Determinants of participation in self-help-groups (SHG) and its impact on women empowerment

Abstract

Purpose The purpose of this study is to gain meaningful insights into a microfinance programme in two different agro-ecological settings in India. The study, using primary survey data, attempts to examine individual, household and environmental characteristics that determine participation in a self-help group (SHG)–bank linkage programme in Odisha. Design/methodology/approach Primary data are collected by a stratified random sampling method. The sample size is 300 households and information is collected by canvassing a pre-designed schedule to women through door-to-door in-depth interviews. In addition, focus group discussions have been conducted to get qualitative information. A probit binary model is applied to examine the factors determining participation in a SHG–bank linkage programme. A composite index of women empowerment is computed taking three dimensions: autonomy, economic empowerment and the gender relationship. Further, ordinary least square multiple regression and treatment effect evaluation by propensity score matching is carried out to study the impact of participation on women empowerment. Findings The study finds that the programme has by-passed the poorest of the poor. It is observed, however, that participation in microfinance has a positive and significant impact on women empowerment. Research limitations/implications Given the research methodology adopted in this study, one concern is whether the results generalise. Therefore, researchers are encouraged to test the proposed propositions further. Practical implications To improve status of women particularly in developing and underdeveloped regions, microfinance can act as a catalyst. Social implications Microfinance in the form of SHG–bank linkage should be promoted, particularly for those social groups and religious communities where women are discriminated. Their participation in SHG–bank linkage programme will improve their social status through empowerment. Originality/value This study illustrates how microfinance can improve the status of women.

Participation in microfinance based Self Help Groups in India: Who becomes a member and for how long?

“…Importantly, the poorest households based on the wealth quintile (quintiles four and five) are most likely to be SHG members. The findings from the wealth quintiles contrast previous evidence from regional India that showed exclusion of the poorest of the poor in typical microfinance programs [ 15 , 16 , 18 – 20 , 33 , 34 ]. Programs such as the specialised SHG plus health literacy model evaluated in this research that primarily seeks to target the poor and poorest are adequately able to capture the poor as found through the BPL statistics.…”

“…Therefore, this paper adds significant value to the literature on potential gap in targeting the poor and poorest by poverty alleviation programs in India by constructing and using a wealth quintile to capture poverty and its gradients beyond BPL status. Other regional studies [ 15 , 16 , 18 – 20 , 33 , 34 ] from India have also, previously highlighted the limitations of microfinance programs in effectively reaching the poorest. These studies have constructed wealth quintiles based on households’ land holding, sources of income and amount earned to identify the poorest, bypassing the use of formal measures of BPL.…”

Women Empowerment Through Self-Help Groups: The Bittersweet Fruits of Collective Apple Cultivation in Highland Ethiopia

“…The paper also suggests that vulnerability of women to domestic violence declined due to the program. A more recent study by Mohapatra and Sahoo (2016), not yet covered in the systematic review, also found that participation in microfinance groups had a positive and significant effect on women empowerment in India. For identification, they used PSM methods on a sample of 300 randomly selected women (200 SHG participants and 100 nonparticipants).…”

Economic Aspects of Women's Empowerment Program in Central Sulawesi, Indonesia

“…Empowerment of women (Okonofua & Omonkhua, 2021). The expansion of women's assets and their ability to participate, take on strategic roles, negotiate, control, and hold accountable institutions that affect their lives is alluded to as women's empowerment (Mohapatra & Sahoo, 2016).…”