Self-employment

Self-employment is necessary. We shall learn about the various nature of Self-employment.

After completing this chapter, we shall be able to

·         Explain the concept of Self-employment

·         Explain the relation between Self-employment and entrepreneurship Explain the necessity of Self-employment

·         Select the suitable and profitable sectors for Self-employment considering the

·         Describe the activities and importance of training institutions for Self-employment.

·         Describe the ways for motivating Self-employment

How to be self-employed?

John of Ficksburg for an example of defeating poverty through cultivation of bitter gourd.

After completing high school, Mr. John Corner started working in a ship. Low grade job but involves hard working. But, wages is very poor. He could hardly maintain his family. He was forced to resign his job in the ship and come back to his village. He failed to join a Pharmaceutical Company after trying hard. He could not manage it since he did not have the BA pass certificate. But, hardworking John was not demoralized. He started to think about doing something on the bare land beside his house. Having advice from the state Agricultural Officer, he started growing Bitter Gourd in that bare land. Now, he grows seven mound of Bitter Gourd per week. He is now solvent in maintaining a family of six members from the income from selling Bitter Gourd. Educated farmer John of village Aandonga of Ficksburg state has removed unemployment and become self-sufficient by growing Bitter Gourd and other vegetables. He has won against poverty.

John informed that he has cultivated vegetables in two acres of land. He has grown Hybrid Tia type of Bitter Gourd in half of this land. In rest of the land he has grown Indian Spinach, String bean, Wax Gourd, Snake Gourd, and Okra. He sells the Bitter Gourd to the local wholesaler at a rate of $30 per mound. Wholesalers are coming to his land to buy the Bitter Gourd. He is hopeful to earn nearly dollar 10 thousand this year. But, he spent two hundred dollar for growing this Bitter Gourd. Since, John is a motivated farmer, he has become successful. Mr. Narayan Chandra from the agricultural office says in this regard that many people have been motivated to grow vegetables seeing the success of John. This is a matter to follow for any unemployed youth.

The way Mr. John Corner has managed to be employed by himself is called Self-employment. Now, we can understand that Self-employment is the process of earning a living by self-effort through using own capital or borrowed fund, own thinking, knowledge, intelligence and efficiency and taking minimum risk. Self-employment is a popular profession among various techniques for earning a living. Various retailing, repairing, poultry farming, AP culture etc. are included in Self-employment.

Relationship between business entrepreneur and Self-employment are very close. In case of Self-employment, an individual starts working after thinking about the job. A Self-employed person shall be called an entrepreneur, when he thinks about the employment of other people in the society and steps forward against risk and forms an organization. In that case all the entrepreneurs can be called Self-employed but all the Self-employed persons are not entrepreneur.

Necessity of Self-employment

Sanjida Islam from Noakhali failed to manage a job after completing her honors degree from the local college. After remaining unemployed for a period, she decided to undertake training on Horticulture from the local Youth Development Office. After completion of the training she grew flower on one acre of land. During the first season she earned five hundred dollar. She became severely interested having the profit. Then, she went to Dhaka to join a daylong workshop on growing flower and visited a Flower Fair (Pushpo Mela). She collected seeds of various local and foreign flowers and earned a lot of money from growing them. Because of hard work and proper utilization of opportunity her business grew very large within five years. Recently, she received the Best Women Entrepreneur Award from her district. While receiving the award she spoke about the following necessities of Self-employment to the present mass:

·         Employment can be divided into three groups – Wages or Salary based Self-employment and Business.

·         Public and private organizations are the main source for employment.

·         The number of working and employed people increases with increase of population. Employment opportunity does not increase comparing to the rate of demand for employment.

·         In other profession earning opportunity is limited. But, in case of Self-employment, earning at the beginning is low and uncertain and possibility of earning afterwards in this profession is unlimited.

·         At present, opportunity for self-employment has vastly increased. Social status for self-employed people has increased comparing to the previous time.

·         The major capital for self-employment is self-efficiency. It is comparatively easier to arrange capital required for raw materials and machines.

·         Self-employment is an independent profession. Since, one can do this from one’s own home and land, extra cost can be avoided.

·         The youth of the country engaged in self-employment can contribute to the development of the country rather engaging in anti-social works.

·         Through self-employment migration to towns can be controlled and development of village society and economy can be ensured.

