Micro, Small and Medium Enterprises (MSMEs) are businesses that maintain revenues, assets or a number of employees below a certain limit. They are essentially defined by the size of their organization, and sometimes the industry they belong to is considered as well.

Though small in size, MSMEs play a crucial role in the development of the economy. They are much larger in number than large firms, employ vast numbers of people and are generally entrepreneurial in nature, helping to boost innovation.

MSMEs in India

MSMEs in India have emerged as a strong and dynamic economic sector over the last couple of decades. Due to lower capital investments, they are setup in rural or backwards, and this promotes industrialization of non-urban India, whilst providing employment opportunities to people in such areas.

Government of India was notified by its MSMED Act in 2006 to address policy issues affecting MSMEs. The Act addresses the coverage and investment ceiling of this sector, and also seeks to facilitate the development of these enterprises with support to enhance their competitiveness.

ISO Certification Reimbursement Scheme

As small-scale industries develop and grow in number, they contribute towards the growth of the economy considerably. Moreover, as MSMEs grow, organizations look for international collaborations and international trade, thereby diminishing the geographical boundaries of trade. Expanding to international markets helps MSMEs increase their scale of production and, consequently, their revenue.

Growing an MSME business is challenging in the face of intense competition prevalent in the market. To survive this competition MSMEs need to ensure that their products meet international quality standards so that they can be easily marketed. That is why MSMEs and small-scale industries seek ISO certifications for standardizing their products.

The ISO Certification Reimbursement Scheme helps SMEs acquire ISO 9001, ISO 14001, HACCP certification with financial aid. The scheme is run by the Development Commissioner of Micro, Small and Medium Enterprises. The scheme is administered by the Development Commissioner of Small-Scale Industries (SSI), Ministry of SSI and the Government of India. Here is the scheme offers:

  • Costs incurred in availing ISO 9001, ISO 14001, HACCP Certification are reimbursed under the scheme.
  • The limit of reimbursement is up to 75% of the cost incurred in availing the said certifications subject to a maximum cap of 75000 INR.

The reimbursement is a onetime affair and will be provided when the organization provides an Entrepreneurship Memorandum Number.

Definition of MSME in india

Manufacturing Sector

    Enterprises

 Investment in plant & machinery

    Micro Enterprises  Does not exceed twenty five lakh rupees
    Small Enterprises  More than twenty five lakh rupees but does not exceed five crore rupees
    Medium Enterprises  More than five crore rupees but does not exceed ten  crore rupees

Service Sector

    Enterprises

 Investment in equipments

    Micro Enterprises  Does not exceed ten lakh rupees:
    Small Enterprises  More than  ten lakh rupees but does not exceed two crore rupees
    Medium Enterprises  More than two crore rupees but does not exceed five core rupees

Who can apply for the scheme?

Industries and organizations which meet the eligibility criteria of the scheme can apply for the scheme. Eligible organisations include the following:

  • Permanently registered small scale, ancillary, tiny or Small-Scale Service Business Enterprises (SSSBE)
  • SSIs, ancillary, tiny or SSSBE units which have already acquired ISO 9001, ISO 14001, HACCP Certification

How to apply for the scheme?

Interested and eligible enterprises can avail the scheme by filling up an application form and submitting the form with required documents to the specified address below. The format for the application form, the list of documents required and the checklist for the scheme is available at http://www.dcmsme.gov.in/. SSI units which are permanently registered should submit a fully filled in application form with the required documents to the Development Commissioner – MSME at the office of the Development Commissioner, Ministry of Small, Medium and Micro Enterprises, 7th Floor, A Wing, Nirman Bhavan, Maulana Azad Road, New Delhi -110108.

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