Microenterprises need separation and bifurcation
Last week, the Consortium of Indian Associations (CIA), an apex MSME body representing around 50 MSME associations spread across the country has demanded the government to create a separate ministry for micro enterprises for better focus and policy support. This is one of the crucial demands raised by the CIA which has potential to impact millions of entrepreneurs and the way smaller businesses operate. As the number suggests, 99% of the 63 million enterprises officially fall in the category of micro-enterprise based on investment and revenue criteria. However, the MSME Development Act, (2006) largely caters to the remaining one per cent enterprises that comprise of small and medium businesses. The micro-enterprise category itself is characterized by heterogeneity, fragmentation and informalization. If we refine categories further, another separate grouping of entrepreneurs and enterprises can be carved out, which we can call nano-entrepreneurs.
What are nano-enterprises?
