I. Background of the invention
The problem of youth unemployment is rapidly assuming dangerous proportions in India and many countries as their economies and educational systems are unable to accommodate these numbers of youth. Thus, youth unemployment is an urgent global issue that has repercussions in demographic, social, economic, health, and environmental spheres. These impacts will be felt at the individual, family, national and global levels if not addressed, and this is a prescription for disaster.
If provided with an enabling environment and opportunities, youth in both developed and developing countries can be key agents for social change, economic development and technological innovation. Youth bring with them boundless energy, imagination, creativity, ideals, and a limitless vision for their future and the societies in which they live. If not utilized, they are a wasted resource. Thus, it is imperative that youth are harnessed as part of society. This can be achieved through providing sustainable and decent employment and livelihoods opportunities for them.
National Small Industries Corporation (NSIC) which is working to fulfill its mission of promoting aiding and fostering the growth of Micro, Small & Medium Enterprises (MSMEs) in the country, has invented a novel process by which large number of Unemployed youth can be transformed into entrepreneurs quickly. The process can be adapted with great ease and acts as an incubator for establishment of Small enterprises. The model has been tested for last 18 months and proved successful in generating speedy self-employment.
Enterprise development is one of the thrust areas of NSIC which can be achieved by way of providing complete hand holding support to the unemployed persons for setting up new small enterprises. Incubation is one of the appropriate tools to achieve this goal, as it provides necessary facilities for the prospective entrepreneurs and start up companies to learn product manufacturing processes coupled with technology development, business development etc. under one roof.
NSIC had established innovative low-cost technology Incubators at its Technical Centres at Okhla, Howrah & Guwahati. The purpose of these Incubators was to provide hands-on practical training to unemployed persons in order to equip them with knowledge and expertise for setting up new small enterprises. These Incubators have been providing training in more than 40 types of trades, which include projects like socks knitting, readymade garments, wool knitting, leather goods, packaging, food processing, low cost building materials, soft toy making, mobile phone repairing, solar lantern assembling and various other consumer products from manufacturing and service sectors.
II. Unique Features
The Incubation programme provides on the job training to the prospective entrepreneurs. The programme has been developed to include classroom and practical hands-on training on working projects installed in the incubator. NSIC also facilitates in machinery / credit sourcing for the trainees in the post training phase. As a part of post training support, assistance is also provided to the candidates in procurement of equipments and machinery for the selected projects and installation and commissioning of projects. Placement assistance through online system is also provided to the candidates seeking job opportunities.
III. Method of implementation
Rapid incubation for Small Enterprise Establishment through NSIC-TIC is being implemented by the following methods:
a) By providing training at NSIC's owned Training-cum-lncubation
Centres (TICs):
Details of training programme imparted at NSIC's own TICs is placed at Annexure-I.
b) By setting up NSIC-TICs under Public Private Partnership (PPP) mode
In order to expand reach and impart training to a large number of unemployed people, NSIC enters into franchisee arrangements with private partners interested for setting up of NSIC-TICs at various locations across the country under Public Private Partnership (PPP) mode. NSIC has so far, set up 35 NSIC-TICs under PPP mode in the country.
These Centres are equipped with infrastructure, working technologies (machines), labs, classrooms etc. with the entire investment made by private partners. NSIC provides technical assistance to these Centres by way of course curriculum, examination & certification, training to the faculty, E-learning and other support services.
Main Eligibility Criteria
i) Private partners can be industry associations, educational & technical institutions, companies, firms or NGOs.
ii) Applicant should have ready premises having built up area of 2000 sq.ft. and above for setting up NSIC-TIC.
iii) Applicant to arrange and install machinery/ equipments with power, water and other facilities required for running selected training modules.
iv) Applicant to arrange the fund required to furnish and equip the premises so as to make it ready for imparting training.
v) Applicant to meet the cost of day to day running and administration of TIC.
Advertisements calling expression of interest from Educational / Technical Institutions, companies, firms, NGOs etc. are published through print media from time to time and also posted on NSIC website. The applications are also mobilised by NSIC Branch Offices/Technical Centres.
The infrastructure and other details of eligible applicants, as mentioned in the application format are inspected by NSIC officials. In-principle approval to the applicants found fit for setting up NSIC-TICs are issued by NSIC with a condition to furnish/equip the premises as per the layout plan approved by NSIC and training modules selected by applicants. Those applications not found suitable in line with above mentioned eligibility criteria are returned/dropped. On receipt of confirmation from the respective applicants about the readiness of premises equipped with the required infrastructure and other facilities such as machinery, equipments, furniture & fixtures, power, water etc., the centres are inspected again by NSIC officials. Agreements containing terms & conditions for running NSIC-TICs are signed with those found suitable for starting the operations of NSIC-TICs. On signing of agreements and furnishing of indemnity bond with deposit of security amount for franchise fee equivalent to three months, final approval for starting NSIC-TICs to respective private partners are conveyed.
