Income Generation by Women Self Help Groups

SHG is a group of 10–20 people from a homogeneous class having common problems, they thrift on a regular basis making small interest bearing loans to their members with the main aim of empowering women. Data collected from 400 SHG's from nine districts represented by different agro-climatic zones revealed that only 277 were sustaining and the remaining had discontinued. Only half of these groups were involved in income generating activities less than half of income generating group members were participating. Further 59.37% were involved in income generating activities even before becoming the member of SHG. There were only 5.78% entrepreneurial groups with only 31.25% with all member involvement. In all the groups outsiders were engaged in entrepreneurial activity beside the SHG members. In 100.0% cases these were family members of group members and in 25.00% non-family members. Half of groups had availed the facility of loan and it was distributed among 90.94% of their members but less than 12.0% amount used for the purpose it was taken. Further, it was found that the entire total amount invested was taken as loan from the banks. It was found that entrepreneurial groups reported higher income per member than from individual income generating activities. Trainings undertaken by the members was found to be useful. Male participation in women group activity indicates that mixed family groups can be more effective in entrepreneurial activities. Mandatory investment from the group savings at initial stages of income generation can help to ensure appropriate utilization of loan and also avoid membership for the purpose of only seeking loans.