Constraints Faced by Self-Help Groups in the Bundelkhand Region of Uttar Pradesh, India

Abstract

Self-Help Groups (SHGs) have assumed a prominent position of one of the most effective community-based programs in India where women are empowered and their rights to financial inclusion and self-employment are supported. Their success however is to a great extent subject to their functional strength and their challenges within the context. The Bundelkhand state of Uttar Pradesh, with droughtprone ecology, low agricultural productivity, economic marginalization, and strong socio-cultural norms, is a special environment which produces a considerable impact on SHG performance. This paper looks into the major constraints that affect the operations of SHGs in Bundelkhand and in particular, financial, socio-cultural, operational, and sustainability-based constraints. Primary data were collected using a cross-sectional research design and 160 members of the SHGs have been sampled purposely and were sampled across blocks where the SHGs are operational under the National Rural Livelihoods Mission (NRLM). The results show that SHGs are seriously constrained with regard to finances and consequently limited access to borrowing facilities, insufficient financial resources, delay in government grants, and poor credit guarantee facilities. The presence of socio-cultural obstacles including limiting gender norms and community pressures still limits the women involvement and decision making. Group functions are also impeded by operational inadequacies such as poor attendance, inconsistent meetings, poor communication and inadequate infrastructure. Moreover, there are issues of sustainability like poor market connection and lack of training that limits long term growth and diversification of livelihood. The research comes to a conclusion that institutional support, enhanced access to credit, capacity building, and restrictive social norms are vital in ensuring that the developmental potential of SHGs is achieved to the fullest in Bundelkhand. These lessons could be useful to policy makers, non-governmental organizations and rural development workers who want to enhance the performance of SHGs in marginalized areas.