In India, women Empowerment is a buzz word in the present day. As a country, India is faithful to empower the women. Though women are considered as “the unrecognized heroine, who works from birth to death”, yet it is terrible that even the unknowing and worthless men had been enjoying supremacy over women, which they don’t earn and must not to have. As most of the women lack assets that help contribute well-being and women empowerment in India, economic freedom over entrepreneurial development and self-employment is something that needs attention. So, the Government of India has provided them with the women Self-Help Groups (SHGs).
A Self-Help Group for women is a small volunteer association of pitiable people mostly from the similar socio-economic background. The small amount of credit is given to them to make them enterprising; it could be all-men group, all-women group or even a varied group. Although, as per experience, women’s groups usually perform well in all the significant activities of SHGs.
Basics of Self-Help Groups for Women
The basic concept of women Self-Help Groups is based on the following principles:
- Poor can save and are bankable and SHG’s as customers bring about more extensive creation of a common fund by donating little funds all the time;
- Participative financial management service is more responsive and effective;
- Self-improvement added with mutual help might be an influential tool for the poor in their financial advancement;
- Loaning is carried out mainly on trust with an uncovered documentation and without any security;
- Poor people not only need credit help, but savings and other services as well;
- Outreach, lower transaction expense and much lower risk costs for the banks;
- Easygoing democratic arrangement of working;
- Defaults are rare, mostly because of group pressure;
- Loans advanced are little, frequent and for limited time;
- Occasional meetings non-traditional funds.
Challenges for Self Help Groups (SHGs)
Self Help Groups (SHGs) are progressively becoming a key method for arranging women to make a move and change their condition. The quality of Self Help Groups is based upon the way that the individuals who are facing issues are likely to be the most dedicated to illuminate them. The failure of formal credit organizations to cover rural poor is generally recognized to high cost of overseeing the huge number of little loans. This has pushed huge number of Non-Government Organizations (NGOs) to enter the rural credit plan for organizing the poor into casual groups. For mutual help, these groups are instrumental in pushing casual structure of the poor to help them save and advertise with confidence in financing these needs through Women Self Help Groups. Yet poor have monetary crisis. Their poverty still endures.
Aside from weak market connections in the framework of income-producing events, there are many other concerns as well, in relation to women empowerment in India such as, the capacity structure of self-help groups, which are demanding for support in financial management, accounting, and organizational development.