The Self Help Group (SHG) is an homogeneous voluntary association of poor who come together with a common interest to improve their social economic conditions. SHGs play a vital role in entrepreneurship and economic empowerment and provide access to finance, skill development and support network for small business ventures. The paper makes deep and sincere study of basic challenges faced by SHGs in entrepreneurship. Trends are the innovations and developments in SHGs that affect the business environment. The challenges faced by SHGs in business, mainly includes access to finance, market access, capacity building, government regulations, and social stigma. The trends can revolutionize operations, create new markets and also transform customer experiences. Critical evaluation of the existing governmental and non-governmental efforts indicate that training and technical assistance offered are not geared to suit the individual needs. Addressing these challenges while capitalizing on emerging trends can empower SHGs to thrive in the business.
Introduction
Business is a dynamic process where entrepreneurs drive innovation and create employment, influenced by various social and economic factors. Self-Help Groups (SHGs) are community-based organizations, often formed by women of similar socio-economic backgrounds, that promote mutual support, financial inclusion, and empowerment through savings, credit, and skill development. SHGs help members become self-reliant and foster capacity building for starting enterprises, supported by government and development agencies.
While businesses operate commercially to generate profit across sectors, SHGs focus on socio-economic empowerment, especially for women. Both intersect through partnerships, market linkages, and shared economic development goals. SHGs contribute significantly to women’s empowerment by improving skills, health, income, and decision-making abilities, as shown by various studies.
The study explores trends and challenges faced by SHGs in starting and managing businesses, such as digitalization, diversification, partnerships, and gender empowerment, alongside challenges like limited finance, capacity building, market access, social norms, and digital divide.
To overcome these challenges, recommendations include capacity building, improved finance access, market linkages, diversification, networking, leadership development, and policy advocacy. Together, SHGs and businesses can drive inclusive growth, economic empowerment, and community development.
Conclusion
SHGs have proven to be an effective mechanism for poverty alleviation and empowerment of the economy. SHGs through collective strength, has provided excess to finance, built livelihood opportunities, and fostered social inclusion. However, addressing the challenges SHGs are facing is crucial for their continued success. By focusing on Universal mobilization, capacity building, financial inclusion, diversified livelihoods, community support structures, and schematic convergence, the impact of SHGs can be further enhanced, leading to sustainable and inclusive development for the economically disadvantaged sections of the society. Overall, SHGs serve as grassroots mechanisms for poverty alleviation, social inclusion, and empowerment, leveraging the collective strength and resilience of their members to create positive change at the individual and community levels.
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