Role of SHG in economic development

Self-help groups (SHGs) can play an important role in promoting economic development, particularly in rural areas and among marginalized communities. Here are some ways in which SHGs can contribute to economic development:

Savings and credit: SHGs provide access to savings and credit, enabling members to start or expand their businesses, invest in productive assets, and manage household expenses.

Entrepreneurship development: SHGs provide training and support to members to develop their entrepreneurial skills, identify market opportunities, and access markets.

Social empowerment: SHGs promote social empowerment by encouraging members to work together, share resources and knowledge, and support each other's economic activities.

Access to government schemes: SHGs can act as a bridge between government agencies and their members, providing information on government schemes and supporting members to access them.

Community development: SHGs may undertake community development projects that benefit the members and the wider community, such as building infrastructure, providing health and education services, or promoting environmental conservation.

women's empowerment: SHGs can play a crucial role in empowering women by providing a platform for their collective action, building their skills and confidence, and promoting their participation in decision-making.

Poverty reduction: SHGs can contribute to poverty reduction by enabling members to increase their income, build assets, and improve their overall well-being.