4 Feb 2014

NSIC Rapid Incubation Model – Turning Job Seekers Into Job Creators

National Small Industries Corporation
Unemployment is a colossal problem and in most developing countries. Self-employment generation, by way of creating new small enterprises, is perhaps the fastest process by which one gets employed and gives employment to other unemployed youth.

Enterprise development is one of the thrust areas for economic development of any country, which can be achieved by way of providing hand-holding support to budding entrepreneurs. NSIC has developed a unique model of rapid technology incubation for setting up new small enterprises, creating self-employment opportunities by imparting training in entrepreneurship building and skill development to unemployed persons who intend to set up their small enterprises or seek employment opportunities. 

The Incubators envisage transformation of unemployed youth into budding entrepreneurs in just three months’ time. The Incubators intend to provide training in several trades in manufacturing of product and service sectors. Incubators provide an opportunity to first generation entrepreneurs to acquire skill on basic technical trades and gain exposure in all areas of business operation such as business skill development, identification of appropriate technology, hands-on experience on working projects, project / product selection, guidance to spot opportunities, commercial aspects of business, etc. 

Supply of machinery and credit support are arranged to the trained, budding entrepreneurs for setting up Micro and Small Enterprises through tie-up with financial institutions. Once established, the entrepreneur generates employment opportunities for others. 

This model has been found to be appropriate for developing countries. The model has also been applied for patenting by NSIC. The patent application has already been published by the Patent Office Journal on 8th July, 2011.


·         Self-employment generation among aspiring start-up entrepreneurs.
·         Accelerate creation of new enterprises.
·         Extend integrated support by way of providing hands-on training on working projects.
·         To boost the development of small enterprises in manufacturing sector.


The selected candidates are put through a comprehensive training programme of 12 weeks’ duration (part-time) covering the following:

·           Classroom training on entrepreneurship skill development
·           Hands on practical training on live manufacturing projects
·           Guidance for project report preparation
·           Guidance on preparation of fund proposal to banks
·           Support services to start business

 Programme Deliverables

I) Counseling (One Week)

Counseling is a process of selection of candidates. 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 can be disseminated to people of identified town/village by way of any 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:-

Ø      The candidates should have adequate space to establish the enterprise, ability to provide margin money and possess basic entrepreneurial traits.

Ø      Minimum qualification: The candidate should have attended at least 10 years of schooling.

Ø      Preference to be extended to those with higher qualification particularly having some knowledge / technical background in industry/business.

II) Entrepreneurship Orientation (Two Weeks)
During this period, the trainees are imparted knowledge on business process, entrepreneurship quality and motivation, business law, accounting procedure etc. The course content for the training covers the following:

Definition of business and kinds of businesses.
Ø      Local conditions for setting up small enterprises such as availability of raw material, skills available, demand for various products and services, availability of infrastructure and logistics including transportation etc. 
Ø      Entrepreneurial quality and motivation
Ø      Product selection and opportunity guidance
Ø      Business laws
Ø      General banking
Ø      Basic book keeping and accounting
Ø      Working capital management
Ø      Product costing and pricing
Ø      Role of banks
Ø      Role of government institutions and other promotional agencies
Ø      Procedures for the setting up of enterprise
Ø      Approvals needed for setting up new enterprises
Ø      Guidance for the preparation of project/profile  report

III) Hands on Training on machines in ICSEE (Four Weeks)

After completion of entrepreneurship orientation programme, each trainee would select one project of his/her interest which is intended to be established by the respective trainee. Hands-on training is provided on the selected machine / project as detailed below:

Ø      Hands-on working on selected project to gain detailed knowledge about operating the machines.
Ø      Acquiring technical knowledge about the machines installed.
Ø      Raw material availability and its consumption plan.
Ø      Understanding the production process.
Ø      Understanding the quality control process of the finished products.
Ø      Understanding packaging of the finished product.
Ø      Understanding basic maintenance needs of the machines.
Ø      Understanding preventive measures to be taken.

 IV) Market Survey (1 Week)

Ø        Visit to markets for raw materials and finish products.
Ø        Study the availability and quality of raw materials.
Ø        Hold discussions with bulk buyers and other purchasers.
Ø        Understanding competition in the market.
Ø        Understanding price and demand of the product in the market.
Ø        Study the established market for finished product.
Ø        Make a market survey report.

V)   Project Report Preparation (1 Week)

During this week, the trainees prepare the project report, which should contain the following:

Ø        Market survey
Ø        Details of the project
Ø        Details of the plant, machineries and other fixed assets
Ø        Fixed capital
Ø        Working capital (Raw material cost, salary and wages, utility and overheads)
Ø        Breakeven point
Ø        Cost of the project
Ø        Sources of finance
Ø        Profit and loss statement
Ø        Cash flow statement
Ø        Projected balance sheet for the next five years
Ø        Re-payment of loan statement

VI) Formal approvals and registrations (1 Week)

Ø        To establish the project, identification of various approvals needed such as pollution control, special clearances in case of food products, quality control or any other approvals etc. wherever applicable.
Ø        To discuss with the authorities concerned.
Ø        Form-filling and submission of application.
Ø        Follow up for approvals.
Ø        Submission of application and follow-up with the bank for credit availability.

VII) Monitoring and follow-up

The graduated trainees are monitored continuously. A candidate-wise report is maintained and updated on monthly basis.

Uniqueness of the Rapid Incubation Model

The Rapid Incubation Programme provides on-the-job training to 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 trainees in the post-training phase. As a part of the post-training support, assistance is also provided to candidates in procurement of equipment and machinery for selected projects and installation and commissioning of projects. Online placement assistance is also provided to candidates seeking job opportunities.

The unique features of the Rapid Incubation Programme are:

Ø      Contribution to local economic development
Ø      Reducing unemployment
Ø      Low investment per employment generated as compared to investment in employment generation in large industries.
Ø      Assist in import substitution in least developed countries
Ø      Open to all irrespective of age and gender.
Ø      Provides actual business environment for trainees without incurring any capital expenditure.
Ø      Transformation of unemployed person into a budding entrepreneur in just three months.
Ø      Training and support services under one roof.
Ø      Creation of a large number of enterprises in a short span of time.
Ø      Cost effective method for establishment of new enterprises.

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