Evaluating the Impact of Training in Self-Help Groups in India

Abstract

This article evaluates the impact of widespread training programmes provided by the SelfHelp Group (SHG) programme. Indian SHGs are primarily non-governmental organisation (NGO)-formed microfinance groups funded by commercial banks. This article employs evaluation techniques appropriate for current borrowers of a national programme. In addition, the article addresses the double selection issue of membership and training. We correct for membership selection bias using a pipeline method. We then account for training endogeneity with propensity score matching. The results of regression-adjusted matching (which controls for both participation and training selection bias) reveal that specialised training, such as business training, has a greater impact on assets than general training. Furthermore, NGOs should specialise in business training. Sensitivity analyses confirm the robustness of these results.Cet article évalue l'impact des programmes de formation largement répandus dans le cadre du programme Groupe d'Entraide (GE). En Inde, les GE sont principalement des groupes de microfinance formés par des ONG mais financés par des banques commerciales. Cet article utilise des techniques d'évaluation adaptées aux emprunteurs actuels d'un programme national. De plus, l'article s'attarde sur le problème du double biais de sélection lié à la fois au fait d'être membre et à la formation. Nous corrigeons le biais de sélection lié au fait d'être membre grâce à la méthode Pipeline. Ensuite, nous tenons compte du facteur endogène lié à la formation grâce à l'appariement des coefficients de propension. Les résultats de l'appariement corrigé par régression (ce qui permet de contrôler les biais de sélection liés au fait d'être membre et à la formation) révèlent qu'une formation spécialisée telle qu'une formation commerciale a plus d'impact sur les avoirs qu'une formation généraliste. De plus, les ONG devraient se spécialiser en formation commerciale. Des analyses de sensibilité confirment la robustesse de ces résultats.

Impact of climate change training intervention in savings groups

“…In this perspective, SGs could prove to be an ideal platform not only for promoting knowledge about climate‐related challenges but also for developing the strategies needed to face those challenges. Indeed, the group setting encourages the sharing of experiences between members and discussing matters related to the training, further increasing its impact (Bali Swain & Varghese, 2014; Carmichael, 2018). The presence of peer pressure pushes members to regularly remind each other to practice what they have learnt; and the social link and the common social norms lead members to behave in the same way or to take example on each other (Ambuehl et al, 2018; Breza & Chandrasekhar, 2019).…”

Helping when it matters: Optimal time for supporting women’s self‐employment in India

“…There have been a number of policy recommendations to improve women's success with entrepreneurialism, including supporting women's access to formal institutions, such as banks, social security and health insurance (Gurtoo & Williams, 2009), improving infrastructure (Ghani et al, 2013b), and offering skills training for potential entrepreneurs (Bali Swain & Varghese, 2014;Singh, 2000;Walther, 2011). In response, public schemes, membership-based groups, self-help groups (SHGs) and co-operatives offer business training, financial skills training and financial support, often designed specifically for informal workers and/or women.…”

Do socially motivated self‐help groups perform better? Exploring determinants of micro‐credit groups’ performance in Eastern India

“…Similarly, members utilize the additional credit for diversification of their livelihood, which ensures the long-term financial sustainability of these groups. Regularity in group meetings lend support to these initiatives, and women get an opportunity to share their knowledge and best practices (Bali Swain & Varghese, 2014). Various technical, financial, business and other training received by the participants as part of different micro-credit groups, add to the human capital of the borrowers and the community as a whole.…”

“…Bali Swain and Varghese (2014) point out that group solidarity can help improve the group's performance. Contrastingly, the coefficient of heterogeneity in the group () is not found to be statistically significant, which means that group characteristics do not have a significant bearing on the financial efficiency of the SHGs.…”