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

Saturday 4 November 2017

Who Will Create Jobs ?



Certainly , not BIG companies !


Here is the proof :

Economic Times ( 03 Nov ) carries following news report :




“ Big Cos Not So Big On Job Creation “



For instance, the gross block of top 10 large companies, such as L&T, BHEL and Indian Oil, rose 8.6 % a year since 2008 , but headcount increased at just 0.5 %  a year


The average manpower growth at Manufacturing companies included in the BSE 500 was 2.88 % a year , with more additions at smaller companies



To validate , just take any BIG company’s Annual Report


Find out


( A )…… “ No of Employees “

( B )…" Total Capital ( Fixed + Working ) Employed “


Divide….. B / A


You will come up with a figure of Rs ONE CRORE or more !


India adds ONE MILLION ( 10 lakh ) persons per month to its workforce  ( 12 Million / year )


Let us “ desire “ that , out of this 10 lakh , BIG companies should provide jobs to just 1 lakh persons



That means , BIG companies would need to put in Rs ONE lakh*crore worth of CAPITAL ( Fixed + Working ) , EVERY MONTH !



Even if market demand keeps GROWING for their “ Products / Services “ [ month after month ] , who has that kind of money ?  (  Remember , even the fastest growing markets for  any product / service is no more than 1 % per month ! )



And putting up large / organized sector businesses , take years – especially , factories !



So , what should be the government’s focus as far as job creation is concerned ?



It should be “ Self Employed “ sector , at the “ Bottom of the Pyramid “ !



Obviously , it is not practical to increase the number of “ Licensed Hawkers “ in Mumbai , from ONE LAKH to TEN LAKH , without bringing all traffic ( pedestrian and vehicular ), to a complete stop



But we must find a way to enable ONE MILLION ( 10 lakh ) flat / hut owners to carry on business from their homes / residences , by simply registering as “ Self Employed from Home “ ,  as long as such business / industry / service is non-hazardous ( air pollution – noise pollution – chemical effluent – explosives – harmful radiation – vending of banned items – delivering of banned services etc )



To understand why , read :










Start-UpEco-Systems / USA vs INDIA 

https://myblogepage.blogspot.com/2015/10/start-up-eco-systems-usa-vs-india.html



 

A NEWECONOMIC ORDER ? aka " Start Up Act - 2015 "

 https://myblogepage.blogspot.com/2015/09/a-new-economic-order.html



 


Any other approach is “ Bakwaas “  !



05  Nov  2017




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