Micro, Small and Medium Enterprises (MSMEs) are often in the spotlight and rightly so. They constitute a large fraction of enterprises in India, represent the livelihood of a wide proportion of households and contribute significantly to the economic activity of the country.
A sense of nano-enterprises
Nestled within this large category of MSMEs are the micro-enterprises and nestled further within micro-enterprises is a category of enterprises called nano-enterprises (NEs). These NEs are ubiquitous in our everyday lives, often discussed through archetypal examples such as a neighbourhood kirana store or tea stall.
We think of NEs as those operating at less than ₹1 crore annual turnover. Even with this working definition of NEs, firms are heavily concentrated at the lower end of the turnover distribution, with an overwhelming majority reporting annual turnovers below ₹10 lakh.
Read the full article here
