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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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Advertisement in print & electronicmedia
General Enterprise Tendency (GET) testusing psychometric tools
Interview and selection.
Identification of Candidates
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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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2222
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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2525
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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2929
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