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Micro, Small and Medium Enterprises (MSME) are enterprises engaged in production, manufacture, preservation, processing and servicing.
MSME are further classified in two classes:
1. Manufacturing Enterprises
The status of an enterprise under the MSMED Act is determined according to the investment slab under which an enterprise falls. The MSME registration process has been intellectualised in India to levy paramount benefits and support to enterprises registered as Micro, small and Medium Enterprises. Organizations registered under MSMED act can avail facilities like prompt payment by the customers, eligibility of bidding for government projects and other incentives like land, industrial set-up, and water, electricity and telephone connections.