SHGs as
Catalysts of women’s Empowerment: A Multi-Dimensional Review from Raipur, India
Akanksha Jyotishi
Research Scholar
Dept of Political Science, Kalinga
University
Dr Anita Samal
Research Guide
Dept of Political Science
Kalinga University
Abstract
There
has been much focus on women's empowerment and gender equality recently. When women fight against cultural and social
limitations in order to improve their own lives, this is called women's
empowerment. Self-Help Groups (SHGs)
have been an important tool for women's empowerment. By giving them a voice, a social network, and
financial independence, these organisations have made a significant difference
in the lives of low-income women. In
SHGs, women band together to support each other when they face similar
issues. To better comprehend the effects
of SHGs on women's lives, the essay explores members' first-hand accounts to
reveal the advantages and disadvantages they face.
Keywords: Self-Help Group, Women's
Empowerment, Economic Empowerment, and Social Empowerment.
I.
INTRODUCTION
The collective efforts of oppressed women are crucial to realize the
goal of women's empowerment, which is high on the developmental agendas of
several countries. With their emphasis
on group participation, Self-Help Groups (SHGs) have emerged as an effective
means of empowering women in this movement [1].
People from similar socioeconomic origins who are experiencing economic
hardship sometimes band together in voluntary groups known as Self-Help Groups
(SHGs). Together, they will face the
difficulties and problems that affect all of them by relying on them and working
together. The Self-Help Group (SHG)
concept was first used in India in 1984 and was based on social mobilization
ideas that Professor Yunus's Grameen Bank model influenced. In the beginning, a partnership between authorized
NGOs and the National Bank for Agriculture and Rural Development (NABARD)
helped to promote and grow SHGs.
Establishing a supportive environment was the goal of this joint endeavor,
which paved the way for projects such as the SHG-Bank linkage program.
The significance of SHGs in grassroots economic empowerment was further
solidified in 1990 when the Reserve Bank of India (RBI) officially recognised
them as a legitimate option for loan distribution (Self-Help Groups in India -
Functions, Advantages & Problems, 2023).
Both women's comparative marginalization and the proven effectiveness
and longevity of women's SHGs motivate SHG initiatives in India to target women
specifically [2]. Thanks to their
massive outreach, which now includes more than 50 million homes nationwide [3]? Donors and lawmakers are paying more
attention to SHGs. They may facilitate
service delivery; serve as collateral when raising finance, and help women gain
agency. In rural South Asia, women's
organisations are vital for social and economic assistance. The vast majority of women's empowerment
projects in India are implemented via self-help groups (SHGs). Social housing groups (SHGs) have expanded
their original mission beyond financial planning and borrowing intentions to
include educating members about healthy eating and nutrition, enhancing
administrative practices, and fighting gender and caste discrimination
[4]. Although Self-Help Groups (SHGs) in
India have several purposes, one of the major ones is to help members improve
their living conditions by pooling their resources and investing in the future.
In most cases, SHGs have anywhere from ten to twenty-five members, with
the membership broken down into either males, females, youngsters, or a
combination of the sexes. Having said
that, the core of SHGs in India is exemplified by women-led SHGs, which account
for almost 90% of the total [5]. A
fascinating and frustrating aspect of development is self-improvement. There is no fixed path to growth; rather, it
is an ever-evolving process. Numerous
and varied benefits may accrue from making an effort to better oneself. It is fundamental to modern methods of
meeting fundamental needs and promoting individual agency [6].
II.
LITERATURE
REVIEW
The importance of
women's empowerment to economic growth has been highlighted by Malakar and Das
[7]. Economic development projects must
prioritise women's empowerment to raise women's status and increase their economic
engagement. The establishment of
self-help groups (SHGs), especially among women, is an impressive strategy for
empowering women and promoting rural development. This strategy is a powerful instrument for
advancing rural development and women's empowerment.
In their study titled "Role of Self-Help
Groups on Socio Economic Development and the Achievement of Sustainable
Development Goals (SDGs)) Among Rural Women in Cooch Behar District,
India," Basak and Chowdhury [8] investigated the impact of self-help
groups (SHGs) on the socioeconomic status of rural women in India's Cooch Behar
District. The authors found that SHGs contributed to the world's progress
towards the SDGs, including ending poverty (SDG 1), ending hunger (SDG 2),
promoting health and well-being (SDG 3), providing access to quality education
(SDG 4), and achieving gender equality (SDG 5).
