Are you planning to establish a start-up of your own? Are you aware of enterprises of variant categories? If no, you need to understand the difference between all types of enterprises allowed to do business in India. Collect detailed information about various types of enterprises. Next, you can decide what type of business you opt for out of micro, small and medium enterprises. So, let us give a brief on all three.
Micro enterprises
Whether it is an ice-cream parlor or grocery shop, everything falls under the definition of micro-enterprise. Owners start this enterprise with minimum capital and a minimal number of employees. Generally, a micro-enterprise gets started with less than ten people. Citizens from developing countries like India, always opt for micro-enterprises to maintain their socio-economic life. Micro enterprises have their target audiences based on local areas. The maximum turnover of a micro-enterprise can reach Rs 5 crore.
Small enterprises
The owners of a small enterprise start their business for rendering services by investing a maximum of Rs 2 crore. Well, On the other hand, the maximum investment of a manufacturing concern can go up to Rs 5 crore. The turnover of these businesses can reach up to 50 crores.
This type of company is independently owned and run with a minimum number of employees. Such companies are again categorized into sole proprietorship, partnership, and corporations. The revenue of this company depends on the type of industry. The number of employees can range from 10 to 50 people.
Medium-sized enterprises
After getting success in small business, these transform into a medium-sized business. A medium-sized enterprise possesses an employee strength of nearly 250 or more. A medium-sized organization has a capital strength between Rs 10 crore to Rs 50 crore.
Here you also find it interesting to know about the advantages of small and medium-sized enterprises. If you are engaged with a medium-sized business in logistics management, you can enjoy the advantages of getting an easy loan, etc. A medium-sized company earns more revenue than micro and small organizations. So, in brief, these are the general differences between all three types of enterprises. Now it’s on you to decide which type of enterprise you wish to own and what amount of capital you can invest for the same. In general, most of the start-ups start from the micro-enterprise stage and slowly and steadily grow to reach the stage of a medium-sized business.
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