A Self-Help Group (SHG) is an informal association of individuals, typically ranging from 10 to 20 members, who collaborate to pool their resources, save money, and engage in income-generating activities. These groups primarily aim to empower individuals, especially women, in rural areas by fostering financial independence and social awareness.
SHGs have emerged as a pivotal force in poverty alleviation and women's empowerment across India. By promoting financial inclusion, they contribute significantly to community development and social awareness. The movement gained momentum in the 1980s and has continually evolved, playing a vital role in rural transformation.
The registration of SHG federations as cooperatives provides them with legal status and enhances their collective bargaining power. This recognition enables cooperatives to engage in negotiations, access institutional support, and effectively manage their operations.
The Swabhiman Jeevika Mahila Swavlambi Sahkari Samiti Ltd. exemplifies the advantages of cooperative models. With legal status, it gains collective bargaining power and access to resources, allowing it to provide various services and foster job creation, thereby advancing rural development.
Cooperatives like Swabhiman create numerous job opportunities across diverse sectors such as credit management, tailoring, agricultural machinery, training, veterinary services, fisheries, poultry, and farm input supply. These roles contribute to local economic growth and development.
Other cooperatives and self-help organizations can emulate the Swabhiman model by considering legal frameworks, institutional support, and economic opportunities. Emphasizing social inclusion and expert access, they should strive to enhance collaboration and promote sustainable community development.
According to the Economic Survey of India Report 2022-23, the SHG-Bank Linkage Programme encompasses 142 million households operating through 11.9 million SHGs. These households collectively hold substantial savings deposits and access substantial collateral-free loans, boasting high repayment rates.
The National Rural Livelihood Mission (NRLM) currently concentrates on scaling and institutionalizing SHGs into Cluster Level Federations (CLFs). This initiative seeks to create sustainable livelihood opportunities, enhance financial inclusion, and promote social empowerment in rural communities.
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