Roadmap for Answer Writing Challenges and Measures for PVTGs 1. Introduction Define PVTGs and their unique socio-economic position. Briefly mention their identification under the Dhebar Commission (1973) and their current count (75 groups). State the need for addressing their challenges in the context of inclusive ...
Model Answer Self-Help Groups (SHGs) face several challenges in scaling up their entrepreneurial activities to become viable business entities that can serve the consumer market. These challenges hinder the transition from subsistence-level operations to large-scale enterprises. 1. Access to FinanceRead more
Model Answer
Self-Help Groups (SHGs) face several challenges in scaling up their entrepreneurial activities to become viable business entities that can serve the consumer market. These challenges hinder the transition from subsistence-level operations to large-scale enterprises.
1. Access to Finance
One of the most significant barriers for SHGs is access to finance. Most SHGs struggle to obtain suitable financial products that align with their needs, such as loans or investment capital on favorable terms. The lack of affordable financing limits their ability to invest in growth and expand their business operations (NABARD).
2. Skill Deficits
A major constraint is the low level of education and skill among SHG members. Many members are illiterate or lack managerial skills, including money, material, and manpower management. This skill deficit results in low productivity and inefficient operations, preventing SHGs from scaling up effectively (NABARD).
3. Leadership Gaps
SHGs often face challenges in leadership development. Members may lack the confidence to take on leadership roles, which undermines the group’s ability to make critical business decisions and stay committed to growth. Without strong leadership, SHGs struggle to maintain focus and direction (NABARD).
4. Inadequate Support Systems
Another key issue is the limited access to market linkages, technology, mentoring, and training. SHGs often operate in isolation without the support they need to adapt to changing market conditions or improve their product offerings (NABARD).
Steps to Overcome Challenges
1. Utilizing Institutional Support
To scale up, SHGs should tap into the vast network of government ministries, specialized agencies, and financial institutions like SIDBI and DICs, which can provide financial, technical, and business support (NABARD).
2. Digital Empowerment
Investing in digital training and capacity-building initiatives will help rural entrepreneurs connect with online platforms, access government schemes, and manage regulatory requirements efficiently (NABARD).
3. Mentoring and Handholding
Continuous mentoring and handholding can provide SHGs with guidance on accessing loans, navigating compliance issues, and enhancing their business operations. This is crucial for overcoming operational and financial hurdles (NABARD).
4. Partnerships and Networking
Forming partnerships with NGOs, industry associations, and companies can help SHGs leverage external expertise, market access, and resources. For example, Gujarat’s MoU with Amazon to support tribal entrepreneurs highlights the power of strategic partnerships (NABARD).
By addressing these challenges and implementing these remedial measures, SHGs can be transformed into successful, large-scale enterprises contributing to rural economic growth and social empowerment.
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Model Answer Challenges Faced by Particularly Vulnerable Tribal Groups (PVTGs) Outdated Classification and Data Deficiency The current PVTG list is outdated and repetitive, with overlaps such as Mankidia and Birhor in Odisha being considered separate groups. Baseline surveys exist for only 40 of theRead more
Model Answer
Challenges Faced by Particularly Vulnerable Tribal Groups (PVTGs)
(Source: Anthropological Survey of India)
(Source: Ministry of Tribal Affairs, India)
Measures to Address the Challenges
With a focused and inclusive approach, PVTGs can achieve sustainable growth and integration into mainstream development frameworks.
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