• A micro or small enterprise can easily be set up for self-employment. You can choose any one of the enterprises depending upon your interest and suitability not only to become self-employed but also to generate employment opportunities for others.

Q-2: How can I start Micro or Small Enterprise?

• You may contact State or National level institutions, who are providing training for Self-employment or Entrepreneurship.

Q-3: Can you give me the contact details of these organisations?

• These organisations are established by state government or central government. The institutions are :

  A. National Level:

  • National Institute of Entrepreneurship & Small Business Development (NIESBUD), Noida (U.P.).
  • Indian Institute of Entrepreneurship, Guwahati (Assam)
  • Entrepreneurship Development Institute of India, Ahmedabad (Gujarat)
  • National Institute of Micro Small & Medium Enterprises (Ni_MSME), Hyderabad (A.P.)

  B. State Level:

  • Institute of Entrepreneurship Development U.P. (IEDUP), Lucknow
  • MSME-DI Located at Kanpur, Varanasi, Agra, Moradabad, Varanasi and Allahabad etc.

Q-4: What is a Micro or Small Enterprise?

• Enterprises are classified broadly into (i) Enterprise engaged in the goods pertaining to any industry; (ii) Enterprise engaged in providing / rendering services.
Manufacturing enterprise have been defined in terms of investment in Plant and Machinery (excluding Land &Building). For details please refer the website: www.msme.gov.in

Q-5: How do I select an activity / project for self-employment?

• For selecting an activity/project or enterprise you will have to consider the following issues-
  • Where do you want to promote the enterprise?
  • What resources are available near the location of the enterprise?
  • What kind of market or consumer exists near the site of enterprise?
  • What infrastructure is available at the location of your enterprise?
  • How much capital is available?

Q-6: Who will assist in identifying the activity / Project?

• IEDUP / EDI / NIESBUD / MSME-DI can assist you in identifying the activity based on the industry potential.

Q-7: What steps required for identifying the activity?

• A market survey of product or service needs to be undertaken to analyse the component required for setting up the enterprise.

Q-8: What are the inputs required for setting up an enterprise?

• The following six major inputs required (i) Man (ii) Machine (iii) Market (iv) Money (v) Manpower (vi) Methodology.

Q-9: Can non-technical and inexperienced person start the own enterprise?

• Yes. There are many projects, which are suitable for non-technical and in-experienced persons.

Q-10: Which are the agencies providing financial Assistance?

• There are many financial Institutions are available, who give the financial support i.e. Commercial Banks, KVIC, NABARD, NSIC, SIDBI, & Regional Rural Banks.

Q-11. What are the eligibility criteria for getting a loan?

• The major eligibility criteria are Return on Investment and Profitability of the project proposed to be set-up.

Q-12: What is the procedure for getting a loan?

• An entrepreneur may approach the concerned financial institutions viz. Nationalised Commercial Banks, NSIC, KVIC, NABARD etc. submitting application on prescribed format with project report, proof of ownership, proof of residence, collateral securities (wherever applicable) etc.

Q-13: What are the general conditions for availing financial assistance?

• The general conditions for getting assistance are-

  (i) eligibility criteria (ii) Technical / economic viability (iii) Promoters' contribution (iv) Capacity to repay of loan (v) Collateral Security / guarantee.

Q-14: Is financial assistance from any other sources for unemployed youth?

• Yes. loan is also offered under PMEGP Scheme through DIC / KVIB / KVIC.

Q-15: What is a Project Report?

• The project report is a document, which gives an account of the project proposal to ascertain the prospects of the proposed plan. The project report contains detailed information about -
  • Land & Building Required
  • Manufacturing Capacity
  • Manufacturing Process
  • Machinery & Equipment along with their Price & Specifications.
  • Raw Material Required
  • Manpower needed
  • Marketing
  • Cost of the Project & Production
  • Financial Ratio & Viability of the project.

Q-16: Is a model Project Report available?

• Yes, Model Project Profile are available with DIC / IEDUP / MSME-DI. However, these project profiles have to be recast in accordance with specific needs of the entrepreneur and the current policies.

Q-17. What type of training is required for setting up an enterprise?

• Basic training on Entrepreneurship Development & Enterprise Creation will be necessary for shaping your entrepreneurial skills.

Q-18. What is the duration of such course?

• The duration of Entrepreneurship DevelopmentProgramme (EDP) ranges from 02 weeks to 08 weeks.

Q-19. Which are the agencies providing such type of Training?

• There are a number of Institutions (Govt. and Non-Govt.) who conduct EDPs and ESPs. These are IEDUP, Lucknow, EDI-I, Ahmedabad, NIESBUD, Noida, NIMSME_DI & NGOs.

Q-20. Is there any agency provides training for skill up-gradation?

• Skill development or Upgradation courses offered by MSME-DIs, IEDUP, NSIC, PPDC and various skill provider agencies registered with U.P. Skill Development Mission.

Q-21. How does a new entrepreneur can market the products?

• This is a time of globalisation and liberalization. The manufacturers have to offer goods and services of desired quality at optimum cost. Select the right market / consumer identified at the time of planning the unit.

Q-22. Are there any specialized agency who offers marketing assistance?

• There are government and non-government specialized agencies who provides marketing assistance to MSME sector entrepreneurs.

Q-23. Is there any Institution who provides financial support to establish enterprise by Scheduled Caste & Scheduled Tribes unemployed youth?

• Yes, there is agency who provide financial support to SC & STs unemployed youth. The candidate can contact U.P. Scheduled Caste Finance Development Corporation of their concerned district.

Q-24. Is there any agency that provides financial help to Minority Community?

• Yes, National Minority Development Finance Corporation (NMDFC), New Delhi and State Minority Finance Development Corporation provide assistance to minority community for self-employment.

Q-25. Is there any agency that provides financial support to Backward Caste candidates?

• Yes, State Backward Caste Finance Development Corporation provides assistance to Backward Caste Youth.

Q-26. Is there any agency that provides help to physically challenged youth?

• Yes, National Handicapped Finance Development Corporation provides financial assistance to physically challenged youth to establish their enterprises.