Women Empowerment through Self-Help Groups: A Micro-Credit-Based Analysis in Ramgarh Cantt

Abstract

Micro-credit has emerged as an effective tool to enhance financial inclusion and empower women in developing countries. It helps to alleviate poverty. The aim of the current study is to evaluate the women empowerment through micro-credit in Self-Help Group (SHG) in Ramgarh Cantt, Jharkhand. A quantitative descriptive and analytical research design was adopted using surveys conducted with 200 women SHG members through a structured questionnaire. Descriptive statistics and inferential techniques such as paired comparison and multiple regression analysis used to assess the impact of SHG participation on women empowerment. SHG Participation has helped the women in economic and social empowerment. After joining self-help groups (SHGs), participation in household financial decision-making has increased from 35% to 75%, decisions concerning children’s education from 45% to 80%, health care decision-making from 50% to 85%, personal savings from 40% to 82%, and participation in community activities from 30% to 72%.  Results from the multiple regression analysis indicated that the monthly income (β = 0.42), education (β = 0.31), participation in the community (β = 0.27) and duration of SHG membership (β = 0.24) significantly contributed to the women empowerment. The model explained 62% of the variation in empowerment (R² = 0.62; Adjusted R² = 0.60; p < 0.001). The study concludes that micro-credit through Self Help Group (SHG) enhances women's economic independence, decision-making ability, social participation and confidence. Nevertheless, restricted loan size along with a lack of entrepreneurial training, marketing, and socio-cultural restraints continue to inhibit sustainable empowerment. Capacity building, financial literacy. Entrepreneurship development, and Institutional support can strengthen SHGs for inclusive and sustainable women’s empowerment.