The voltage and frequency of three-phase self-excited induction generator (SEIG) depend upon various factors such as prime mover speed, capacitance value, load etc. The poor voltage and frequency regulation are the main constraints for poor performance of SEIG. The improved performance can be achieved through short shunt SEIG configuration. In this study, the utilisation of SEIG is transformed into a number of novel functions. The combination of speed, series and shunt capacitances as design parameters are selected for short shunt SEIG in order to provide optimum values for voltage regulation (VR), frequency regulation (FR), loadability, voltage/frequency regulation and to provide optimum performance, defined as a weighted combination of VR, FR and loadability. The effect of weights, speed and power factor on designed parameters is also assessed for a generic application on SEIG. Correspondingly, an optimisation is proposed using particle swarm optimisation, a heuristic approach considering various equality and inequality constraints related to SEIG. This study is carried out for resistive and inductive loads. The simulated results are validated with test results.