Self-Help Groups (SHGs) are community-based organizations comprising individuals who come together to address common needs, empower themselves economically, and improve their social well-being through collective action.
- Formation and Structure:
- SHGs typically consist of 10 to 20 members, predominantly women, from similar socio-economic backgrounds, neighborhoods, or communities.
- Members contribute a small amount of savings regularly to a common fund, which is used to provide loans to group members for income-generating activities or meeting emergency needs.
- SHGs operate democratically, with regular meetings where members discuss issues, make decisions collectively, and manage group finances and activities.
- Objectives and Benefits:
- Economic Empowerment: SHGs aim to empower members economically by providing access to financial services, credit, and income-generating opportunities. They promote entrepreneurship, skill development, and livelihood enhancement among members.
- Social Empowerment: SHGs facilitate social cohesion, mutual support, and solidarity among members. They serve as platforms for sharing experiences, knowledge, and information, and for addressing social issues such as gender inequality, domestic violence, and health education.
- Financial Inclusion: SHGs improve access to formal financial services for marginalized communities, including savings, credit, insurance, and pension products. They promote financial literacy, savings habits, and financial independence among members.
- Poverty Alleviation: SHGs contribute to poverty reduction by providing financial resources, livelihood support, and social security to members. They enable members to generate income, accumulate assets, and build resilience against economic shocks and vulnerabilities.
- Activities and Initiatives:
- Income-Generating Activities: SHGs engage in various income-generating activities such as agriculture, animal husbandry, handicrafts, small-scale industries, trading, and services. They pool resources, skills, and labor to undertake collective ventures and enterprises.
- Microfinance and Credit Services: SHGs provide microfinance services to members, including savings, loans, and insurance, tailored to their needs and capacities. They mobilize savings from members and access external funds from banks, financial institutions, and government programs to provide credit on favorable terms.
- Skill Development and Training: SHGs offer training programs, workshops, and capacity-building initiatives to enhance members’ skills, knowledge, and capabilities in areas such as entrepreneurship, financial management, marketing, and value addition.
- Social Welfare and Community Development: SHGs undertake community development projects and social welfare activities to address local needs and priorities, including education, health, sanitation, environment, and disaster management.
- Examples of Self-Help Groups:
- Kudumbashree in Kerala: Kudumbashree is one of the largest women’s empowerment programs in India, comprising neighborhood groups and community development societies. It promotes entrepreneurship, poverty reduction, and social inclusion through SHGs, livelihood programs, and community initiatives.
- Rashtriya Mahila Kosh (RMK): RMK is a national-level organization that provides financial assistance and support to women’s SHGs across India. It offers loans, grants, and capacity-building programs to promote women’s economic empowerment and entrepreneurship.
- Jeevika in Bihar: Jeevika is a poverty alleviation program implemented by the Government of Bihar, focusing on women’s SHGs and livelihood promotion. It provides financial services, skill development, and market linkages to empower rural women and enhance their livelihoods.
In summary, self-help groups play a crucial role in promoting economic empowerment, social solidarity, and community development among marginalized communities, particularly women, across India. By fostering collective action, resource mobilization, and capacity-building, SHGs empower individuals to improve their livelihoods, enhance their well-being, and participate more actively in the socio-economic development of their communities.
