The Self-Help Group (SHG) approach to development is a participatory and empowering strategy that aims to uplift individuals in marginalized communities, enabling them to improve their socio-economic conditions.
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SHGs are voluntary associations of people, typically consisting of 10 to 20 members, who come together to address common issues and collectively work towards their economic and social advancement.
At its core, the SHG approach is built upon the principles of self-reliance, mutual support, and collective action. The primary objective is to empower individuals, particularly women, by enhancing their skills, building their capacity, and fostering self-confidence. SHGs serve as platforms for members to save money, access credit, and engage in income-generating activities.
The formation of an SHG involves community meetings, the identification of potential members, and facilitated discussions to determine the group’s goals and activities. Regular meetings are held, during which members contribute savings, address common challenges, and receive training on topics such as financial management, entrepreneurship, and health awareness.
Access to credit is a significant aspect of SHGs, which often utilize internal lending systems. This allows members to borrow from the group’s savings, invest in small businesses, agriculture, education, and other income-generating ventures, and repay the loans with interest. Additionally, the collective bargaining power of SHGs enables members to negotiate better prices for their products or services and access government schemes and resources.
Beyond economic empowerment, SHGs also foster social and political empowerment. They encourage members to participate in decision-making processes, challenge traditional norms, and advocate for their rights. SHGs facilitate the exchange of knowledge and experiences among members, creating a sense of solidarity and promoting mutual learning.
The SHG approach is widely recognized as an effective tool for poverty reduction, women’s empowerment, and community development. By promoting self-reliance, strengthening social bonds, and providing a platform for marginalized individuals to improve their lives collectively, SHGs have become instrumental in creating positive change at the grassroots level.