Page 86 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT
P. 86
Unit 6: Grassroots Entrepreneurs through Self-Help Groups
Becoming a member in SHG ensures women to become socially and politically empowered. Notes
The concept of SHG generally rejuvenate the rural women as it helps in breaking the vicious
circle of poverty among women, thereby to become economically viable.
Self Help Groups (SHGs) have been successful in empowering rural women through
entrepreneurial activities. Increase in income, expenditure and saving habits of rural women
were observed. The SHGs had major impact on social and economic life of rural women.
Example: Rang De. Founded by Ramakrishna and Smita Ram in January 2008, Rang De
is a peer-to-peer online platform that makes low-cost micro-credit accessible to both the rural
and urban poor in India.
A study revealed an increase in social recognition of self, status of family in the society, size of
social circle and involvement in intra family and entrepreneurial decision making. There was
an increase in self-confidence, self-reliance and independence of rural women due to the
involvement in the entrepreneurial and other activities of SHGs. SHGs could be linked to
literacy programmes run by government and it could be made an integral part of SHG activities.
Raised literacy level could be helpful for the SHG members to overcome cognitive constraints
and to understand government policies, technical understanding and gaining required skills.
Rural women could be motivated to avail finances for starting the entrepreneurial activities.
Awareness created about various credit facilities, financial incentives and subsidies through
Self-Help Groups. As women were found technologically less empowered, they are to be imposed
to the technologies which are labor saving, drudgery reducing, income generating and
productivity increasing. Entrepreneurship education and trainings could be introduced at all
levels from basic education. It could be helpful in inducing positive self-concept, self-reliance,
self-confidence and independence in rural women.
Self Assessment
State whether the following statements are true or false:
11. Women are not considered to be good leaders in matters requiring collaboration, group
integration and ability to listen and motivation.
12. Micro finance through the self help groups has a lot of role to play in the grassroot
entrepreneurship as well as women empowerment.
13. A Non-Governmental Organization (NGO) is a voluntary organization established to
undertake social intermediation.
14. Micro credit appears to improve the lives of those who are poor by decreasing their
buying and investing capability.
15. Self-help groups promote savings among members and use the pooled resources for
multi dimensional development.
LOVELY PROFESSIONAL UNIVERSITY 81