Introduction: I Self-employment is regarded by many as something purely and genuinely good.

More entrepreneurs mean more innovation and new ways of organizing production. People do not only provide themselves with employment, they also employ others. This creates economic growth. And the larger number of self-employed will increase competition and efficiency. Taken together, this will increase the real incomes in society.n the political discussion, the desirability of selfemployment is seldom questioned. And many people are very sure about which policies promote self-employment and which do not. Self-Employment Scheme for Educated Unemployed Youth (SEEUY)
The scheme for providing Self-employment to Educated Unemployed Youth was started in 1983 with an annual target of 2.5 lakh beneficiaries. Unemployed Youth in the age group of 19-35 years who are Matriculates and above are eligible for assistance under this scheme. ITI passed, women, technically trained persons are given due weightage training plus two level are given preference. A ceiling of income of Rs. 10,000 per annum, per family, has been fixed for eligibility under the scheme. A minimum of 50% ventures should be through industry-route and not more than 30% of the ventures should relate to business sector, except in hilly areas of the country. A composite loan not exceeding and Rs.15,000/- for business sector is provided. 25% subsidy is provided by the Govt. on the loans. Banks do not require collateral guarantee or margin money for such loads. 30% of the total beneficiaries are reserved for SC/ST persons.

Prime Ministers Rozgar Yojana For Educated Unemployed Youth (P.M.R.Y)

Prime Minister Rozgar Yojana for providing self-Employment to Educated Unemployed Youth was announced by the Prime Minister on 15th August, 1993 to provide self-employed opportunities to one million educated unemployed youth in the country. The Scheme has been formally launched on 2nd October, 1993 . 1. Objectives:

The PMRY has been designed to provide employment to more than a million Person by setting up of 7 lakhs micro enterprises by the educated unemployed youth. It relates to the setting up of the self-employment ventures through industry, service and business routes. The scheme also seeks to associate reputed non-governmental organisations in implementation PMRY scheme especially in the selection, training of entrepreneurs and preparation of project profiles. 2. Coverage:

The scheme intends to cover urban areas only during 1993-94 and whole of the country from 1994-95 onwards. From 1994-95 onwards, the existing self-employment Scheme for the Educated Unemployed Youth (SEEUY) will be subsumed in PMRY. 3. Eligibility:

Any unemployed educated person living in any part of the country rural or urban fulfilling the following conditions will be eligible for assistance. However, during 1993-94, the scheme would be operated only in urban areas.

a. Age: Between 18 to 40 years (SC/ST - 45 years). b. Qualification: Matric (Passed or Failed) or ITI passed or having undergone Govt.
sponsored technical course for a minimum duration of 6 months. c. Residency: Permanent resident of the area for at least 3 years Document like Ration Card would constitute enough proof for this purpose. In its absence any other document to the satisfaction of the Task Force should be produced. d. Family Income: Upto Rs.40,000/- per annum. Family for this purpose would mean spouse and parents of the beneficiary and family income would include income from all sources, whether, wages, salary, pension, agriculture, business, rent etc. e. Defaulter: Should not be a defaulter to any nationalised bank/financial institution/cooperative bank. 4. Reservation:

Preference should be given to weaker section including women. The scheme envisages 22.5% reservation for SC/ST and 27% for other Backward Classes (OBCs) 5. Project Cost:

Projects upto Rs.1 lakh are covered under the scheme in case of individuals. If two or more eligible persons join together in a partnership, the project with higher costs would also be covered provided share of each person in the project cost is Rs.1 lakhs or less. 6. Margin Money, Bank Loans and Rates of Interest:

Entrepreneur is required to contribute 5 percent of project cost as margin money in cash. Balance 95 percent would be sanctioned as composite loan by Bank at the rates of interest applicable to such loans under guidelines of Reserve Bank of India issued from time to time. 7. Collatoral guarantee on bank loans:

The loans would not require any collateral guarantee. Only assets created under the Scheme would be hypothecated/mortgaged/pledged to the Bank. 8. Subsidy:

Government of India would provide subsidy at the rate of 15 percent of the project cost subject to a ceiling of Rs.7, 500/- per entrepreneur. In case more than one entrepreneur join together and set up a project under partnership, subsidy would be calculated for each partner separately at the rate of 15 percent of his share in the project cost, limited to Rs.7, 500 (per partner). 9. Repayment Schedule:

Repayment Schedule would range from3 to 7 years after an initial moratorium of 6 to 18 months as decided by the Bank. 10. Training:

Scheme envisages compulsory training for entrepreneurs after the loan is sanctioned.

11.

Other Inputs: a. State / U.T. Governments have been requested to provide necessary infrastructure support like provision of Industrial sites, sheds, shops, water on preferential basis to these entrepreneurs. Provision of sites and sheds at concessional rate to service ventures in urban area will be essential for their success. Many State/U.T Governments are providing various tax concessions and incentives under their industrial Policy. Such concessions should also be extended to the beneficiaries under the scheme.

Swarnajayanti Gram Swarojgar Yojana As load requirement will be small, State/U.T. governments have also been requested to give priority to the person getting the loan sanctioned under the PMRY for electric connection and no deposit should be asked for and small infrastructure e.g. erecting Swarnajayanti Gram Swarojgar Yojana (SGSY) is an initiative launched by the Government of India to provide employment to poor people living in rural areas of the country. The scheme was launched on April 1, 1999. The SGSY aims at providing self-employment to villagers through the establishment of Self-help groups. Activity clusters are established based on the aptitude and skill of the people which are nurtured to their maximum potential. Funds are provided by NGOs, banks and financial institutions. Since its inception, over 2.25 million Self-help groups have been established with an investment of Rs. 14,403 crores, profiting over 6.697 million people. The Swarnajayanti Gram Swarojgar Yojana (SGSY) was launched as an integrated programme for selfemployment of the rural poor with effect from April 1, 1999.

Working of the scheme

The SGSY was somewhat intended to provide self-employment to millions of villagers. Poor families living below the poverty line were organised into Self-help groups (SHG)s established with a mixture of government subsidy and credit from investment banks.[1] The main aim of these SHGs was to bring these poor families above the poverty line and concentrate on income generation through combined effort.[1][2] [3] The scheme recommended the establishment of activity clusters or clusters of villagers grouped together based on their skills and abilities. Each of these activity clusters worked on a specific activity chosen based on the aptitude and skill of the people, availability of resources and market potentiality. The SHGs are aided, supported and trained by NGOs, CBOs, individuals, banks and self-help promoting institutions. Government-run District Level Development Agencies (DRDA) and the respective State governments also provided training and financial aid. The programme focusses on establishing microenterprises in rural areas. The SHGs created may have a varying number of members based on the terrain and physical abilities of the members. It goes through three stages of creation: Group formation Capital formation through the revolving fund and skill development and

Taking up of economic activity for skill generation.

The SHGs are usually created by selecting individuals from the Below poverty-line (BPL) list provided by the Gram sabha. The SHGs are divided into various blocks and each of these blocks concentrated on 4-5 key activities. The SGSY is mainly run through government-run DRDAs with support from local private institutions, banks and Panchayati raj institutions. The Government also assists villagers in marketing their products by organizing melas or fairs, exhibitions, etc.

Prime Ministers Employment Generation Programme (PMEGP)

Prime Ministers Employment Generation Programme (PMEGP) is a credit linked subsidy programme of Government of India. It has been introduced by merging the two schemes, namely, Prime Ministers Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). The scheme was launched on 15th August, 2008. Objectives:

To generate employment opportunities in rural as well as urban areas of the country through setting up of new self employment ventures/projects/micro enterprises. To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place. To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth inthe country, so as to help arrest migration of rural youth to urban areas.

