Self-Help Groups and Women Empowerment: A Theoretical Perspective

Abstract

Self-Help Groups (SHGs) have emerged as an important strategy for promoting women's socio-economic empowerment by enhancing their access to financial resources, decision-making opportunities, and collective action. This paper examines the theoretical relationship between Self-Help Groups and women empowerment. Microfinance is not merely a financial intervention but a means of expanding women's capabilities, strengthening their confidence, increasing their participation in household and community decision-making, and improving their overall quality of life. The paper highlights that SHGs provide women with access to savings, credit, entrepreneurship opportunities, skill development, and social support, enabling them to achieve greater economic independence and social recognition. It also discusses the challenges affecting the effectiveness of SHGs, including unequal access to financial services, limited training opportunities, patriarchal social norms, inadequate institutional support, and low levels of financial literacy. The study emphasizes that strengthening Self-Help Groups through sustainable microfinance, capacity building, and community participation can significantly enhance women's empowerment, promote gender equality, and contribute to inclusive and sustainable rural development.