For promoting entrepreneurship, the government provides special benefits to small businesses in the form of subsidies and incentives. Also, banks give loans at concessional rates to set up these businesses. For availing those, the small businesses need to register under the Micro, Small and Medium Enterprises (MSMEs) act. If a business is registered under the MSMEs act, it can avail several benefits like cheaper bank loans, tax benefits, preference during the tender process, and access to various schemes and incentives of the government.