The research concluded that rural women in the Cooch Behar District of
India experienced substantial improvements in their socioeconomic status and
self-awareness after joining self-help groups (SHGs). Additionally, it was shown that SHGs greatly
benefited SDGs 1, 2, 3, 4, and 5 by empowering women in rural areas. Microcredit via SHGs is an important step
towards a developed, equitable, and inclusive society, according to the
research.
Mengstie Beley [9] The effect of microfinance
on the economic independence of women.
The goal of women's economic empowerment is to increase their economic
independence, political representation, and control over their own lives. The study's overarching goal is to determine
how microfinance has helped women gain economic independence. A total of 346 female microfinance customers
filled out the survey that provided the data.
The research used paired-samples t-tests and multiple regression
analyses.
M. Abdul Rahuman [10] A Study on the Views of
Those Who Have Received Microfinance from Tirunelveli's Commercial Banks. Microfinance is an effective tool for social
and economic transformation, alleviating poverty and empowering individuals in
rural areas. Microfinance is a service
that most banks nowadays are required to provide to their customers. The primary purpose of the research is to
value and evaluate the effect of commercial bank customers' use of microfinance
plans. This investigation used a descriptive
research strategy. The research is
taking place in the Tirunelveli district.
A total of two months was devoted to the research. Primary and secondary sources of information
were gathered for the research.
Convenience random sampling is the method used for the sampling. There are 120 samples in total. A percentage
table and a five-point Likert scale were used to analyse the acquired data.
The research by Al-Kubati & Selvaratnam
[11] titled "Empowering women through the SelfHelp Group Bank Linkage
Programme as a tool for sustainable development: lessons from India"
examined the program's success in empowering women, the difficulties it has
encountered, and its evolution over the last several decades. Using financial inclusion and collective
action, the SHG-BLP program in India empowers women economically, socially, and
politically, according to the research. This program helps achieve sustainable
development objectives.
Based on their research in "Empowering
Women through Self Help Groups and Women Cooperatives—A Tool for Sustainable
Development," Arora and Chawla [12] conclude that SHGs help women achieve
economic independence and self-determination via business ownership and
self-employment. The empowerment of
women is positively influenced by SHGs, which raise members' awareness of
government programs, reduce members' reliance on moneylenders, and promote
greater collaboration and self-help among members. Case studies of self-help groups (SHGs) and
women's cooperatives in the Indian state of Jharkhand highlight the positive
impact these initiatives have on women's economic status.
In their article titled "Self-Help Groups
Contribute to Sustainable Development," Sharma and Kashyap [13] set out to
investigate how these communities may promote sustainable development and
generate revenue. The study's findings
highlight the importance of self-help groups (SHGs) in facilitating
self-employment, thereby raising incomes and improving living conditions for
rural residents. Furthermore, SHGs
provide excellent educational opportunities that enable members to make
meaningful contributions to their communities' progress.
In their study titled "Socio-Economic
Empowerment of Self-Help Group Women in India with Special Reference to
Gujarat: An Overview," Dave and Vasavada [14] showed that SHGs help women
in Gujarat and all of the states they looked at, especially the poorer ones,
become more financially and socially independent. Participation in SHGs was associated with
substantial social and economic benefits, according to the research, which held
across all states. Research has shown
that Self-Help Groups (SHGs) in Kerala are more successful than those in other
states at enhancing women's economic and social standing. According to the research, policymakers and
planners across all Indian states need to adopt strategic planning to empower
rural women economically and socially.
According to research by Nikhithan and
Prabhakar [15] on "Review of the Functioning of SHG in the Context of
Economic Development of the Women Members & it's Impact on Their
Income," women who join SHGs have better access to housing, nutritious
food, healthcare, and education. They
are all in agreement that being part of the SHGs has given them a greater
understanding of the significance of children's education, health, finances,
and social responsibilities, and has also given them confidence in their ability
to lead better lives. The research
recommended that these women be provided with loans at reasonable interest
rates and be informed about all aspects of loan finances, which is now absent.
According to Arun Kumar and Mahalakshmi [16],
the research was conducted in Coimbatore.
