News:Union micro, small and medium enterprises sector (MSME) minister will launch the enterprise development centres(EDCs).
- Enterprise Development Centres(EDCs) are aimed at developing a cadre of indigenous entrepreneurs in the MSMEs.
- They are planned for every district by the end of the current financial year (2019-20).
- The EDCs will be similar to incubators for start-ups.They will be run by special purpose vehicles in partnership with the private sector, business management organisations, local industry associations.
- The centre will help new and existing businesses develop by providing services such as management training, and office space among others.
- The EDCs will also have enterprise clinics for struggling firms which the government hopes will reduce the number of small businesses falling into a debt trap financed by bank loans.
- The Micro- Small and Medium Enterprises (MSMEs) are small sized entities defined in terms of their size of investment.
- The MSMEs are classified in terms of investment made in plant and machinery if they are operating in the manufacturing sector and investment in equipment for service sector companies.
- However,MSME(Amendment) Bill,2018 which has not been passed yet proposes a uniform classification for all MSMEs.
- Under the Bill,all MSMEs,whether they are manufacturing or service providing enterprises will be classified on the basis of their annual turnover.