Hand Book for Gaon Burahs and Panchayati Raj Leader

112CHAPTER XXVFORMATION OF SELF HELP GROUP (SHG) AND ROLE OFPRI /GBWHAT IS SELF HELP GROUP?1. It is a voluntary association (Alliance) of economically similar people witha common heritage, caste and traditional occupation, formed to attain acollective goal.2. To increase their income by undertaking income generating activities tomake themselves self reliant by mobilizing resources through savingsmall amounts of money regularly.3. By managing the Group through collective leadership and mutualdiscussion.WHAT CAN THE GROUP DO?‣ Economic activities do not narrowly mean just income generatingenterprises under any government programme.‣ In a broader context of development of poor people economic activitywould mean the following:-ooooIncrease in present income level to the maximum possible extent bytaking up all possible activities.Reducing wastage and thereby ensuring optimum utilization of resourcesThrift and Credit activities for mobilizing own resources.New Income generating enterprise to create a new source of income thatis feasible as per the local area specific solution.Helping other members / residents of the village in any given economicactivity with a view to ensure marketable surplus and reap the resultantbenefits thereof.WHY SHOULD GROUP TAKE UP ECONOMIC ACTIVITY?‣ Economic activities can yield money which is essentially required toimprove the well being of all the sections of the society, (after repaymentof the loan) particularly the women and children.‣ With money earned the contributed to the family, the group memberscan exercise own right to control over the family budget.‣ This helps improve the status of their group member in the society.‣ Moreover, it is the income generating activity that attracts the poorpeople and helps them attached to the group in expectation of someeconomic returns.WHEN CAN THE GROUP TAKE UP ECONOMIC ACTIVITY?