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General Information

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1. What can be done for self-employment?

    A micro or small or medium enterprise can easily be set up for self-employment. You can choose an activity depending upon your interest and suitability not only to become self-employed but also to generate employment for others.


2. What is a Micro, Small or Medium Enterprise?

    The earlier concept of 'Industries' has been changed to 'Enterprises'.

  • Enterprises have been classified broadly into:
      • Enterprises engaged in the Manufacture / production of Goods pertaining to any industry;
      • Enterprises engaged in providing Rendering of services.
  • Manufacturing enterprises have been defined in terms of investment in plant and machinery (excluding land & buildings) and further classified into:
      • Micro Enterprises - investment up to Rs.25 lakh.
      • Small Enterprises - investment above Rs.25 lakh & up to Rs. 5 crore
      • Medium Enterprises - investment above Rs.5 crore & up to Rs.10 crore.
  • Service enterprises have been defined in terms of their investmentin equipment (excluding land & buildings) and further classified into:
      • Micro Enterprises - investment up to Rs.10 lakh.
      • Small Enterprises - investment above Rs.10 lakh & up to Rs.2 crore.
      • Medium Enterprises-investment above Rs.2 crore & up to Rs. 5 crore
  • It is not necessary to engage in manufacturing activity for self-employment. One can set up service enterprises as well.


3. How do I select an activity for self-employment?

    For selecting an activity or enterprise, you will have to consider the following significant 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 pattern exists near the site of enterprise?
  • What kind of contacts you have to exploit to your advantage for marketing of the product?
  • What infrastructure is available at the location of your enterprise?
  • How much capital is available?
  • There are many other considerations including availability of skilled manpower, raw material, technology etc. before you narrow down your choice for selection of industry or activity.


4. Who will assist in identifying the activity?

    MSME Development Institutes can assist you in identifying the activity based on the Industrial Potential Survey and product specific market studies. District Industries Centers/State Directorate of Industries also facilitate in identification of a suitable activity.


5. What steps are required for identifying the activity?

    A preliminary market study of product(s) or service(s) needs to be undertaken to analyse consumption and availability pattern. If there is a gap in demand and supply, the activity considered ideal for selection.


6. Where is market information available?

    Market information is available with MSME Development Institutes (MSMEDIs) and DIC's of respective states/areas. Market Survey reports on various items and Industrial potential surveys of particular areas provide the information about the market potential of items. Industry and Trade associations, specialized institutions like PPDC can also provide such information.


7. How can market potential be ascertained?

    Market potential can be ascertained by conducting preliminary study by prospective entrepreneur to get an in sight of the product/ services to be setup. An entrepreneur can estimate local demand, demand within the state or country, export market and future prospects of product(s)/service(s). Visit to wholesale and retail markets, bulk consumers etc. provides accurate information on market potential.


8. Is there any agency providing guidance on marketing potential?

    MSMEDI and State Governments agencies viz. DICs and SIDCs provide guidance on market potential. The gap in demand & supply can be established through potential surveys and market assessments with the help of these agencies.


9. Where can the enterprise be set up?

    The enterprise can be set up in a designated industrial areas, where infrastructure facilities are available and is near to the market identified. It can also be set up in any other area depending upon nature of activity and local municipal rules.


10. What are the inputs required for setting up an enterprise?

    The following major inputs are required for setting up an enterprise:

  • Land, building or shed
  • Machinery and equipments
  • Raw Materials
  • Power and Water
  • Skilled manpower
  • Capital


11. Are there any projects suitable for non-technical and inexperienced entrepreneurs?

    There are many projects, which are suitable for non-technical and inexperienced entrepreneurs. Skilled manpower and technical personnel can be hired according to needs. Entrepreneurs can also join special short term training programmes. MSMEDI's, DIC's, NSIC etc. provide intensive consultancy to such first generation entrepreneurs.


12. How can a new entrepreneur compete with the existing manufacturers?

    A prospective entrepreneur can take the advantage of opting for the latest technology and production process and operate at higher volume of operation. This leads to reduced production cost and production of quality goods and services. A new entrepreneur can thus provide improved quality goods and services at lower cost and further tap the market with innovative marketing approach.


Head Office

Laghu Udyog Bharati
Shri Vishwakarma Bhawan,
48, Deen Dayal Upadhyay Marg, Rouse Avenue,
New Delhi – 110002

Email: [email protected]

Phone: 011-23625064, 011-41540772

Tel. Fax: 011-23525052

Registered Office

Laghu Udyog Bharati
Anant Rao Bhide Smriti Parisar,
Central Bazar Road, 184, Shivaji Nagar, Nagpur – 440010

Email: [email protected]

Tel. Fax: 0712-2550826

Corporate Office

Laghu Udyog Bharati
48, Deen Dayal Upadhayay Marg, Rouse Avenue, New Delhi – 110002

Phone: 011-23238582

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