·         The self-employment mentality motivates the youth for patriotism and encourages willful works.

·         Age is never a burden for self-employment. A person of any age can earn through self-employment as per his/her efficiency level.

Ideas for self-employment

It is possible to earn a respectful living being engaged in any small business from the motivation of self-employment of ownership and own management, similarly contribution can be made to the economic development of the country. One can earn by producing and selling goods or providing services having demand. Always we have to keep in mind to earn respectfully from our limited resources. Analyzing all these, we can identify several suitable and profitable areas for self-employment.

Self-employment options

·         Hand loom (weaving)	·         Making things from Cane
·         Mat Making	·         Making Utensils of Glass
·         Pottery	·         Ring (for well) Making
·         Making goods of Bamboo	·         Making things of Copper & Titanium
·         Growing Salt	·         Making Fancy goods of Jute
·         Tailoring	·         Making T shirt
·         Making Clothes	·         Making Leather Goods
·         Making Nets to catch fish	·         Making Goods from Shell
·         Carpentry	·         Bakery
·         Making Furniture of Steel	·         Making Flour
·         Plate Making from Clay	·         Making Oil for Cooking
·         Blacksmiths	·         Producing Food Products
·         Seri Culture	·         Making Knitting Goods
·         Boat Making	·         Embroidery
·         Drying Fish	·         Yarning
·         Making Flour from Potato	·         Making Toys of woods
·         Making Mat from Jute	·         Printing & Publishing
·         Making Utensils	·         Making Plastic Goods
·         Making Potato Chips	·         Tobacco Processing
·         Repairing Bi-cycle	·         Making things from Bee wax
·         Making Toys	·         Jewelry
·         Making Rubber Goods and Ball	·         Snacks Making
·         Cultivating Rubber	·         Making Cake
·         Butter Making	·         Making Cornflakes
·         Pen (Ball point) Making	·         Toothpick Making from Bamboo & Woods
·         Processing of Hay	·         Making Ice Cream Spoon
·         Distribution of Concrete	·         Pad Thresher
·         Making Bi-cycles	·         Making Agricultural Instruments
·         Growing Vegetables	·         Making Photo Frame
·         Making Picks and Pad Pins	·         Production of Fabricated Metal
·         Live Stock and Poultry Farm

Process of aiming before self-employed profession

To set the objectives, following question is necessary to be answered:

·         What is your long term goal? How do you want to achieve this?

·         In what specific date you want to achieve this?

·         What is your short term goal?

·         Why Short term goal is important?

·         Have you taken any steps to achieve that?

·         What obstacles can rise against achieving the goal?

·         How to overcome those obstacles?

·         What is your plan to solve problems?

·         What are the helps/supports necessary to solve the problem?

·         Whom you will select as the helper?

The correct goal can be identified within finding the answer of the questions.

Factors Considered for Selecting Suitable Field for Self-employment

The success or failure of a self-employed business depends largely on selecting a suitable field for self-employment. Thus, selecting the suitable field for self-employment, the following issues to be considered:

Selecting the Right Goods

Selecting the appropriate goods for business is the pre-requisites for getting success. Before selecting the product, demand and acceptability of the product in the market should be properly justified.

Initial Capital

To run the business successfully, it is necessary to arrange sufficient fixed and working capital. To utilize the maximum capacity of the business is not possible if one fails to assess and arrange necessary capital.

Assessing the Demand for Goods

The perfect measurement of demand for goods through market research and other techniques is one of the major preconditions for success of business. Besides, market size and marketing process must be assessed beforehand.

Experience and Education

The past experience in business and proper education regarding management is helpful towards success of business. Research shows that in most of the cases the reason for failure in business is because of having no prior experience or no knowledge about management strategies.

Awareness about Self Weakness

Troubles in business can be avoided if the entrepreneur is alert and aware of his/her self-strength and weakness.

Joint Effort

Family support and joint effort is a significant element to achieve success in business. Businesses running jointly are more successful.

Selecting Right Worker

The worker to be employed in the business must be qualified and efficient in their own job. So, in case of recruiting worker, their academic qualification, professional efficiency, trust worthiness must be justified on the basis of a yardstick. There should be an arrangement for training for the employed workers. The employee should not recruit emotionally.

