How to start small business in India by sheelgohe


More Info
									                How to start a small business in India
India is one of the fastest growing emerging economies in the world after China. As per the 2012 GDP
figures at $5.457 trillion India will overtake China by 2015. China is actually slowing down as compare to
India which is growing slowly but steadily. For all aspiring entrepreneurs India is an attractive business
destination. With population more than 1.2 billion any business can grow in India. In this article I will tell
you which micro, small & medium scale enterprises (MSME) can be started with small investment and
steps required.

Indian government has a central department in each big cities of India to help and educate upcoming
and aspiring MSMEs. This department also provides trainings in respective fields of business and
provides financial aids.

Definition of MSMEs on the basis of investment.

           Manufacturing Enterprises – Investment in Plant & Machinery
Description             INR Investment                   USD($) Investment
Micro Enterprises       upto Rs. 25Lakhs                 upto $ 62,500
                        above Rs. 25 Lakhs & upto above $ 62,500 & upto $
Small Enterprises
                        Rs. 5 Crores              1.25 million
                        above Rs. 5 Crores & upto above $ 1.25 million & upto
Medium Enterprises
                        Rs. 10 Crores             $ 2.5 million
                    Service Enterprises – Investment in Equipments
Description              INR Investment                    USD($) Investment
Micro Enterprises        upto Rs. 10Lakhs                  upto $ 25,000
                         above Rs. 10 Lakhs & upto above $ 25,000 & upto $ 0.5
Small Enterprises
                         Rs. 2 Crores              million
                         above Rs. 2 Crores & upto above $ 0.5 million & upto $
Medium Enterprises
                         Rs. 5 Crores              1.5 million

Here is the list of reserved items to be produced / manufactured only by micro and small scale

          AND SMALLENTERPRISE SECTOR (As on 10 October 2008)

         S.No.              (As per            Produ           Name of the Product
                            Gazette       ct
                                         20-21            FOOD        AND        ALLIED
    1.                  3                202501           Pickles & chutneys
    2.                  7                205101           Bread

    3.                  11               21100102          Mustard Oil (except solvent
    4.                  13               21100104          Ground nut oil (except solvent
                                         27                WOOD        AND        WOOD
    5.                  47               276001            Wooden      furniture     and
                                         28                PAPER PRODUCTS
    6.                  79               285002           Exercise        books       and
                                                          INJECTION           MOULDING
                                                       THERMO-PLASTIC PRODUCT
    7.                  147              30391201         PVC Pipes including conduits-
                                                       Upto - 110 mm dia
                                         30393501         Fittings for PVC pipes including
                                                       conduits upto - 110 mm dia.
                                                          OTHER CHEMICALS AND
                                                       CHEMICAL PRODUCTS
    8.                  253              305301           Wax candles

    9.                  308              314201           Laundry soap
10.   313    317001        Safety matches

11.   314    318401        Fire works

12.   319    319902        Agarbatties

                           GLASS AND CERAMICS
13.   335    321701        Glass bangles

             33-35        MECHANICAL              ENGG.
                        EXCLUDING             TRANSPORT
14.   364    340101       Steel almirah

15.   394    341004        Rolling shutters

16.   402    34200602      Steel                  chairs-All
17.   404    34200702      Steel     tables-All       other
18.   409    342099        Steel    furniture-All     other
19.   428    343302        Padlocks

20.   447A   345207        Stainless                 steel
21.   474    345202        Domestic utensils-Aluminium
Here is the list of business that require investment between INR 500,000 ($9100) to INR 1,000,000

Mechanical Engineering Industries:

       Adjustable Hospital Beds
       Agricultural Implements
       Alidades(topographic surveying device)
       Automobile Silencers
       Beam Scales
       Bell Metal Domestic Utensils
       Belt Fastener
       Bicycle Cotter Pins
       Cigarette Lighters
       Cocks and Valves

Chemical Industries (Incl. Plastics, Paper, Rubber, Oils, Cosmetics, Pharmaceuticals):

