Self-employment is a situation in which an individual works for himself instead of working for another employer who pays a salary or a wage in return of the services extended by him. A self-employed individual earns his income by conducting profitable operations of a trade or business that he operates directly.

Various schemes have been run for the development of self-employment and they are: 

1. Rural Youth Training Scheme – 

The government has started a training program to stop the migration of youth to the cities and to preserve handicrafts. A stipend of 3000 is given in the duration of the vocational training for food and lodging and a “tool kit” is provided after training so that they can do their own business. 

2. IRDP (Integrated Rural Development Program) – 

In March 1976, in order to raise the standard of living of rural families living under the poverty line, provision was made under this to provide training and financial assistance to them. This is the country’s most extensively-operated scheme. 

3. Mahatama Gandhi Employment Scheme – 

This is a scheme to provide employment to at least one member of a rural family. It was initiated in 1989. 

4. Self Employment Scheme for Urban Poor – 

The government of India started this scheme after consultation with RBI in 1986 to enable adoption of selfemployment by people of BPL families living in towns and cities with a population of more than 10,000 through the provision of grants and loans. 

5. Nehru Employment Plan – 

This scheme was started in 1989 to create employment in urban areas and was implemented through municipalities. 10 lakh employment opportunities are created every year under this scheme. 

6. Prime Minister Employment Scheme – 

The main objective of this scheme is to motivate the educated unemployed to establish and operate an industry or business by providing them with financial assistance. This scheme was launched in all districts of the country has a population of less than 10 lakh. It was started in 1993 by merging the formerly implemented “Self Employment Scheme for Educated Unemployed, 1983”.