harsh Mariwala in his personal capacity will offer total grants worth INR 2.5

Crore to the most impactful innovations. The challenge has received an overwhelming response already

with 1000+ applications. Supporting Each Other Marico

Members are united in the fight against COVID-19 in this hour of need. We have together created a

fund through voluntary member contributions aided with equivalent contribution from Marico Limited,

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through which we will help the front line teams of our business partners who are

working on-ground ensuring the availability of essential Marico products to

consumers. Apart from securing them with personal protective equipment, they

will be given extra monetary help under “COVID Assistance”. In addition to this, in the event of any

person being detected positive with Covid-19 and hospitalized, Marico will provide medical assistance.

Members at the manufacturing facilities

As we continue to adhere to all Central and State Government guidelines and orders in carrying on

our operations, our manufacturing teams are working to the

best of their abilities to make available the much needed

essential products to consumers. Apart from personal

protective equipment and increase in the frequency of

disinfection and fumigation, we have established strict social

distancing measures and have implemented mandatory thermal

scanning. Entry and exit from the plants during shift timings are

demarcated to avoid gathering of members at the gate.

Minimum two metres distance is maintained between each of the work stations. Additionally, each site

has identified a dedicated isolation room with necessary facilities. This is a difficult time for most nations

across the world, with this health crisis affecting hundreds of thousands of people and has impacted the

global economy. In this hour of need we are stepping up to make a difference to our people, our

partners and citizens alike. Above all we are committed to serve our consumers to the best of our

abilities with products which are essential to them safely and securely.

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 Suggestions

Although theperformance of the MSME sector has beencommendable over the

years in terms of employment generation, growth of exports and in Great Lakes

Herald March 2017, Volume 11 Issue No 1 Page 86 bringing about social transformation, a lot moreneed

to be done for their continued growth and sustained development. The issues and constraintsthat

hinder their growthneed to be identified and properly addressed. Some suggestions to improve the

performance of MSMEs are indicated below;

1. Easy Access to Finance and Credit : Institutional finance/credit from banks and other financing

institutions should be promptly available without long and cumbersome procedures. Sanction of credit /

loan applications by public sector banks should be made within a reasonable time frame at affordable

and reduced rate of interest.

2. Stepping up Infrastructural and Support Facilities: Deficiencies in basic infrastructural facilities like

water, power supply, road/rail and telephone connectivity, etc. should be addressed on priority basis.

Use of solar or renewable energy as an alternative source should be encouraged in rural areas on

subsidized basis. A cluster-centric or cluster development approach should be adopted for a number of

enterprises working in closer proximity.

3. Creation of adequate Marketing Linkages : For enhancing sale of products, regular trade

fairs/exhibitions etc. should be conducted for creation ofa larger platform for better marketing facilities.

The Govt. of India policy regarding 20% mandatory procurement of MSME products by government

Departments/ State PSUs should be ensured

4. Skill Development and Capacity Building: Initiatives should be taken forskill / competency

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development of human resources.Infrastructural and professional support

fromRural Self Employment Training Institutes (RSETI) and suitable training

institutes may be obtained for conducting training of entrepreneurs and workers

engaged in different activities. Awareness / sensitization programmes and TV/Radio talks should be

conducted

5. Access to Modern Tools and Technology: MSMEs today need to adopt and adhere to quality

parameters of international standards in the context of a globalized market. Technological obsolescence

should be replaced by adoption of modern and latest tools and technology for increased productivity

and quality product for competitive advantage

6. Policy Intervention and Support Mechanisms: Industry-friendly policies should be initiated by the

government for promoting infrastructural support facilities and for easy availability of finance by the

scheduled banks. Government and Banks should take steps for revival of sick units as per RBI Guidelines

and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGAMSE) Scheme. Great Lakes Herald

March 2017, Volume 11 Issue No 1 Page 87 Sick enterprises should be given one time settlement (OTS)

facility by the banks before enforcing measures under the Securitization and Reconstruction of Financial

Assets and Enforcement of Security Interest (SARFAESI) Act. Single window system for approval of

MSME projects may be streamlined for clearance. Creation of an apex National MSME Authority under

the Ministry of MSME,universal registration and financial inclusion of MSMEs, increase the flow of

equity to the MSME sector and steps to enhance effectiveness and utilization of credit

guarantee/insurance schemes etc. are some of the recommendations of the Committee on financial

architecture of the MSME, 2015.

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 Conclusion

MSMEsover the years have assumed greater significance in our burgeoning

national economy by contributing to employment generation and rural industrialization. This sector

possesses enough potential and possibilities to push button accelerated industrial growth in our

developing economy and wellpoised to support national programme like ‘Make in India’.This sector has

exhibited enough resilience to sustain itself on the strength of our traditional skills and expertise and by

infusion of new technologies, capital and innovative marketing strategies. Appropriate strategies should

be evolved for creation of an enabling ecosystem where these enterprises are able to access the

benefits meant for themselves under a formal and friendly ecosystem and are further capable of

meeting the emerging challenges of a globally competitive order.

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