Self-help group (SHG) production methods: insights from the union territory of Puducherry community

Purpose - The purpose of this paper is to study the production methods and potential of self-help groups (SHGs) for linking to micro, small and medium enterprises (MSME) in the Union Territory of Puducherry region. Design/methodology/approach - The variables for the research work were identified through a literature review relating to SHGs production methods and 251 primary data were collected through the random sample using the survey method. The statistical software of IBM-SPSS was used to analyze the data using the statistical methods of descriptive statistics like frequency analysis simple mean and inferential statistics such as chi-square, correspondence analysis, correlation and ANOVA test. Findings - The majority of SHGs consisting of 49.8% are willing to pay an amount up to Rs. 5,000 if training is provided through MSME organizations, a higher number of SHGs have indicated that they are very much interested in ancillary production activities, 35.5% of SHGs are using no machines and ANOVA test result shows that there is a significant difference between numbers of years of functioning with respect to production activity. Research limitations/implications - The authors have selected the Union Territory of Puducherry was taken as the sample region of the study due to its high rural poverty levels of 16.9%. Practical implications - The research study endeavors to study the various production methods and preferences of SHGs and it will be of immense utility to the government, banks, microfinance organizations and other policymakers. Originality/value - Existing literature reviews are conducted on various problems in service and manufacturing sectors, it is essential to conduct empirical research on an inclusive sector like SHG production activities and preferences in emerging economies like India.