Question

Miss X wants to start a savoury food store in her village. She wants to supplement her income to raise the standard of living of her family. How do you think self-help groups can help? Support your answer with reasons.

Answer 1

Self-help groups help the poor become self-reliant regarding savings and generating income.

1. Can avail of loans from formal sources like banks at a low interest rate.
2. They do not demand collateral, so she can easily access it.
3. Self-help groups are exclusively meant for rural women like Miss X to make them economically independent through self-employment opportunities.
4. This will help her to start and expand her business, thus improving her standard of living.
5. Skill development: SHGs in India have also successfully provided women with skill development and training opportunities. She can acquire the necessary skills to start and run a successful business through training programmes.
6. Social empowerment: By providing a platform for women to come together, share their experiences, and support each other, SHGs have empowered women to take charge of their lives and participate actively in their communities.