Individual small farmers can't afford to undertake activities that involve additional investment or risk. But a group of people can share costs by pooling their ideas, capital and labour. Second, groups are cost-effective receiving systems for development assistance. Most governments do not have the staff or funding to reach each and every rural household. But when their clients are organized in groups, it is far less costly to deliver inputs, training, credit and other services.
Groups foster collective learning.
Individual farmers have particular talents and skills - but don't have the opportunity to share them with their neighbours. In a group, they can learn from each other, and share valuable new skills as well. And groups promote democracy. As individuals, the rural poor expect to have little or no say in decision-making. In a group, they learn to discuss and solve problems together.