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2021 | OriginalPaper | Chapter

11. Investment Pattern and Sources of Finance in Micro, Small and Medium Agro-Processing Enterprises in India

Author : Santosh Kumar

Published in: Agro and Food Processing Industry in India

Publisher: Springer Singapore

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Excerpt

Largely falling under the unorganised (informal) segment of manufacturing, agricultural processing enterprises (APEs) in India are traditionally small units run by family workers. The dominance of APEs in total enterprises and share in employment is sizeable. Approximately 99.89% of APEs are micro-size, 0.10% are small-size and 0.01% are medium-size,1 according to the fourth all-India census of Micro, Small and Medium Enterprises (MSMEs 2006–07). …

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Footnotes
1
The Micro, Small and Medium Enterprises Development Act, 2006 categorises enterprises by the original value of investment in plant and machinery; it is up to INR 25 lakh for a micro-enterprise; between INR 25 lakh and INR 5 crore for a small enterprise; and between INR 5 crore and INR 10 crore for a medium-sized enterprise.
 
2
Institutional sources comprise central, state and local governmental bodies; commercial banks; co-operative banks and societies; micro-finance institutions; and other institutional agencies. Non-institutional sources comprise moneylenders, business partners, contractors, relatives and friends.
 
3
The original value of investment in plant and machinery is considered to be a better measure of investment because data are available for different points of time, because it does not provide information on the cumulative depreciation of capital (Ray 2002; Kumar 2006; Kathuria et al. 2010).
 
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Metadata
Title
Investment Pattern and Sources of Finance in Micro, Small and Medium Agro-Processing Enterprises in India
Author
Santosh Kumar
Copyright Year
2021
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-15-9468-7_11