Day-15 Answer Writing Challenge : Model Answer

Question: What is the need of Self Help Groups? (4 marks, 60 words)

Answer: 

Introduction:

• Self Help Groups are self-governed, peer- controlled information group of people with similar socio-economic background and having a desire to collectively perform for common purpose.
• They are informal associations of people who choose to come together to find ways to improve their living conditions.
• They help to build Social Capital among the poor, especially women.

Body:

Need for self-help groups

• Villages face numerous problems related to poverty, illiteracy, lack of skills, lack of formal credit etc.
• There is a substantial percentage of rural and urban poor, who if tried individually cannot break their chains of poverty, and hence collective action is required.
• These problems cannot be tackled at an individual level and need collective efforts.
• Thus, SHG can become a vehicle of change for the poor and marginalized.
• SHG rely on the notion of “Self Help” to encourage self-employment and poverty alleviation.