SETU - Self Employment and Talent Utilisation

1. The scheme was launched by the NITI Aayog.
2. Initially, Rs.1,000 crore is being set up by the NITI Aayog towards the scheme to enhance skill development and set up incubation centres.
3. The improvement of skill development and setting up incubation centres will improve the ease of doing business and facilitate the start-up ecosystem.
4. To increase the number of start-ups in the country by extending various services and reducing the unemployment rate.

What is the Self Employment and Talent Utilisation (SETU) Scheme? 

The Self Employment and Talent Utilisation (SETU) Scheme was established to support technology-driven start-up firms and self-employment projects.

It works to make sure that people can access the right technical solutions and encourages the effective use of their skills to increase productivity and efficiency. 

 The Indian government has launched the SETU program, a techno-financial effort with incubation and facilitation components, with the aim of promoting self-employment and maximising talent utilisation.

Within Niti Aayog, SETU has been given a fund of INR 1,000 crore to support skill development through incubators. The scheme's main objective is to encourage the creation of new jobs. 

What are the benefits of SETU Scheme 

Some of the benefits of SETU Scheme are: 

1. Job-Life Balance: Self-employment offers more freedom in juggling daily obligations and job commitments, promoting a healthy equilibrium between personal and professional life. 
2. Customised Work Environment: The ability to select one's preferred work environment and schedule is one of the main benefits of being self-employed. 
3. Freedom from Uniforms: There are drawbacks to wearing uniforms. In their typical work setting, many people find that wearing uniforms is demotivating. Uniforms are not necessary for self-employment, particularly when working from home. 

1. Working Remotely: Working remotely has become more common as a result of self-employment, and it has shown benefits in terms of time management and achieving a healthy work-life balance. In this situation, it is more practical to be able to care for children while working. 
2. Entrepreneurial Autonomy: The increase in self-employment opportunities has given people more freedom over their professional endeavours by allowing them to avoid working for a superior. 
3. Cost reduction: Payroll for staff is often a considerable business expense. Self-employment lowers the expense of commuting and eliminates the need to pay salaries. 
4. Increased Employment Opportunities: A lack of resources for starting new firms sometimes causes high unemployment. The SETU Yojana efficiently combats unemployment and poverty by offering financial support for new business enterprises. 

Disadvantages of SETU Scheme 

Some of the disadvantages of SETU Scheme are: 

1. Starting from Scratch: Pursuing self-employment requires a great deal of resolve and perseverance because it takes a lot of work to build a clientele base. Choosing self-employment necessitates starting from scratch, which can occasionally be difficult. 
2.  Financial constraints in rural areas: High unemployment rates are a problem in India's rural areas. Although the SETU Yojana provides generous funds, it mostly targets metropolitan regions. A substantial portion of the unemployed population is unaffected by the scheme's sparse rural coverage. 
3. Limited Employee Benefits: Self-employment is not a good option for those looking for significant direct financial and non-financial benefits. The benefits that people receive from this arrangement are often modest. 
4. Continuous Operational Expenses: Operating expenses for a business are independent of revenue or expenses. Regardless of how well the company performs, operating costs continue. Self-employed people find this to be very difficult, especially in the beginning phases of their firm. Rent, internet fees, insurance, and other necessary expenses continue to be incurred during the course of business operations. The amount of the government's non-performing assets (NPAs) may rise as a result of this. 

1. Risk Factor Elevated: Self-employment places the burden of maintaining a regular flow of work on the individual, leaving them exposed to times of insufficient employment and income. The SETU plan provides loans with a lower interest rate, but these loans can add up during economic downturns. 

Eligibility of SETU

Entrepreneurs who can get incubation as well as offer other support along with the start-up will be eligible under the scheme.