Formal Structure and Efficiency of Self-Help Groups: An Economic Analysis

2018 ◽  
Vol 7 (3) ◽  
pp. 97-102
Author(s):  
Mudaser Ahad Bhat
Keyword(s):  
Organizational Structures ◽  
Logical Structure ◽  
Bank Loans ◽  
Formal Structure ◽  
Income Generation ◽  
Self Help ◽  
Long Run ◽  
And Gender ◽  
Self Help Groups ◽  
The Impact

Self-help groups are generally seen as instruments for goals including empowering women, poverty alleviation, developing leadership qualities among poor and needy people. SHGs bridge the gap between haves and have-nots. These groups have become basic sources of village capital. Self-help group’s (SHGs) have had a record of success, but they are gradually losing their significance as an instrument of micro-finance and financial inclusion. The persistence of poverty and gender inequality on the scale at which they still exist are not acceptable. This reflects that SHGs face the issues of declining efficiency and quality, although their quantity is alright. Further, the natures of formal structure within which SHGs operate and function have a fundamental effect on their functioning and efficiency and on the efficiency of micro-finance and inclusion programmes. If the problems of these groups are addressed efficiently and are provided with sufficient institutional and financial support, the efficiency of these groups will improve and “efficient and viable self-help groups could do wonders”. Due to enhancement in efficiency and sustainability, self-help could improve the social capital base not only of members but also of non-members. It is in this background that this paper attempts to identify the particular parameters/elements that must be present uniquely in the formal structure of all SHGs so that all SGHs may follow a unique logical architecture in their functioning. This study also attempts to analyze the relationship between the formal structure of SHGs and their total savings, their lending capacity, total amount left after disbursements and number of beneficiaries. Finally, this study also attempts to analyze the impact of their formal structure, bank loans received the ability to repay received bank loans, regularity/irregularity towards savings on their frequency of using the bank. From the obtained data and statistical analysis, the study found that the majority of SHGs function independently of their organizational structures. This mars their overall efficiency because the formal structure has its significance in achieving group goals and thereby, increases the level of work quality. Working of SHGS according to a well-established structure positively and significantly impacts their savings, borrowing capacity, lending capacity and a number of beneficiaries. Referred to the data, we can conclude that those SHGs use their operational bank accounts frequently that have a well-established logical structure, received and repaid banks loan since their inception, maintained regularity in group savings and participated in income generation activities than those which lack a formal structure, were unable either to receive or repay bank loans, faced irregularities towards group savings and not participated in income generation activities. So SHGs should pay specific attention towards the formulation of logical structures to work on, maintain regularity in their savings and should participate in income generation activities. Further, banks should provide sufficient loans to these voluntary saving groups and should increase the loan repayment period for them so that these group may become able to maintain their sustainability in the long-run.

scholarly journals Microfinance on Poverty Alleviation: Empirical Evidence from Indian Perspective

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Mohd Azhar Ud Din Malik
Keyword(s):  
Empirical Evidence ◽  
Poverty Alleviation ◽  
Central India ◽  
Bank Loans ◽  
Self Help ◽  
Economic Profile ◽  
Self Help Groups ◽  
The Impact ◽  
Indian Perspective

This paper is a modest attempt to collect data from northern, southern and central India to analyse the impact of microfinance on poverty through imperial evidence from across the country- The respondents were divided between two groups, Participants and Non-Participants, Participants were members of Self Help groups (SHGs) which have benefited from which scheme? and received bank loans. Non-participant members were those who were eligible for microfinance and formed SHGs but did not obtain credit up to the time of the survey. As per the NABARD guidelines, SHGs are provided bank loans only after active existence of the groups for about six months since inception. Non-participants belonged to the group which was less than six months old at the time of survey; - have not availed any benefit from the microfinance program. The study concludes that the socio-economic profile of sample respondents with experience of less than six months was completely different from the respondents with experience of more than six months.

scholarly journals The impact of self-help groups on pastoral women’s empowerment and agency: A study in Nigeria

