International Journal of Scientific Research and Engineering Development

Self-Help Group (SHG)-linked micro-enterprises engage in a wide spectrum of livelihood activities aimed at socio-economic empowerment of their members. These activities encompass the production of food items, manufacturing of everyday consumer goods, provision of IT education, solid waste management operations, animal husbandry, tourism-related services, and health care initiatives. The present study examining raw material sourcing practices among SHG-linked micro enterprises, based on primary data from 251 randomly selected units in Malappuram district, Kerala, found significant differences in raw material procurement patterns depending on the number of years the micro enterprises had been operating. ANOVA result shows that there exists a significant difference between sourcing and groups of functioning years. Most of SHGs in Kerala rely heavily on locally sourced raw materials to reduce transportation costs and overcome limitations from their small production scales, which restrict them from availing bulk purchase benefits.