To increase the wage earning capacity of artisans and contribute to increase inthe growth rate of rural and urban employment.

Trade Related Entrepreneurship Assistance and Development of Women (TREAD)

Objectives

In order to alleviate the problems faced by women entrepreneurs, Government of India launched this scheme in 1998. The scheme envisages development of micro/tiny women enterprises in the country both in the urban and rural areas. The main objective of the scheme is to empower women through development of their entrepreneurial skills by eliminating constraints faced by them in their sphere of trade. A revised scheme of TREAD was launched in May, 2004. Salient Features (i) The scheme is implemented by SIDO. (ii) The scheme envisages economic empowerment of women through trade related training, information and counselling, extension activities related to trades, products, services etc. (iii) The scheme provides for market development and financial loans through NGOs, which are also provided grants for capacity building. This assistance is to be provided for selfemployment ventures by women for pursuing any kind of non-farm activity. (iv) The scheme has three components; (a) To provide assistance to women entrepreneurs through NGOs for non-farm entrepreneurial activity. (b) To build up capacity of Entrepreneurship Development Institutions like National Institute for Small Industry Extension & Training (NISIET), Small Industries Service Institutes (SISI). State level EDIs, etc., by providing financial support in the form of Government of India grant. (c) To create entrepreneurship development training facility through NGOs by providing financial support for conducting training programmes. Eligibility Under the scheme, NGOs, with the requisite experience in micro credit, prepare project proposals on behalf of individual women and submit the proposals to financial institutions in the prescribed form. Based on the appraisal by financial institutions, the project proposal is vetted in the Office of the DC(SSI) for final approval and release of grant to NGOs, which can be up to a maximum of 30% of project cost. The remaining amount will be provided by the financial institutions as loan. In terms of the existing guidelines in TREAD scheme, there is no monetary ceiling.

Entrepreneurship Development & Training Support to Institutions

Objectives Entrepreneurship development is one of the key elements for promotion of small scale industries, particularly, the first generation entrepreneurs. To undertake this task on regular basis, the Ministry has set up 3 national-level institutes. These are (I) National Institute of Small Industries Extension Training, Hyderabad (ii) National Institute of Entrepreneurship and Small Business Development, Delhi (iii) Indian Institute of Entrepreneurship, Guwahati. In addition, the Ministry implements two important schemes, namely, Promotion of Entrepreneruship Development Institutions, (EDIs) and Scheme of National Entrepreneurship Development Board (NEDB). The main objective of these programmes are :(i) Promoting entrepreneurship for creating self-employment and employment opportunities. (ii) Assisting entrepreneurship institutes to expand their capacities; and (iii) Undertaking research on entrepreneurship related issues. Salient Features

(i)

(ii)

(iii)

Under the EDI Scheme, grant is given for setting up of new entrepreneurship development Institutions and also for upgradation and modernisation of existing Entrepreneurship development Institutions in the country. Under the Scheme, a matching grant of 50% subject to a ceiling of Rs.1 crore is provided for building, equipments, training aids, etc. The balance 50% is contributed by the State Governments/financial institutions. The National Entrepreneurship Development Board (NEDB) schemes are for promotion of entrepreurship for encouraging self-employment in the small scale industries and small business enterprises. Under this, grant is provided to reputed organistaions engaged in entrepreneurship development for organising workshops and conducting relevant research studies.

Eligibility (i)

(ii)

Under the EDI Scheme, financial assistance is provided to existing and proposed training institutes at the State level meant for supporting the entrepreneurship development efforts. The central assistance provided under the scheme is only catalytic and supplementary to the contribution and efforts of the State/Union Territory Governments and other agencies. The NEDB is to articulate priorities and design and monitor implementation of action plan, identify and remove entry barriers for potential entrepreneurs, to focus on the existing entrepreneurs in micro, tiny and small scale sectors to facilitate consolidation, growth and diversification of existing entrepreneurial ventures and to sensitise the support agencies in the area of entrepreneurship etc.