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Adedamola F. Badejo ◽  
Ayodele O. Majekodunmi ◽  
Peter Kingsley ◽  
James Smith ◽  
Susan C. Welburn
Keyword(s):  
Women's Empowerment ◽  
Women’S Empowerment ◽  
Self Help ◽  
Self Help Groups ◽  
The Impact

scholarly journals Impact of Financial Inclusion on Income Generation and Savings in Mountain Regions: A Case Study of Rural Households of Uttarakhand

2021 ◽  
Vol 16 (1) ◽  
Author(s):  
Prashant Kandari ◽  
Kusum Dobriyal ◽  
Uma Bahuguna
Keyword(s):  
Positive Impact ◽  
The State ◽  
Financial Inclusion ◽  
Income Generation ◽  
Mountain Regions ◽  
Economic Activities ◽  
Long Run ◽  
Economically Deprived ◽  
Caste Groups ◽  
The Impact

The major drive for financial inclusion started in the country mainly from year 2014 after the launch of Jan Dhan Yojana which focused mainly towards empowering dwellers of resource deprived and underdeveloped regions. Economic empowerment of such deprived sections is possible only when they are provided with ample opportunities for income generation in various economic activities. The prominent aim of financial inclusion is to facilitate residents of such deprived regions by reaching out to them and delivering them facilities so that they could identify and work on their capabilities to generate employment and income earning opportunities. The economically deprived and vulnerable population, through it, could be secured, from falling in the trap of poor informal level activities. These low-level informal activities are not suitable for them and for their overall development in the long run. Financial inclusion thus helps them in getting out of the poverty trap and hence acts as one of the important facility or an instrument which could help in a larger achievement of the goal of the development of residents of such deprived regions. Keeping these aspects in consideration the present study aims to understand the impact of financial inclusion on two important variables i.e. income generation and enhancement of savings among the residents of Mountain regions of the state which also represents the deprived and underdeveloped regions. The study was conducted in three mountain districts of the state and the results of the study shows that financial inclusion has helped in income generation in these regions but the impact of it has been different among different caste categories. Further the study shows that financial inclusion worked to enhance the income generation with larger benefits to households having higher levels of income. The study also depicts the positive impact of financial inclusion on savings but with noticeable variations in its impact on different caste groups.

Self Help Groups

2016 ◽  
pp. 221-235
Author(s):  
Shruti Agrawal
Keyword(s):  
The Self ◽  
Access To Credit ◽  
Self Help ◽  
Favorable Environment ◽  
Self Help Groups ◽  
The Impact ◽  
Self Help Group

The chapter is based on the Self Help Group-Bank linkage Programme in India. The objective of the chapter is to assess the SHGs access to credit under SHG-Bank Linkage Programme, to know the progress of SHG-Bank Linkage Programme in India and to evaluate the impact of SHG-Bank Linkage Programme in India. Finally the chapter ends with suggestions to improve self help group-bank linkage programme and concludes that SHG-Bank Linkage Programme has provided a more favorable environment for enhancing India's potential for greater equitable growth with empowerment while considering the positive signs in their performance.

scholarly journals An analysis of women’s self-help groups’ involvement in microfinance program in India

2019 ◽  
Vol 13 (2) ◽  
pp. 2-11
Author(s):  
Gaurav Joshi
Keyword(s):  
Regression Model ◽  
Family Type ◽  
Content Type ◽  
Logit Regression ◽  
Self Help ◽  
Participation Of Women ◽  
Significant Difference ◽  
Self Help Groups ◽  
Logit Regression Model ◽  
The Impact

