MSME (Micro, Small and Medium Enterprises) Act., is formed by the government for the purpose of promoting Entrepreneurship by providing special benefits to the small businesses in the form of incentives and subsidies. These businesses also get loans at concession rate to set up their businesses. To avail such benefits, the small businesses need to register under MSMEs.
Benefits availed by the businesses registered under MSMEs:
- cheaper bank loans,
- tax benefits,
- preference during the tender process, and
- access to various schemes and incentives of government.