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Creating Self Employment Opportunity Under PPP - NSIC-s

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    Creating Self Employment

    opportunities under PPP

    NSICs model of

    Incubation

    A beginning

    Presented by: Pralay Dey, General ManagerNSIC, India

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    EnterpriseEnterprise buildingbuilding isis oneone ofof thethe criticalcritical

    areasareas ofof developmentdevelopment ofof anyany countrycountry..ThisThis notnot onlyonly buildsbuilds economyeconomy ofof thethecountrycountry butbut alsoalso createscreates employmentemploymentopportunitiesopportunities..

    ThisThis cancan bebe achievedachieved byby wayway of ofprovidingproviding handholdinghandholding supportsupport toto thethefirstfirst generationgeneration entrepreneursentrepreneurs bybyhelpinghelping themthem toto setset upup theirtheir ownown micromicro&& smallsmall enterprisesenterprises..

    TheThe TrainingTraining cumcum IncubationIncubation aimsaims totoimpartimpart trainingtraining inin thethe manufacturingmanufacturing asaswellwell asas servicesservices sectorssectors for foremployabilityemployability andand entrepreneurialentrepreneurial skillskilldevelopmentdevelopment..

    WHY INCUBATION

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    InadequatelyInadequately skilledskilled labourlabour forceforce..

    MostMost of of thethe jobjob seekersseekers withoutwithoutanyany professionalprofessional skillsskills..

    CreationCreation ofof newnew smallsmall businessesbusinessesforfor providingproviding self self--employmentemploymentopportunitiesopportunities toto alleviatealleviate povertypoverty..

    WHY INCUBATION

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    NSICs Model of Incubation

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    InnovativeInnovative

    model ofmodel of

    IncubationIncubation EmploymentEmployment generationgeneration

    usingusing flexible,flexible, costcost effectiveeffectiveandand replicablereplicable modelmodel..

    OptimalOptimal useuse of of locallylocallyavailableavailable resourcesresources..

    IntegratedIntegrated supportsupport byby wayway ofofprovidingproviding handshands--onon trainingtraining

    onon workingworking projectsprojects ToTo boostboost thethe developmentdevelopment ofof

    smallsmall enterprisesenterprises

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    InnovativeInnovative

    model ofmodel of

    IncubationIncubation Practical onPractical on--thethe--jobjob

    training on low costtraining on low costmachines & equipmentsmachines & equipments

    which are:which are:--

    Easy to understandEasy to understand

    E

    asy to operateE

    asy to operate

    Easy to transferEasy to transfer

    Easy to maintainEasy to maintain

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    Activities Duration (week)

    1 Counseling 1

    2 Entrepreneurship Orientation 2

    3 Hands on Practical Training in

    Incubation Centres

    4

    4 Market survey 1

    5 Project report preparation 1

    6 Approval and Registration with DIC 1

    7 Loan processing 1

    8 Monitoring and Follow up 1

    Total 12

    Training Methodology

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    Persons (%)

    1983 1993 94 19992000 200405

    Self-Employed 58.84 57.31 55.19 58.83

    Regular

    Employees

    17.14 16.35 17.52 18.13

    Casual Labour 24.03 26.34 27.29 23.03

    All 100.00 100.00 100.00 100.00

    EstimatedNumber

    of Workers

    (000)

    239488 313931 338194 384909

    Percentage Distribution of Employed Persons by Category of Employment

    As per published report of PlanningCommission, Govt. of India

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    Population, Labour Force, Employment Projections

    (000)

    Basis 199394* 200405* 200607 201112 201617

    Population (age 0+) 893676 1092830 1128313 1207971 1283242

    Population (age 15

    59)

    501760 652940 687120 760110 820570

    Labour Force CDS 334197 419647 438948 483659 524057

    Employment

    Opportunities

    CDS 313931 384909 402238 460310 51820

    Unemployed (000) CDS 20266 34738 36710 23348 5853

    Unemployment

    Rate (%)

    CDS 6.06 8.28 8.36 4.83 1.12

    As per published report of Planning

    Commission, Govt. of India

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    NSICs Model of Incubation through

    Public-Private-Partnership

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    Training to be provided by privateTraining to be provided by privateservice providers under PPPservice providers under PPPmode.mode.

    Demand driven training coursesDemand driven training coursesbased on employable skillsbased on employable skills

    Flexible delivery mechanism (FullFlexible delivery mechanism (Fulltime/ part time/ weekends)time/ part time/ weekends)

    Public-Private-Partnership

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    Approval of layout plan of NSICApproval of layout plan of NSIC--TICsTICs

    Facilitation for availability of credit/financeFacilitation for availability of credit/financefor setting up TICsfor setting up TICs

    Training of faculty for TICsTraining of faculty for TICs

    Training Modules & Contents provided byTraining Modules & Contents provided byNSIC.NSIC.

    Publicity at National levelPublicity at National level

    Arrangement for sponsorships for trainingArrangement for sponsorships for trainingprogrammes.programmes.

