Self Employment &

Entrepreneurship Development

Unit-1
Introduction to Self Employment and
Entrepreneurship Development
(3351906)
Index
1.1 Introduction of self – employment
- Concept and need in present Indian job market Context.
- Characteristic of self-employment areas for mechanical e
field
-Broader ways to identify self –employment areas in mech
engg.
1.2 Creativity – concept , examples related to application in
mechanical engg , way to develop.

1.3 Innovativeness - concept , examples related to application

mechanical engg , way to develop.
1.4 Entrepreneurship development:
i. Concept and need.
ii. Scope in local and global market.
iii. Qualities of entrepreneur and Characteristics of Diploma holder
as a self-employer like developing networking and personal
contacts, communication skills, transferable work skills, positive wo
skills, conflict resolution, professional dress, workplace legal issues,
ethic, etc.
1.5 Concept and importance of productivity, quality, cost consciousness and
customers’ satisfaction.
1.6 Types of enterprise-
i. Sole partnership.
ii. Partnership firm.
iii. Joint stock company.
iv. Co-operative society.
1.1 Government schemes for promoting and assisting
self-employment
As self-employment is a crucial economic event, central as well as
state government have launched several scheme to encourage self-
employment as under:
• SEEUY (Self-Employment for Educated Unemployed Youth
• SEPUP (Self-Employed Program for Urban Poor)
• IRDP (Integrated Rural Development Program)
• TRYSEM (Training for Rural Youth for Self-EMployment)
• DWCRA (Development of Women and Children in rural areas)
• JRY (Jawahar Rojgar Yojna)
• EAS (Employment Assurance Scheme)
• SJSRY (Swarna Jayanti Shahari Rojgar Yojna)
• PMRY(Prime Minister Rojgar Yojna )
• NREGA (Nation Rural Employment Guarantee Act,2005)
• MANREGA ( MAhatma Gandhi Nation Rural Employment
Guarantee Act,2005)
Definition of self-employment

self-employment is an act of generating the income of a self-empl

person directly from customers ,clients or any other organization a
opposed to being an employee working for the another person for
salary or wages
OR

self-employment is a situation in which an individual works for

himself instead of working for an employer that pays a salaries or
wages.
Need for self employment in Indian job market
There are large number of youth population in India. As per 2011
census, out of 125 crores population about 60% i.e. 75 crores peop
are in the age group of below 30.India has highest youth populatio
the world.

Youth population has to get involved in some economic activities

income generation .The three popular courses of career path are
Employment ,Self-employment and Entrepreneurship.
The need for self employment in the Indian economy can be
enumerated as under.
• Vast population
• Vast unemployment
• Illiteracy
• Poverty
• Decentralized economic development
• Stoppage of exploitation by capitalists
• Development of creativity and excellence
• Rural craft are inherited
• Improvement in standard of living
 • Export earning
• Contribution to economic growth

Area of self employment in mechanical engineering field

India is an agro based vast country with paucity of capital, with

high unemployment and lower literacy level, Self –employment
strategic arrangement for economic development of people and
country.
Scope for trained mechanical diploma holder

The government of India and all state government have provided

promotional incentives and assistance to encourage the micro and
small industries under the self-employment medium.
There are some liberal schemes for qualified engineers.

The Self-employment can be developed in following areas using t

mechanical engineering skill.

• Self-employment in urban areas

• Self-employment in suburban areas

• Self-employment opportunities in rural areas
• Village and cottage industries
• Freelance Self-employment

Broader areas of identification of self –employment in mechan

engineering

• A mechanical engineer turns ideas into product. He has to get

involved in designing ,drafting ,developing and testing the
complex mechanical system.
• The initial efforts need application of scientific principles and
technical information they have studied in their student career
engineering branch for shaping a conceptual framework.
• After the conception designing stage emerges
• An entrepreneur will design an appropriate product.
• At this stage, he will develop 3D modeling and a range of
analytical tools.
• The detail design of a product is created along with the
consideration like consumption of materials, manufacturing of
whole product or component, assembling in case of use of
components, the costs and the performance attributes of a prod
• Albert Eienstein
“I am an ordinary person like you, but I possess a passionate
curiosity.”

