The Micro Enterprises are the organizations which are formed using less capital and don’t require many permissions from the government and have many tax concessions, etc from the government. The capital requirements of a Micro Enterprises is as follows,
Less than 10 lakhs incase of service sector
Less than 25 lakhs in case of the manufacturing sector.
OBJECTIVES OF MICRO-ENTERPRISES
- To generate immediate and large-scale employment opportunities with low investment.
- To ensure more equitable distribution of national income
- To encourage dispersion of the industries to all over the country
- To promote balanced regional development in the whole country
- To eradicate unemployment problem in the country
- To encourage effective mobilization of country’s untapped resources
- To improve the Standard of living of the people in the country.
PROBLEMS FACED BY MICRO ENTERPRISES
- Lack of marketing knowledge and resources
- Unfamiliarity with export activities
- weak bargaining power
- Limited local market
- Lack of advertisement in building brand image
- Lack of testing equipment
- Ignorance of potential markets.
- Poor quality goods
- Very poor after sales service