Government MSME Schemes for Entrepreneurs

Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in industrialization of rural & backward areas.
Government in order to support and promote the small business has extended relaxations to MSMEs through various subsidies, schemes and incentives. This helps them in encouragement, enhancement of their business thereby helps in improving productivity of the enterprises.
A brief on few of the schemes provided by the government are as follows:
1.      Providing financial assistance on International Co-operation
This scheme covers the deputation of MSME to other countries for promoting the MSME business, products, infusion of the technology, facilitating joint ventures. This scheme provides financial assistance of up to 95% of air tickets and for lodging purpose of entrepreneurs. Through this scheme the government shall provide the assistance to MSME attending international exhibitions, trade fair, conferences, seminars. This scheme shall also cover the common expenses of delegation like freight & insurance, local transport, communication services, etc.
2.      Assistance to Training Institutions scheme for establishments of new institutions
Under this scheme government provide the capital assistance of 150 lakhs but subject to max 50% of project cost for creation of infrastructure for conducting entrepreneurship development and skill development programmes. However, for the North Eastern region, Andaman & Nicobar and Lakshadweep, maximum assistance would be Rs.270 lakhs or 90% of 2 project cost, whichever is less.
3.      Marketing Assistance Scheme
Under this scheme government provides assistance for organizing exhibitions abroad and providing financial assistance of upto 95% of the airfare and for lodging of entrepreneurs and for co-sponsoring would be limited to 40% of the net expenditure, subject to a maximum amount of Rs.5 lakh.
4.      CreditGuarantee Trust
This trust has been set up by ministry of MSME and SIDBI in order to implement Credit Guarantee Scheme under which collateral free loan up to a limit of ₹ 100 lakh is available for individual Micro & small enterprises (MSE) on payment of guarantee fee to bank by the MSE.      
 5.      Prime Minister’s Employment Generation Programme
Under this scheme the government provides the certain percentage of subsidy of cost of production depending upon sector they are into.
Under the manufacturing sector of max investment size of 25 lakh
1.      Rural sector
·        General- 25% of cost of production of subsidy
·        Special(SC/ST/OBC)-35% of cost of production of subsidy
2.      Urban Sector
·        General- 15% of cost of production of subsidy
·        Special(SC/ST/OBC )-25% of cost of production of subsidy
Under the service sector of max investment size of 10 lakh
1.      Rural sector
·        General- 25% of cost of production of subsidy
·        SC/ST/OBC-35% of cost of production of subsidy
2.      Urban Sector
·        General- 15% of cost of production of subsidy
·        SC/ST/OBC-25% of cost of production of subsidy
From time to time government lends numerous benefits to MSME Registration for the economic growthon which we will brief later on.
Source url- http://enterslice.over-blog.com/2018/05/government-msme-schemes-for-entrepreneurs.html

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