Six self-help groups were questioned for the poll. The participants were chosen using a
combination of stratified random sampling and multi-stage purposive
sampling. To gauge the ease with which
women can start their own businesses, the research examined the role of SHGs in
the development of female entrepreneurs.
Research shows that SHGs help reduce poverty by providing low-income
people with access to loans.
Women Empowered via Self-Help Groups (SHGs): A
Case Study of Chickballapur Taluk [17], West Bengal. Researchers evaluated the
efficacy of SHGs and examined how they affected women's economic situations. According to the research, the SHG program
has helped empower low-income women in rural areas by meeting their needs and
strengthening their collective self-help capacities. When it comes to members' economic, social,
and political empowerment, SHGs have been a huge game-changer.
The purpose of the research was to analyse how
the Self-Help Group Bank Linkage Programme, a key development approach in India
for empowering women (Al-Kubati & Selvaratnam, [11]), worked in practice. With more than 10 million self-help groups
participating, this program is now the largest microfinance initiative
globally. An overview of the program's
impact on India is provided in the article via descriptive analysis. According to the research, the Self-Help
Group Bank Linkage Programme is an important tool for ensuring that women have
the resources they need to start their own businesses, build self-esteem,
acquire marketable skills, and access capital.
III.
DIMENSIONS
OF WOMEN'S EMPOWERMENT
Increasing women's
access to economic resources, including income, assets, and possibilities for
financial independence, is what we mean when we talk about economic
empowerment. According to Shwetha Sunil
[18], women can make more autonomous choices about their own lives and those of
their families, and they have authority over their financial resources. Literacy in personal finance,
entrepreneurship, education, and the workforce all contribute to economic
empowerment. When women have the
information, tools, and support they need to be active and confident members of
society, they are socially empowered.
Some examples of what is required include the ability to comprehend and
participate in banking operations, maintain excellent health and hygiene
practices, improve communication skills, and enhance decision-making
abilities. To successfully traverse and
participate in society's dynamics and interconnections, Megha Chawla [19]
provides women with social empowerment.
Women experience political empowerment when they acquire political
literacy and actively participate in politics by voting, running for office,
and engaging in other civic activities.
When women are politically empowered, they may have a say in the laws,
rules, and governmental decisions that impact their lives. The political scene becomes more inclusive
and representative as a result. Each of
these aspects of empowerment is dependent on and supports the others. Social empowerment may improve economic
prospects, while economic empowerment can boost social and political
involvement. In the end, achieving
gender equality and societal advancement are outcomes of empowering women in
all these areas.
IV.
ROLE
OF THE SELF-HELP GROUPS
Members of Rural
Women's Self-Help Groups are often low-income individuals who have lost their
ability to save enough money to cover their basic living expenses and other
social responsibilities. The formation
of Self-Help Groups allowed women to raise their economic standards and, in
turn, boost their confidence. Women in
SHGs have also received encouragement from both the government and NGOs. Using resources that are readily accessible
in the community to embark on self-employment projects. A large number of women in SHGs took
advantage of micro-credit and launched successful micro-enterprises. Several non-profits and banks have recently
begun providing microloans to small businesses run by rural women. Potential rural women micro entrepreneurs may
take advantage of training programs focused on manufacturing and service
sectors to hone their entrepreneurial skills.
These institutions have encouraged women to develop microenterprises. Even as rural low-income women are receiving
unique opportunities through self-help groups, micro-entrepreneurship is
nevertheless gaining traction among rural women. People who join self-help groups are part of
a demographic that shares many of the same issues as the general public. Members of these self-help groups are
assisting one another in finding solutions to their difficulties. Members of self-help groups are encouraged to
save a little each week and deposit it into a bank account. Over time, these
little amounts will add up to significant sums.
This represents the SHG's common fund.
If anyone in the group has any minor financial difficulties, they may
utilise the deposited money to help each other out. Members of self-help groups may borrow a
small amount from the group's common fund.
Bookkeeping, meeting planning, Register maintenance, and other similar
tasks will be divided among all members.
V.
DISCUSSION
A. Formation
and Functioning of SHGs:
Usually, SHGs are
established at the community or village level and consist of a group of women
who band together to tackle shared problems.
Supporting women's economic inclusion and empowerment is the primary
goal of SHGs. Social housing groups
(SHGs) allow women to build a community of mutual support and collaboration
while also providing a means to access finance, launch businesses, and save for
the future.
