This is to certify that project titled “Need Gap Analysis Of Self-Help Groups And Identifying Areas To Train SHG’s For Better Livelihood” is successfully done by
Mr. Akshay Harvande in partial fulfillment of his two years full time course ‘Post Graduation Diploma in RuralManagement’ recognized by AICTE through the Prin. L. N. Welingkar Institute of Management Development ; Research, Matunga, Mumbai.
This project in general is done under my guidance.

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(Signature of Faculty Guide)
Name: Prof. Swati Sethi
Date: ______________________

I, the undersigned, hereby declare that the project titled ;
“Need Gap Analysis Of Self-Help Groups And Identifying Areas To Train SHG’s For Better Livelihood”
(a) Has been prepared by me towards the partial fulfillment for the award of Post Graduation Diploma in Rural Management under the guidance of Prof Swati Sethi,
Prin. L. N. Welingkar Institute of Management Development and Research, Mumbai.

(b) This work is original and has not been submitted for any degree/diploma in this or any other Institute/Organization.
(c)The information furnished in this dissertation is genuine to the best of my knowledge and belief.

Candidate Name and Signature
Place: _______________________________ Date:____________________________

I would like to offer my hearty thanks ; gratitude to Welingkar Institute of Management Development And Research for providing me an opportunity to work in the
domain of my choice.

It is my profound privilege to express my deepest sense of gratitude and indebtedness to my project guide Prof Swati Sethi for her guidance and support throughout the project. I express my heartfelt gratitude to my faculty guide Prof Aisha Mohani for her timely and valuable suggestion. Without their cooperation and review, the project would not have been such a fruitful learning experience.
I would also like to express my deepest gratitude to Prof Abhishek Das for his humble hospitality, review and for giving me valuable insights into the workings of the sector. It has been a wonderful learning opportunity and I positively look forward for forthcoming associations with self-help groups in the future as well.
The report is the result of contributions of numerous people, too many to mention individually. I also thank all the respondents who have given their valuable time, views and authentic information for this project. I owe everything to my parents and all my classmates and friends for their constant support that has encouraged me to give my best.

Meaning of Self-Help Group (SHG):
SHG is a holistic programme of micro-enterprises covering all aspects of self-employment, organization of the rural poor into self Help groups and their capacity building, planning of activity clusters, infrastructure build up, technology, credit and marketing.

It lays emphasis on activity clusters based on the resources and the occupational skills of the people and availability of markets.

Self-Help Group refers to self-governed, peer controlled, informal group of people with same socio-economic background and having a desire to collectively perform common purposes. Here poor people voluntarily come together to save whatever amount they can save conveniently out of their earnings, to mutually agree to contribute to a common fund and to lend to the members for meeting their productive and emergent needs.

SHGs have been able to mobilize small savings either on weekly or monthly basis from persons who were not expected to have any savings. They have been able to effectively recycle the resources generated among the members for meeting the emergent credit needs of members of the group.

SHG is a group formed by the community women, which has specific number of members like 15 or 20. In such a group the poorest women would come together for emergency, disaster, social reasons, economic support to each other have ease of conversation, social interaction and economic interaction.

A SHG is an informal association to enhance the member’s financial security as primary focus and other common interest of members such as area development, awareness, motivation, leadership, training and associating in other social inter-mediation programmes for the benefit of the entire community.

Need of Self-Help Group (SHG):
The very existence of SHGs is highly relevant to make the people of below poverty line hopeful and self-reliant. SHGs enable them to Increase their income, improve their standard of living and status in society. It acts as a catalyst for bringing this section of society to the main stream.

Ultimately, the nation reaps the advantages of socialism.

The Government of India and various state Governments have been implementing various programmes for rural upliftment. However, rural poverty and unemployment still persist in the country. This problem is becoming severe and acute. The available latest statistics relating to the Indian Economy indicates that about 26% of the total population in the country belongs to the rural poor.

Considering the gravity and intensity of the problem, many Voluntary Development Organisations (VDOs) have come forward with different programmes for the rural poor in the country. These agencies undertake various innovative programmes and schemes to address the issues of poverty and unemployment prevailing in our country.

Among the various programmes “Swarna Jayanti Grama Swarojgar Yojana” (SGSY) is an important one. This programme was launched on 1st April, 1999, at 75: 25 costs sharing between Central and State Governments.

The main objective of this programme is to bring the beneficiaries above the poverty line by providing income generating assets to them through bank credit and government subsidy. The Self-Help Groups (SHGs) are the major component of this scheme.

