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Introduction:-
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What is Startup India offering to the Entrepreneurs?
Stand up India backed up by Department of Financial Services (DFS) intents to bring up Women and SC/ST entrepreneurs. They have planned to support 2.5 lakh borrowers with Bank loans (with at least 2 borrowers in both the category per branch) which can be returned up to seven years.
During 2013-15 (compound annual growth rate growth)
• Yearly growth of 153 percent in number of investment
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This will be used as part of your Personal Professional Portfolio once graded.
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Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
1. +
Alternative fields of self employment
pankajchandel@hotmail.com
Dev Sanskriti University, Haridwar
2. +
What is Self-Employment
When persons are engaged in an economic activity which is termed as wage
employment or paid employment. But there are many persons who engage
themselves in an occupation or some business which they start and manage
on their own.
They put in their best effort and take all types of risks to pursue their careers
successfully. The entire earning of their work goes to them. All of us have seen
small grocery shops, tailoring shops, medical stores etc. in our locality.
These are owned and managed by a person, with or without the help of some
assistants. Their economic activities are termed as self-employment. So when
an individual engages in any economic activity and manages it on his own, it is
known as self-employment.
3. +
Characteristics of self employment
A small business is usually owned and managed by one or a few
persons.
The owners take active participation in day-to-day activities of
business.
The participation of owners in the management helps in taking
quick decision.
The area of operation of a small business is limited. It generally
caters to the need of the local people.
4. +
It generally uses local resources for its operation. The small-
scale manufacturing units are usually located near the source
of raw material, labour etc.
Gestation period (the period that a business waits to get return
on its investment)is short.
The small business units are generally labour intensive and
thus require less capital investment.
5. +
Areas of self employment
Trading: You know that trade involves buying and selling of
goods and services. With small amount of investment one can
start and run a small trading unit. You can think of starting a
small grocery or stationery shop in your locality. If you are able
to invest more capital and ready to take risk, then wholesale
business is a good option for you. One can also take up some
agency business or become a stockist. The real estate
business which is booming now-a- days can also be a lucrative
alternative.
6. +
Manufacturing: One can start a small industry of manufacturing
bricks, or producing bakery items or confectionery. All these
businesses require small amount of capital and simple equipment.
Farming is another such area in which a person can work all alone
or take the help of one or two persons. This is an age-old area of
self-employment. Orchards, dairy, poultry, sericulture, fisheries,
horticulture, etc. are good examples of avenues of self-
employment.
Professionals: Occupations that require special knowledge and
training in a particular field also provide opportunities of self-
employment. Lawyers, doctors, chartered accountants, architects
and journalists fall in this category. However one has to follow
certain code of conduct framed by their association and need
specialised knowledge and training.
7. +
Individualised services: Tailoring, motor repairing, hair
cutting, fashion designing, interior decoration etc. are some of
the business activities, which provide individualised services to
the consumers. These can be easily started and run by
individuals. These activities are based on the personal skills of
those who perform them. Blacksmiths, carpenters, goldsmiths
are all self-employed persons.
8. +
Types of small business
Small-scale Industries: A small-scale industrial unit is one in
which fixed capital investment in plant and machinery does not
exceed Rs. One crore. In case of certain export promotion units
this investment ceiling can be raised upto Rs. 5 crores.
Tiny Industries: A business unit whose total fixed capital
investment in plant and machinery does not exceed Rs. 25
lakhs is called a tiny industry.
9. +
Ancillary Industrial Undertakings: When a small-scale
industry supplies not less than 50% of its production to another
industry, it is called as ancillary industrial undertaking. The fixed
capital investment limit of Rs. One crore also applies to it. If an
ancillary unit is owned by some other business unit, it losses it
status of small business.
Village Industries: A unit that is located in rural area and
whose fixed capital investment in plant and machinery does not
exceed Rs. 50, 000 per artisan or worker is termed as village
industry.
10. +
Cottage Industries: These are small manufacturing units
producing simple products involving some specific art or skill like
handicrafts, filigree etc. They use simple equipments with
indigenous technology for production. Cottage industries are
carried on wholly or primarily with the help of members of the
family either on a whole or part-time basis. These units are not
defined by the ceiling of capital of investment.
