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The need for developing a new taxonomy for MSME : The case for nano-enterprises

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  • Economic and Political Weekly Vol.58; No.34 - 26 Aug. 2023 pp. 14-18
Subject(s): Summary: This article looks at the asymmetry embedded within the classification of micro, small and medium enter­prises that distorts equitable policy attention to the sector. Around 99% of MSMEs are microenterprises, and within micro, almost 70% consists of “tiny” units, often called nano-enterprises. It then examines the historical evolution of these classifications and their numerical arbitrariness, and shows that the taxonomy needs to be revised.
Item type: Journal Articles
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This article looks at the asymmetry embedded within the classification of micro, small and medium enter­prises that distorts equitable policy attention to the sector. Around 99% of MSMEs are microenterprises, and within micro, almost 70% consists of “tiny” units, often called nano-enterprises. It then examines the historical evolution of these classifications and their numerical arbitrariness, and shows that the taxonomy needs to be revised.

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