Assessing the Sustainability of Self-Help Groups in India: An Interstate Analysis

Abstract

Self Help Groups (SHGs) have aspired to resolve the vexing issue of financial diversity by augmenting self-reliance amongst the unemployed and poverty-stricken masses of developing and underdeveloped nations. However, the sustainability of SHGs is essential since many SHGs cannot manage to function in the long term. Therefore, the main aim of the present study is to assess the sustainability of SHGs in the context of financial inclusion across Indian states using panel regression. Findings demonstrate that the number of SHGs has risen due to the increased credit disbursement along with the accessibility to various financial services. Additionally, it is unusual to find that the training given to SHG leaders/members does not have an impact on the sustainability of SHGs. Implications through this study highlight a need to increase financial inclusion, and technical literacy amongst the SHGs to sustain and scale their ventures in the global world.