Financial Sustainability of SHGs through Marketing and Cost Recovery System - An Empirical Investigation

The buzz word “Microfinance” was introduced by the policymakers and think tankers to use it as a double edged weapon to fight against poverty through the development of microenterprises. Traditionally micro finance programmes were aimed at removing the constraints of availability of finance for operations and asset building of micro entrepreneurs. In the recent time the main concern is the sustainability of the microenterprises. It is being recognised in many occasions the fact that without proper marketing innovations and strategies it would not be possible for the micro finance beneficiaries to sustain their enterprises in the long- run. Micro finance programmes in India have also stresses upon marketing as a vital tool for sustainability of enterprises operated by the beneficiaries. The guidelines of the programmes specify that Government and Non-Government Agencies should render specific services and allot definite amount of funds for piloting marketing programmes for micro finance beneficiaries. The guidelines also specify the importance of carrying out market surveys before product specific micro enterprises are set up in rural areas. This study while delving into the importance of marketing strategies for micro finance beneficiaries takes up the case of micro entrepreneurs engaged in making pottery and terracotta items in a rural belt in the district of Darjeeling, West Bengal. Through personal observation, interviews and administration of structured questionnaires, the production techniques, marketing avenues, problems in marketing and help from Government agencies like the District Rural Development Centre has been explored. It has been found that though a variety of items are produced and marketed by the beneficiaries in local markets out-station fairs and through middlemen, they face a host of problems with regard to marketing. The paper therefore recommends some policy prescriptions to ameliorate these problems and evolve proper marketing strategies for micro finance beneficiaries.