Self Help Groups (SHGs)
1. Definition and Formation: Self Help Groups are small, informal, and community-based organizations comprising 10 to 20 individuals, primarily women, who come together voluntarily to address common socio-economic issues. They pool their savings and collectively undertake income-generating activities.
2. Objective: The primary objective of SHGs is to empower their members, particularly women, by fostering financial inclusion, encouraging savings, providing access to credit, and promoting entrepreneurship.
3. Savings and Microcredit: SHGs promote regular savings among their members, and these savings are used to provide microcredit to members in times of need. The availability of microcredit within the group helps members avoid high-interest loans from moneylenders.
4. Bank Linkages: SHGs establish linkages with formal financial institutions like banks to access additional credit and other financial services for their members. This enhances their financial inclusion and facilitates access to larger loans.
5. Social Capital Formation: SHGs promote social cohesion, mutual trust, and cooperation among members. They act as platforms for discussion and resolution of social and economic issues within the community.
6. Livelihood Promotion: SHGs engage in various income-generating activities, such as agriculture, handicrafts, small-scale enterprises, etc. The collective investment and support enable members to enhance their livelihoods.
7. Empowerment and Decision-making: SHGs encourage active participation of women in group discussions and decision-making processes, leading to increased confidence and leadership skills.
8. Government Support: The Indian government supports SHGs through various schemes and programs to enhance their impact and reach. SHGs are linked to government-sponsored livelihood programs and social welfare schemes.
Swarnajayanti Gram Swarozgar Yojana (SGSY) Scheme
1. Introduction: SGSY was a government scheme launched in 1999, later restructured as the National Rural Livelihoods Mission (NRLM). It aimed to alleviate poverty in rural areas by promoting self-employment through the formation of SHGs.
2. Objectives: The SGSY scheme aimed to provide sustainable income opportunities to rural poor households by organizing them into SHGs and providing them with financial assistance and skill development.
3. SHG Formation and Training: The SGSY scheme focused on forming SHGs in rural areas and provided them with training and capacity-building support to undertake income-generating activities.
4. Capital Subsidy and Revolving Fund: Under SGSY, eligible SHGs received capital subsidy and revolving fund support to start and expand their livelihood activities. The subsidy reduced the burden of investment for the SHGs.
5. Project Selection and Monitoring: SHGs identified viable economic activities based on local resources and needs. The scheme ensured effective monitoring of the projects to ensure their success.
6. Convergence with Other Schemes: SGSY aimed to converge with other development schemes to enhance the overall impact and sustainability of the projects undertaken by SHGs.
Capacity Building
1. Definition: Capacity building refers to the process of strengthening the abilities, skills, and knowledge of individuals and organizations to perform effectively and achieve their goals.
2. Importance: Capacity building is crucial for the success of SHGs as it equips members with the necessary skills and knowledge to manage their group effectively, handle finances, and undertake income-generating activities.
3. Training Programs: Capacity building for SHGs includes training programs on financial literacy, bookkeeping, record-keeping, entrepreneurship, leadership, and other relevant areas.
4. Empowering Women: Capacity building plays a significant role in empowering women by enhancing their confidence and decision-making abilities, enabling them to take on leadership roles.
5. Sustainability: Building the capacity of SHGs ensures their sustainability and long-term success, as members become more capable of managing their activities independently.
6. Support from NGOs and Government: NGOs and government agencies play a vital role in providing capacity-building support to SHGs through various training programs and workshops.
In conclusion, Self Help Groups (SHGs) are community-based organizations that empower their members, especially women, by promoting financial inclusion, providing access to credit, and encouraging entrepreneurship. The Swarnajayanti Gram Swarozgar Yojana (SGSY) scheme was an important government initiative to support SHGs in rural areas. Capacity building is crucial for the success and sustainability of SHGs, and it involves providing training and skill development to members to effectively manage their group activities.