Effect of micro credit schemes on women empowerment: a case study of women self help groups in Haryana
Student name: Ms Malvika Grover
Guide: Prof Kanchan Chopra
Year of completion: 2012
Host Organisation: TERI University
Abstract: Micro credit provision through formation of Self Help Groups (SHGs) is being seen by the policy
makers and NGOs as an instrument of women empowerment but actual evidence regarding the
same is mixed. The complex gender relations prevailing within the household and progressive
narrowing of the definitions of empowerment by the micro finance programmes make this a
difficult goal to achieve. In this study, the relationship between women empowerment and SHGs
is being examined. The study uses primary data collected from a sample of 80 women from 3
villages of Sohna, Haryana. These villages have seen a rapid growth in the number of SHG
participants over the last five years. Information on household demographic and economic
characteristics, SHG participation and eight dimensions of empowerment is collected. The eight
dimensions of empowerment include: 1) mobility, 2) asset ownership by woman, 3) ability to
make small purchases, 4) ability to make large purchases, 5) involvement in major decisions, 6)
freedom from domination, 7) public participation and 8) political and general awareness. By
combining these eight, a composite empowerment indicator was created on the basis of which
the women were coded as empowered or not empowered. The analysis in this study uses a logit
model of estimation. The results show that participation and duration of involvement in a SHG
play an important role in women empowerment. When a woman is contributing to her household
income either independently or through the utilization of credit availed, then her probability of
being empowered increases significantly. Thus, to achieve the women empowerment goal it is
imperative for the SHG programmes to ensure that credit availed by is used for income
generation activities by the women.
Keywords: Self help group; Women empowerment; Credit; Logit; Haryana
