Blog
Team Social Xleration, 18th February 2022
Introduction
A self-help group (SHG) is a homogenous association comprising 10 to 20 members, who come together to help themselves and fellow members. They meet frequently and pool small savings regularly and extend loans within their group. Today, a majority of the SHGs in the country are women-based and are helping them develop a voice and self-sufficiency. The history of the SHGs in the country goes back to organizations such as MYRADA and SEWA creating and encouraging these groups. The SHGs also execute an important role of fostering entrepreneurship through bank linkages to enable members to avail loans for starting entrepreneurial activities. Today, many women SHGs are involved in developing various products as a measure for income generation.
The government has been working on strengthening this aspect. A significant announcement in this regard was the doubling of collateral-free loans to women SHGs from Rs 10 lakh to Rs 20 lakh as part of the Rs 1.76 lakh crore stimulus package announced by the union finance minister to fight COVID-19 in the first half of 2020. According to the announcement, this was supposed to help 63 lakh SHGs covering 7 crore families as per the announcement. Besides, the government has been finding ways to promote and market the products developed by women’s SHGs. One such way is to take the products online for their marketing. This item explores various online marketing efforts initiated in the country.
Amazon and Flipkart Partnership with National Urban Livelihoods Mission
In March 2020, it was announced that Amazon had partnered with the Ministry of Housing and Urban Affairs to train, support, and provide market access to artisans and SHGs as part of the National Urban Livelihoods Mission (NULM) to give small businesses access to the newer market. The first phase was to make 2,500 products available for purchase. 24 states and 350 SHGs were enrolled with potential revenue of Rs 45 crore in one year, it was reported. The turnover aimed as reported for the next three years was Rs. 500 crores. The Mission had earlier forged a similar partnership with another e-commerce platform Flipkart in January 2020 by signing an MoU. These partnerships are part of the effort called ‘SonChiraiya’ to market products of urban SHGs by the Ministry of Housing and Urban Affairs. Till 31 December 2018, 3,45,450 SHGs comprising more than 34 lakh women were formed under NULM.
It was also reported in November 2021 that Amazon India as part of accelerating women entrepreneurship in the country under its program “Amazon Saheli” developed a partnership with organizations which include Jharkhand State Livelihood Promotion Society (JSLPS), Uttar Pradesh State Rural Livelihood Mission (UPSRLM), and Assam Rural Infrastructure and Agricultural Services (ARIAS), all of which promote women SHGs.
Ministry of Rural Development Partnership with Flipkart
In November 2021, it was announced that the e-commerce company Flipkart has entered an agreement with the Ministry of Rural Development (MoRD) of the Government of India for the Centre’s Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) program, to bring local businesses and SHGs, especially women-led SHGs on an e-commerce marketplace. This partnership is part of Flipkart’s Samarth program, which aims to empower skilled but underserved groups of craftsmen, weavers, and artisans with national market access as well as focused expertise and training through Flipkart’s marketplace. With outreach in 6,768 blocks of 706 districts across all 28 states and six union territories, the MoRD’s DAY-NRLM program has mobilized 7.84 crore women, into more than 71 lakh SHGs for their empowerment.
SHGs Products on Center’s E-Commerce Platform
To increase market reach to the products developed by women SHGs under (DAY-NRLM), it was made known in February 2020, that the Ministry of Rural Development will feature them on the Center’s e-commerce platform Government e-Marketplace (GEM). The government also announced that to make their products more marketable, it will assist SHGs with branding, packaging, and pricing.
E-Market Place for Mission Shakti in Odisha
The Government of Odisha in 2001 initiated the Mission Shakti project under which 70 lakh rural women have been organized in six lakhs SHGs, which are extended easy bank credit for different livelihood opportunities. So far Rs. 6,000 crores have been made available to women SHGs. To provide wider outreach to the products made by the SHGs under Project Shakti, an e-marketplace was launched in December 2021. It was hoped that this step will also provide international customers access to the products developed by the SHGs.
Online Marketing Platform for Sikkim SHGs
The State Government of Sikkim launched an e-commerce marketing platform in order to give a platform for women SHGs in the state to feature and market local produce. On December 4, 2021, Chief Minister P. S. Golay unveiled an online e-marketing website and the e-commerce mobile app ‘Swayam Sikkim’ for Sikkim’s SHGs. Over 5,200 women SHGs in Sikkim would benefit from the project, which will help them market their products such as unique food products, handicrafts, hand-woven textiles, and natural remedies online with the help of the Sikkim Rural Livelihood Mission.
Rajasthan Departments Come Together to E-Market Women SHGs Products
It was announced in January 2021 that the three departments of the Government of Rajasthan, namely, the Rural Development & Panchayati Raj, the Women & Child Development, and the Local Self Government Departments have come together for branding and competitive marketing of products developed by women SHGs through internet platforms as part of a strategy for their economic empowerment. For helping SHGs, they planned to launch a new portal.
Conclusion
It is hoped that the above initiatives and similar ventures which have commenced with good intentions bear results and lead to a good income for women SHG members. It would also be useful that the capacities of women members in terms of management, marketing, and tracking of online sales are developed and regularly upgraded so that they can be important stakeholders in this effort and contribute their best to enhance their earnings.