Entrepreneurship Development Programme

Objectives Entrepreneurship Development Programmes (EDP) are being organized as a regular training activity to cultivate the latent qualities in youth by enlightening them on various aspects that are necessary to be considered while setting up small scale industries. EDPs have attracted the attention of the educated unemployed youth. Over the years, these programmes have created confidence in our youth, which has led in self-employment and creation of further employment. Salient Features (i) SIDO, through the network of SISIs, has been the pioneer in conducting such EDPs for various target groups. (ii) These courses generally have a duration of four to six weeks. Product-oriented courses, in hoisiery, food products, leather products, herbal cosmetics, Electronics, etc. have been found useful by the entrepreneurs. (iii) Besides, all SISIs and branch SISIs, the following Entrepreneruship Development Training Institutes are conducting specialized skill-oriented general management training programmes. National Institute of Small Industry Extension Training, Hyderabad. National Institute for Entrepreneurship and Small Business Development, Delhi. Indian Institute for Entrepreneurship, Guwahati. Small Entrepreneurs Promotion and Training Institute, Thiruvalla. Small Entrepreneurs Promotion and Training Institute, Ettamannor(Kerala). (iv) the Small Industries Development Organization (SIDO), the various State Small Industries Development Corporations (SIDCs), nationalised banks and even NGOs are conducting various programmes including Entrepreneurship Development Programmes, (EDP), to cater to the needs of potential entrepreneurs, who may not have adequate

educational background and skills. SIDO has introduced process/product-oriented EDPs in areas like TV repairing, printed circuit boards, leather goods, screen printing, etc. A special prize to Outstanding Woman Entrepreneur of the year is being given to recognise their achievements and to provide incentives to women entrepreneurs. The office of the DC(SSI) has also opened a Women Cell to provide coordination and assistance to women entrepreneurs. Eligibility All the existing / prospective entrepreneurs are eligible for this programme.

Micro-finance Programme

Objectives
The main objective of the Scheme is to provide credit at the door step to the poor and low income category people in the country to enable them to carry on business or manufacturing activities. The Scheme is operate through NGOs and Self Help Groups, who provide credit at door step and also monitor the projects on regular basis. The Scheme is in operation from March, 2004. Salient Features (i) The Scheme is implemented by SIDO through SIDBI. (ii) The Scheme has been tied up with the existing programme of SIDBI, which is under operation since January 1999. Portfolio Risk Fund is provided by the government of India to SIDBI to be used for security deposit requirement of the loan amount from micro finance institutions/non-government organisations. (iii) The Government of India also helps SIDBI in meeting the training needs of nongovernment organisations (NGOs), self help groups (SGHs) and entrepreneurs and also in enhancing awareness of the programme. Research studies are to be arranged through reputed agencies. (iv) Assistance is also provided by the Government of India for institution building through identification and development of intermediary organisations which would help the NGOs/SHGs in identification of products, preparation of project reports, working out forward and backward linkages and in fixing marketing/technology tie-ups. (v) A Committee under the chairmanship of Additional Secretary and Development Commissioner (SSI) has been constituted to review the progress, approve the adjustment of security, rotation of funds, etc. (vi) The Scheme is operated through the Small Industries Development Bank of India (SIDBI). Eligibility Any new MFI desirous of initiating a micro-credit programme may be considered for assistance if it (i) has been promoted and managed by experienced micro-finance professionals with an experience of at least 3 years in micro-credit; (ii) has achieved minimum outreach of 3000 poor members (through individual lending/SHGs/partners NGOs or MFIs) or demonstrate the capability to reach this scale within a period of next 12 months or so; (iii) chooses clients irrespective of class, creed and religion and its activities are secular in nature; and

(iv) maintains a satisfactory and transparent accounting, MIS and internal audit system or is willing to adopt such practice with SIDBIs assistance.