Forming a Business Group

Forming business groups is a way for women and men in different economic communities to enhance their income generating activities and thereby improve the quality of life of their families and communities. Business groups can also address inequities and power imbalances between men and women of various income classes by helping to strengthen the members’ self-confidence, status and voice.

While group formation initiatives abound, challenges remain:

• Men and women who are interested to start a business group do not always know how to set up, organize and manage their group effectively. Enabling group members to acquire then necessary skills and knowledge as well as access to adequate support structures is key to building viable business groups.

• When the group formation process overlooks existing social and economic relations in a community, it may only benefit those who are already in a privileged position. The development impact of group formation can be strengthened by ensuring that it does not perpetuate existing power structures and unequal patterns of wealth distribution.

• Sometimes decision-making, responsibilities, rights and resources may not be equally distributed within business groups. Women members often do not benefit to the same extent as men or female leaders. If the process of group formation is inclusive and gives equal opportunities and treatment to all members, it can become an effective means of empowering
women by enhancing their self-confidence, social status and economic well-being.

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