• Dr. A.P.J.Abdul Kalam

“ Ignited Mind”
Identification of Broader activities using the mechnica
engineering skill.
1. Opportunities in mechanical engineering field
Process engg.
Quality testing engg.
Maintenance engg.
System engg.
Process safeguarding and safety engg.
Structural engg.
Naval architecture
Aeronautic Technology
Robotic technology
2. Products using mechanical engineering skills.

• Mechanics : Static, Dynamic, Mechanics of machine, Fluid

Mechanics , Kinetics etc.
• Robotics : Mechanical engg. Related to electrical and software
Robotics are used in industrial process, assembly lin
space explosion etc.
• Thermodynamics : Thermo fluid , Heat transfer, energy
conservation etc.
• Structural analysis : Study of failures , breaks, deformed plasti
and reaching to the cause of ultimate failu
3. Application of mechanical engg. In car industry.

• Product study : Design intents , Assembly intents, Statistical

tolerance intents
• Product testing : Performance testing, Reliability testing
• Other type of testing : Vibration testing , Thermal testing, Clima
testing , salt spray testing
• Other system : Gasoline system , Chassis system control , Starte
motor and generators , Security system , Drive and control
technology, diesel system
1.2 Creativity

The word creativity indicates some new creation. It has the

miraculous power of the human mind .It is the strength of huma
mind.

Concept of Creativity

It is related to the perceptual power of mind ,which is defined a

under :

1. It is a mental skill which is beyond the knowledge or science

2. It is a skill of mind power

3. It tends to be original and it is more then the technical skill

4.It refers to the mental skill of the persons which equips them t
make new idea in new areas

5. It is processing of producing something that is both original a

worthwhile
Examples related to application of creativity in mechanical e

• Mechanical engg. Is a branch of engg. Discipline using the princ

of physics ,chemistry , electrical and electronics ,civil and struct
engg., Kinetic , Thermodynamic ,material and metal science etc

• There are substantial scope of application of creativity in design

, manufacturing and maintaining diverse categories of products
either invented exclusively or are made to resolve a problem fac
by consuming community.
Creativity based on mechanical applications

plants (series of machine)

Industrial machine
Robotics
Mechanical device
Weapons
Apparatus
Vessels
Cranes
Automation in material handling
Machine accessories
Water craft
etc.
The application area is still very large in relation to other
branches of engg.

“You name any product , the mechanical engg. Skill will

it.”

The applicability of creativity can occur at every stage of

mechanical engg.
Way to develop creativity

The creative solution to a problem is very much needed. It is pos

only through the use of creativity techniques.

Some important techniques are as under :

• Aleatory techniques
• Improvisation
“ Excellence is a journey and not a destination”
• Problem solving methods
1.3 Concepts of innovativeness

The term innovativeness is derived from the noun innovation wh

means something original and new .

It relates to the logical skill of the human mind which always pro
into doing something different and unconventional.

Innovator do the things differently than the common persons. Th

the initiators.
Definition :

“The term innovativeness refers to the mental power of pers

introduce something new for the first time.”

“The innovativeness means introduction of new things , new

ideas or new way of doing the things for the first time.”

“The innovativeness means the originality involved in newl

introduced things, processes or ideas.”
Way to develop innovativeness

The mind power is divided into two parts – the articulative power
the scientific and logical power of mind.

The innovativeness is the result of the combination of both these

power.

Innovativeness is specialized skill , it is developed by training and

practicing. Some popular method of development of innovativene
discussed as under.
The innovativeness stems from the divergent fluency of thinking
convergent linkage of the related ideas. The method based on
divergent and convergent thinking are as under.

Method based on divergent thinking:

1. Brain storming
2. Attribute listing
3. Bio mimicry
4. Osborn checklist
5. Challenge assumptions technique
6. Excursion technique
7. Lotus blossom technique
8. Systematic innovative thinking
Method based on convergent thinking

1. Enhancement checklist method

2. Force field analysis
3. Idea advocacy method
4.Weighted selection method
5. PINC filter method
1.4 Introduction to ED

The working population of any society is broadly divided into tw

ways:

1.Entrepreneurs
2.Employer

In the middle range ,there falls the self employed persons whose
numbers are large in society.
The Entrepreneurship Development Institute of India (EDI), an
autonomous body and not-for-profit institution, set up in 1983.

