SETU Scheme stands for Self Employment and Talent Utilization Scheme. SETU Scheme helps and supports new startups, small businesses, and self-employed financial and technically. This programme was launched under NITI Ayog in 2015. Less expenditure, Work-Life balance, Working from home are some of the advantages of the SETU Scheme. And some disadvantages are lack of employee benefits, risk, etc. In this article, we will discuss what is SETU Scheme and Advantages and Disadvantages of SETU Scheme.
What is SETU Scheme?
SETU stands for Self Employment and Talent Utilization. Talent Utilization is the mechanism by which the individuals get appropriate technology or means.
It helps to fully utilize the inner potential of the individuals. Talent utilization is extremely important for any economy. Hence, if proper utilization doesn’t take place properly, it will lead to inefficiency.
In order to promote and enhance the level of Self Employment and Talent Utilization, Government has announced the setting up of a Self- Employment and Talent Utilisation (SETU) mechanism.
Presenting the General Budget 2015-16 in the Lok Sabha, the Union Finance Minister Shri Arun Jaitley stated that SETU will be a Techno-Financial, Incubation and Facilitation Programme.
It will help to support all aspects of start-up businesses, and other self-employment activities, particularly in technology-driven areas. They have set up Rs.1000 crore in Niti Aayog for SETU.
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Advantages of Self Employment and Talent Utilization – SETU Scheme
1. Working from Home
Self Employment is one of the means by which work from home is increasing. Also, if you are self-employed you will have the benefit of balance work and personal life in a very flexible way. You can take care of children and work on your project at the same time.
2. Own Boss
Most of the people don’t like to work under someone’s supervision. This also leads to unemployment. This becomes one of the reasons for a person to opt for self-employment.
3. Less Expenditure
Salary comprises a major part of any organization’s expenditure. In case of Self Employment, there is no need to pay a salary to anyone. Hence, working for yourself means you can manage your own salary. Moreover, it helps to reduce expenses like travel to work, life insurance, etc.
Learn more about Startup India Scheme – Government Initiative
4. Reduction in Unemployment
There are various reasons because of which many individuals sit idle and become part of the unemployed workforce. One of the major reasons was the lack of finance to start a new business.
Through SETU, finance is easily available for young entrepreneurs. It also helps to eradicate unemployment and poverty on a large scale.
5. Work-life Balance
Self-employment provides a better work-life balance, as one can manage one’s own schedule and workload more flexible.
6. Work at any place and time
Being self-employed gives you the power of choosing your own workspace. You don’t always have to stay at home. When you want some fresh air, you can work from a favourite cafe or any other favourable location.
7. No need to wear Uniforms
Though uniforms provide a sense of discipline in any organization, it seems to be a burden for many people. Through this program, people have started working from home. so, there is no need to wear uniforms. Hence, there is no burden of it.
Disadvantages of Self Employment and Talent Utilization – SETU Scheme
1. Increase in Risk
It is your responsibility to make sure you always have work to do. This means you may sometimes be without work and income. Though under this scheme, the individuals get a loan at a cheaper rate. But during the recession period, that little interest can be a big burden.
2. Lack of Employee Benefits
Most of the individuals in this current era want to enjoy monetary as well as non-monetary benefits. But under this scheme, there is least or no benefits as received under employment contracts.
3. Start from the Scratch
Establishing business and building a client base can be a tiring and frustrating process. You need determination to succeed and perseverance.
4. Lack of finance in the rural area
Nobody can deny that most of the unemployed youth belong to rural India. This program aims at providing funds, but the sad part is that its reach is still limited to the urban areas. Most of the rural areas are deprived of funds to start a new business.
5. Continuous Running Costs
One can go for several months without earning a profit, and one always has to pay running costs such as rent, insurance, and internet access. Hence, it program may lead to an increase in burden on the individuals in the initial phase of the business. In extreme cases, it also leads to an increase in the NPA of the government.
Conclusion of SETU Scheme
Though there are a lot of benefits that have arisen from this scheme, there are certain drawbacks which need to be looked at. It has reduced the unemployment level to a great extent but a lot has to be done to have a better result.
This scheme needs to introduce some non-monetary benefits along with the monetary benefits in order to motivate individuals. If the government is able to overcome its drawbacks, this program can be a huge success.
Solved Question on SETU
Question: What are the necessary skills to get success in Self-Employment?
Answer: There are a lot of skills which are necessary for the success of self-employment. Some of them are as follows:
To have a strong understanding of market and customer is vital, while the desire to listen and adapt to their ever-changing needs is also important.
You need the confidence to take risks and responsibility for your decisions, as well as the appetite to network with individuals and other organizations.