Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday 23 February 2015

CREATE SELF - EMPLOYMENT


CREATE     SELF - EMPLOYMENT

Dear Shri Jaitleyji :

I know that the Central Budget is already under printing and it is too late for you to make any changes at this stage
But , nothing stops you from making " STRATEGY " announcements in your budget speech , such as :

This government will adopt a strategy of generating Self Employment , to provide meaningful work - and respectable income , to more than ONE MILLION jobseekers every month

To 50 MILLION jobseekers in the next 50 months

By getting banks to advance , small , low-interest loans to those 125 million poor persons , who have opened bank accounts under Jan Dhan Yojana 

And , by abolishing Personal Income Tax altogether , for such Self Employed persons  , for all deposits made into these accounts for next 5 years "

Unintended side effect :
    Within one year , these 125 million persons would rise above the Poverty
    Line  !  )

Reason is obvious :
It needs a fraction of the CAPITAL ( fixed + working capital ) to create a Self Employed job as compared to creating a job in Organized Sector ( Public or Private )
As you drive to the Parliament House on 28th morning , you will get to see on the road - or in those shops lining the road - , a lot of Self Employed persons .
What kind of CAPITAL ( in tools / machinery / Office - Factory space ) would be needed create each of those " Jobs " ?
Here are my guesses for investment and space requirement :
( What for ? / Office -Factory - home Space required ) :

*     Domestic Servants / Maids / Cooks........................  Rs ...   NIL
      (  Nothing / Nil )

*     Unskilled Workers...............................................   Rs ...   5,000
      (  Simple Tools / Construction Site / Road-side )

*      Milk Vendors / Delivery Boys..................                 Rs...    5,000
       (  Bycycle  /  operate from home  )

*     Pan-Bidi Gulla Owners..........................................  Rs....    5,000
       (  Stock in Dukaan /  25 Sq Ft footpath  )

*     Roadside Vegetable Vendors..................................  Rs...     2,000
       (  Daily purchase + 25 sq ft of footpath  )


*     Carpenters / Electricians / Plumbers etc................... Rs .....  2,000
      (  Tools of trade / Operate from home  )

*     Tailors / Watch Repairers......................................  Rs ......5,000
      ( Sewing Machine - Tools / Home or 100 sq ft of footpath )

*     Hairdressers........................................................  Rs...... 10,000
      (  Tools  /  100 Sq ft of shop rental )

*     Rickshaw Drivers...................................................Rs......  50,000
      ( Rickshaw / Operate from footpath )


I am sure your Ministry has better figures for 200 similar " Self Employed " categories . Or you may want to ask NCAER / NITI Ayog / HRD Ministry etc

Now , how much CAPITAL will be required to create one " EMPLOYED " job ?

Once again , here are my guesses :

*  In MSME businesses / companies......................... . Rs ... 2 Lakh
*  In large Organized Sector companies...................... Rs... 25 - 100 Lakhs

 Do you see the logic ?
For ONE job in large / organized sector , you can create 5,000 Self - Employed jobs  !

One more thing :

How long does it take to create such jobs ?

>    In large organized companies..................................... 3  / 4  years
>    In MSME companies.................................................  1  /  2  years
>    Self Employed jobs ( Skilling / Training Period )...........   3 / 6  months

Self Employment is the ONLY answer to avoid the fate of PIGS ( Portugal / Italy / Greece / Spain ) and a host of other , " Advanced Economies " - which borrowed BILLIONS of dollars from IMF / World Bank / Others   !

And now cannot pay back those loans  !

Dear Shri Jaitleyji :

We have neither time , nor the money to create ONE MILLION jobs every month in the organized sector

And we have promises to keep  !

I will be keenly listening to your Budget speech

with regards ,

hemen  parekh  /  Mumbai  /  22 Feb , 2015

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