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Streamline Government Policies & Schemes meant for Encouraging Self-Employment among Youth

To assuage prevailing Unemployment Problem, Concentrate on making Success Stories among beneficiaries, by curbing misuse of Government Funds availed by way of Self Employment Loans

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In my native/mother-country – India, the population is increasing day by day and though it has immense & abundance of Natural Resources to sufficiently cater to the variety needs of its ever increasing population, certain things are lagging it behind.
In terms of Youth Employment/Welfare/Affairs, the Government of India has been doing a lot, with top priority to help the Youth to be employed in one way or the other.    One of such Policies/Schemes is that of providing Loans through Banks on subsidized interest rate that too without any hypothecation, pledge or collateral security or third party surety, for which purpose it has even created the Credit Guarantee Corporations.  
The Government of India has, in its Budget allocations to the following Ministries, making out huge amount for the purpose of encouraging Self-Employment among Youth:
Ministry of Youth Affairs,
Ministry of Women Development & Empowerment,
Ministry of Social Justice & Empowerment,
Ministry of Tribal Affairs,
Ministry of Minority Affairs,
Ministry of Micro, Small & Medium Scale Industries,
Even, basing on the study for the reasons of poor success rate among those who availed the Bank Loans, and having identified the special reason of poor skills of the entrepreneurs,  the Government of India has even created the National Skills Development Corporation to provide skill development training, useful for both Employment & Self-Employment to youth.   
Further, considering the poor or lacking of knowledge about all essential fields & factors pertaining to the various divisions of production & service units, such as Raw Material, Quality Standards, Production of Products/Services, Packaging of Products, Publicity & Advertisement, Sales & Marketing, etc., the Entrepreneurship Development Programs are also arranged before disbursal of loans.
Yet, the success rate could not be improved & this lead to futile efforts.   There are so many other factors for the failure of entrepreneurs, such as:
Inefficiency of Loanee in essential fields & factors pertaining to the various divisions of production & service, as one could never be master of all tasks, 

Untimely & Improper disbursal of sanctioned Loans by Banks, 

Insufficient Capital Budgeting/Fixation either by Entrepreneur or by Financing Banks, 

Influential People availing such Loans and utilizing such amounts to other than originally intending purposes. 
My suggestion/idea is that instead of making loans to individuals with small amounts that too through the different Ministries, it would be much better if the funds allocated to different Ministries are amalgamated together, at least at the level of each district, and establish a large scale industry, which could create scope to accommodate the Youth of the respective district in suitable employment for the anticipated number of persons, equivalent to that of the number of beneficiaries to whom we might have sanctioned the loans.

To appoint an Official of the IAS/IRS/IES Cadre to act as the Chief General Manager or Chairperson of the Unit as the overall-in-charge of the Project,   

The appointed Chief General Manager or Chairperson of the Unit has to Obtain information from various Ministries/Departments about the (a) Budget Allocated to it for the Project District for the Scheme of extending Loans to the Youth for Self-Employment, (b) Number of Beneficiaries as anticipated by the respective Ministry/Department, (c) Total Budget available from different Ministries/Departments for the purpose, (d) Total Number of Persons ought to be benefitted from the Project/Industry (e) Subsidies/Incentives available to new Industries, (f) Tax Exemptions/Holidays available to new Industries, (g) Availability of Infrastructure in Industrial Estates/Parks/Areas, 

The Chief General Manager or Chairperson of the Unit has to identify the profitable Industrial Unit that could also be able to generate employment to the anticipated number of persons, and prepare a Feasibility/Project Report in consultation with the Banks & Industrial Department, 

The Chief General Manager or Chairperson of the Unit has to Notify the Vacancies clearly showing the job responsibilities, fixed salary & eligibility requirements, such as, Age, Gender, Physical Fitness, Mental Abilities, Educational Qualifications, Technical Skills, Experiences, etc., and Invite applications from the Unemployed Youth & select the right candidate for each position available in each & every division/department of the Industry, 

The Chief General Manager or Chairperson of the Unit has to look after everything connected with the development/progression of the Industry for 2 or 3 fiscal years, and when everything runs smoothly, the Official (Chief General Manager or Chairperson) may leave the Industry. 

Who does this idea benefit, who are the main players and what's in it for them?

This Idea is for the benefit of Unemployed Youth in tune with their Age, Physical Fitness, Mental Abilities, Educational Qualifications, Technical Skills, Experiences, but irrespective of their Religion, Caste Creed, Colour & Gender, etc. Though the main players are beneficiaries themselves, one Expert has to be appointed as the overall-in-charge of the Project, and such appointee must be an Official of the IAS Cadre to act as the Chief General Manager of the or Chairperson of the Unit for a considerable period. Initially, all the beneficiaries have to work on salary basis as per the directions of the Official (Chief General Manager or Chairperson of the Unit), and avail their share from the annual profits of the Unit. After clearing the Loan, the beneficiaries will automatically be & become equal Shareholders/Partners/Owners of the Unit.

How is your idea specifically increasing access to employment opportunities and pathways for young people?

When a Large Scale Industry has come up it will automatically pave pathways for the ancillaries, which in turn pave ways for the employment opportunities for the Youth.

What early, lightweight experiment can you try out in your own community to find out if the idea will meet your expectations?

If necessary, either the Government of India or any State Government could initiate implementation of the Pilot Project (by appointing an Official of the IAS Cadre as the Chief General Manager of the Unit) or any District Collector (after obtaining due orders/permission from the Government) could undertake & implement a Pilot Project in the district. Similarly, the Government of any Country/Nation could do it, if the Idea pleases.

What skills, input or guidance are you keen to receive from the OpenIDEO community to help you build out or refine your idea further?

It would be highly appreciable if the OpenIDEO community could be able to arrange a suitable sketch, image or photo that could explain the idea.

The idea emerged from:

  • An individual

How do you envision your idea being implemented?

  • I'm more throwing the idea out there to inspire potential implementers

This inspired (1)

YouthCafe Reboot


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Photo of Timothy Herlihy

Wait, is this about the bad credit swaps with combining good and bad loans together and reporting the losses as a write-off? Either way the idea was that the responsibility of poverty was taken into factor by the banking system on how to balance the general population credit. It's not profitable, but I doubt America wants to conceive a district 9.

Sorry I was lost on the part of listing different groups and skipped to the conclusion for a second there. Usually these sectors listed grabs a loan for housing, cars or just trying to survive to make ends meet. Not everyone comes up with ideas that keeps entrepreneurship a successful definition. So by buying peoples lives and living or livestock, will there be a contract that locks company in for employment?

If you're planing to shepard a crowd of people you'll need to set up a system that is geared towards people not failing even if it requires people to work at a soup kitchen till a better bracket opens up. Sorry if this sounds wrong but sugar coating loans is a hard pitch for me to swallow.

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