When first installing BuddyPress, Groups module is not enabled by default and you need to activate it.
Enable Groups
Follow these easy steps to activate the Groups component:
- Go to WP Admin> Settings > BuddyPress > Components.
- Make sure to check User Groups and click Save.
- Check your Groups URL in the Settings > BuddyPress > URLs section
- From your Groups URL, you are able to create groups as an admin upon viewing the URL and clicking the “Create a Group” link
Allow users to create groups
You can also allow users to create groups by enabling the setting in WP admin > Settings > BuddyPress > Options > Enable group creation for all users

Users are now able to create their own groups on your site.
Populate with dummy groups
Sometimes it is best to have some content and not to creating groups by hand can be time consuming.
Luckily there is an awesome plugin for that and allows you to generate groups, members and activity content.
Check it out: wordpress.org/plugins/bp-default-data