The approved NSIC-TICs run the selected training modules as per the contents provided by NSIC. On successful completion of the training programmes, the candidates are issued certificates by NSIC. Hand holding support to the successful trainees by way of facilitating finance from banks and other support services are being given by NSIC to trainees for setting up their own micro/small enterprises.
c) Setting up Training-cum-lncubation Centres abroad on turnkey basis:
In order to share its experience and expertise with other developing nations, NSIC undertakes setting up Training-cum-lncubation Centres abroad on turnkey basis. Recently, NSIC set up such Incubation Centres in South Africa and planning to set up in other African countries such as Democratic Republic of Congo, Sao Tome & Principe, Sudan and Kenya to name a few.
IV. Summary of the Invention
Skill development and general purpose training and Incubation of entrepreneurs by providing infrastructure support have been prevailing for many years. The Rapid Incubation for Small Enterprise Establishment is not about providing Infrastructure for limited time, but has all together different components for incubating small entrepreneurs by using a very short time frame for Incubation. This model can also be replicated fruitfully in the entire country through Public Private Partnership (PPP) mode, which would address the problems of unemployment significantly.
National Small Industries Corporation (NSIC) has established innovative low-cost technology Incubators for Rapid Incubation for Small Enterprise Establishment at its Technical Centres at New Delhi, Howrah & Guwahati in India. The purpose of these Incubators was to provide hands - on practical training to unemployed persons in order to equip them with knowledge and expertise for setting up new small enterprises. These Incubators have been providing training in more than 40 types of trades, which include projects like socks knitting, readymade garments, wool knitting, leather goods, packaging, food processing, low cost building materials, soft toy making, mobile phone repairing, solar lantern assembling and various other consumer products from manufacturing and service sectors.
The Incubation programme provides on the job training to the prospective entrepreneurs. The programme has been developed to include classroom and practical hands-on training on working projects installed in the incubator. NSIC also facilitates in machinery / credit sourcing for the trainees in the post training phase. As a part of post training support, assistance is also provided to the candidates in procurement of equipments and machinery for the selected projects and installation and commissioning of projects.
With some of the incubators in place at NSIC and keeping in view the employment demand of new entrepreneurship in the country, it was felt necessary to build skill development training modules along with these incubators at various other places. For this purpose, NSIC started a new initiative with private partners interested for setting up Incubators at various locations across the country under Public Private Partnership (PPP) mode. So far, 30 such TICs have been established in India and abroad.
V. Statement of the invention
Rapid Incubation for Small Enterprise Establishment is a process by which unemployment problem of any country can be reduced significantly. This process generates self-employment at a rapid pace by using low cost and appropriate technology and can be implemented in any part of the country. The entire process is completed in three months time and by that time, the unemployed youth becomes a budding entrepreneur. This incubation process is significantly different from conventional Incubators which provide only infrastructural support.
VI. Brief description of the invention/drawings
The inventive steps of the Integrated and innovative process for Small Enterprise Establishment as follows:
> Entrepreneur Skill Development
> Project/Product selection and opportunity guidance
> Hands on practical training on working projects/training modules
> Facilitation of funds through banks
> Facilitation on setting up an enterprise
> Support services to run small business
The process flowcharts are explained in
Fig: 1 (Rapid Incubation for Small Enterprise Establishment Process Flow-Chart)
Fig: 2 (Application of Rapid Incubation for Small Enterprise Establishment process Flow-Chart)
Annexure-I
The schedule of activities for Small Enterprise Establishment Programme is mentioned here in:
TRAINING PLAN

(Table Removed)
Counseling
1Week
Selection of candidates is done by counseling. The success of any enterprise establishment programme largely depends on the selection of right participants having enough potential to start their enterprise after the training programme. For selection of prospective entrepreneurs, the information is being disseminated to the people of identified town/village by way of any of the local media i.e. newspapers, pamphlets, awareness meetings and / or through professional and academic institutions. Therefore the broad guidelines for selection of the potential candidates are:-
• The candidates should have adequate space to establish the enterprise, ability to provide margin money and possess basic entrepreneurial traits.
• Minimum qualification: The candidate should have at least 10th class passed.
• Preference to be extended to those with higher qualification particularly having some knowledge / technical background in industry/business.
