Impact of self-help groups (SHGs) on entrepreneurship development an empirical study

Hari Lal Bhaskar () and Sangeeta Yadav ()
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Hari Lal Bhaskar: Starex University, School of commerce and management
Sangeeta Yadav: Starex University, School of commerce and management

Journal of Global Entrepreneurship Research, 2025, vol. 15, issue 1, 1-13

Abstract: Abstract Women’s entrepreneurship in India still faces structural barriers, particularly in rural and semi-urban contexts. Self-Help Groups (SHGs) have emerged as a pivotal mechanism for economic and social empowerment, yet empirical evidence on their contribution to entrepreneurship remains fragmented. This study addresses that gap by examining the impact of SHGs on women’s entrepreneurship development in the Delhi–NCR region. Drawing on a cross-sectional survey of 322 women SHG members purposively selected from district-level lists of registered SHGs across Delhi, Noida, Gurugram, Faridabad, Sonipat and Ghaziabad, primary data were collected through face-to-face field visits using a pre-tested structured questionnaire. In total, 350 questionnaires were administered, 336 returned and 322 retained after screening. Statistical analysis was performed using SPSS and Smart-PLS to assess reliability, convergent and discriminant validity, and to test the hypothesized relationships. Results reveal a significant positive effect of SHG participation on key entrepreneurial outcomes – business start-up, income generation, and skill enhancement – underscoring the role of SHGs as incubators for women’s entrepreneurship. The study highlights policy implications for strengthening SHG capacity-building, credit facilitation and market linkages to enhance women’s entrepreneurial sustainability. By explicitly connecting Empowerment Theory and Human Capital Theory to SHG participation, the research contributes to the literature on grassroots entrepreneurship and offers actionable insights for development practitioners and policy makers.

Keywords: Self-help groups; Psychological empowerment; Skill development; Economic enablement; Entrepreneurship development; L26; O12; O16; J16; M13 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40497-025-00473-0

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