Micro Business Enterprises: The fixed capital investment of in
plant and machinery of these enterprises does not exceed
rupees one lakh.
11. +
Small-scale Service and Business (Industry related)
Enterprises (SSSBE): In these businesses the investment limit
in fixed assets of plant and machinery does not exceed Rs. 10
lakhs. The main business enterprises included under this
category are – Advertising agency, marketing consultancy,
Typing centre, Photo copying centre (Xeroxing), Industrial
testing laboratory, Auto repair and garages, laundry and dry
cleaning, tailoring, STD/ISD booths, beauty parlor, crèches, etc.
Trading Units: These are usually in the form of small retailers
found in the market places.
12. +
Importance of self employment
Advantage of small business: Small-scale business has
several advantages over large-scale business. It can be easily
started, and requires small amount of capital investment. The
self-employment involving activities on a small-scale is a good
alternative to large scale business which has brought various
evils like environmental pollution, development of slums,
exploitation of workers, and so on.
13. + Preference over wage employment: In self-employment there is
no limit of earnings as is the case with wage employment. In self-
employment one can use one’s talent for own benefit. The
decisions can be taken quickly and conveniently. All these factors
act as strong motivators for self-employment to be preferred over
wage employment.
Developing the spirit of entrepreneurship: Entrepreneurship
involves taking risks because the entrepreneur tries to innovate
new products, new methods of production and marketing. Self-
employment, on the other hand, involves either no risk or very little
risk. But, as soon as the self-employed person starts becoming
innovative and takes steps to expand his business, he becomes an
entrepreneur. Therefore, self-employment becomes a launching
pad for entrepreneurship.
14. +
Promotion of individualised services: Self-employment may
also take the form of providing individualised services like
tailoring, repair work, dispensing of medicines etc. Such
services are helpful in providing better consumer satisfaction.
These can be easily started and run by individuals.
Scope for creativity: It provides opportunity for development
of creativity and skills in art and crafts, leading to preservation
of the cultural heritage of India. For example, we can see
creative ideas reflected in handicrafts, handloom products, etc.
15. +
Reducing the problem of unemployment: Self-employment
provides opportunities of gainful occupation to those who
otherwise remain unemployed. Thus it reduces the problem of
unemployment.
16. +
Institutional Supports
National Small Industries Corporation Ltd.: The National
Small Industries Corporation Ltd. (NSIC) was set up in the year
1955 to promote, aid and foster the growth of small industries
in India. It provides wide range of promotional services to
small-scale industries. It provides machinery to small-scale
industries under hire purchase schemes and also on lease
basis. It helps in export marketing of the products of small-
scale industries. It also helps in development and upgradation
of technology and implementation of modernisation programme
of small-scale industries.
17. +
State Small Industries Development Corporations: The
State Small Industries Development Corporations (SSIDCs) are
set up in various states of our country to cater to the
developmental needs of small, tiny and village industries. Their
main functions include procurement and distribution of scarce
raw materials, supply of machinery on hire purchase basis, and
providing marketing facilities for the products of small-scale
industries.
18. + National Bank for Agriculture and Rural Development: The
National Bank for Agriculture and Rural Development (NABARD)
was set up in 1982 as an apex institution for financing agricultural
and rural sectors. It provides financial assistance through Regional
Rural banks and cooperative banks to agriculture, small-scale,
cottage and village industries, handicrafts and other allied
activities in rural areas.
District Industries Centres: For promotion of small industries in
our countries District Industries Centres (DICs) are set up at
district level. They conduct industrial potential survey keeping in
view the availability of resources. Their main function includes
implementation of various schemes of central and state
governments. They appraise the worthiness of various proposals
of the entrepreneurs to establish new units, guide them in
choosing suitable machinery, equipment and raw materials.
19. +
Small Industries Development Bank of India: The Small
Industries Development Bank of India (SIDBI) was set up in
1990 as a principal financial institution for promotion, financing
and development of small-scale industrial enterprises. It acts as
an apex institution for all banks providing credit facility to small-
scale industries in our country.
Small Industries Service Institutions: The Small Industries
Service Institutions (SISIs) are set up to provide consultancy
and training to small enterprises. These institutions render
technical support service and conduct entrepreneurship
development programmes. They also provide trade and market
information to small- scale industries.