Women are a vital part of the Indian Economy, both at the national and the household levels. They make one-third of the national labour force. Compared with their menfolk, Indian women contribute a much larger share of their earnings to basic family maintenance with the result that women’s earnings positively and immediately affect the incidence and the security of poverty.

Despite all this, social conventions and gender ideology deprive them of the access to, and control over, the resources which would enable them to increase their productivity. Women form the backbone of agricultural operations and majority of agricultural labourers are woman. Seventy to eighty percent of the field work is done by women.

Most post-harvest and processing tasks are their sole responsibility. They are heavily involved in animal husbandry, particularly small livestock. About 85 percent of persons engaged in dairy production are women. Since independence, government’s policy on women’s development has taken varying types of emphasis: from the initial welfare oriented approach to the current focus on development and empowerment.

The planning commission, with the aim of converging the benefits in the social and economic development sectors for women in the Ninth plan, envisaged “inclusion of an identifiable women component plan in the programmes of the respective ministries right from the planning process, and to monitoring and implementation of programmes to ensure the reach of benefits to women”.

The Ninth Plan Document (1997-2000) also laid emphasis on the participation of people in the planning process, and the promotion of self-help groups. Self-Help Group (SHG) is a homogeneous group of poor, women. This group is a voluntary one formed on areas of common interest so that they can think, organise and operate for their development.

SHGs function on the basis of co-operative principles and provide a forum for members to extent support to each other. It is considered is a means of empowerment. SHGs organise very poor people who do not have access to financial system in the organised sector. In groups, normally transparency and accountability are lacking.

However, in a group like SHG, they are ensured through collective action of the members. This scheme mobilises the poor rural people especially women to form groups for mutual benefits. SHGs play a crucial role in improving the savings and credit and also in reducing poverty and social inequalities.

Objectives of SHG:
1. To inculcate the savings and banking habits among members.

2. To secure them from financial, technical and moral strengths.

3. To enable availing of loan for productive purposes.

4. To gain economic prosperity through loan/credit.

5. To gain from collective wisdom in organising and managing their own finance and distributing the benefits among themselves.

6. To sensitize women of target area for the need of SHG and its relevance in their empowerment.

7. To create group feeling among women.

8. To enhance the confidence and capabilities of women.

9. To develop collective decision making among women.

10. To encourage habit of saving among women and facilitate the accumulation of their own capital resource base.

11. To motivate women taking up social responsibilities particularly related to women development.

12. It acts as the forum for members to provide space and support to each other.

SHGs are considered as one of the most significant tools to adopt participatory approach for the economic empowerment of women, SHG is a group of people that meets regularly to discuss issues of interest to them and to look at solutions of commonly experienced problems. The group may or may not be promoted by Government or non-Government institutions.

The SHG is group of rural poor who have volunteered to organise themselves into a group for eradication of poverty of the members. They agree to save regularly and convert their savings into a common fund known as Group Corpus. The members of the group agree to use this common fund and such other funds that they may receive as a group through a common management.

Generally all members of the group should belong to families below the poverty line (BPL). However, if necessary, a maximum of 20% and in exceptional cases, where essentially required, upto a maximum of 30% of the members in a group may be taken from families marginally above the poverty line (APL) living continuously with BPL families and if they are acceptable to the BPL members of the group.

This will help the families of occupation groups like agricultural labourers, marginal farmers, and artisans marginally above the poverty line, or who may have been excluded from the BPL list to become members of the SHG. However, the APL member will not be eligible for the subsidy under the scheme.

The group shall not consist of more than one member from the same family; a person should not be a member of more than one group. The BPL families must actively participate in the management and decision making, which should not ordinarily be entirely in the hands of AIM, families. Further, APL members of the SHG shall not become office bearers (Group Leader, Assistance Group leader or Treasurer) of the group.

The group should devise a code of conduct (Group management norms) to bind itself. This should be in the form of regular meetings (weekly or fortnightly) functioning in a democratic manner allowing free exchange of views, participation by the members in the decision making process. The group should be able to draw up an agenda for each meeting and take up discussions as per the agenda.

The members should build their corpus through regular savings. The group should be able to collect the minimum voluntary saving amount from all the members regularly in the group meetings. Tiu- savings so collected will be the group corpus fund. The Group Corpus Fund should be used to advance loans to the members. The group should develop financial management norms covering the loan sanction procedure, repayment schedule and interest rates.

The members in the group meetings should take all the loaning decisions through a participatory decision making process. The group should be able to prioritise the loan applications, fix repayment schedules, fix appropriate rate of interest for the loans advanced and closely monitor the repayment of the loan installments from the loanee.

