A STUDY ON THE IMPACT OF SHGs IN THE DEVELOPMENT OF MICRO ENTERPRISES

Abstract

SHG is a small voluntary association which is created for the helping the members of the association to be economically benefited out of mutual help, solidarity and joint responsibility. SHG helps in mobilization of savings and enables credit facilities to the members of the association. It also encourages them to start and run MSMEs and provides training and needed development skills. This research article reveals much about the positive and negative impact of SHGs in the development of micro enterprises which are the key objectives of this study. This article concludes that the SHGs allow micro enterprises in its development and ensure its survival in the long run. SHGs goes a long way in eradicating poverty, creating more space for employment opportunities and positively reflects in economic growth. Even though the positive impacts of SHGs are higher there are also few negative impacts of SHGs which are the obstacles in the progress development of micro enterprises. Government should take some corrective measures to eradicate the negative impacts of self help groups for a better prosperity of Micro enterprises which obviously will contribute to the betterment of our economy as a whole.