Enterprise development centres

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News:Union micro, small and medium enterprises sector (MSME) minister will launch the enterprise development centres(EDCs).

Facts:

About EDC

  • 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.

Additional information:

About MSME’s

  • 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.