There is no doubt MSME industry and business including SME’s is an important part of our greater economic contributing element. Over the years we have witnessed how these MSME ‘s and SME business Ideas are supporting our growing economy and helping in areas such employment generation to helping the rural and semi urban areas economic zone.
MSME’s have many blocks in terms of infrastructural deficiencies and finance which plays a major part for procuring the required resources for production, employment and thriving of a business if we speak. Here we have to understand that although govt. of India has been great support to MSME’s by incorporating many schemes at mass level.
Awareness Generation on MSME entrepreneurship
The government is keen and very optimistic with MSME as an industry to thrive and become an integral part of our economy ‘s top contributors.
In the year 2022 various events and programmes were organized to create awareness about entrepreneurship and various schemes/ initiatives of the Ministry.
Some of the events are “National Conference of MSME-Development Institutes, Testing Centres and Technology Centres”, Mega Global MSME Business Summit’ titled ‘Empowering Tech Entrepreneurs’, ‘Mega International Summit on MSMEs’ Competitiveness and Growth’, ‘Global MSME Convention for Plastics Industry’ etc
Government Initiatives through Ministry of MSME
The govt of India has incorporated many schemes at mass level. The Ministry of MSME promotes growth and development of the sector, including Khadi, Village and Coir industries, by implementing various schemes/programmes towards credit support, technological assistance, infrastructure development, skill development and training, enhancing competitiveness and market
Community based programs like MSME Sambandh, MSME sampark, MSME champion scheme, Udyam registration online for MSME ‘s to name a few have been bought in to ease out operational barriers that exist.
These types of initiatives are helping the government as well as whole lot of population to thrive and become economically self-sufficient.
Classification of business in terms of turnover in MSME sector
Micro Business type: If the Manufacturing Enterprises and Enterprises rendering Services have investment in plant and machinery or equipment not more than Rs.1 crore and Annual turnover is not more than 5 crore, in this case it will be termed as Micro business category.
Small Business type: If the investment in plant and machinery or Equipment is not more than Rs.10 crore and Annual Turnover is not more than Rs. 50 crore it is termed as small business category.
Medium Business type: If the investment in plant and machinery or Equipment is not more than Rs.50 crore and Annual Turnover is not more than Rs. 250 crore it is termed as medium business category.
List of 45 Profitable Business Ideas for MSME and Start-up Business Ideas for Micro Small and Medium Enterprises (MSME)
List of Most Successful Small Scale Business Ideas:-
Gold and Diamond Jewlery, Ladies Garment, Cold Storage (Shrimp & Agricultural Products), Skill Development Centre, A4 and A3 Size Paper Acetaldoxime or Acetaldehyde Oxime Production of Jute Gunny Bags, Graphite Crucible, Hand Sanitizer.
Gold and Diamond Jewelry: One of the most important industries where there is a growing demand of jewelry, raw gems stone etc and employing around lakhs of skilled and unskilled lab ours in all corners of the country.
India’s gems and jewelry exports reached US$ 39.14 billion in 2021-22, a 54.13% rise from the previous year.
India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jeweler and lab-grown diamonds.
The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India.
Ladies Garment & Apparels: one of the most important sectors that has changed the shaped the face of the economy. The Indian apparel industry is amongst the largest in the world with a huge manufacturing base and large raw material pool. It is a major contributor to our economy in the domestic and exports markets. By 2021, a textile and apparel export from India to developed nations is expected to touch the US$ 82 billion.
The booming ecommerce market is one of the reasons of huge employment being generated and ladies garment being in the forefront of the industry. New technologies and institutes like NIFT and other fashion training domains are bringing out new designs every day and creating more buyers for the markets.
The digital revolution is at its cusp in India, so this is the time for MSMEs to wake up to the tremendous potential of e-commerce apparel exports. Various major initiatives introduced by the Government of India like Digital India, Skill India, Make in India, and Startup India are gaining momentum, indispensable in driving the growth of long-term e-commerce.
Cold Storage:
Demand for cold storage is increasing day by day to store perishable goods for a period of time. Cold rooms are very important because they help to prolong the shelf life of fresh goods. They are also effective in reducing the amount of waste and in lengthening the time frame for marketing these foods.
Storing the products in cold storage system increases shelf life of the product but also helps in meeting the market demand and keep the continuous supply of products in the market.
The integrated post-harvest cold chain project by govt. of India has been set up by Partnership / Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central / State PSUs, etc. subject to fulfilment of eligibility conditions of scheme guidelines
The cold storage business in India and the annual steady growth is estimated to be reaching 25.8%. At present in India, there are around 6227 cold storage projects active and they are capable of storing 30 million tonnes.
Few more are added in the list and these are Surgical & N95 Masks, Gunny (Jute) Bags from Fabric, Porcelain Insulators, Baby & Adult Diaper and Sanitary Pads, Disposable Face Masks, Particle Board from Wheat/Rice Straw, Groundnut Oil Production and Refining Methanol from Bio-Waste, Methanol from Coal, Disposable Nitrile Gloves, Hydrated Lime Production from Limestone, Aluminium Foil (Food Packaging and Pharmaceuticals Foils)
Indian Kitchen Spices,(Masala Powder)Spices Powder and Blended Spices, Readymade Mixes (Red Chilli Powder, Sambhar Masala, Biryani Masala, Chicken Fry Masala, and Garam Masala),Herbal/Ayurvedic Hand Sanitizer, Calcium & Zinc Stabilizer for Pipe and Foam Board Application, Biodegradable Plastic Bags from Corn & Cassava Starch, Granules, Peanut Butter, Refrigerant Gas R22, Bottling Plant, Cellophane Film, E-Waste Recycling Plant, Aluminium Foil Containers, Kraft Paper Workshop for Motors of Low Voltage (Up-To 1000V) and Distribution Transformers (Maintenance, Overhauls and Repairs.),Holiday Resort (Three Star Grade).
Investment opportunities
From investment point of view if we see the MSME’s and SME has the potential to generate huge amount of investment considering the purchasing power of the huge population base in India. The scope for investors and entrepreneurs as far as business opportunities are expanding with each passing day. Especially India has always been in the limelight in terms SME business. The SME business opportunity in India can be seen possibly every sector-financial service, automobiles, media, food, real estate, telecom, education, and so on.
Leading Industries of MSME Sector contribution in economy in percentage
- Retail trade (except of motor vehicle & motor cycles) and Repairs of personal and household goods – 39.85%
- Manufacturing of wearing apparels- 8.75%
- Manufacturers of foods and beverages-6.94%
- Other services activities -6.2%, other business activities – 3.77%
- Hotels and restuarents-3.64%
- Sales maintenance of motor vehicles and cycles – 3.57%
- Furniture manufacturing -3.21%, Textile -2.33%
- Fabricated metals except machinery and equipment-2.33% and others 19.4%.
- (Image courtesy: https://inc42.com)