Purpose The purpose of this is to classify the social and economic factors which impact the involvement of women in self-help groups (SHGs) for their economic as well as social empowerment. Design/methodology/approach The research has been conducted in Nainital district of Uttarakhand (India) in 2018. Primary data have been gathered from women respondent only on factors relating to the ownership of asset, housing characteristics and other demographic details. Both SHG and non-SHG women members have been chosen as key informants during the survey. Multi-stage purposive and stratified random sampling has been used for the selection of respondents and SHGs. The logit regression model has been formulated to describe the causes that influence the participation of women in SHGs. Also, an empowerment index has been constructed to measure the effect of SHGs on women empowerment. Findings The results show that factors including age, education, family type and distance from the market have a significant impact on the participation of women in SHGs. Also, there is a significant difference in both these values which suggests that the value of the empowerment index gets significantly increased after joining the SHGs. Practical implications Analytically derived factors have been used to develop an empowerment index. Hence, the present research is valuable for marketing practitioners, entrepreneurs and professionals from the development sector who intend to work amongst SHGs, primarily with women. The paper is valuable for academic researchers in this area so that the limited body of knowledge, on the empowerment index, could be developed. Originality/value The present research is unique because the authors did not find work, especially in the context of rural India, in the said area. Factors impacting the participation of women in SHGs along with the impact of participation on empowerment have been explored using the logit regression model, leading to the development of an empowerment index.

In the Hot Seat: Teaching Students Through Experience With Self-Help Groups

2017 ◽  
Vol 22 (1) ◽  
pp. 163-179
Author(s):  
Maha N. Younes ◽  
Jody L. Vanlaningham
Keyword(s):  
Social Work ◽  
Sense Of Self ◽  
Social Work Students ◽  
Vital Role ◽  
Human Service Professionals ◽  
Self Help ◽  
Group Meetings ◽  
Self Help Groups ◽  
The Impact ◽  
Self Help Group

This descriptive study examines the attitudes and experiences of students at a midwestern public university who attended self-help group meetings to fulfill an undergraduate social work course requirement and to promote professional preparation for social work and other helping professions. Questionnaires were administered in two social work courses, and self-assessment papers submitted by social work students were used to gain insight into their perspectives related to self-help groups and to understand their personal experiences before, during, and after completing the assignment. The outcome revealed the impact that attending self-help group meetings had on students, the personal and professional knowledge they gained, and the vital role human service professionals, especially social workers, play in supporting self-help groups. The experience triggered a powerful and personal journey where students confronted their fears and biases, gained a more compassionate view of addictions and mental health, and walked away with an improved sense of self-efficacy.

The views of professional on the role of self-help groups in the mental health area

1999 ◽  
Vol 16 (3) ◽  
pp. 84-89 ◽  
Author(s):  
Elizabeth A Dunn ◽  
Aine C Fitzpatric
Keyword(s):  
Mental Health ◽  
Health Care ◽  
Mental Health Care ◽  
Mental Health Professionals ◽  
Health Professions ◽  
Postal Survey ◽  
Self Help ◽  
Self Help Groups ◽  
The Impact

AbstractObjectives: Changes in healthcare policy over the last decade emphasise care in the community over residential care. Self-help organisations may play a useful role in these circumstances. Against this background, the objective of this study was to obtain the views of members of the main mental health professions on the place of self-help groups in mental health care.Method: A postal survey of 255 mental health professionals from two health boards was carried out, using a semi-structured questionnaire that contained both open and closed questions. The responses obtained were analysed using descriptive statistics and content analysis as appropriate.Results: The response rate was 35% so results must be interpreted cautiously. Self-help groups are used particularly in the management of addictive behaviours, and are also considered useful in cases of mood disorder. In general, self-help organisations are seen as providing support to patients and their families; information on mental illness/health to the general public; and lobbying for services relevant to the needs of their members. Respondents were concerned that the philosophy and programme of a group should not conflict with established models of mental health. The impact of the organisational structure of the multi-disciplinary team on the referral pattern of the different mental health professions, and the role of group availability and accessibility on the decision to refer a patient to a self-help group is commented upon.Conclusions: While some professionals see a role for self-help organisations in the mental health care system, reservations expressed about a possible clash between selfhelp groups' approach and professional mental healthcare practice need to be addressed so that the potential of both positions can be realised.

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