A Quantitative Analysis of the Progress of Women Entrepreneurs through Self-Help Groups in India

Abstract

Women Entrepreneurship through Self-Help Groups (SHGs) plays an important role in increasing the national productivity in India. Although, SHGs can be found in countries like South Asia and Southeast Asia, most SHGs are located in India. As a concept, it emerged in the early 1990’s. While, the credit requirements of the rural poor could not be adopted as in the case of organized sectors, there emerged the need for an informal credit supply through SHG. The rural poor with the assistance from the Non-Governmental Organizations (NGO’s) or by Government Agencies have demonstrated their potential for self-help to secure economic and financial strength. Hence, the Self- Help Groups Movement in India has reached an exceptional number of poor household and has been recognized as the largest microfinance program in the World. Today, the Self-Help Groups (SHGs) in India represent a unique approach to financial intermediation. The approach combines access to low-cost financial services with a process of self-management and development for women who are SHG members. SHGs are formed and supported usually by NGOs or (increasingly) by Government agencies. Linked not only to banks but also to wider development programmes, SHGs are seen to confer many benefits, both economic and social. SHGs enable women to grow their savings and to access the credit which banks are increasingly willing to lend. SHGs can also be community platforms from which women become active in village affairs, stand for local election or take action to address social or community issues (the abuse of women, alcohol, the dowry system, schools, water supply etc). However, due to the lack of adequate research in the field of Women entrepreneurship through Self-Help Groups, there is a need for the development of a conceptual framework that can facilitate research and discussion of Women Entrepreneurship through Self-Help Groups amongst academics and government agencies. This paper suggests conceptual framework and provides insight into the initiatives taken by women in forming the group, their trainings undertaken by them, development activities and facilities available for the members from both government and non-governmental organizations. It highlights the benefits gained by the Self-Help Group members through their involvement in attending training programmes for their own development and how they acquired knowledge which is required to promote their businesses. The paper helps to point out the financial position of women SHGs in India after they enrolled themselves in the Self-Help Groups. The paper is based on a quantitative research method surveying 923 women from five regions of India namely North, South, East, West and Central regions. The paper highlights the implications for Women Entrepreneurship through Self-Help Groups and practice and also makes research recommendations for the future.