Based on that xsd schema:
<xs:simpleType name="TextType">
<xs:restriction base="xs:string">
<xs:minLength value="1"/>
<xs:maxLength value="50"/>
</xs:restriction>
</xs:simpleType>
...
<xs:element maxOccurs="10" minOccurs="0" name="MyText" type="TextType"/>
should empty space values like this be valid or not and why?
<MyText> </MyText>
Yes, it's valid. The value can be any string between 1-50 characters in length, and this is a string whose length is between those limits.
If you want to eliminate whitespace before applying the length checks, you could consider using the xs:whiteSpace
facet, or using a derived type such as xs:token
.