    ROLE OF NSIC

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    Help in access to credit by way ofHelp in access to credit by way ofTieTie--up arrangements.up arrangements.

    Help in sourcing of machinery &Help in sourcing of machinery &

    equipmentsequipments

    Monitoring operations of TICsMonitoring operations of TICs

    Issuance of completion certificatesIssuance of completion certificates

    Monitoring developmentsMonitoring developmentscontinuouslycontinuously

    ROLE OF NSIC

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    ROLE OF PRIVATE PARTNER

    Arrangement of :Arrangement of :--

    BuiltBuilt--upup InfrastructureInfrastructure forfor settingsetting upupTICsTICs

    MachineryMachinery && equipmentsequipments.. FacultyFaculty..

    LocalLocal publicitypublicity SelectionSelection && RegistrationRegistration ofof traineestrainees OperationOperation ofof thethe TICTIC asas perper guidelinesguidelines

    approvedapproved byby NSICNSIC

    Helping

    Helping inin preparationpreparation ofof projectproject reportsreports &&loanloan proposalsproposals ofof traineestrainees

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    Suggestive Projects for TICsSuggestive Projects for TICs

    Conventional TradesConventional Trades like, Plumbing,like, Plumbing,Electrician, Sheet metal works, Welding,Electrician, Sheet metal works, Welding,Fitter, Machinist, Turner, Draftsman,Fitter, Machinist, Turner, Draftsman,Diesel mechanic, Tools & die maker,Diesel mechanic, Tools & die maker,

    Motor vehicle Mechanic, Book binder,Motor vehicle Mechanic, Book binder,Carpenter, Candle making, Spray PaintingCarpenter, Candle making, Spray Paintingetc.etc.

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    Suggestive Projects for TICsSuggestive Projects for TICs

    Electronics CoursesElectronics Courses like Mobile repairing,like Mobile repairing,

    Radio and TV repair, Repairing of electricalRadio and TV repair, Repairing of electricalgadgets, Repair of refrigerator & AC, Electricalgadgets, Repair of refrigerator & AC, Electricalappliances repairing etc.appliances repairing etc.

    Other CoursesOther Courses like Beauty parlour, Soft toyslike Beauty parlour, Soft toysmaking, Fashion designing, Embroidery & needlemaking, Fashion designing, Embroidery & needlework, Boutique, Health & fitness centre, Watch &work, Boutique, Health & fitness centre, Watch &

    clock mechanic, Cookery etc.clock mechanic, Cookery etc.

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    Target GroupTarget Group:: Aspiring EntrepreneursAspiring EntrepreneursUnemployed youthUnemployed youthUnskilled manpowerUnskilled manpower

    QualificationQualification :: 1010thth standard(High School)standard(High School)

    DurationDuration :: 3 Months3 Months

    NSIC-TICs under PPP

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    1818

    Advertisement in print & electronicmedia

    General Enterprise Tendency (GET) testusing psychometric tools

    Interview and selection.

    Identification of Candidates

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    1919

    Assistance in :Assistance in :

    Preparation of project reportsPreparation of project reports

    Filing of Memorandum for start up enterprises forFiling of Memorandum for start up enterprises forregistrationregistration

    Obtaining approvals from Government authoritiesObtaining approvals from Government authoritiessuch as pollution etc.such as pollution etc.

    Credit facilitation through tie up with commercialCredit facilitation through tie up with commercialbanksbanks

    Other Incubation Support Services

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    2020

    AssistanceAssistance inin::

    ProcurementProcurement ofof MachineryMachinery && equipmentsequipments forfor selectedselected

    projectproject

    InstallationInstallation && CommissioningCommissioning ofof MachineryMachinery &&EquipmentEquipment

    SourcingSourcing ofof rawraw materialsmaterials

    MarketingMarketing supportsupport throughthrough GovernmentGovernment supply,supply,participationparticipation inin domesticdomestic asas wellwell asas InternationalInternationalExhibitionsExhibitions..

    ContdContd

    Other Incubation Support Services

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    2121

    Loans given to startLoans given to start--up enterprises are coveredup enterprises are covered

    under the scheme of Credit Guarantee Fundunder the scheme of Credit Guarantee Fund

    Trust of Government of India upto INR 5 millionTrust of Government of India upto INR 5 million

    (apprx. US$ 120,000)(apprx. US$ 120,000)

    Collateral Free Credit

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    NominalNominal costcost ofof trainingtraining (non(non--residential)residential) inin IncubationIncubation isisINRINR 50005000 (approx(approx.. USUS$$ 110110 forfor aa coursecourse ofof 33 monthsmonthsduration)duration)

    TrainingTraining ProgrammeProgramme toto bebe selfself--sustainingsustaining inin futurefuture

    1515%% ofof thethe totaltotal feefee toto bebe sharedshared byby NSICNSIC andand thethebalancebalance 8585%% toto bebe retainedretained byby thethe privateprivate partnerpartner..

