Self Help Group (SHG) is a form of financial intermediary that consists of a small group of people who come together to address common social and economic issues. It is primarily a method of self-empowerment and poverty alleviation, especially prevalent in developing countries. SHGs typically comprise individuals from similar socio-economic backgrounds, often women, who pool their resources, knowledge, and skills to solve common problems and promote social and economic development.
In terms of finance, SHGs provide a platform for members to save regular amounts of money, obtain access to credit, and engage in income-generating activities collectively. They operate on the principles of mutual trust, support, and cooperation, enabling the members to access financial services that are otherwise unavailable or unaffordable to them, and break the cycle of poverty.
SHGs are usually formed and facilitated by local organizations, NGOs, or governmental agencies with the aim of fostering economic inclusivity, promoting entrepreneurship, and enhancing social capital within communities. The groups typically meet regularly to discuss financial matters, review progress, make decisions, and offer support to one another.
Furthermore, SHGs often serve as a means to enhance the knowledge and skills of their members through capacity-building initiatives, training programs, and awareness campaigns. They provide a supportive and inclusive environment for members to improve their livelihoods, build confidence, and cultivate leadership qualities. Overall, SHGs play a crucial role in fostering self-reliance, empowering marginalized communities, and facilitating socio-economic change at the grassroot level.
