Impact of self-help groups on generation of income and employment

Abstract

Keeping in view the impact of SHGs on generating of additional income and employment opportunities, a micro level field study in Mahewa and Chakarnagar blocks of Etawah district was conducted during the year 2005–06 by personal visits to SHGs and the selected members. For assessing the impact of SHGs on income and employment generation, saving mobilization, internal loaning, use of loan and rate of interest 21 linked SHGs and 33 non linked SHGs thus total 54 SHGs were studied. The savings of SHG per month per member were 32.00 and 17.00 in case of Linked SHGs and Non-linked SHGs, respectively. The loans provided by SHGs had a favorable impact on generation of income in case of linked SHGs in the area under study. On an average, each selected member could get an income of ` 28359.00 per year at post-SHG stage, which is sufficient to bring the poor families above the poverty line. At post stage of linked SHG, the highest amount of income was generated from dairying, followed by agriculture. In case of non-linked SHGs, per household per annum income generated at post SHG stage was 5145 (Agriculture) and 3695 (Dairying). The percentage increase in income from pre to post SHG stages in case of linked SHG was quite high. The total employment per household per annum in case of linked SHGs at post SHG stage was 567 man days, significantly increased from 215 in pre SHG stage. In case of non-linked SHG, the employment generated at post stage per household per annum were 256 man days which has marginally increased from 214 man days generated at pre SHG stage.