Small and Medium-sized Enterprises (SMEs)

Small and Medium-sized Enterprises (SMEs) are businesses that fall below specified thresholds of annual turnover, investment in plant and machinery, or number of employees — making them distinct from large corporations and eligible for specific government support, financing schemes, and regulatory frameworks. In India, MSMEs (Micro, Small, and Medium Enterprises) are defined under the MSMED Act as amended in 2020, with thresholds based on annual turnover (up to ₹5 crore for micro, ₹5–50 crore for small, and ₹50–250 crore for medium enterprises) and investment in plant and machinery. India's MSME sector is the backbone of the economy — contributing approximately 30% of GDP, over 45% of total exports, and employing over 110 million people. SMEs access capital through priority sector lending from banks, MUDRA loans, SIDBI schemes, and increasingly through the BSE SME and NSE Emerge platforms, which provide listed equity access. For investors on Ventura Securities, the health of India's SME sector is a critical barometer of economic breadth, credit cycle quality, and the performance of small-cap and mid-cap equity funds with significant exposure to MSME-linked businesses.