       Drinking Straw (Wax Coated Disposable Tube)
       File Covers, File Boards and Letter Pads
       Floor Polish
       Hair Oil
       Industrial Adhesives Based on Starch, Gum Dextrin and Silicates
       Inks - Writing Ink/Fountain Pen Ink
       Metal Polish
       Paper Envelopes
       Paper Cups and Saucers
       Shoe Polish
       Tooth Powder

Food Industries:

       Cashew Nut Shell Liquid Oil
       Kattha (Used in Paan) and Cutchu (Vegetable Tanning Material)
       Papad Making

Glass and Ceramic Industries:

       Coal Briquettes (Used as Fuel in "chullahs" in Households, Small Restaurants/Hotels)
       Coke Briquettes (Used as Fuel in "chullahs" in Households)
       Micro-Cover Glasses and Slides for Microscope
       Plaster Boards (Of Plaster of Paris, Hessian, Sisal Fibers, Jute or Coconut Coir as Reinforce)
       Plaster of Paris
       Thermometers (Range Up to 150 Degree Centigrade)

Metallurgical Industries:

       Decorative / Art Castings (Domestic and Industrial)

Electrical Industries:

       Armature Tester
       Auto Lamp Assembly
       Chokes and Ballasts
       Electric Stove / Hot Air Convectors
       Electrical Light Fitting Reflector
       Immersion Heaters

Electronics Industries:

       Ceramic Cartridges / Ceramic Pick-up
       Electronics Fan Regulators
       Hearing Aids (Pocket Type)
       Inverters (DC to AC) and Converters (DC to DC)
       I. F. Transformers (Intermediate Frequency)
       Loud Speakers
       P. A. Amplifiers (Public Address)
       TV Games

Hosiery Industries:

       Ban, Ropes and Sutlies Made of Natural Fibers
       Cotton Belting and Belt Lacing
       Cotton Vest Knitted / Banian
      Hold-alls (For Packing Beds While Travelling)
      Other Cotton Knitted Wears
      Ready-Made Garments
      Stove Wicks
      Shoe Laces, File Tags & Packing Material
      Surgical Dressing
      Wool Scouring (For Removing Oils, Greases, etc. before dying or Bleaching)
      Woolen Socks Knitted
      Woolen Felts (Industrial Cushioning Material)
      Woolen Mufflers (Knitted)
      Woolen Under Garment (Knitted)
      Woolen Caps (Knitted)
      Woolen Knitted Wear (Others)

Wood Industries:

      Tent Poles and Handles (Wooden & Bamboo)
      Wooden Storage Cupboards
      Wooden Furniture and Fixtures
      Wooden Storage Shelves and Racks
      Wooden Sewing Machine Covers

Leather, Footwear & Sports Goods Industries:

      Fancy Leather Goods and Novelty Items (Hand Bags, Wallet/Purses, Belts, Watch Straps, etc.)
      Leather Purses and Hand Bags
      Leather Cases and Covers of All Types (Made of Kattai Leather)
      Wrist Watch Straps (Leather)
          Procedure to start a micro, small or medium scale enterprise/business:

          1. Identify the sector (manufacturing or service) that you have interest and would to start it as
             a business.
          2. Do a market survey and learn about the demand of your product/service, understand the
             competition and pain points of existing businesses.
          3. Estimate the initial investment required and how much money you have to loan from the
          4. Prepare a business profile. Visit this blog to download sample business profile.
          5. Arrange the documents related to your educational background, ID proofs, experience in
             the industry (if any), details of available land (for the manufacturing unit) or office space.
          6. Go to your nearest MSME department and present your case to the MSME officer.
          7. Discuss with the officer if you require any training in that sector and need of finance for
             initial investment. MSME departments usually have tie-ups with nationalized and private
             banks to help aspiring entrepreneurs.
          8. Once your project is approved and finance is arranged you can start your business.

I hope this article will help you to indentify the industry that you want to start. If you want to study
various industries and project profiles before taking up a decision to start a then please visit this blog



To top