Micro Macro Enterprises Micro Macro Enterprises Micro Small

Micro & Macro Enterprises

Micro & Macro Enterprises Ø Ø Micro, Small and Medium Enterprise (MSME)are the back bone of industrial development A micro-enterprise (or microenterprise) is generally defined as a small business employing nine people or fewer, and having a balance sheet or turnover less than a certain amount They provided the largest share of employment after agriculture Ø Encouraged by MSME act 2006 Micro Environment Macro Environment -competitors -PESTLE -suppliers -Market -intermediaries and customer Ø

Manufacturing Enterprises Micro Enterprises Ø Ø Ø Ø Ø Micro enterprise generally refers to a small business employing 10 people or less It is an enterprise in which investments in plant and machinery is between 5 lakh to 25 lakh Equity held by founder/family Owner managed Short term planning Generally local market Limited personnel development opportunities Small customer based- generally local market These enterprises works and operates not by choose but of necessity

Small Enterprises � Generally refers to a business employing 50 persons or less � Is an enterprise in which investment in plant and machinery is between 25 lakh to 5 cores. Ø Owner managed Ø Short term planning Ø Generally local market Ø Limited personnel development opportunities � These enterprise works and operates to earn a small amount of profit

Medium enterprises � Medium enterprise refers to a business employing maximum to 250 employees � Is an enterprise in which investment in plant and machinery is between 5 corers to 10 corers � These enterprises works and operates to earn a fair amount of profit to increase their standard of living � Mostly privately held-family- few public � Owners + professionals in key role � Decision making by owners/ CEO and some key leaders � Limited customers base- limited to geographical or industry niche

Service Enterprises Micro Enterprises � Am enterprises in which investment in plant and machinery Is up to 10 lakhs � Small enterprises � An enterprises in which investment in plant and machinery is from 10 Lakh to 2 corers � Medium Enterprises � An enterprise in which investment in plant and machinery is from 2 corers to 5 corers

Macro enterprises � Mostly public investor held equity � Distributed decision making by organizational hierarchy � Extensive long term planning horizon by dedicated terms � Formal structure and processes � Wide range of funding sources � Diverse markets � Significant external inputs – from network and consultant

Features/ Characteristics of micro enterprises “Small (i. e. , micro enterprise) is beautiful” because of its following important essentials, features and characteristics: � � A small or micro enterprise is generally a one-man show. In case of micro enterprises, the owner himself/herself is a manager also. Compared to large units, a micro industrial unit has a lesser gestation period. small-scale units are more change and highly reactive and receptive to socio economic conditions

Features/ Characteristics of micro enterprises � Mostly public investor held equity � Personal management � Distributed decision making by organizational hierarchy � Extensive long term planning horizon by dedicated terms � Formal structure and processes � Wide range of funding sources � Diverse markets � Significant external inputs – from network and consultant

Scope of Micro Enterprises 1. To eradicate unemployment problem from the country. � 2. To encourage dispersal of industries to all over country covering small towns, villages and economically lagging regions. � 3. To bring backward areas too in the mainstream of national development. � 4. To promote balanced regional development in the whole country. � 5. To ensure more equitable distribution of national income. � 6. To encourage effective mobilization of country’s untapped resources. � 7. To improve the level of living of people in the country. � 8. To generate immediate and large scale employment opportunities with relatively low investment. �

Scope of Macro Enterprises � Promotes exports and reduce imports by raising domestic productions � Good and services are made available at cheaper price due to economies of scale � helps removal of monopoly domination and improve the quality of domestic made products � Create employment opportunities in the home and host countries. � Transfer of technology, capital and entrepreneurship

Enterprise & Society � historical relations between businesses and their larger political, cultural, institutional, social, and economic contexts. � “empowering millions of people sectors workers to become their own boss”