Give two examples for Micro enterprises.

Question 20 of 23

Q. Give two examples for Micro enterprises.

Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2025Subjective· 2mImportance★★★★★

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Concept understanding — MSME Classification (Investment and Turnover Criteria)

An enterprise is classified as micro, small or medium under the MSME Development Act using a composite criterion, revised with effect from 1 July 2020, that requires BOTH its investment in plant and machinery/equipment AND its annual turnover to fall within the prescribed limit for that category.

Category	Investment in Plant & Machinery/Equipment	Annual Turnover
Micro	Not more than ₹1 crore	Not more than ₹5 crore
Small	Not more than ₹10 crore	Not more than ₹50 crore

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Micro enterprises are the smallest units under the MSME classification; examples include a small tailoring unit and a pottery/handicraft unit.

Under the revised MSME classification followed in the Tamil Nadu HSC Commerce syllabus, a micro enterprise is one where investment in plant, machinery or equipment does not exceed Rs.1 crore and annual turnover does not exceed Rs.5 crore. These are very small, usually owner-run, labour-intensive units.

Examples of micro enterprises: …

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Q.Give two examples for Micro enterprises.

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