Self Help Group Case Study

SHGs have evolved as an agent of social change and empowerment, (India’s Finance Minister, P. Chidambaram, 2004). Developing economy like India has a unique approach towards the concept, which combines easy access to financial institution and also acts as a process, which helps the rural women to grow in various aspects of life. SHGs form a complex linkage of people and the main stakeholders are the members it-self. Other participants include various financing agencies, social groups and organizations working for the group. The role of the government and its policies provide a footing on which they operate.
The basic premise of a Self Help Group (SHG), is that women programs contribute to social development, as they are most cost-effective
It is usually homogenous in nature (Shiralashetti 2010). They have similar aims and objectives and are formed to encourage the individuals and help them to gain easier access to credit and invoke a confidence of collectivism in them. (Chidambaranathan 2013). The program connects the poor through Self Help Group promoting institutions like NGOs, banks and other Micro financial Institutions. (Bali Swain and Varghese 2010). It empowers women by giving them greater autonomy and independence in the family. With more financial resources their bargaining power in the family also increases (Aghion and Morduch 2005), (Manser and Brown 1980), (Chiappori 1988, 1992), McElroy and (Horney 1981) Browning and (Chiappori 1998). In the context of South Asia and specifically India women empowerment is more a process of challenging the existing norms and trying to improve the overall well being of women. Self Help Group add lot of awareness among its members. They are much more aware about the political environment and social fabric around them (Bardhan and Klasen 1999). SHGs instills them with better communication, improved confidence resulting in mobility amongst them and makes them a decision maker in the house. SHGs articulate a sense of confidence among them to pursue their interest area and be successful in them (Purushottaman
Caste system, religious systems and beliefs still play a paramount role in rural India. Women SHG’s lack erudition about various government schemes, poor communication, lack of advanced technologies and markets constrain the growth of the members. Group’s members also lack self-confidence and risk taking capacity. It is result of being a part of patriarchal rural Indian society, which for years has discouraged the working of females.
Getting the initial seed money to start a business in rural India is also a prodigious task, with very few people having Permanent Account Number (PAN) cards and other identity proofs getting bank loans is next to impossible for scaling up the ventures or even to begin