Impact of SHG on Rural Market

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Impact of self-help group on rural market This synopsis begins with the background discussion about SHG and its impact on rural marketing. As we know that, as the income level of a person or group increases, demand or consumption of different goods and services also increases. Now, we move to the actual discussion of qualitative analysis of “Impact of SHG on rural market”. Throughout history, people have formed groups with others, who have something in common with them for a common goal. Normally, people who are not able to earn a better income, face scarcity of basic needs. But when these people come in group and mobilize their tiny income or small saving to do business. As the business grows, members start earning a better income, people start fulfilling their basic needs either through SHG or individually. The growing income level of members of SHGs, is impacting the life style, education level, standard of living, consumer expectation from manufacturers. SHG is about people coming together with others to support each other and to work together to change the disadvantage affecting them.SHG is a self-governed, peer controlled small and informal association of the poor, usually from the same socio-economically families, who are organized around saving and credit activities. Funds for business activity comes through regular saving deposited by all of its member on a weekly or fortnightly basis. In the meeting they discuss common village problem and plan solution, share information, make effort to improve their health and literacy skills. SHG are not a charity or simply community based groups. They are made of and controlled by the people affected. Group members are not volunteers. Although the work is usually unpaid, members work to change their own situation and support is mutual. The knowledge base of self-help group is experiential, indigenous and rooted in the wisdom that comes from struggle with problems in concrete and shared way. Increasing role of SHGs in rural market

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Impact of SHG on Rural Market

Transcript of Impact of SHG on Rural Market

Impact of self-help group on rural marketThis synopsis begins with the background discussion about SHG and its impact on rural marketing. As we know that, as the income level of a person or group increases, demand or consumption of different goods and services also increases. Now, we move to the actual discussion of qualitative analysis of Impact of SHG on rural market. Throughout history, people have formed groups with others, who have something in common with them for a common goal.Normally, people who are not able to earn a better income, face scarcity of basic needs. But when these people come in group and mobilize their tiny income or small saving to do business. As the business grows, members start earning a better income, people start fulfilling their basic needs either through SHG or individually. The growing income level of members of SHGs, is impacting the life style, education level, standard of living, consumer expectation from manufacturers.SHG is about people coming together with others to support each other and to work together to change the disadvantage affecting them.SHG is a self-governed, peer controlled small and informal association of the poor, usually from the same socio-economically families, who are organized around saving and credit activities. Funds for business activity comes through regular saving deposited by all of its member on a weekly or fortnightly basis. In the meeting they discuss common village problem and plan solution, share information, make effort to improve their health and literacy skills.SHG are not a charity or simply community based groups. They are made of and controlled by the people affected. Group members are not volunteers. Although the work is usually unpaid, members work to change their own situation and support is mutual. The knowledge base of self-help group is experiential, indigenous and rooted in the wisdom that comes from struggle with problems in concrete and shared way.Increasing role of SHGs in rural marketNow a days, SHGs play an important role in rural market, because it has collective bargaining power, collective purchasing power & selling power.In agri-input market no individual comes to purchase directly, they go to SHG and ask to buy these things for them. As SHG knows the different individual requirement and pool it into bigger/biggest demand of its group, which help to get products at cheaper rate.Now many MNC are making their business plan to cater the increasing demand of financially and socially empowered people in urban & rural India. Now they are providing different products in small pouch and sashes, in low price, so that people in last rung of development can purchase.

How SHG are impacting the rural market?Low income markets present an impressive opportunity for the world wealthiest companies to seek their fortunes and bring prosperity to the aspiring poor.- THE FORTUNE AT THE BOTTOM OF PYRAMIDToday demand are not only coming from SHG, but also from individual for specific products and services (as FMCG products, beauty care products, mobile & technology and other products and services), and these demand are continuously increasing.How to prepare research question?For investigating the research problem and questions, I will intend to use mix method technique.I would use both quantitative and qualitative technique for exploring the research problem. I would select five village in five block, where formation of SHG is higher than other blocks in particular district, and will more qualitative method to understand the level of change, because maximum people will be able to answer in subjective way, rather than objective way. ConclusionAs the SHG are increasing, rural market is growing. As the income of members of SHGs is increasing demand for different products and services are increasing. Demands are coming from two ways, one from SHG side and other individually. Because, they have collective bargaining power, are able to impact the rural market.