Question

In which of the following ways do SHGs promote rural economic development?

• A. By focusing only on urban development
• B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas
• C. By reducing agricultural production in rural areas
• D. By preventing people from saving money

Answer 1

Answer:

B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas

SHGs contribute to rural economic development by promoting micro-enterprises, providing credit for small businesses, and enhancing financial literacy. This, in turn, creates employment, improves incomes, and strengthens the local economy.