Problems and Constraints faced by SHGs; A Study in Nayagarh District of Odisha

The concept of SHG is more than two decades old and proved its efficiency in addressing rural poverty through self-help and entrepreneurship. The SHG approach revolves around the principle, self-help for development. The SHGs have helped mobilizing millions of rural women into groups, helped them earn livelihood, and addressed their credit needs. SHGs gave platform for rural women to showcase their capabilities. However, despite the positive outcomes of the SHG approach, there are many problems and constraints that comes in the way of the SHGs. To identify the problems and constraints faced by the SHGs, the present study was carried out in Ranapur block of Nayagarh district in Odisha with a sample size of 400 members from 68 SHGs. The results of the study indicates that the two major problems faced by the SHGs are financial (89.8%) and marketing problems (74.5%). The problems of finance arise due to high interest of loan and insufficient financial assistance. Whereas the main problems of marketing include lack of marketing facility, heavy competition and lack of advertisement. Other socio cultural and internal problems faced by the SHGs were male domination and lack of coordination among the members.