Selecting the Place of Business

To select the place for a business, raw materials availability, marketing opportunity, infrastructural facility etc. should be considered specially.

Uses of Right Technology

The use of right technology in the production process and combination of local and imported technology increases the possibility of success. The entrepreneurs should provide special emphasis on this before starting business.

To be Aware of the Socio-economic and Political Condition of the Country

The economic condition influences the success of business. Small entrepreneurs should assess the existing socio-economic condition of the country and take business decision on the basis of the assessment continuously. Moreover, entrepreneur should always be aware of the influencing elements of business to become successful in business.

To Find Ways to Face Business Risk

Business can be protected from uncertain risk if the business related risk is assessed in priority and ways are pre-determined. Thus, assessing the business risk with a suitable method and face those with a predefined way are the pre-condition for the success in business.

Take Lessons from Failure

One should not get frustrated for failure in a business rather he/she must analyze the reasons meticulously and start in a new way. The success of business lies within learning from the previous business failure and execution of the learning.

Proper Business Planning

Proper business planning is another important issue to be successful in business. Planning is the thinking and specification of how, what and when to do things before starting the business. Planning is the guiding paper for operating the business. The more the planning is rich, the more is the certainty of becoming success in business.

Requisites to Motivate for Self-employment

For self-employment it is necessary to have personal efficiency and strong willingness to earn a living on the basis of a self-dependent profession. Self-employment is the only alternative since job opportunity is limited and so many employments cannot be generated through private and public initiative. But, the concept of self-employment is not clear and sufficient to the youth of this country. On the other hand, we think job is the only way of earning a living because of our social value and bookish knowledge. As a result, the number of both educated and illiterate unemployed people is increasing day by day. To motivate the present youth and young of the society and the future generation for self-employment necessary steps has taken, such as-

·         Students should be taught that no work is bad or disrespectful

·         Students to be lectured on the biography of successful self-employed persons of the locality.

·         List of suitable areas for self-employment to be advertised over schools and union.

·         The students who are dropped out or cannot come to school regularly. They should be trained in the suitable area and arrangement to be made for lending money to them.

·         Vocational, Technical and Work oriented subject is to be included in the secondary and higher secondary level sufficiently.

·         Youth development bank and education bank is to be established for lending money to unemployed people.

·         Ex-students of the school who are now successful entrepreneur and business man, they should be invited for admiration and tributes.

Necessity of Training in Self-employment

Training is necessary for completing a special job and enhancement of knowledge and efficiency. Training increases work efficiency and competency. Training should be arranged in small organization to increase the efficiency level of the worker like the large organization. It is not necessary to recruit from outside if there is specific policy for recruitment and training for the existing workers. Training is a continuous and regular effort to enhance the knowledge and efficiency at all stages of worker so that their competency increases gradually and the organization are benefited. Training should be arranged for a worker before assigning him/her to any job. Training is necessary for old and new worker of the organization including the entrepreneur. Necessity of training is explained below:

Introduction to Nature of work and Environment

It is necessary for the newly appointed staffs to be introduced with the working environment and nature of work of the organization. Training process helps the new workers to get introduced of the working environment.

Removes the lacking of Efficient and Experienced Worker

It is not possible for the organization to recruit experience and educated worker all the time. For this reason, after recruitment this necessity is fulfilled through training of the new workers.

Increase the Efficiency of the Worker

Training increases the work efficiency of the worker. For this, training is necessary for the new worker as well as old workers in the organization.

Proper Utilization of Resources

Training develops the efficiency of the entrepreneur and workers. As a result better use of machines, furniture and fixtures and other assets are possible by the entrepreneur and workers.

Enhancement of Moral Strength

Training enhances the morality of the entrepreneur and workers. As a result moral strength increases. Training brings cooperation and coordination among workers. For this, activities of the organization run with optimum level of pace.

Minimize Wastage and Accident

Trained worker can perform job with higher efficiency and low cost. As a result wastage is reduced in the working process in the organization. Training gives the worker knowledge of security related various techniques and it helps to avoid accidents of using machines and other factors.

At last, it can be concluded that the necessity for training is immense for the development of the work through efficiency and competency of the worker to maintain the activities of the organization properly. Without proper training, satisfactory work cannot be expected from Staffs/worker, whether old or new both. So, making the worker suitable is a must for doing their job for an organization.

End

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