SHG Business Model Empowering Women: A Study of Women SHGs in Kendrapara Sadar

Since 1991–92, the National Bank for Agriculture and Rural Development (NABARD) has promoted Self-Help Groups (SHGs) in India, inspired by the Grameen Bank model in Bangladesh, with the goal of empowering women. Over time, SHGs have evolved into a well-known movement across the country. These groups are designed to empower women by enabling them to generate income through group-led, indigenous product selling in their local market. This study involves a field visit to SHGs located in Jamdhar village, within the Kendrapara tehsil. In the Kendrapara district of Odisha, around 75% of the population relies on agriculture for their livelihood. However, frequent natural disasters often disrupt the income of farming families. The objective of the visit was to assess whether women involved in SHGs are contributing economically to their households and to understand the challenges and opportunities faced by these groups. Findings reveal that the SHG members have succeeded in increasing their monthly incomes by selling their SHGs’ indigenous products. The groups are also disciplined in repaying small loans sanctioned by banks for their business activities, which ultimately reflects their financial position and commitment to their business. Women members show strong involvement in both the production and marketing of their goods. SHGs are expanding rapidly, especially when their products are purchased under government schemes. The study recommends that the government should further support SHGs, particularly in agriculture and allied sectors, by ensuring access to inputs, offering training programs, and facilitating effective marketing channels for their products.