ASSESMENT OF THE SOCIO-ECONOMIC IMPACT OF SELF HELP GROUPS SCHEME ON MEMBER’S STATUS: A CASE STUDY OF STAND FOR VULNERABLE ORGANIZATION

Abstract

Poverty is a deep rooted global phenomenon with which many countries are suffering. Self Help Group (SHG) scheme is the one among widely used approaches being used to end poverty in various countries. The present research is an attempt to study the impact of Self-Help-Groups (SHGs) for the socio-economic development of poor people organized in to self Help Groups in Addis Ketema Sub City (Tekelhaimanot area), Burau City and Ambo town. Exploratory and descriptive design types of research methods were conducted at the 3 project sites. The approaches used were qualitative and quantitative and both primary and secondary data have been used. Three projects have been purposively selected out of the 13 projects run by SVO due to time and geographical limitations to conduct the study. The whole members of the 22 SHGs, 281 people, from the 3 projects considered as population of the study. Then sample respondents were purposively selected to collect the necessary data, amounting 94 ((8X4) + (6X5) + (8X4) = 94) respondents, a marginal error of 5% & confidence level (95%) and an indicative table from market research, (Dessel, 2013), were used to determine the sample size. Three types of data collection instruments; questionnaire, FGD & structured interview were used to collect the necessary data. The result of the data analysis done in chapter 4 revealed that the SHGs have been playing an important role in social-economic development. It has been found that after joining the SHG, most of members of the groups have not only increased their income but also improve their living standard by performing various social & economic activities independently and in groups. The study has three major limitations, namely, the research setting; study focused only on aspects of member’s status and the approaches to the social & economic impact measurement, it focused only on the income approach and SHG context. The result of the present study would help the Governmental, and non-governmental agencies in formulation of policies and strategies aiming at poverty alleviation through SHGs. Hence, it is recommended that, the greater potential observed in this study in transforming poorest of poor people in their socio economic lives should be used to its fullest package to break the cycle of poverty from many communities.