The momentous growth of the microFinance programme, particularly the SHG -Bank Linkage programme, has ushered in a huge debate among partners of the programme. Though the SHG-Bank Linkage programme was intended to provide sustainable access to the unbanked poor, the question often being posed by different stakeholders is WHAT NEXT?
Age wise analysis of more than a million SHGs across the country indicates that there are nearly 300,000 Self Help Groups that are in existence for over three years in India . Perhaps an indication of the sustainability of the SHG system itself!! Studies have revealed that a large number of members of SHGs are availing loans for income generating activities once their consumption needs are addressed. Do we need further address the critical issue of facilitating the growth and income enhancement process in these SHG members? Many partner agencies that we work with felt that NABARD should take up microEnterprises with the intent of enhancing income level is a complex issue which needs a more holistic approach of appreciating skill levels, entrepreneurial spirit & dynamism, understanding markets, technology etc. This task has to be handled with care in order to ensure that genuine concerns do not lead to failures of microEnterprises & increased debt burden and in turn to default. It brings into play the need for a hand holding strategy to enable the SHG members to cross over to mE stage.
With a view to appreciating and understanding the issues connected with this, NABARD has initiated a pilot project for promotion of micro-enterprises by members of matured SHGs in 9 select districts across the country, viz., Ajmer (Rajasthan), Chandrapur (Maharashtra), Kangra (Himachal Pradesh), Madurai (Tamil Nadu), Mysore (Karnataka), 24 North Parganas (West Bengal), Panchmahal (Gujarat), Puri (Orissa) and Rae-Bareilly (Uttar Pradesh), in association with Marketing And Research Team (MART) as the technical partner. The project will adopt the 3M Model approach ( micro-finance, micro-markets and a micro-planning methodology) developed by the MART wherein identified NGOs act as Micro-Enterprise Promotion Agencies (MEPA) and assist members of matured SHGs to take up income generating activities on a sustainable basis. Survey of villages and SHGs by NGOs has already commenced.
Graduation of SHG members to take up micro-enterprises require provision of intensive training and handholding on various aspects including understanding market, potential mapping, fine-tuning of skills and entrepreneurship management to manage the enterprise.
Assessing nature of facilitation required
The nature of facilitation required by group members for promotion of micro enterprises was identified as below:
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