Problems existing Self Help Groups (Bachat Gat)?

 Though there are many finance schemes for SHGs, either the finance provided under these schemes is meager or access to these schemes is not easy. SHGs, therefore, find it difficult to get finance and the financial institutions tend to discourage SHGs from obtaining financial assistance. 

SHGs lack information - information in terms of managing their SHG, documentation, legal requirements, etc. 

Managing and running is one thing and converting an SHG into a Business Enterprise is a different game altogether. The mentality of SHG members requires to be converted from an SHG member to an entrepreneur. 

Unlike men, women's mobility in India is highly limited due to various reasons. The cumbersome exercise involved in starting an enterprise coupled with the official's humiliating attitude towards SHGs compels them to give up the idea of starting an enterprise. 

Before converting an SHG to a Business Enterprise, the group should be united and cohesive in nature. Unfortunately, a vast majority of SHGs lack internal cohesiveness and there are lingering internal issues, over the period of time, these issues grow out of control and affect the entire group. Hence, internal cohesiveness is necessary for SHGs to sustain and transition into a successful business entities. 

In India, around three-fifths (60%) of women are still illiterate. Illiteracy is the root cause of socio-economic problems. Due to the lack of education and that too qualitative education, SHGs are not aware of the business, technology, and market knowledge. Also, lack of education causes low achievement motivation among SHGs. Thus, lack of education creates one type or other problem for SHGs in the setting up and running of business enterprises. 

SHGs are less educated and economically not self-dependent. All these reduce their ability to bear the risk involved in running an enterprise. Risk-bearing is an essential requisite of a successful entrepreneur. 

In addition to the above problems, inadequate infrastructural facilities, shortage of power, high cost of production, social attitude, low need for achievement, and socio­-economic constraints also hold the women back from entering into business.