7 Examples of Micro, Small and Medium Enterprises (MSMEs) in Different Industries
Micro, small and medium enterprises (MSMEs) are businesses that have a certain size, revenue or employee limit. They play a vital role in the economy, creating jobs, driving innovation and receiving financial incentives from the government. In this article, we will explore seven examples of MSMEs in different industries and sectors.
1. Leather products
One example of an MSME in the leather industry is a company that produces leather bags, wallets, belts and other accessories. The company may have a small workshop with a few machines and workers who cut, stitch and finish the products. The company may sell its products online, through local retailers or at trade fairs.
2. Moulding
Moulding is the process of shaping plastic or other materials into various products. An example of an MSME in the moulding industry is a company that makes combs, umbrella frames, plastic toys and other items. The company may have a small factory with a few moulding machines and workers who operate them. The company may supply its products to wholesalers, distributors or retailers.
3. Natural fragrance and flavors
Natural fragrance and flavors are substances that are derived from plants, animals or minerals and are used to enhance the smell or taste of food, cosmetics, perfumes and other products. An example of an MSME in the natural fragrance and flavors industry is a company that extracts essential oils from flowers, herbs, spices and other sources. The company may have a small laboratory with equipment for distillation, extraction and analysis. The company may sell its products to manufacturers, exporters or consumers.
4. Placement and management consultancy services
Placement and management consultancy services are businesses that provide advice, guidance and assistance to individuals or organizations on various aspects of their careers, businesses or projects. An example of an MSME in the placement and management consultancy services industry is a company that offers resume writing, interview coaching, career counseling, recruitment, training and development services. The company may have a small office with a few consultants and staff who interact with clients through phone, email or face-to-face meetings.
5. Training and educational institutes
Training and educational institutes are businesses that provide education, training or certification to individuals or groups on various subjects or skills. An example of an MSME in the training and educational institutes industry is a company that offers courses on languages, computer skills, accounting, photography, yoga and other topics. The company may have a small classroom with a few instructors and students who attend classes in person or online.
6. Lawn and landscaping companies
Lawn and landscaping companies are businesses that provide services related to the design, installation and maintenance of gardens, lawns, parks and other outdoor spaces. An example of an MSME in the lawn and landscaping industry is a company that offers mowing, trimming, weeding, planting, fertilizing, irrigation and other services. The company may have a small truck with equipment and tools and a few workers who visit clients’ properties.
7. Street vendors
Street vendors are businesses that sell food, drinks, goods or services on the streets or in public places. An example of an MSME in the street vending industry is a vendor who sells hot dogs, ice cream, fruits, flowers or newspapers from a cart, stand or bicycle. The vendor may have a small inventory of products and a few customers who buy from them.
Micro, Small and Medium Enterprises: Examples and Trends
Micro, small and medium enterprises (MSMEs) are businesses that have a certain size in terms of revenue, assets or employees. They play a vital role in the economy, providing employment, innovation and growth. In this blog post, we will look at some examples of MSMEs and the trends that affect their global demand.
Examples of MSMEs
MSMEs can be found in various sectors and industries, such as manufacturing, services, agriculture, trade and tourism. Here are some examples of MSMEs from different countries:
– Leather products : This is an example of a micro-enterprise that produces goods from animal skins, such as shoes, bags, belts and jackets. Leather products are in high demand in both domestic and international markets, especially in fashion and luxury segments. According to the International Trade Centre, the global leather market was valued at $414 billion in 2019.
– Moulding : This is an example of a small enterprise that uses plastic or metal to create shapes or forms for various products, such as combs, umbrella frames, toys and household items. Moulding is a low-cost and versatile process that can produce a large variety of products with different designs and functions. The global moulding market size was estimated at $217.6 billion in 2020.
– Natural fragrance and flavors : This is an example of a medium enterprise that extracts or synthesizes natural substances from plants, animals or minerals to create scents or tastes for different products, such as cosmetics, food, beverages and pharmaceuticals. Natural fragrance and flavors are preferred by consumers who seek more natural and organic products. The global natural fragrance market size was valued at $5.3 billion in 2019.
Trends affecting the global demand for MSMEs
The global demand for MSMEs is influenced by various factors, such as consumer preferences, technological innovations, environmental concerns and government policies. Some of the trends that affect the global demand for MSMEs are:
-Digitalization : The use of digital technologies, such as e-commerce, social media, cloud computing and artificial intelligence, can help MSMEs reach new markets, improve their efficiency, reduce their costs and enhance their competitiveness. Digitalization can also create new opportunities for MSMEs to offer innovative products and services that meet the changing needs of customers. According to the World Bank, digitalization can increase the productivity of MSMEs by 10% on average.
– Sustainability : The growing awareness of the environmental and social impacts of business activities can increase the demand for MSMEs that offer sustainable products and services that minimize their negative effects on the planet and people. Sustainability can also help MSMEs reduce their risks, improve their reputation and attract more customers who value ethical and responsible practices. According to the United Nations, sustainable MSMEs can contribute to achieving the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs).
– Inclusivity : The promotion of equal opportunities and participation for all groups in society can increase the demand for MSMEs that empower women, youth and vulnerable populations through entrepreneurship and employment. Inclusivity can also help MSMEs diversify their workforce, enhance their creativity and innovation and address the needs of underserved markets. According to the International Labour Organization, inclusive MSMEs can help reduce poverty and inequality and promote social cohesion.
MSMEs are important actors in the economy that offer a wide range of products and services across various sectors and industries. They face various challenges and opportunities in the global market that affect their demand. Some of the trends that influence the global demand for MSMEs are digitalization, sustainability and inclusivity. By adapting to these trends, MSMEs can enhance their performance, competitiveness and resilience.
References:
http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf
http://www.iwim.uni-bremen.de/publikationen/pdf/b101.pdf
http://smallbusinessassociation.com.au/wp-content/uploads/2016/03/INTRODUCTION-TO-FTRA.pdf
https://www.intracen.org/itc/sectors/leather/
https://www.grandviewresearch.com/industry-analysis/molding-compound-market
https://www.grandviewresearch.com/industry-analysis/natural-fragrance-market
https://sdgs.un.org/topics/capacity-development/msmes
https://www.indeed.com/career-advice/career-development/medium-and-small-enterprises
https://byjus.com/free-ias-prep/msme/