The group should operate a group account preferably in their service area bank branch, so as to deposit the balance amounts left with the groups after disbursing loans to its members. The group should maintain simple basic records such as minute’s book, attendance register, loan ledger, general ledger, cash book, Bank pass book and Individual pass books. 50% of the groups formed in each block should be exclusively for the women.

In the case of disabled persons, the groups formed should ideally be disability-specific wherever possible, however, in case sufficient number of people for formation of disability-specific groups are not available, a group may comprise of persons with diverse disabilities or a group may comprise of both disabled and non-disabled persons below the poverty line.

The SHGs broadly go through three stages of evolution such as:
I. Group formation.

II. Capital formation (through the revolving fund).

III. Skill development and taking up of economic activity for income generation.

Source http://www.yourarticlelibrary.com/india-2/self-help-group/self-help-group-shg-of-india-meaning-need-and-objectives/66718
Literature Review
SHG’s in Maharashtra
The Maharashtra State Rural Livelihoods Mission (MSRLM) has been launched in Maharashtra in July 2011 as a registered organization under the aegis of the National Rural Livelihoods Mission (NRLM) – Aajeevika – endeavors to impact rural poverty through a range of comprehensive and strategic livelihoods interventions in a time bound manner. The Mission aims at eradication of rural poverty by building sustainable institutions of poor and ultimately leading them to sustainable livelihoods. The conceptualization and design of the MSRLM goes beyond income generation activities and employment programs to include capacity building, financial inclusion, social mobilization and marketing services as equally important elements of livelihoods enhancement. The exponential growth in the livelihoods sector as a whole, both rural and urban, combined with experiences and learning from earlier programs such as the IRDP, SGSY, etc. has led to a shift in the envisioning of the mission from an agency-beneficiary equation/relationship to a more holistic and equal partnership with the poor/communities. Building and strengthening institutions of the poor, putting in place dedicated support structures for such institutions and drawing upon their skills, knowledge and desire to overcome poverty lie at the core of the mission.

According to the 2001 Census report Maharashtra has a rural population of 5.57 crores of which 2.05 crore people languish below the poverty line (approx. 45 lakh households) and the HDI of 19 districts in the state is lower than the national Index. To begin with ten districts have been identified on the basis of, ranking on the HDI index, IAP districts, geographical location etc. that include Gadchiroli, Wardha, Yavatmal, Osmanabad, Jalna, Ratnagiri, Nandurbar, Solapur, Thane and Gondia as the pilot districts for the National Rural Livelihoods Project (NRLP). 36 blocks have been identified based on criteria such as percentage of SC/ST, number of BPL families, number of SHGs formed in the block under various schemes and better financial management track record/ better co operation from Banks, etc. The mission will engage poor and marginalised communities intensively in these ten districts, whereas the remaining 23 districts in the state will be covered under a non-intensive intervention strategy in a phased manner.

The Mission is implemented through a three tier structure comprising a State Mission Management Unit, District Mission Management Unit and Block Mission Management Unit. The mission envisions poverty elimination through social mobilization, institution building, financial inclusion and the creation of several models of sustainable livelihoods so that each poor family is able to secure incremental annual income. The key task under the mission is to reach out to 45 lakh rural poor households of Maharashtra and stay engaged with them till they come out of poverty. The mission will bring about a paradigm shift in the approach to rural livelihoods and rural poverty eradication in that it engages directly with institutions of poor and empowers them to find lasting solutions to poverty. It sees the poor as the engines of growth rather than mere receivers of aid or being dependent on ‘trickle down’. The NRLM believes that poor have the innate capabilities to overcome poverty if they are supported with sensitive, dedicated and responsive institutions at one level and by building strong and sustainable institutions of the poor themselves on the other.

Source: http://www.umed.in/English/frmAboutMSRLM.aspx
Research Problem
The major impediments in the progress of the SHG’s are lack of knowledge about
keeping records and diaries, maintaining financial records, bank transactions, various
programmes and schemes of social and economic development. Other hurdles are lack of
adequate technical support for taking up enterprise, irregularity of members in monthly
meetings and irregularity in depositing money by members.
Problems of Self-Help Groups (SHGs):
The SHGs face problems in different areas.

The important problems are briefly stated below:
1. Ignorance of Members/Participants:
Even though the authorities take measures for creating awareness among the group members about the schemes beneficial to them, still majority of the group are unaware of the schemes of assistance offered to them. Many are ignorant about the scheme.

