Self-Help Groups (SHGs): Composition and Functions

1. Composition: SHGs are typically composed of 10-20 members, usually from similar socio-economic backgrounds, such as women from rural areas. Members are generally volunteers who come together to promote mutual support and economic development. They are often formed based on self-selection and a shared interest in improving their conditions.

2. Functions:

• Financial Inclusion: SHGs provide micro-financing through savings and credit facilities, enabling members to access small loans for various needs and entrepreneurial ventures.
• Skill Development: They often facilitate training programs to enhance vocational skills, leading to improved employment opportunities and self-employment.
• Social Empowerment: SHGs play a role in social issues, such as healthcare and education, by mobilizing resources and advocating for women’s rights and community development.

3. Impact: SHGs contribute significantly to poverty alleviation and economic empowerment by fostering self-reliance and community solidarity.

Conclusion: SHGs’ composition of like-minded individuals and their multifaceted functions in financial support, skill development, and social empowerment make them crucial for grassroots development and poverty reduction.