How SHGs can utilize E-commerce?
In India, there are a total of 1942 self-help groups spread over 19 districts in eight states (Andhra Pradesh, Assam, Bihar, Gujrat, Karnataka, Maharashtra, West Bengal) comprising a total of 23,781 SHG members. SHGs are a vital part of our society and in the below-mentioned points; you will get to know why it is so.
Here are some of the advantages of SHGs :
First comes battling social evils like alcoholism, gambling, drug addiction, etc. due to which many people were affected especially women who found it extremely difficult to fight not only the financial crisis but domestic violence as well.
Secondly and most importantly women empowerment. Women SHGs not only make their members independent from social constraints but also allow them to make independent decisions.
Another advantage of SHGs is active participation in democracy. SHGs can actively participate in the aspects of local governance. This would mean the inclusion of weaker and marginalized sections of the society in the local governance.
An increase in employment opportunities in rural India is another major benefit provided by SHGs. It allows for micro-level entrepreneurship within rural society and reduces too much dependence on agriculture.
SHGs also deliver easier access to government schemes. The government schemes are mostly meant for the marginalized sections of society. The inclusion and identification of these people are highly difficult. If they are grouped, it is easier for the government to identify those who need assistance quickly and efficiently. It also prevents the exploitation and corruption of the government at the ground level.
SHGs also improve the standard of living. The collective team effort by the SHGs for financial inclusion allows for the improvement in the living standard, family planning & healthcare of the vulnerable sections of the society.
Financial discipline is another considerable aspect of SHGs. The members of the SHGs are encouraged to open savings accounts in banks. This assures improved living conditions, increased spending on education, health, etc.
Before talking about how E-commerce can be a major preference for SHGs, let us see how it functions in the first place.
There are several functions of SHGs, they are as follows:
- Initiating and maintaining savings within the group is the first and foremost function and it requires that the members of the group must save at least a small amount so that these savings in return will get them future credits for their group.
- Second, comes the function of lending loans to the members from the savings made. And everything related to the loan must be decided within the group. This very function becomes crucial not only because it enables them to gather loans whenever needed but also paves way for members to willingly contribute to the savings.
- Other than these, SHGs also help in solving common problems faced by the members of the group through discussions and interactions.
It’s already known to everyone that SHGs are an immensely significant part of society especially in a country like India which has diverse traditions, culture, historical backgrounds, and so on, not only because it helps in solving socio-economic problems by bringing together the people who face similar difficulties but also acts a backbone in the functioning of the society as well.
According to NSSO data, farmer households, approximately 51.4%, are not able to have formal credits which leads to poverty and farmer suicides. Apart from this many people in India do not have access to loans due to the absence of collateral. These problems can be solved by SHGs if they operate sincerely. SHGs help solve several socio-economic problems, however, they can reach more and more people who need immense help in terms of money and loan with the help of the current significant weapon and that is E-commerce.
To find out how E-commerce can help SHGs, first, let’s know what exactly E-commerce is:
The E-commerce platform is a software application that allows online businesses to manage their website, marketing, sales, and operations. It won’t be wrong to say that this has become the new trend of earning. E-commerce Industry is an ideal platform for entrepreneurs and especially women entrepreneurs in many great aspects. E-commerce provides a wide range of opportunities and encouragement to women who once aspired to pursue entrepreneurship. Out of numerous pros, here are the major ones that every woman aspiring for entrepreneurship must look at. These are as listed under:
Firstly, the minimum cost setup or minimum investment plays a vital role in the increment of women entrepreneurs. There are many women out there who aren’t fortunate enough to be supported by their families to go for business, for them this has been a great relief.
Secondly, Wide range of customers; the e-commerce Industry is an ideal platform to access larger markets and thus a larger community of buyers and sellers which implies more productivity and profitability.
Third, the comfort of living at your own house. For several women who are occupied with household chores and various other responsibilities find it hard to leave their respective homes and work outside, this aspect of e-commerce has solved this grievance of theirs. Women can work at home at their own preferred time.
Fourth, government schemes play a vital role in pushing and encouraging the women sector to pursue entrepreneurship without any problem. Some of such schemes are Bhartiya Mahila Bank (loan up to Rs 20crores), Stree Shakti (loan up to Rs 50 000), women entrepreneurship platform (WEP), and many more.
