Role of Self-Help Groups (SHGs) in empowering Women Entrepreneurs

Abstract

Self-help groups (SHGs) utilizing microfinance have gained international recognition as an effective contemporary strategy for promoting self-reliance, empowerment, and sustainable development among their members and communities. By fostering collective action, mutual support, and inclusive growth, SHGs play a crucial role in addressing socio-economic challenges and building more resilient and inclusive societies. Microfinance is widely associated with initiatives aimed at eradicating poverty, supporting small businesses, and promoting gender equality. It involves providing modest financial services and products to impoverished individuals in rural, semi-urban, or metropolitan areas. Microfinance institutions (MFIs) play a crucial role by offering financial and non-financial services to those with limited means. Karnataka, India, is home to hundreds of such institutions. One notable local example is the Women Entrepreneurs Program, which primarily serves women in need by providing financial services and goods. Microfinance typically involves providing small loans to individuals with low incomes to invest in their businesses, often accompanied by savings accumulation. Its widespread acceptance as a key tool for poverty alleviation and economic empowerment, particularly among the underprivileged, gained momentum following Bangladesh's success with microfinance in the 1970s. Microfinance organizations play a vital role in supporting aspiring micro-entrepreneurs, particularly from disadvantaged backgrounds, by offering financial assistance and business start-up support. By targeting the underprivileged, these initiatives aim to enable individuals to establish their own businesses and increase their income levels, thereby contributing to poverty reduction and sustainable development goals.