Q.(a) What are the hindrance of Commerce.

(a) Commerce faces several hindrances — of person, place, time, risk, finance, knowledge and exchange — each of which is removed by an auxiliary/aid to trade. (b) Self Help Groups aim to promote savings, provide easy credit, generate self-employment and empower the weaker sections, especially women.

(a) Hindrances of Commerce (and the aids that remove them)

Commerce is the branch of business that removes the hindrances in the smooth flow of goods from producers to consumers. The main hindrances are:

1. Hindrance of Person — producers and consumers are separated; removed by trade (buying and selling through middlemen).
2. Hindrance of Place — goods are produced at one place and needed at another; removed by transportation.
3. Hindrance of Time — goods are produced in one season but consumed throughout the year; removed by warehousing/storage.
4. Hindrance of Risk — goods may be lost or damaged by fire, theft or accident; removed by insurance.
5. Hindrance of Finance — traders need money to carry on business; removed by banking.
6. Hindrance of Knowledge/Information — consumers may not know about available goods; removed by advertising and salesmanship.
7. Hindrance of Exchange (Payments) — difficulty in making and receiving payments; removed by banking (cheques, drafts, electronic transfers).

Thus, the auxiliaries or aids to trade — transport, warehousing, insurance, banking and advertising — together remove these hindrances and make commerce smooth.

(b) Objectives of Self Help Groups (SHGs)

A Self Help Group is a small voluntary association of poor people (usually 10–20 members) from the same socio-economic background who come together to solve their common problems through mutual help. Its objectives are:

1. To encourage thrift and savings — members save small amounts regularly and pool them into a common fund.
2. To provide easy micro-credit — loans are given to members from the group fund (and later through bank linkage) without collateral and at reasonable interest. …