A qualitative enquiry of sustainability challenges of SHGs enterprises post-COVID-19 pandemic: evidence from India

Purpose - The economic significance of self-help groups (SHGs), a critical community-based initiative based on social capital, is well encapsulated in generating employment opportunities, financial inclusion, empowerment of marginalized communities and economic development. However, these SHGs face multiple operating obstacles and sustainability challenges that have drawn the attention of policymakers and academicians alike. The landscape of SHGs has undergone a significant unfavorable transformation after the post-COVID-19 pandemic, which poses an existential crisis for SHGs. This study aims to explore the sustainability challenges in the post-pandemic landscape of SHGs and identify the factors that drive or deter individuals from joining SHGs. Design/methodology/approach - Initially, six National Cooperative Union of India representatives, the apex body of cooperative societies in India, were approached to understand the current policy framework and probable concerns of SHGs. Based on the interaction, the research agenda was modified to examine the sustainability of SHGs during and after the pandemic. An in-depth semistructured interview of 13 SHG leaders/coordinators and 52 individual members from different regions of India is conducted. Findings - Lack of digital inclusion, restrictions in mobility, impact on health and well-being and infrastructural ecosystem are identified as fundamental (and novel) operational challenges that hinder SHG sustainability post-pandemic. At the member level, entrepreneurial aspirations, a sense of belongingness, social networks and corporate and nongovernment organization (NGO) initiatives are the critical drivers for SHG participation. In contrast, the key deterrents are mistrust, lack of coordination and customer perception. Originality/value - Although many studies present mixed findings on women’s empowerment through SHGs, much of the research primarily emphasizes individual factors and the challenges faced by women. To the best of the authors’ knowledge, this study is among the first to expand the discussion beyond individual experiences to address broader operational challenges, particularly in the post-pandemic context. In doing so, this research aims to assist SHGs in overcoming these challenges and to guide government and nongovernment organizations (NGOs) in supporting the sustainable growth of SHGs.