Essay On SME

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Eligibility and Criteria of SMEs to get listed on SME exchange and main board of BSE/NSE
Introduction-
Micro small and medium entrepreneurs are classified mainly in to- 1) Manufacturing and 2) Service SMEs.
Manufacturing Services
Micro enterprise: investment at max 25 lakh rupees in plant and machinery Investment at max 10 lakh rupees
Small enterprise: INR 25lakh -5 crore INR 10lakh-2 crore
Medium enterprise : INR 5 crore- 10 crore INR 2 crore-5 crore
SMEs are considered as main contributor of Indian economy growth. 45% of industrial output and 40% of total export is because of this sector. It grows at the rate of 8% per year and provides 1.3 million jobs each year or at present total approximately 60 million people are doing job in it.
There are several factors which are responsible for the growth the SMEs sector for examples- financial support by providing fund by local and foreign investors, new technology add value, various trade portals and trade directories help facilitate trade between buyer and supplier and thereby reduce trade barrier. Along with all these supports, there is huge support of government in terms of rules and policies. Still there is remain untapped potential of SMEs once it is tapped then in terms of GDP growth India will be among top 5 countries.
Following are the industries contribute the major growth in SMEs sector-
1) Manufacturing 2) Precision Engineering , 3) Food processing 4) IT(information technology)
5) Agro 6) Pharmaceuticals 7) Retail 8) Service sector 9) textile and garments
Attributes of SMEs
• SMEs are run by one or two person with their own capital or fund
• It operated on the bases of experience or knowledge of owner in the particular area
• SMEs are involved in the industries...

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...of market maker Migration
Should be listed on any well known reputed stock exchange Information is provided in Schedule-2 of company act From the date of listing on Stock exchange at least 1 market maker should be there for 3 year Market maker should hold 5% issued capital of the company A new application have to be filled to migrate from SME exchange to main board
At International level there are known market for SMEs
1) Alternate Investment Market (AIM)-UK
2) Market of the high growth and emerging stocks(MOTHERS) –Japan
3) TSX Ventures- Canada
4) Growth Enterprise market(GME)-Hong Kong
There are well known or recognised SME Stock exchanges which provide market for SMEs to capture investment in their industry or company. Investors by analyzing growth or prosperity of companies properly on these stock exchanges invest their fund in way fruitful way.

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