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SME stands for Small and Medium Enterprise.

A Small Enterprise is an enterprise when the investment in plant and machinery is more than Rs. 25 lakhs but doesn’t exceed Rs. 5 crore.

A Medium Enterprise is an enterprise where the investment in plant and machinery is more than Rs. 5 crore but doesn’t exceed Rs. 10 crore.

In the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries. Enterprises engaged in providing or rendering of services and whose investment in equipment, original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered:

A Small Enterprise is an enterprise where the investment in equipment is more than Rs.10 lakhs but doesn’t exceed Rs. 2 crore.

A Medium Enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but doesn’t exceed Rs. 5 crore.

2020 has been very difficult, problematic and uncertain year till now. This year had not only affected individual people mentally, physically but also many small or large scale organizations or group of people have been affected which has resulted in downfall of economy as well. Many people lost their jobs are sitting unemployed. There are huge losses of some enterprises because of less demand and supply. But at the same time, there were some companies which earned a lot amount of profit in this pandemic. This happened because of large demand of important and needy products. For eg: Chemist Shops, demand of masks and sanitizer increased, companies providing online services earned a lot. Around the globe people are trying to adapt the new normal. However, with each challenge comes an opportunity. Business trends change with time, which allows the growth and development of the small and large organizations. Large scale companies are still trying to meet the ends but there are problems which hinder the sustainability of small scale companies i, e. financial issues, transport issue, material import and export issue etc.

Following the trends and some important guidelines of small scale enterprises can also come out stronger than ever. There are upcoming small business trends that will help to sustain and increase the growth gradually:

  • Financial Planning and Control Overheads: Whatever one can control and if it has a positive impact on the growth of an individual or group of people should be controlled. It should also be in trend. Small scale industries should carefully plan their production expenses. Extra expenses can hinder their growth process. Nowadays, because of social-distancing please are avoiding meeting. So, they can easily save their transportation cost and meet and discuss via online mode. So, they should try to avoid the overheads.

  • Proper Production Planning: Planning in anything is always effective. All the delivery or despatch should be done on time. Punctuality and Responsibility should be priority. Proper time, date should be fixed. Tasks should be assigned to members on basis of skills and in particular time period, which will also further save man-power and time. Hence, saving time and labour was always and will be in trend.

  • Completion of Short Projects: To sustain in this situation, small scale enterprises should first execute and complete their short projects. This should be the trend, so that, in any case there is any losses in company, capital earned by short projects should support the company. No compromise on product quality should be done. First short projects should be completed and then work on big projects.

  • Guidelines by Government: Small Scale enterprises should always work under the instructions and guidelines of the government. Government always comes with new schemes and budget plans for MSME. It helps them to grow and sustain. In this pandemic, government came with the new budget plan for MSME.

  • Business Prioritize Employee Wellness: This is a strong future business trend, employee health, and wellness will be on a top priority for business only in 2020 but beyond as well. As employees nowadays are doing work from home for hours, therefore, no interaction and work pressure tends to impact on one’s health. There will be more discussion on one’s physical and mental well being.

  • Work from Home: Work from home was being used earlier but only less number of companies uses to allow or prefer it. Mostly, IT companies were and are doing work from Home. But from now onwards, we can expect it to be a trend. Although many small scale industries don’t have a type of business in which employees can work from home but now because of COVID-19, many companies are trying to work digitally.

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