In many cases, NGOs, government agencies, or
financial institutions play a supporting role in facilitating and sustaining
SHGs. When it comes to connecting SHG
members with official financial services, training, and capacity development,
these organisations are vital. In SHGs,
members get together regularly to address social problems, make decisions about
savings and credit, and discuss other topics.
B. Financial
Inclusion and Economic Empowerment:
The effect that
SHGs have on women's access to formal financial services is one of their most
important contributions. It is difficult
for many Indian women to participate in income-generating ventures or deal with
unexpected expenses because they lack access to established financial
institutions. By pooling their
resources and forming partnerships with financial institutions, SHGs provide
women with affordable financing. As a
result, they can invest more in their families' economic security by supporting
small enterprises, farming, and schools.
Women may escape poverty by participating in
self-help groups (SHGs), where they can pool their funds and apply for loans to
establish or grow small businesses.
Women can better provide for their families' health, education, and
general welfare when they have access to financial resources.
C. Skill
Development and Entrepreneurship:
Supportive housing
groups (SHGs) are crucial in empowering women.
Vocational skills, including organic gardening, tailoring, and
handicrafts, are taught to women through skill development workshops and
training programs organised by several SHGs.
Having these abilities not only increases their chances of making money
but also helps them become more independent and self-reliant. Some SHG members take the plunge into
entrepreneurship as they gain more knowledge and experience; they launch their
businesses and help boost their communities' economies. Women may become self-employed, run
enterprises that add value, and create jobs in their communities through
SHG-based entrepreneurship. Other women
look up to them and are encouraged to pursue economic independence as a career
goal.
D. Collective
Decision-Making and Social Empowerment:
Women are
empowered to speak out for themselves and their rights when they join self-help
groups (SHGs), which promote collective decision-making. Because of SHGs'
democratic structures, women can defy societal expectations about gender roles
and participate in community-level decision-making. Women have effectively fought for issues such
as better educational facilities, access to clean water and sanitation, and
other community needs through SHGs. Not
only does this social empowerment help women personally, but it also makes
society as a whole stronger.
In addition to their important work at the
neighbourhood level, SHGs have been instrumental in increasing women's
political engagement. Numerous members
of SHGs have gone on to hold leadership positions in local government,
particularly in Panchayati Raj institutions.
To better address gender-specific issues and promote policies sensitive
to women's needs, having women in local government institutions increases their
representation and influence in decision-making.
E. Challenges
and Policy Implications:
Although SHGs have
accomplished much in empowering women, there are still obstacles to overcome
for their influence to endure. Members
of certain SHGs have a hard time keeping up with regular savings and staying
together, which makes it hard for the group to endure. Economic shocks, seasonal livelihood
patterns, or members' movement might be to blame. To overcome these obstacles, SHGs need
continuous support and capacity development, with guaranteed financial and
technical resources. Another factor that
might impede the development of women-led firms is restricted access to markets
and marketing assistance for SHG goods.
Working with businesses in the private sector and government procurement
programs may improve market access and open new opportunities for SHG goods.
Another problem that SHGs face is the red tape
that prevents them from participating in government programs and receiving
subsidies. To make government funding
more readily available to SHGs, administrative procedures should be
streamlined, funds disbursed quickly, and paperwork reduced. Policy implications include increasing
financial support for SHGs and bolstering their potential to have an
effect. Organisations, both public and
private, may facilitate access to markets and value chains and provide training
and technical support. Supporting new
approaches to SHG models, such as digital financial inclusion and climate-smart
businesses, may make them even more powerful tools for women's empowerment.
VI.
CONCLUSION
There is no
denying the impact of Self-Help Groups on women's empowerment in India. Through promoting financial inclusion, skill
development, and collective decision-making, SHGs have evolved into potent
tools for women's empowerment.
Supported housing groups (SHGs) have helped many women become
financially independent and socially empowered by providing access to finance,
opportunities to improve their skills, and a platform to start their own
businesses. Strengthening and expanding
the reach of SHGs across India requires on-going support from both government
and non-governmental organisations.
India has the potential to create a future in which women have a
significant impact through the implementation of new policies and creative
methods. In India, women's self-help
groups (SHGs) are a powerful tool for advancing inclusive and sustainable
economic growth.
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