There is no difference between MSME and SSI. Small Scale Industries (SSI) are those industries in which manufacturing of goods, production of goods and providing services are all done on a small scale or micro scale. Micro, Small and Medium Enterprises (MSMEs) loans are given by the government to people who want to invest in their businesses and are in the manufacturing and service sector. Both MSME and SSI have manufacturing and service sector, but SSIs manufacture goods or provide services with the help of relatively fewer machines and workers.

Micro Small and Medium Enterprises are divided into three categories: the manufacturing and service sectors in micro enterprises have an annual turnover of below Rs. 5 crores. For small enterprises the annual turnover is between Rs. 5 crores and Rs. 75 crores while medium enterprises have an annual turnover between Rs. 75 crores and Rs. 250 crores. For small scale manufacturing industries, investment in plant and machinery are between 25 lakhs and 5 crores, whereas in the service sector the same investment must be between 10 lakhs and 2 crores.