MSMEs need to be looked from both perspectives- investment as well as turnover: Yes Bank

When it comes to defining Micro, Small and Medium Enterprises (MSMEs), MSMEs need to be looked from the perspectives of both - investment in plant and machinery as well as turnover, said an official from Yes Bank.

While speaking with KNN India on the sidelines of a seminar on ‘Definition of MSMEs’ here, Group Executive Vice President, Small Enterprises Banking, Yes Bank, Vikas Arora said “According to me, the correct parameter to define MSMEs is to club both the parameters i.e. investment in plant & machinery and turnover.”

He explained, some of the companies might have large investment in the plant and machinery but they would have smaller turnover, similarly some would have smaller plant and machinery but would have larger turnover depending on the business model, therefore it is important to club both the parameter while defining MSMEs.

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