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what is the difference between private sector, cooperative sector and SHG's ?

{ answer in simple words }

Private sector  Cooperative sector Self help groups
Private sector refers to the sector where means of production are under the control private individuals and companies. Cooperatives have allowed  people who are the producers of raw material  and workers to collaborate .These cooperative societies came into existence in the wake of growing poverty, indebetedness of the farmers.Coopeartive society allowed people to pool in their resources allowing them to overcome problems related to credit, marketing etc. These groups have organised rural poor more so women in collecting their money and in extending loans to its members.

There main aim is to make profit.

 Cooperative societies have served  as building blocks for the rural poor.It has allowed people to buy in latest technology and expand production. SHG charge less rate of  interest as compared with any other form of rural banking or even those charged by moneylenders
 Private sector is funded by the private individuals, who pool in their resources  Example, Weavers cooperatives, farmers cooperatives etc. . These groups gradually can seek loans from the bank so as to create employment opportunities for its members.. It is the group as a whole which is responsible for the repayment of the loan

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private sector-they are industries owned by individuals and try to earn profit

Cooperative sector-they are a joint partnership between govt and private companies.

SHG'S-they are self help groups in villages in which members consiting of women pay 25 to 100 rupees each and the villagers can take loans from these groups whenver needed at a reasonable interest.this group also solves the family problems.

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SHGs-Self-help groups act as an organisation comprising rural poor who pool their resources and savings together. It is from this pool that loans are given to members at very nominal rates of interest. If the SHG is able to save something out of these interests, then it becomes eligible for bank loans. It is with this bank loan that self-employment is created for the members of the group and their families, thereby increasing their standard of living. SHGs are working in rural India and have greatly helped in taking out poor farmers from debt-traps and helping them lead a life of dignity.

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