Abstract: Unorganized sector was coined by the British economist Keith Hart in 1971, which emerged as a one of the dynamic and vibrant sector. This sector broadly corresponds to the household sector which includes private unincorporated enterprises. The unorganized sector also includes some formal activities on which there is no regular system of data availability. Unorganized sector contributed significantly and expanded rapidly in the Indian economy. The contribution of formal activities in the unorganized sector is quite small. High population, unemployment and ample number of degree holders are some of the reasons for self- employment generation in an unorganized sector. The Government of India set-up a ‘National Commission on Enterprises in the Unorganized/Informal Sector through a resolution dated 20th September, 2004 as an advisory body and watchdog for the informal sector . As per the Economic Survey 2007-08, 93% of Indias Work force including the self-employed and employed in unorganised sector. The Ministry of Labour, Government of India Has categorised the unorganised labour force under various groups such as occupation, nature of employment,distressed category and service category. This paper is based on role of entrepreneur and Challenges before the present youth in taking up such job in unorganized sectors as self- employment .It highlight about present scenario of unorganized sector, Status, role of entrepreneur in creating interest for self employment, Challenges and problems faced in selecting self- employment.