• A psychometric tool namely General Enterprising Tendency (GET) test and interview technique is applied to identify the degree of latent important entrepreneurial traits such as need for achievement, need for autonomy/independence, creative tendency & innovation, moderate risk taking tendency, drive & determination etc.
Entrepreneurship Orientation
2 Weeks
During this period the trainees are imparted knowledge on business process, Entrepreneurship quality and motivation, business laws, accounting procedures etc. The course contents for the training cover the following:
• Definition of business and kind of businesses.
• Local conditions for setting up the small enterprises such as availability of raw material, skills available, demand for various products and services, availability of infrastructure and logistics including transportation etc.
• Entrepreneurial quality and motivation
• Product selection and opportunity guidance
• Business laws
• General banking
• Basic book keeping and accounting
• Working capital management
• Product costing and pricing
• Role of DIC / Banks
• Role of State & Central Institutions and other promotional agencies
• Procedures for setting up of enterprise
• Approvals needed for setting up new enterprises
• Guidance for project/profile report preparation
The training on the above topics is imparted through:
♦ Classroom lectures, group discussions, case studies and simulation exercises for its effectiveness.
♦ Experts in the respective fields.
♦ In the vernacular language, based on the need.
Hands on Training on machines in Incubation Centre 4 Weeks
• To choose the project for Implementation.
• Hands on working on selected projects thus gain detailed knowledge to operate the machines.
• Acquiring technical knowledge about the machines installed.
• Raw material availability and its consumption plan.
• Understanding the production process.
• Understanding the quality control process of the finished products.
• Understanding packaging of the finished products.
• Understanding the basic maintenance needs of the machines.
• Understanding the preventive measures.
Market Survey 1 Week
• Visit markets for identifying sources of raw materials and to assess demand of finished products
• Study the availability and quality of raw materials.
• Hold discussion with the bulk buyers and other purchasers.
• Understanding the existing competition in the market.
• Understanding the price and demand of the product in the market.
• Study the established market for finished products.
• Make a market survey report.
Project Report Preparation
1 Week
During this week the trainees will prepare the project report for the project selected by them. The project report should contain the following:
• Introduction
• Market Survey
• Details of project
• Plant, Machineries and other fixed assets required
• Fixed Capital
• Working Capital (Raw material cost, salary and wages, utility and overheads)
• Break even point
• Cost of the project
• Sources of finance
• Projected Profit and loss statement & Cash flow statement for next 5 years.
• Projected Balance Sheet for next 5 years
• Re-payment schedule of loan
Formal approvals and Registrations
1 Week
• To establish the project, identification of the various approvals required such as Pollution control, special clearances in case of food product, quality control or any other approvals etc. wherever applicable.
• Discussions with the concerned authorities.
• Filling of application form & submission thereof.
• Follow up for NOCs and registration with DIC.
Loan Processing with Bank
1 Week
• Chose the bank suitable to the prospective entrepreneur in terms of place of the project.
• Held discussion with the Bank Manager.
• Collection of required documents such as:

> PAN Card
> Residence proof
> Photo identity card
> Rent agreement for proposed location of the project.
> NOC from pollution board, where applicable.
> Registration with District Industries Centres (DICs)
> Quotation from Machines suppliers
> Detailed project report (DPR)

• Submit the application form enclosing above mentioned documents.
• Follow up with the bank for sanction of loan proposal.

Claims
The embodiments of the Invention in which an Exclusive Properly Privilege is Claimed and are defined as follows:
1. We claim:- The process of Rapid Incubation for Small Enterprise Establishment is a three months process by which an unemployed youth is incubated and transformed into budding entrepreneur.
2. We claim:- The process of Rapid Incubation for Small Enterprise Establishment helps any country to alleviate problems of unemployment and poverty.
3. We claim:- The major components of the Incubation process are Entrepreneur Skill Development, Project/Product selection and opportunity guidance, Hands-on practical training on working projects/training modules, Facilitation of funds through banks, Facilitation on setting up an enterprise, Support services to run small business.
4. We claim:- The process has eight(8) sessions ranging from 1-2 weeks, namely, Counseling, Entrepreneurship Orientation, Practical Training, Market survey, Project report preparation, approval & registration with District Industries Centres, Loan processing and monitoring & follow up.
5. We claim: - Self employment of one youth or by setting up of a single small enterprise brings employment to many other unemployed youths.
6. We claim: - The model is applicable to all parts of the country and suitable for addressing unemployment issues of many least developed and developing countries. A private partner can also become an incubator under this process.
7. We claim: - This process can incubate any youth/person aged between 18-60 years.
8. We claim: - The technology used in this incubation process is low cost, appropriate and easy to maintain.