2. Inadequate Training Facilities:
The training facilities given to the members of SHGs in the specific areas of product selection, quality of products, production techniques, managerial ability, packing, other technical knowledge ate are not adequate to compete with that of strong units.

3. Problems Related with Raw Materials:
Normally each SHG procures raw materials individually from the suppliers. They purchase raw materials in smaller quantities and hence they may not be able to enjoy the benefits of large scale purchase like discount, credit facilities etc.

Moreover, there is no systematic arrangement to collect raw materials in bulk quantities and preserve them properly. There is no linkage with major suppliers of raw materials. Most of the SHGs are Ignorant about the major raw material suppliers and their terms and conditions. All these causes high cost of raw materials.

4. Problems of Marketing:
Marketing is an important area of functioning of the SHGs. However they face different problems in the marketing of products produced by them.

Following are the major problems relating to marketing.

(a) Lack of sufficient orders.

(b) Lack of linkage with the marketing agencies.

(c) Lack of adequate sales promotion measures.

(d) Lack of permanent market for the products of SHGs.

(e) Absence of proper brand name.

(f) Poor/unattractive packing system.

(g) Poor quality of products due to the application of traditional technology, resulting In poor market,
(h) Stiff competition from other major suppliers.

(i) Lack of a well defined and well knit channel of distribution for marketing.

5. Lack of Stability and Unity Especially among women SHGs:
In the case of SHGs dominated by women, it is found that there is no stability of the units as, many married women are not in a position to associate with the group due to the shift of their place of residence. Moreover, there is no unity among women members owing to personal reasons.

6. Exploitation by Strong Members:
It is also observed that in the case of many SHGs, strong members try to earn a lion’s share of the profit of the group, by exploiting the ignorance and illiterate members.

7. Weak Financial Management:
It is also found that in certain units the return from the business is not properly invested further in the units, and the funds diverted for other personal and domestic purposes like marriage, construction of house etc.

8. Low Return:
The return on investment is not attractive in certain groups due to inefficient management, high cost of production, absence of quality consciousness etc.

9. Inadequate Financial Assistance:
It is found that in most of the SHGs, the financial assistance provided to them by the agencies concerned is not adequate to meet their actual requirements. The financial authorities are not giving adequate subsidy to meet even the labour cost requirements.

10. Non-co-operative Attitude of the Financial Institutions:
The Financial Institutions do not consider SHGs seriously while providing finance and other help.

11. Inadequate and ill-trained staff to meet the challenges:
The attitude of the staff of the rural development department is not encouraging. They are not well trained to accept the challenges and equip the SHGs self-reliance.

Objective of Study
There is a need to enhance capacity of women members of SHGs regarding functioning of the Self-help groups so that they could manage the group effectively. This also will develop their interest in undertaking various activities like credit facilities, enterprise development and participation in democratic process which will definitely make them empowered. Keeping this in mind the present study was undertaken with an objective to identify the training needs of existing Self-help groups.

Training results in a systematic improvement in knowledge and skills which in turn help the women to perform her tasks effectively and efficiently. Trainer should never lose the sight of the fact that systematic procedure for planning and implementing training programmes starts with identification of training needs and training is effective provided it is based on systematic assessment of training needs. Further training efforts should be devoted to produce qualitative results for sustainable development through need based training.

The sole moto of this project is to identify requirements of SHG’s to tackle the problem faced by them in day to day activities and to bring about upliftment in their livelihood. It has been identified that providing training about various activities should be the best way to tackle the problems arising to them.

Research Methodology
Research for this study is done primarily via interviews with important stakeholders. These stakeholders include members on SHG’s, social workers from localities and employees of MSRLM. All the samples have been collected from two locations, Ganeshpuri, Bhiwandi and Welingkar Institute, Matunga. Welingkar had many SHG’s from different locations across Maharashtra visiting for a workshop. These SHG’s were well developed and already had established products. So they were given training on packaging of their products. Ganeshpuri SHG’s were not well developed. They had no sources of income until last month. So their requirements were completely different. Study was completed within a span of 15 days. Hence due to limitations of time SHG’s of two types only were studied.

Types of Trainings
Considering the nature of SHG’s and the activities performed by them, trainings were narrowed down to following
Stitching and embroidery
This training will include basic level of stiching with hands and also use of sewing machine.

Drudgery reducing activities and equipments
This includes activities which are more service oriented rather product oriented.

Income generating activities
This includes educating SHG’s of different activites that can provide them with income to sustain their livelihood
Safe use of pesticides/ insecticides
This training is dedicated to women owning or working on agricultural land.

