www.tjprc.org editor@tjprc.org International Journal of Accounting and Financial Management Research (IJAFMR) ISSN(P): 2249-6882; ISSN(E): 2249-7994 Vol. 4, Issue 2, Apr 2014, 1-8 © TJPRC Pvt. Ltd. CHALLENGES OF SELF HELP GROUP MEMBERS TOWARDS INCOME GENERATION ACTIVITY S. VASANTHA Professor, School of Management Studies, Vels University, Chennai, Tamil Nadu, India ABSTRACT Micro finance through Self help group is being promoted as an important strategy for simultaneously tackling both poverty alleviation and women’s empowerment .Self help group is a small voluntary association of 10-20 poor people for the purpose of doing some income generation activity through their group savings and loan from bank. It inculcates the habit of compulsory savings amongst its members. The self help group members undergo capacity building training to improve their confidence level, managerial efficiency and entrepreneurial skills to engage themselves in some income generation activities such as mushroom cultivation, tailoring, pickle making and showpieces. This paper focuses on analyzing how self help groups act as an instrument to enhance the livelihood of marginalized sections of women and various challenges of SHG to engage in income generation activities. The research is conducted in the rural areas of Tuticorin district of Tamil Nadu. The data is collected from 300 self help group members through questionnaire survey. The study also analyzes the impact of training on income generation activities of the Self help group members. KEYWORDS: Capacity Building Training, Challenges, Income Generation Activity, Micro Finance, Self Help Group INTRODUCTION Microfinance is one of the powerful vehicles for the empowerment of poor and fight against poverty. Microfinance service industry is growing over the past three decades of time in the financial market. Micro finance through Self Help Groups has acted as catalyst for changing the lives of vulnerable sections of women and considerably reducing their dependence on men. Self help group is an informal association of 10 to 20 economically poor women who obtain loans from bank and subsequently lend the money to its members, helping them to invest it in some income-generation activities. Entrepreneurship development and income generating activities are a feasible solution for empowering women. Provision of Micro finance to SHG provides an opportunity to invest in some income generation activities or self employment, which helps to transfer the real economic power in the hands of women and has considerably, reduced their dependence on men. SHG provides the poor women a space to empower socially and economically. Various financial intermediaries, NGOs, governmental policies and developmental programmes also encourage the organizing of women Self Help Groups which place a record for the beginning of a major process of empowering women. But it is an important challenge to equip the poor women with essential skills to undertake profitable business, which could make them economically and socially independent women. The Self Help Groups are crucial organizations for the process of economic empowerment women receives strength from its group members (Manimekalai, 2004) Training helps the SHG members to work in a more systematic way and to give maximum output. The training is an important tool for economic viability of SHGS income generating activities (NABARD 2004). The SHGS who received formal skilled training are capable of demanding credits to start various income generating activities such as collection, processing and marketing of