SME (Definition):
Over 50 definitions of SME are used in 75 countries.
The definitions are based on two things
1. Labor (Number Employed)
2. Capital (Paid up)
By UNIDO 1989:
Micro Enterprises ? In which there are up to 4 workers and going up to 9 workers.
Small Enterprises ? In which there are 5-19 workers or 10-20 workers
Medium Enterprise ? In which there are 2- 99 workers.
Large Enterprises ? In which there are above 100 workers.
Micro Enterprises:
A small income generating unit, mostly family based and family workers income sharing and work sharing unit (main worker is for entrepreneur).
SMEDA (2007) Policy Document:
All the enterprises having up to 250 workers paid up capital and annual sales of Rs 250 million.
Importance of Micro Enterprises:
In less developed countries (LDC’s)
1. Continuing existence
2. Contribution to manufacturing employment
Two Types of Enterprises:-
1. Manufacturing Enterprises
2. Non-Manufacturing Enterprises
ILO:
? ILO is main contributor to the discussion of microfinance.
? They published many papers during (1970’s, 1980’s and 1990’s)
? They indicated that in the area of LDC’s micro enterprise sector is most important.
? As micro enterprises are there for longer time but it is not graduating
? So for government policy incitation is ...