Determinants of Income Generation and Financial Performance Through Self-Help Groups

ABSTRACT

This study examines the efficacy of a microcredit-linked self-help group (SHG) program in identifying the problems faced by group members such as income generation and financial performance. To examine this, 120 members in each of three selected blocks in Birbhum District in West Bengal, India, were invited to participate. A multiple regression equation focused on identifying the contributing factors toward explaining SHG income. Results indicated that income generation for all the blocks together was significantly influenced by factors like loan amount, amount of saving, years of existence of SHG, education level of the group leader, and availability of the training facility. However, SHG-wise efficiency scores varied across the blocks that might be related to different sociocultural dimensions. Implications of the analytical findings for future research are discussed at the end of the article.

KEYWORDS:

• Self-help groups
• financial efficiency
• income generation