Unpacking the power of Self-Help Groups: How microcredit, training, and organisation drive women’s social empowerment

This research examines the relatively underexplored role of Self-Help Groups (SHGs) in promoting women's social empowerment (SE) in rural India, focusing on three key aspects: microcredit (MC), training (TR), and organizational structure (OR). The study assesses SHGs' contributions to women's agency, social networks, and civic participation, alongside their recognized economic impact. Using empowerment and social capital theories, Partial Least Squares Structural Equation Modelling (PLS-SEM) was utilized to analyze survey data from 398 SHG members in the Dakshina Kannada and Udupi districts. The findings highlight that organizational resilience built on participatory governance and mutual trust is crucial for promoting social equity. While microcredit greatly enhances autonomy and inclusion, the impact of training remains limited, likely owing to resource shortages, bureaucratic obstacles, unsuitable content, or socio-cultural differences. The study emphasizes the combined importance of OR and financial structures while criticizing the limited social focus of TR initiatives. It enriches the empowerment discourse by empirically illustrating SHGs as mechanisms for strengthening bonding and bridging social capital. Furthermore, it advocates for reforms in TR and participatory governance within SHGs, as well as aligning policies with public services. These insights highlight that SHGs serve not only as financial instruments but also as catalysts for grassroots social development.