Read the below statements and select the correct option with respect to self-help groups.
(i) A self-help group is a registered group of micro-entrepreneurs.
(ii) The micro-entrepreneurs of self-help groups have similar social and economic backgrounds.
- ((a))
Both (i) and (ii) are true
- ((b))
Both (i) and (ii) are false
- ((c))
Only (ii) is true
- ((d))
Only (i) is true
Show Answer
Only (ii) is true
The correct answer is Only (ii) is true.

Key Points
- Self-help groups (SHGs) are typically informal groups of people who come together for a common purpose, often related to financial or social improvement.
- SHGs are usually composed of individuals who share similar social and economic backgrounds, facilitating mutual understanding and support.
- These groups are often focused on micro-entrepreneurship, where members contribute to a common fund and can take small loans from it.
- SHGs are not always formally registered but operate on trust and mutual benefit.

Additional Information
- Self-Help Groups (SHGs)
- Self-help groups are small voluntary associations of people, preferably from the same socio-economic background.
- They come together for the purpose of solving their common problems through self-help and mutual help.
- SHGs are often focused on micro-financing, where members contribute to a common fund and can take small loans from it at reasonable interest rates.
- They play a crucial role in the social and economic empowerment of individuals, especially women in rural areas.
- Micro-entrepreneurs
- Micro-entrepreneurs are individuals who operate very small businesses, often with minimal capital investment and few employees.
- These businesses are usually informal and operate on a small scale, but they provide essential goods and services to their communities.
- Micro-entrepreneurship is a key component of SHGs, as it allows members to improve their livelihoods through small-scale business activities.
- Registration of SHGs
- While some SHGs may choose to register formally with local authorities or organizations, many operate informally.
- Registration can provide SHGs with greater access to resources, government schemes, and financial services.
- However, the informal nature of many SHGs allows for greater flexibility and ease of operation.

































































































