Income‐Generating Activity: An Avenue to Improve the Sustainability of SHGs

23 Pages Posted: 28 Apr 2020

See all articles by Saroj Dhake

Saroj Dhake

University of Pune - K. K. Wagh Institute of Engineering Education & Research

Sameer P. NARKHEDE

North Maharashtra University

Date Written: December 2019

Abstract

Self‐help groups (SHGs) are formed to work for increased income through collective effort and use of banking facilities by initiating some income‐generating activities taking advantage of the financial strength of a group. Taking into consideration the significance of SHGs to economic growth, the present study analyzes and compares the management of the income‐generating activities of SHGs in rural and urban areas. It also explores the extent of resource mobilization through various income‐generating activities, and the constraints faced by the SHGs while undertaking these activities. It is an exploratory research in which a multi‐stage stratified cluster random sampling technique was used for the selection of SHGs. Data were collected at group level and member level through purposely developed interview schedules and focused group discussions. The study revealed that, because of various financial and marketing‐related problems occurring while initiating and conducting the activities, very few SHG members actually started new income‐generating activities. Testing of hypotheses indicated that SHGs do not fulfil all the requirements of income‐generating activities carried out by its members. An overall low to medium level of resource mobilization by a majority of the SHGs presented a poor picture of SHGs in generating resources for undertaking entrepreneurial activities.

Keywords: Self‐help groups, income generating activities, economic empowerment, 016

JEL Classification: G21

Suggested Citation

Dhake, Saroj and NARKHEDE, Sameer P., Income‐Generating Activity: An Avenue to Improve the Sustainability of SHGs (December 2019). Annals of Public and Cooperative Economics, Vol. 90, Issue 4, pp. 737-759, 2019, Available at SSRN: https://ssrn.com/abstract=3586876 or http://dx.doi.org/10.1111/apce.12238

Saroj Dhake (Contact Author)

University of Pune - K. K. Wagh Institute of Engineering Education & Research ( email )

Sameer P. NARKHEDE

North Maharashtra University ( email )

Post Box No 80
Umavi Nagar
Jalgaon, 425001
India

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