Over the years, micro, small and medium enterprises in India have proved their resilience against a global economic slump. Currently, the nation houses 63.38 million companies, making India the 2nd largest MSME base in the world after China. It is a high potential sector where passionate entrepreneurs can promote their ideas and establish a successful business. Additionally, lending organisations provide exclusive business loans to finance their growth and expansion.
However, it is essential to understand what is MSME before proceeding.
Not all small businesses fall into the category of Micro, Small and Medium Enterprises. The MSMED Act, 2006 classifies firms as per their business type and investments.
- Manufacturing enterprises
Companies whose plant and machinery investments are within Rs. 25 Lakh is considered micro. Those with investments between Rs. 25 Lakh and Rs. 5 Crore are categorised as Small enterprises. Medium enterprises are those whose investments on plant and machinery range within Rs. 5 Crore to Rs. 10 Crore.
- Services enterprises
Service providing enterprises with investments on the equipment below Rs. 10 Lakh is considered as micro. Small enterprises are those whose investment ranges within Rs. 10 Lakh to Rs. 2 Crore. Businesses having an investment of Rs. 2 Crore to Rs. 5 Crore in equipment are categorised as medium enterprises.
Now, that you know what is MSME, brush up your entrepreneurship skills and adopt the best business idea of 2019.
Business ideas for passionate MSME entrepreneurs
- Incense sticks
Incense stick manufacturing can be a profitable business choice with low investment. The demand for Indian agarbattis is at an all-time high both in and outside the country. While most Indian households regularly need incense sticks, the requirement shoots up during festivals.
You can invest in semi-automatic or automatic agarbatti-manufacturing machines which can cost over Rs. 50,000. Calculate the finances you need and avail a business loan to finance effortlessly.
Noodles, being a widely-preferred snack, have an unbeatable market across urban and rural India. Try out noodle manufacturing business which requires some of the basic ingredients such as flour, wheat, vegetable oils, spices, starch, sugar, salt, etc. Besides, noodle-making machines with low capacity cost more than Rs. 40,000. The advanced equipment ranges over Rs. 1.5 Lakh.
- Ecommerce store
If you are passionate about creating anything new or collecting special items, you can be put your manufactured or gathered products as an eCommerce store owner. There are various funding options to raise capital for your business. Pursue your passion with minimum investment.
- Jute bags
Known as the golden fibre, the popularity of biodegradable jute bags is rapidly increasing. These bags can be manufactured in various designs and used for multiple purposes. You can initiate this small business with an investment of Rs. 50,000 to Rs. 1 Lakh.
- Gym owner
Start your own gym if you are passionate about fitness. Bear the expense of equipment and heavy machinery easily with an MSME loan. You can also invest a business loan in advertising.
Apart from these, some other ideas include organic soap making, boutique owner, coffee shop owner, etc.
Irrespective of whichever idea you choose, sufficient funding is necessary to establish and grow the venture. You can approach reputed lenders who offer tailor-made business loans for MSMEs. Bajaj Finserv, being one of them, brings high-value loan of up to Rs. 30 Lakh.
The business loan can benefit your firm in various ways, such as –
- Paying for multiple overheads.
- Purchasing machinery.
- Introducing upgraded technology.
- Renovating the workspace, etc.
Quick approval and disbursal, convenient tenor, attractive interest rates, nominal associated charges, online account, etc. are some features of business loans.
How can borrowers apply for a business loan?
The process to apply for a business loan is quite simplified now. Fill up and submit an online application form once you meet the eligibility criteria by fulfiling the required business loan documents.
Bajaj Finserv also brings pre-approved offers for existing customers. These offers are available on various financial products, including business loans, personal loans, home loans, etc.
So, assess the market opportunities and go for a business idea you are passionate about. A business loan for MSME shall provide you with comprehensive financial support for its growth.