Importance of Self Help Groups in Rural Development

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In rural development, self help groups are seen as an important strategy for empowering women and rural communities. These groups help rural people to address their problems by pooling their resources and providing mutual support to one another.

The main aim of these groups is to improve their income generation and raise poor families above the poverty line. Groups are promoted by state governments, NGOs, local community based organizations (CBO), regional rural banks and microfinance institutions.


A self help group is a small community association of impoverished individuals from the same socio-economic background. It aims at building the functional capacity of poor sections of society in the domain of employment and income-generating activities.

These groups are often linked to banks in order to receive microcredit. They also encourage the habit of saving among poor people, a key factor in alleviating poverty.

They provide a wealth of information that can help people overcome their challenges, and they are especially effective in preventing the spread of diseases. They can be found all over the world, and are typically free to join.

Self help groups are an important tool for rural development. They can increase the number of jobs and help to reduce poverty. They also offer a safe place for people to talk about their problems, and they can be helpful for people in recovery from addictions.

Self Help Groups are a form of mutual support, providing community members with the opportunity to build connections through sharing experiences and stories. They are especially helpful for people who are going through a difficult time, such as a mental health concern, addiction, or loss.

Self help groups are often free or donation-based, which appeals to those who cannot afford professional guidance. They can be a good alternative to therapy, but they should not replace it.

Many groups are peer led, which allows members to share as they feel comfortable. Some groups may have a trained professional as a leader, but they usually have little or no authority in the group.

Many self-help groups also value anonymity, which ensures that members can openly share their experiences without fear of being judged. This can increase their confidence in their ability to cope with life's challenges and make positive changes. It can also provide them with a sense of belonging and help to build their self-esteem.

Self Help Groups (SHGs) are a form of community and are an important source of support in rural development. They provide a platform for people to discuss their issues and improve their living standards.

Typically, groups have an overall size of between 12 and 20 members. They are formed by disadvantaged individuals, mostly women from rural areas.

Groups often require considerable support and capacity-building before they can function effectively and independently. They also need to learn specific skills such as preparing agendas, conducting meetings, resolving conflicts, democratic decision-making, delegation of tasks and monitoring progress.

In some cases, groups can come together under one umbrella - this is commonly known as a federation. This can allow a wider number of members to participate and may lead to greater change.

SHGs are especially useful in rural areas as they can be an effective source of micro-credit and act as a go-through for formal banks to reach the poor. They also build social capital which helps to reduce poverty and increase literacy levels.

Self help groups in rural development are an important form of education. They offer an opportunity for community members to build relationships with peers who may have similar problems.


The groups are open-ended, do not have attendance requirements, and are often free (except for small donations to cover meeting costs). This makes them attractive to individuals who do not have access to professional guidance or therapy.

They are also an effective way to reduce loneliness and isolation. They encourage self-help and socialization, share information, resolve common problems, enhance individual strengths, and improve the quality of life for group members.

They are an excellent tool for women in the developing world, and can help women from poor backgrounds build social capital by providing opportunities to earn money through self-employment. They can also increase their literacy levels, provide family planning services, and raise their standard of living.

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