by Strength and weakness, both are the different sides of the same coin. Hence, all involved group members of SHG must realize that they all work with their own individual strengths and weaknesses. No one should be blamed for ones weakness i.e. all SHG members are equally responsible for success and failure of their entrepreneur. Self-help group can take a lead in any of the income generating activities by which group members can get employment and enhance their family socio-economic status. The group provides a platform to women for income generation with co-operative and mutual helping attitude.
The definition of SHG as approved by National Bank For Agriculture and Rural Development [NABARD] the apex banking body in India, is “An SHG is a small, economically homogeneous and affinity group of rural poor voluntarily formed to save and mutually agree to contribute common fund to be lent to its members as per group decision for their socio-economic development”.
As the name indicates, self-help group is an informal group of about 15-20 people from a homogeneous class, who come together for addressing their common problems. Group itself becomes a base to convey necessities and sort out social economical problems of their group members.
Main aim of SHG is to make group members self sufficient and self reliant [independent] by self-employment and empowerment through group dynamics.
Principle of SHG:
“Unity is strength”
Self-help group is a best way to get strengthen. Ex:- A single wooden piece can be easily broken, but a bundle of 15-20wooden pieces can’t be broken easily. As like this a group of people can easily sort out any of the problem, because group decisions carry more weightage than individual decision.
Characteristics of an ideal SHG:
According to MARADA[2000] well functioning SHG should have following structural features:-
- An ideal SHG comprises 15-20 members.
- All the members should belong to the same socio-economic strata of society.
- Rotational leadership should be encouraged for the distribution of power and to provide leadership opportunities to all the members.
- Member should regularly attend meetings, save money and participate in all activities VOLUNTARILY.
- The procedure of decision-making in SHG should democratic in nature.
- The group frames rules and regulations, which are required in its effective functioning.
- Transparency in account keeping and accounts should be maintained and updated regularly.
- An SHG should be socially viable institution.
Role of Self Help Groups in empowering women:
The self-help groups empower women and train them to take active part in the socio-economic progress of the nation and make them sensitized, self-made and self disciplined. The SHGs have inculcated great confidence in the minds of rural women to succeed in their day-to-day life. SHGs enhance the quality of status of women as participants, decision makers and beneficiaries in the democratic, economic, social and cultural spheres of life. The SHGs bring out the capacity of women in molding the community in right perspective and explore the initiative of women in taking the entrepreneurial ventures. SHGs also organize women to cope with immediate purposes depending on the situation and need.
Participation of women in SHGs makes a significant impact on the empowerment in social aspect also. Participation helps women come out in open and discuss their problems. It also helps to bring about aw2areness among rural women about savings, education, health, environment, cleanliness, family welfare, social forestry, etc. Researches also reveal that increased participation of women in decision making at all level will help to adjust the goals pursued through development.
Empowerment should be extremely induced so that women can exercise a level of autonomy. There should also be ‘self empowerment’ so that women can look at their own lives. The process of ‘learning by doing and earning’ would certainly empower rural women. More and more rural women need to be involved in self-employment. Self-employment in agriculture, village and small industries and retail trade and services should be expanded. Self-employment is also conducive to the development of individual initiative and entrepreneurial talent and offers greater personal freedom. The added advantage is that the institution of family remains undisturbed. The emergence of self-help groups in this context is a welcome development. The groups would provide a permanent forum for articulating their needs and contributing their perspectives to development.
Self-help group should be developed as an institution for financial intermediation as well as people’s network rather than a vehicle for credit disbursal only.
Self Help Group is able to overcome most of the practical problems encountered in the implementation of the various income generating programmes for the economic empowerment of women. SHGs have also been organized during last decade under various programmes of the government, e.g.- District Poverty Eradication Programme, Aapni yojna, Development of Women and Children in Rural Areas, Krishi Vigyan Kendra, etc.
The number of SHGs existing at present in the country is estimated to be about 2,60,000. Out of these; about 90 percent are women group. The cumulative number of SHGs linked to the bank till March 2002 is 4,61,478 and to the tune of 10,263 million rupees has been advanced to the SHG for income generating activities [NABARD,2002]. As per the report of NABARD, SHG bank linkage programme has benefited 4 million families, covering an estimated 20 million very poor people during 2001-2002.
The SHGs are a viable alternative to achieve the objectives of rural development and to get community participation in all rural development programes. The possible outcomes of women’s entrepreneur through SHGs at household level are self employment, sustainable livelihoods, enhanced social dignity and better status of women. SHG would lead to benefits not only to the individual women and women’s groups but also for the family and community as a whole through collective action for development. Empowerment is not just for meeting their economic needs but also for more holistic social development.
The success of a small scale enterprise depends on the following major factors:
[A] Inherent viability of the project, i.e.-technical, organizational, financial, commercial viability.
[B] The way a project is planned, i.e.-decisions regarding various project parameters such as where to locate, what technology to be used, what should be the capacity of the machineries etc.
[C] The meticulousness with which a project is implemented.
[D] The way of project managed.
Everything revolves around the enterprise. Therefore, the factors responsible for their emergence and growth must be analyses and supported.
