Countries across the world are doing the best versions of MSME, and in India, it has been alleviated to a great extent with beneficial amendments and changes. If you are looking for a while to get the best MSME business ideas then this blog is for you.
What is MSME Business?
MSME refers to Micro, Small, and Medium Enterprises that are working as a backbone of developing countries like India. These industries are also recognized as small-scale industries and contribute significantly to a country’s GDP and economic growth.
In order to promote and facilitate micro, small and medium enterprises, the Government of India launched MSMED Act in 2006. This stands for Micro, Small, and Medium Enterprises Development, and it’s a kind of agreement that supports small-scale enterprises in growth and development.
Furthermore, the existing classification of MSME is formulated based on the investment made in machinery or equipment of the plant. However, trading enterprises are not considered as MSME; manufacturing and services related organizations are classified into the MSME category on the basis of the following investment:
For manufacturing enterprises-
- Micro- <Rs. 25 lakh
- Small- <Rs. 5 Cr
- Medium- <Rs. 10 Cr
For services enterprises-
- Micro- <Rs. 10 lakh
- Small- <Rs. 2 Cr
- Medium- <Rs. 5 Cr
MSME business ideas are determined based on several factors, and in recent years, the Government has changed various rules and regulations in MSME. Under the Atma Nirbhar Bharat Abhiyan launched in the time of pandemic revised the MSME classification. It gets classified based on investment and annual turnover, including manufacturers, retailers, wholesalers, and traders. With the recent changes announced by the Union Minister Nitin Gadkari on 2nd July 2021 exempted that now the traders and wholesalers can also avail from the scheme. It’s a significant step aimed to empower the small, micro, and medium business community.
The revised MSME classification is are as follows:
|Industries rendering services and manufacturing||Investment <1 crore and Annual Turnover <INR 5 crores||Investment <INR 10 crores and Annual Turnover <50 crores||Investment <INR 50 crores & Annual Turnover <INR 250 crores|
Top 15 MSME Business Ideas 2021
There are several micros, small and medium or small-scale businesses that are profitable to flourish. Here are the best 15 MSME business ideas that not only make you earn more but also require low investment.
1. Online Businesses
If we look at the current scenario, you get that everything is going online, whether it’s school classes, hobby classes, office, or anything. Thus, it’s a time to gain from the opportunity, and online business ideas such as blogging, online hosting, youtube channel, online reselling and much more are the best MSME business ideas to start.
You can start tuition classes, online dance classes, cookery classes, selling products, counselling and many more things. It depends upon your interest. Additionally, it doesn’t seek high investment and equipment. You can use your skills and talent to earn. However, the internet is available for all and at any place. So, you can start an online business from your home without visiting any place.
2. Cosmetic Business
Cosmetics are an intimate part of women’s lives, and it can be a great small-scale business to start. It’s the business that you can promote online and offline. The market and way of business are highly fragmented with top-notch cosmetic brands. Thus, you can also launch your brand or start a cosmetic shop indulging in various makeup products of various brands.
Now, people are more conscious of their beauty, raising the demand for beauty products to a new level. This MSME business idea is worthy as it is never going to lose. Ladies are always in search of exclusive beauty products and stores, so it will be profitable.
3. Hand Sanitizer and Mask Business
The business of hand sanitizer and masks is another on-demand business as per the current time and scenario. Nowadays, it becomes an essential thing to carry, to avoid germs and to spread the Covid. Plus, it’s a profitable business that can be started with a low investment.
It’s suggested to always work as the flow of demand and market requirements. As you know, these two things are compulsory to carry, and everyone in the whole country is using hand sanitizers and masks. So, if you are looking to start a business, nothing is better than this.
If you have a zeal for photography, you can make it a money-making business. However, photography is a hobby of many, and you can easily find many successful photographers who turned their hobby into a profession. So, just work on your skills and give some time to your hobby to make it a profession.
Photography is a low-scale business that starts with a minimal investment. You can start a photo studio, wildlife photography, nature capturing and snapping of many more wondrous things. Along with this, you can also make exhibitions where you can show your photography skill, and people will approach you to pay extremely.
5. Food Catering Business
Food Catering is the only MSME business idea that demands on every occasion, whether it’s birthday parties, weddings, events, anniversaries, and so on. It’s a highly profitable business that just requires investment in raw material, labor, and buying tables, chairs, tents, and utensils. The rest of the things depend upon your marketing and food quality.
If we talk about India, the food catering business never falls as we organize several events on various occasions where food catering is the essential service. The Government is also promoting this type of business, and you can also avail of a loan to start a food catering business.
Recommended: Best Profitable Franchise In India
6. Fitness and Yoga Centre
The high population of India is health-conscious, which leads to an increment in the number of Yoga and fitness centers. Yoga is the best way to make yourself fit and healthy, and with the yoga classes, people make themselves healthy to live an illness-free life. People hit the gym in order to burn their calories, and it’s a great MSME business idea to kick off.
Anyone with knowledge of fitness can start a fitness and yoga center, and if not, you can hire trainers. It requires an area and equipment that you can get at a very minimal price. And if you think it’s an out-of-budget business, you can apply for a loan. You can also provide home training and get annual and monthly subscription fees from the people.
7. Manufacturing Jute and Paper Bags
Jute and paper bags are the ideal products that play an immense role in controlling pollution. There are plenty of Jute bags and paper making industries, working greatly at an international level as the whole world is fighting against plastic and pollution. It would be an appreciable MSME business idea that makes you earn.
Furthermore, if you are a homemaker, it’s significant to work without any investment as many organizations are providing opportunities for women to start up. You can make your own group and utilize the talent of weaving to earn. However, the manufacturing process of jute and paper bags is simple that bestows you with significant margins.
