Socio-Economic Impact of Non-Governmental Organisation (NGO) Promoted Self-Help Groups in Punjab

The present paper highlights the socio-economic impact of Self-Help Groups (SHGs) promoted by Non-Governmental Organisations (NGOs) in Punjab. The study was carried out by taking a sample of 100 respondents from 20 SHGs from two districts of Punjab, namely, Ludhiana and Jalandhar. The results of the study showed that an average of `5,414 was being saved by the members annually after joining the SHGs, which is almost 2.6 times more than the amount saved in pre SHG situation. After joining the SHGs, average annual income and average value of assets of the members increased to `82,960 and `80,279 showing about 29% and 39% increase from the pre SHG situation respectively. Majority of the members revealed that their influence on economic resources,decision making ability and their confidence had increased after joining the groups. The major problems faced by the members were found to be the lack of training and capacity building, noncooperation from the banks and marketing problems. The study suggested that it requires a lot more efforts on part of the Government, NGOs as well as the banking sector to promote SHGs in the state. There is a crucial need to focus on awareness programmes, imparting training and developing entrepreneurial skills among the rural poor.