Govt. sponsored development schemes
This includes educating SHG’s with various government sponsored schemes launched for betterment of their lives and how they can leverage on them for improving their standard of living.

Kitchen gardening
This training will include cultivation of various plants and vegetables that can be grown in one’s backyard to generate some income for the family.

Time and energy saving devices
This training includes educating SHG’s about modern inexpensive devices which can help them to save time and energy. This can help them to get indulged in some service oriented activity.

Networks and Linkages
It includes providing information about importance of linkage with Banks/ Other agencies and linkage with voluntary organizations and training institution.

Micro enterprise Development
It includes training for acquisition of vocational skills, initiation of micro-enterprises, information on raw materials to prepare products and marketing skills.

Financial Management
It includes training for finalization of rate of interest, procedure of taking loan from bank, repayment of loan and maintenance of records.

Allied Activities
It includes providing knowledge about animal husbandry and dairy, poultry farming, sheep and goat rearing, agro-processing units and agro-based small business and services
All these options were floated to respective SHG’s either via personal interviews or interviews via cellphones. A total of 50 responses was collected and results for the same were as follows.

Advanced SHG’s
Activity Most Needed Needed Least Needed
Micro Enterprise Development 25 50% 0 0% 0 0%
Networks and Linkage 23 46% 2 4% 0 0%
Financial Management 22 44% 3 6% 0 0%
Income generating activities 13 26% 10 20% 2 4%
Govt. sponsored development schemes 12 24% 9 18% 4 8%
Drudgery reducing activities and equipments 12 24% 7 14% 6 12%
Kitchen gardening 2 4% 19 38% 4 8%
Allied Activities 6 12% 9 18% 10 20%
Time and energy saving devices 5 10% 10 20% 10 20%
Stitching and embroidery 5 10% 8 16% 12 24%
Safe use of pesticides/ insecticides 1 2% 6 12% 18 36%
Weighted Result

Backward SHG’s
Activity Most Needed Needed Least Needed
Income generating activities 25 50% 0 0% 0 0%
Financial Management 23 46% 2 4% 0 0%
Drudgery reducing activities and equipments 20 40% 5 10% 0 0%
Networks and Linkage 19 38% 6 12% 0 0%
Allied Activities 19 38% 6 12% 0 0%
Stitching and embroidery 18 36% 7 14% 0 0%
Micro Enterprise Development 13 26% 10 20% 2 4%
Govt. sponsored development schemes 8 16% 17 34% 0 0%
Safe use of pesticides/ insecticides 9 18% 12 24% 4 8%
Kitchen gardening 5 10% 16 32% 4 8%
Time and energy saving devices 0 0% 6 12% 19 38%
Weighted Result

Overall Results
Activity Most Needed Needed Least Needed
Financial Management 45 90% 5 10% 0 0%
Networks and Linkage 42 84% 8 16% 0 0%
Income generating activities 38 76% 10 20% 2 4%
Micro Enterprise Development 35 70% 13 26% 2 4%
Drudgery reducing activities and equipments 32 64% 12 24% 6 12%
Allied Activities 25 50% 15 30% 10 20%
Stitching and embroidery 23 46% 15 30% 12 24%
Govt. sponsored development schemes 20 40% 26 52% 4 8%
Safe use of pesticides/ insecticides 10 20% 18 36% 22 44%
Kitchen gardening 7 14% 20 40% 23 46%
Time and energy saving devices 5 10% 16 32% 29 58%
Weighted Results with Ranks
Activity Weight Rank
Financial Management 95 1
Networks and Linkage 92 2
Income generating activities 86 3
Micro Enterprise Development 83 4
Drudgery reducing activities and equipments 76 5
Govt. sponsored development schemes 66 6
Allied Activities 65 7
Stitching and embroidery 61 8
Safe use of pesticides/ insecticides 38 9
Kitchen gardening 34 10
Time and energy saving devices 26 11
Conclusion and Suggestion
It can be seen from the above tables that training needs vary for developed SHG’s from the needs of newly created SHG’s. Developed SHG’s need training for Micro Enterprise Development, Networks and Linkage and Financial Management. This is due to the fact that they already have sources of income. They just need to identify methods to maximise their profits. Newer SHG’s on the other hand do not have stable source of income. Hence identifying income generating opportunities becomes most important priority for them. Apart from income generating activities, drudgery reducing activities is also a priority for them. This is important for providing services for an activity. So considering all the aspects, we can conclude that overall Financial Management, Networks and Linkage and Income generating activities are the 3 most important training that are required by the SHG’s in general.