Page 79 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management Hitesh Jhanji, Lovely Professional University

Notes Unit 6: Grassroots Entrepreneurs through
Self-Help Groups

CONTENTS
Objectives
Introduction

6.1 Grassroot Entrepreneurs: Meaning and Definition
6.2 Self-Help Groups
6.2.1 Need for SHGs
6.3 Microfinance as a Tool for Grassroot Entrepreneurship through SHG’s

6.4 Summary
6.5 Keywords
6.6 Review Questions

6.7 Further Readings

Objectives

After studying this unit, you will be able to:
Define grassroots entrepreneurs

Describe the Self-Help Groups
Explain the concept of grassroots entrepreneurs through Self-Help Groups

Introduction

In the previous unit, we dealt with the working environment and empowerment of women
entrepreneurs and also discussed about the problems faced by them. This unit will help you to
conceptualize grassroots entrepreneurs. The various sections and sub-sections of this unit will
also summarize how grassroots entrepreneurs work through Self-Help Groups (SHGs). Women
play a very important role in the economic development of India. They are involved in business
activities at all levels, making important contributions to economic growth.

Nowadays, Indian women are increasingly active in part of economy that were previously
considered male domain. But the development of women entrepreneurship is very low in India,
especially in the rural areas. Entrepreneurship amongst women has been a recent concern.
Women have become aware of their existence, their rights and their work situation. Nowadays
Self-Help Groups (SHGs) are playing very important role for women motivated in
entrepreneurship through micro-finance. SHGs are not only increasing in rural women
entrepreneurship but also in urban women entrepreneurship.
India has adopted the Bangladesh’s model in a modified form. To alleviate the poverty and to
empower the women, the micro-finance has emerged as a powerful instrument in the new
economy. With availability of micro-finance, Self-Help Groups (SHGs) and credit management
groups have also started in India. And thus the movement of SHG has spread out in India. The
members of SHGs now become entrepreneurs. Innovative thinking and farsightedness, quick

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