SHGs Group Formation
“Empowering women through financial literacy and entrepreneurship! We educate and support women in forming self-help groups (SHGs) under the National Rural Livelihood Mission (NRLM) and the National Urban Livelihood Mission (NULM). Through our programmes, we promote regular savings and access to credit, inspiring women to become entrepreneurs. We provide training in various product manufacturing techniques, enabling them to start their businesses and improve their standard of living. Together, we’re creating opportunities for economic empowerment and a brighter future.”
Cause
Need
Action
Impact
Cause
- Economic Vulnerability: Many individuals, particularly women and marginalized groups in rural areas, face economic challenges and lack access to formal employment opportunities, financial services, and resources to start their enterprise.
- Social Exclusion: Discrimination, lack of education, and limited access to information and resources prevent individuals from marginalized communities from participating fully in economic activities and decision-making processes.
- Limited Access to Credit: Poor creditworthiness, a lack of collateral, and restrictive lending practices by formal financial institutions hinder individuals’ ability to access loans and financial support for entrepreneurial ventures.
Need
- Empowerment & Inclusion: Facilitating the formation of SHGs enables marginalized individuals, especially women, to come together, pool their resources, and support each other in starting and managing their enterprise, leading to greater empowerment,
agency, and social inclusion. - Access to Finance: Linking SHGs with formal financial institutions, such as banks and microfinance institutions, provides members with access to savings, credit, and other financial services, enabling them to invest in income-generating activities and build assets.
- Capacity Building: Providing training, skill development, and capacity-building programs to SHG members enhances their entrepreneurial skills, financial literacy, and management capabilities, enabling them to establish and sustain successful
enterprises. - Collective Action: Promoting collective action and cooperation among SHG members fosters solidarity, mutual support, and peer learning, creating a conducive environment for entrepreneurship and community development.
Action
- SHG Formation: Facilitating the formation of SHGs by organizing community meetings, mobilizing potential members, and providing training on group dynamics, leadership, and decision-making processes.
- Financial Inclusion: linking SHGs with formal financial institutions to open bank accounts, access savings, avail of credit facilities, and participate in government-sponsored schemes and programs for entrepreneurship development.
- Capacity-Building Programs: Organizing training workshops, skill development programs, and entrepreneurship training sessions to equip SHG members with the knowledge, skills, and resources needed to start, manage, and grow their businesses.
- Market Linkages: Facilitating access to markets, value chains, and market information to help SHG members identify business opportunities, develop marketable products, and establish marketing channels for their products and services.
Impact
- Economic Empowerment: Empowering SHG members, particularly women, with access to finance, skills, and resources for entrepreneurship leads to increased income generation, poverty reduction, and improved livelihoods for individuals and their families.
- Social Cohesion: Strengthening social networks and collective action among SHG members fosters solidarity, mutual support, and community resilience, contributing to social cohesion, harmony, and inclusive development.
- Women’s Empowerment: Promoting women’s participation in SHGs and entrepreneurship enhances their social status, decision-making power, and leadership skills, leading to greater gender equality, autonomy, and empowerment.
- Sustainable Development: Leveraging the collective strength of SHGs for entrepreneurship and community development promotes sustainable livelihoods, environmental conservation, and inclusive growth, contributing to the overall wellbeing and prosperity of rural communities.