    WhereverWherever possible,possible, trainingtraining costscosts toto bebe partlypartly oror fullyfullysubsidisedsubsidised forfor candidatescandidates fromfrom underunder--privilegedprivileged sectionssections

    ofof societysociety oror womenwomen candidatescandidates..

    Sharing Training Cost of Incubation

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    2323

    Each project capable ofEach project capable ofemployingemploying

    -- 1 to 5 persons1 to 5 persons

    Average space required

    Average space required --

    100to2000

    sqr.ft.100

    to2000

    sqr.ft.

    Average investment requiredAverage investment required -- US$ 1000 toUS$ 1000 to100,000100,000

    Average investment perAverage investment peremploymentemployment

    -- US $ 2500US $ 2500

    Other salient feaures of Projects selected forOther salient feaures of Projects selected for

    IncubatorsIncubators

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    Better employability & mobilityBetter employability & mobility

    Higher productivity, wages and less exploitationHigher productivity, wages and less exploitation

    Identity, improved social status & prideIdentity, improved social status & pride

    Easier to get loans for selfEasier to get loans for self--employment fromemployment fromvarious Banks/Micro Finance Institutionsvarious Banks/Micro Finance Institutions

    A. Unemployed

    Benefits of Technology Incubators

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    Improved Quality & ProductivityImproved Quality & Productivity

    Less downtimeLess downtime

    Compliance with Quality Assurance systems likeCompliance with Quality Assurance systems like

    ISO

    ISO

    Availability of skilled workforce helps in gettingAvailability of skilled workforce helps in gettingexport ordersexport orders

    B.Employers

    Contd

    Benefits of Technology Incubators

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    Some examplesSome examples

    of Projectsof Projects

    Light EngineeringLight Engineering

    Barbed Wire MachineBarbed Wire Machine

    Book BindingBook Binding

    File FastenersFile Fasteners

    M.S. Wire DrawingM.S. Wire Drawing

    Paper Pins/Gem clips/Paper Pins/Gem clips/

    Staple Pins manufactureStaple Pins manufacture Wood Screws & RivetsWood Screws & Rivets

    Wire NailsWire Nails

    Welded Wire MeshWelded Wire Mesh

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    Agro & Food ProcessingAgro & Food Processing

    BiscuitBiscuit

    Bakery PlantBakery Plant

    Corn FlakesCorn Flakes

    ConfectioneryConfectionery

    Food & vegetableFood & vegetabledehydrationdehydration

    Flour MillFlour Mill

    Ginger Garlic PasteGinger Garlic Paste

    MakingMaking Ice Cream ConeIce Cream Cone Jam/Jelly MakingJam/Jelly Making NoodlesNoodles

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    Oil ExtractionOil Extraction

    Potato/Banana WafersPotato/Banana Wafers

    Pop Corn MakingPop Corn Making

    Rice MillingRice Milling

    Soya MilkSoya Milk

    Spice GrindingSpice Grinding

    Tomato Puree/PasteTomato Puree/Paste

    Agro & FoodAgro & Food

    ProcessingProcessing

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    PharmaceuticalPharmaceutical& Chemicals& Chemicals

    PharmaceuticalsPharmaceuticals

    TabletsTablets

    DetergentDetergentPowderPowder

    Wax CandleWax Candle

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    Textiles and GarmentsTextiles and Garments

    Elastic TapeElastic Tape

    Socks ManufacturingSocks Manufacturing

    Men ShirtsMen Shirts

    ShirtsShirts & Trousers& Trousers\\

    Men TrousersMen Trousers

    Track SuitsTrack Suits

    Handkerchiefs & Under GarmentsHandkerchiefs & Under Garments

    Pillow CoverPillow Cover

    Cotton BagsCotton Bags

    Luggage Hand BagsLuggage Hand Bags

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    Leather & Footwear ProductsLeather & Footwear Products

    Ladies PursesLadies Purses

    LeatherHand BagsLeatherHand Bags

    Leather BeltsLeather Belts

    Gents PursesGents Purses Ladies SandalsLadies Sandals

    Shoe upper stitchingShoe upper stitching

    Industrial GlovesIndustrial Gloves

    Leather GarmentsLeather Garments

    Wrist Watch StrapsWrist Watch Straps

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    Plastic & RubberPlastic & Rubber

    Blow MoldingBlow Molding

    Plastic Shopping BagsPlastic Shopping Bags

    ThermoformingThermoforming

    Paper & Paper ProductsPaper & Paper Products

    Paper NapkinPaper Napkin

    Paper Cups and SaucersPaper Cups and Saucers

    Toilet RollsToilet Rolls

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    3333

    ServicesServices

    Mobile repairingMobile repairing

    Beauty parlourBeauty parlour

    Soft toys makingSoft toys making

    Fashion designingFashion designing

    EmbroideryEmbroidery

    BoutiqueBoutique

    Health & fitness centreHealth & fitness centre

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    Incubating a Stronger, Wealthier and Inclusive India

    Thank you


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