Gujarat Industrial Investment Corporation Limited(GIIC)

For the past three decades, GIIC has continually evolved to grow
a significant force in Gujarat’s industrial development.
The Centre for Entrepreneurship Development (CED) Governm
Gujarat Organization is the 1st of this kind in the country, establ
in 1979, engaged in promoting Skill and Entrepreneurship acros
state of Gujarat.

Entrepreneurship is the process of creating new venture with val

devoting time and effort; assuming the accompanying financial,
psychological and social risks; and receiving the resultant rewar
monitory, personal satisfaction and independence.
Entrepreneurship is the backbone of economy for any country.

The Entrepreneurship development activities of the CED can be

classified in to various heads, which include formation of
entrepreneurial environment, Entrepreneurship training, speciali
training program for first & Second generation entrepreneurs.

Mainly this training program targeted for industries sustainabilit

Growth as well as for improvement of the soft skill of the
entrepreneur & enterprise manpower.
The National Science & Technology Entrepreneurship Develop
Board (NSTEDB), established in 1982 by the Government of In
under the aegis of Department of Science & Technology, is an
institutional mechanism to help promote knowledge driven and
technology intensive enterprises.

The Board, having representations from socio-economic and sci

Ministries/Departments, aims to convert "job-seekers" into "job-
generators" through Science & Technology (S&T) interventions
To promote and develop high-end entrepreneurship for S&T
manpower as well as self-employment by utilizing S&T infrastr
and by using S&T methods.

To facilitate and conduct various informational services relating

promotion of entrepreneurship.

To network agencies of the support system, academic institution

Research & Development (R&D) organizations to foster
entrepreneurship and self-employing using S&T with special foc
backward areas as well.

To act as a policy advisory body with regard to entrepreneurship

The National Institute for Entrepreneurship and Small BUsiness
Development (NIESBUD) is a premier organization of the Mini
Skill Development and Entrepreneurship engaged in training,
consultancy, research, etc. in order to promote entrepreneurship.
major activities of the Institute are Training of Trainers, Manage
Development Program, Entrepreneurship-cum-Skill Developme
Program, Entrepreneurship Development Program and Cluster
Intervention.

BRICS Countries
Brazil , Russia , India , China and South Africa
1.The concept and characteristic of ED:

Definition:

An agent who buys factors of production at certain prices in ord

combine them into a product with a view to selling it at uncertai
prices in future.
OR
The entrepreneur is an economic function who undertakes the
responsibility of uncertainty which by its very nature cannot be
insured ,not capitalized , salarized.
A person who introduces innovative changes is an entrepreneur.
OR
An Entrepreneur is one who always searches for change, respon
and exploit it as opportunity.
OR
An entrepreneur is defined as “person in effective control of
commercial undertaking; one who undertakes a business or an
enterprise”.
OR
Entrepreneur is an innovative person who maximizes his profits
following new strategies or venturing into new products or servi
Who is a Entrepreneur............
 Entrepreneurial Characteristics

Being an entrepreneur requires specific characteristics and skills that ar

achieved through education, hard work, and planning.

Risk Taker
Businesses face risk. Entrepreneurs minimize risk through research, pl
and skill development.

Perceptive
Entrepreneurs view problems as opportunities and challenges.

Curious
Entrepreneurs like to know how things work. They take the time and initi
pursue the unknown.
 Entrepreneurial Characteristics
Imaginative
Entrepreneurs are creative. They imagine solutions to problems that enc
them to create new products and generate ideas.

Persistent
True entrepreneurs face bureaucracy, make mistakes, receive criticism, a
with money, family, or stress problems. But they still stick to their dre
seeing the venture succeed.

Goal-setting
Entrepreneurs are motivated by the excitement of starting a new business
achieved, they seek out new goals or ventures to try.

Hardworking
Entrepreneurs need a great deal of energy to see a venture start and succe
they are not deterred by the long hours to achieve their goal.
 Entrepreneurial Characteristics

Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes c
any doubts they may have.

Flexible
Entrepreneurs must be flexible in order to adapt to changing
markets, technologies, rules, and economic environments.

