Performance of SHGs in the Backward Districts of West Bengal: An Analysis

Literature Review

Several studies have been undertaken by the researchers from time to time to review and analyze the performance of the SHGs in several parts of India and abroad. In some studies this performance has been measured in terms of the contributions of these SHGs towards women empowerment and financial inclusion of poor people particularly in rural areas (Dodkey, 1999; Mayoux, 2001; Krishna, 2003; Littlefield, Murduch & Hashemi,2003; Pitt, Shahidur & Cartwright, 2003;Shanthi & Dhanalakshmi, 2004; Panda, 2005; Jerinabi,2006; Sau,2009). These studies also indicate that the Self-Help Groups have been instrumental in creating an alternative system of credit delivery for meeting the credit needs, especially of the poorest people. Puhazhendhi and Badatya (2002) surveyed 115 members from 60 SHGs in Eastern India for estimating the performance of SHGs before and after group formation. This study indicated that there had been substantial reduction in the dependence of rural poor on the non-institutional sources of rural credit after the formation of SHGs. Performance of the SHGs was also measured in terms of their contribution towards skill formation among the members through several training programmes (Tankha, 2002;Tripathy,2004;Sharma, Roy & Chakravorty,2012). These trainings empowered the SHG members with proper knowledge, skill and attitude which were required to start any new venture. Participatory training on the part of SHG members was found to be an important contributor to the better performance of SHGs (Majumder, 2014).