The need for SHGs to utilize this great platform of e-commerce is enormously huge not only because it is going to help people with their respective problems financially but will also make a way for people especially women in rural areas to develop a broad set of technological skills. This will, therefore, influence and motivate others at the same time to grab a brilliant way to maximize their earning, striking skill which today’s generation truly needs and also a much much better way of life ultimately.
If we look at the profile of SHG members which is approximately 23,781, out of which SC and ST members are 33%, illiterate members are 62%, vulnerable women category comprises 14%, members having a primary occupation (labour and agricultural) are 87%, landless households are 43%, and below poverty, line members consist of 62%. From the above data, it is clear that the majority of the members of SHGs present in a total of 41 districts are illiterate, poor, and landless. With the commencement of e-commerce platform, it is needless to say that it will act like a wave of awareness among the illiterate and poor people especially the youth regarding various opportunities that e-commerce will provide and therefore will help them not only fight financial crisis but also provide a respectable place in society.
Well, there are a few instances where SHGs have utilized e-commerce and are appreciating the incentive that followed. Some of them are:
- 6-member SHG earns by making wooden toys through e-commerce-
A 47-year-old woman, P. Tamil Selvi, from Kangeyanallore in Vellore district, and her six-member women's self-help group (SHG) that makes wooden toys, are immensely happy and glad as for the first time, they have received an order for a wooden cow through an e-commerce site.
Ms. Selvi’s SHG has been part of the Tamil Nadu Urban Livelihood Mission (TNULM) for three years. Lately, TNULM officials named for a meeting between delegates of the e-commerce site and nine SHGs from Gudiyatham and Vellore that have been involved in preparing toys, glass paintings, lungi, wall-hangings, and other gift articles.
- Another story of “SHG earning by making and selling glass paintings” through e-commerce-
Another such instance is a 44-year-old woman, S.Hemavathi from Katpadi and her SHG members have got their glass paintings put up on the e-commerce site. They emboss paintings and fur toys as well and they were trained under TNULM in 2019. Earlier they used to sell their products in exhibitions but now with the help of e-commerce, their business has reached new heights.
- Talking about the recent news-
Representatives of self-help groups (SHGs) from four districts joined in a recent workshop to introduce their outputs online for e-commerce.
It was held at Tamil Nadu Institute of Urban Studies at Saibaba Colony. According to officials from Tamil Nadu Corporation for Development of Women (TNCDW), a total of 54 participants including 40 representatives of SHGs, their community organizers, and Assistant Project Officers from Coimbatore, Tiruppur, the Nilgiris, and Erode took part in the workshop.
The workshop was coordinated by e-commerce retailer Flipkart based on its partnership with the Central Government’s Deendayal Antyodaya Yojana — National Urban Livelihoods Mission (DAY-NULM), officials said. The partnership strives to introduce small businesses and SHGs to e-commerce, permitting them to access and cater to a pan-India market.
The SHG representatives brought samples of their region-specific products such as saris from Sirumugai in Coimbatore district, knitwear from Tiruppur district, and Toda shawls from the Nilgiris.
- A unique initiative by the Commerce Ministry
The Saras Collection, a unique initiative by the Commerce Ministry, where rural self-help groups can exhibit their products on the e-commerce platform for government buyers. This initiative is not only going to help many self-help groups to list their products on the Government E-commerce Site (GeM) in five categories which include handicrafts, handloom and textiles, grocery and pantry, personal care and hygiene, and office accessories; but the government e-commerce site is also paving way for several others to come forward and get progressed significantly. A total of 913 self-help groups have come forward and registered as sellers and 403 products have already been onboard as per GeM. The government has made it compulsory for all government departments and ministries to obtain their goods from the e-marketplace. The e-commerce platform for SHGs provides a wide range of products from office stationaries to verticals as well. This initiative of GeM and Deen Dayal Antodaya Yojana- NRLM will enormously help in the process of rural development.
Concluding Remark
E-Commerce is certainly a new way to a better tomorrow with the help of such government initiatives. However, not only should it be made mandatory for the government officials to buy stuff on e-commerce to help various self-help groups but each one of us should also initiate buying from such SHGs whenever possible and become a reason for their steadily growing life as well.
Contributed By- Anushka Rathore, Content Writer at Mitti Ke Rang
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