Independent
An entrepreneur’s desire for control and the ability to make dec
often makes it difficult for them to work in a controlled environmen
 Need for entrepreneurship
 Increases national production
 Balanced area development
 Dispersal of economic power
 Reinvestment of profit for the welfare of the area of profit gener
 Development is a function of motivation and human resource
 Entrepreneurial awareness
 Creation of employment opportunity
 Technology and innovation
 Improvement in standard living
 Optimum use of the scarce economic resources
 2.Scope of Entrepreneurship in the Domestic and
global Market:

• The entrepreneur increases his investment to take or

use the economics of the scale.
• The increasing manufacturing and marketing
activities spread within the local area and domestic
economy.
• It also spreads beyond the nation
• The global reach of the entrepreneur may also be in
the form of export or tie –up with the foreign
countries.
• The brief analysis is made under as regards the
domestic and global entrepreneurship in relation to
manufacturing and marketing activities.
1. Risk and Return in domestic Market
2. Risk and Return in Global Market

• The international trade and tariff agreement

contractual understanding under the world trade
organization promotes the world trade carried out on
mutual benefits.
• The entrepreneur can take the advantages the
government policy followed for the promotion of the
world trade.
Specific Qualities of diploma holder as a self employer

• Development of networking and personal contact

• Communication skill
• Transferable work skill
• Conflict solution
• Professional Dress
• Work place legal issues
• Work ethics
1.5 Concept & importance of productivity, Cost conscious
and customer ‘s Satisfaction

• Productivity and its importance:

Productivity = output/ input

= 80 unit/ 8 hour

= 10 units / hour
• Production and productivity

Definition:
Production is an “absolute” measure which is
presented in some units.

Definition:
Productivity is a “relative” measure and is presented
in the form of ratio where the production is related to
some input.
Factors affecting productivity
• Employee productivity
• Machine productivity
• Material productivity
• Other factors
1. Research and development efforts
2. Effective supervision and overseeing
3. Effective quality control system
4. Effective professionally qualified executives
5. Supportive philosophy of the higher management
Quality and its importance

• The term quality in a very simple phrase as “fitness to use” a

quality control as “ path to perfection from customers percep
• Quality control means ensuring degree of perfection with reg
specification, color, shape, finishing etc. considering the rele
cost of manufacturing.
• Quality control means to identify and eliminate the reasons f
discrepancies and defects in relation to pre-determined stand

• Traditional quality control was “production oriented” .In the

recent year quality control has become a “market oriented”
activity.
Cost consciousness and its importance

Cost refers to the “sacrifice” or “consumption of resources” in

production activities. The economic resources are described as 4
i.e. Men,Machine,Material and Money.

Their cost is referred by salaries, depreciation, consumption of

materials and interest on debt respectively.

It is only men which ultimately controls the remaining three non-

human resources. Cost consciousness is required to be developed
among the human resources.
Customer satisfaction and its importance

Creation of the customer satisfaction is not confined only to the

marketing management, but it is an end-result of the entire integr
business activities.

“A product is a bundle of satisfaction”

“Our best advertisement is a satisfied customer”

Customer satisfaction is a product of following two variables:

1.) Customer product expectations

2.) Product’s perceived performance

These two variables results into following three state of satisfacti

1) Customer disappointment (PP < CE)

2) Customer Satisfaction (PP = CE)
3) Customer delightedness (PP > CE)
1.6 Types of enterprise

The popular forms of business organization based on ownership a

under.

1.) Sole proprietorship

2.) Partnership form
3.) Joint stock Company
4.) Co-operative society
1.) Sole proprietorship

Sole means alone.

In such form of business, the individual natural person owns and

manages the business.

He (sole person) enjoy the complete and absolute authority over

business and solely decides about the input recourses and dispos
the output in a way he likes.
2.) Partnership form

Partnership is a form if business organization under which the bu

is owned and managed by two or more persons.

It is the intermediate form between the sole proprietorship and pr

companies and so is popular in the modern business world.

It is the relation between the persons who have agreed to share th

profits of business carried on by all or any of them acting for all.
3.) Joint stock Company

A company is an artificial person having an independent legal ent

and a perpetual succession with a distinctive name and a common
having a common capital divided into shares of fixed value which
transferable and carry limited liability.

The company form of organization is a special type of corporate b

established under the companies act 1956.
4.) Co-operative society

A Co-operative society is a voluntary association of person forme

the furtherance of their common economic interest .It is a corpora
body registered under the co-operative societies act and enjoys a
separate legal entity as distinct from its member.

The co-operative societies in India are governed by the central co-

operative societies act, 1912 or by the co-operative society act of
respective state government.
Any Question
?
Thank you