8. Organic Farming
Another profitable and high-yielding MSME business idea is organic farming, and as you know, India is prominently known for farming and agriculture. Thus, it’s a unique business startup. As you know, people are moving towards organic fruits, vegetables, and seeds that make organic farming popular across the country. People are paying more attention to health concerns that expand organic farming.
You can easily start organic farming as the Government is promoting this business idea through distinctive schemes. In organic farming, you can explore a number of categories as it’s an emerging idea that flourishes with a rapid speed. Plan this business with market trends matching demand and supply of the product to prevent yourself from the loss.
9. Mobile and Computer Services
Mobile and computer-related businesses are expanding exponentially. It’s a profitable startup with low investment. However, taking a mobile and computer repair shop and providing services on the road is still a feasible and worthwhile endeavor.
You can start providing services related to mobile and computers with having knowledge and skills in the field. Once you get the skills, you can explore this business and add innovative ideas herein.
10. Wedding Agency
In countries like India, weddings never stop and are always in fashion. It’s one of the exciting MSME business ideas that can blossom into a wonderful and successful business. India is the exclusive country where people spend massive amounts on weddings so that this business can be highly profitable for you.
To start a great-looking wedding agency, you need to have a team to manage all the functions and activities of the wedding easily. It’s a business that requires a good amount of business, but you can also implement this business idea by providing services in small-budget weddings.
11. Biogas Production
In today’s time, if you are looking for an efficient MSME business idea, biogas production services are a lucrative business to start. It developed to a great extent in rural areas as it can be easily activated with low investment. It’s crucial to know the process in order to produce biogas with the help of cow dung and home wastes.
It’s a required business service, having a great demand among the various industries as it’s a cost-efficient way of generating energy. So, if you think that no business can generate from rural areas, change your mindset as it all depends upon the utilization of resources.
12. Furniture Work
Furniture is a considerable accommodation to decor home, and with the modern trend of home decoration and designing, furniture demand touches the sky. Everyone desires to make their home modern-looking and well-furnished; hence, it will be a great business to kick off.
It comes under manufacturing, and you can build a range of wooden furniture, including cupboards, doors, chairs, tables, and many more. However, the manufacturing of wooden furniture is rising substantially; as a result, people are coping with this MSME business idea.
13. Day Care Services
In contemporary times, working parents highly rely on daycare services for their children. It’s a booming MSME business idea highly profitable for women and you can find a number of creches and daycare service centers in your area. More mothers and women are enrolling in this business, and it opens a new getaway of earning without any high investment.
So, if you love to play with children, you can provide daycare services to working parents. Furthermore, there are many parents who prefer a home environment for their children so that you can start this business without any investment and from your home.
14. Fast Food Shop
Fast food shops are a great source of earning as in today’s time you can find a fast food stall at every street corner. Fast food is the first preference of people to calm their hunger, so it can be a profitable business.
Anyone can establish a fast food shop as it requires minimal investment, and if you have great taste and are able to cook hygiene and tasty food, start a shop. However, there’s big competition in this field, but it’s a highly profitable business despite this.
15. Pickle-Papad Making
If you are a homemaker and it’s the perfect business idea for you. You can start this business at your convenience because it’s a home-based business. However, this business is emerging at a fast pace in India, especially in some states like Gujarat, Maharashtra, Rajasthan, etc.
Don’t think more about starting this business as it’s a no investment business that can make you earn in a minimal time. So, avail of this lucrative business idea and expand your business to a new level.
Final Thoughts: Key Takeaway Points
You can find plenty of MSME business ideas as nowadays, the Government is also supporting these businesses. So, there’s a low risk and high profit that amplifies the popularity and practice of MSME businesses.
All these above-enlisted micro, small and medium business ideas are great to start without high investments and equipment. Additionally, there is a range of options that you can choose as per your interest and skills. Moreover, to gain high benefits from the small-scale business, it’s essential to register it in MSME business so that you can avail of the Government schemes and policies. Over a while, the Government changes the policy of the MSME business scheme; consequently, it’s also significant to be aware of the changes.
In a nutshell, register your business in MSME by choosing an idea from these top 15. MSME business can grant you unconditional benefits, so make a smart move by establishing the best business.
Frequently Asked Questions
What is Udhyam Registration?
MSME registration is updated as Udhayam Registration, and it’s the process of providing a unique registration number to the businesses through the Government. It’s an online process that is beneficial for medium, small, and micro-businesses.
What are the services that are covered under the MSME scheme?
Manufacturing and trading industries are covered under the MSME scheme, and it benefits them with subsidies and taxes. However, there are several schemes in MSME that are categorized based on industry type.
Do I need an Aadhaar card for MSME registration?
Aadhaar card is the key document that is required while registering MSME business. It’s a compulsory document, and if an individual does not have an Aadhaar card for any reason, they can attach the Aadhaar card of a business partner or the director.
Why should I need to gain MSME certification?
By getting the MSME certificate, you can avail of a subsidy, quickly get bank loans, get an exemption for over-drafting interest rates, reimbursement in ISO certification charges, and many more. So, to uplift your small, micro, and medium business by reducing the costs, it’s significant to get MSME certification.
Who is eligible to apply for MSME?
Hindu Undivided Family, Partnership Firm, Proprietorships, One Person Company, Private Limited Company, Producer Company, Limited Liability Partnership, Limited Company, any association of persons, co-operative societies or any other undertaking/agreement company having a business for a year with more than INR 24 Lakhs annual turnover can apply for MSME.