Government Initiative for Promoting Micro-enterprises in Rural India: A Case of Sgsy in Uttar Pradesh

Abstract

This study analyses the process of micro-enterprise development based on social capital created under a government initiative i.e. Swarnjayanti Gram Swarozgar Yojana (SGSY) - a rural self-employment scheme - through establishing self-help groups (SHGs) for sustainable development in India. In particular, the study discusses the process of enterprise development and highlights how self-employment programmes can help Indian poor to bring them above the poverty line by building their capacity in terms of technical and entrepreneurial skills. The study is based on a primary survey of 107 self -help groups (SHGs) in the State of Uttar Pradesh, by administering a structured questionnaire. The study also identifies critical issues at each stage of the programme development, starting from the process of group formation to initiation of economic activities. Findings of the study suggest practical insights for developing SHG based micro-enterprises in profitable and sustainable manner.