A Study on the Role of Self-Help Groups in Women's Financial Empowerment in Kerala

Abstract

Self-Help Groups (SHGs) have become an important vehicle for promoting financial inclusion and strengthening the economic position of women by improving their access to financial services, livelihood opportunities and participation in financial decision-making. In Kerala, the Kudumbashree Mission has played a pivotal role in expanding the reach of SHGs and creating opportunities for women to achieve greater economic self-reliance and social empowerment. Recognising the importance of these initiatives, the present study investigates the contribution of Self-Help Groups to women's financial empowerment and evaluates the influence of SHG participation on savings behaviour, income generation, financial decision-making, financial confidence and overall financial well-being. The study is based on both primary and secondary sources of data. Primary data were collected from 120 women members of Self-Help Groups through a structured interview schedule. The respondents were selected from three districts of Kerala such as Thiruvananthapuram, Ernakulam and Kozhikode, representing the southern, central and northern regions of the state, with 40 participants drawn from each district. Secondary information was obtained from books, scholarly journals, government publications, reports and other relevant documents. The collected data were analysed using descriptive statistics, Cronbach's Alpha, Pearson's Correlation Analysis and Simple Linear Regression Analysis. The findings indicate that active participation in Self-Help Groups significantly contributes to women's financial empowerment by promoting regular saving habits, improving access to credit, creating opportunities for income generation and enhancing their role in household financial decision-making. The study further reveals that SHG participation strengthens women's financial confidence, supports economic independence and contributes positively to their overall financial well-being. It concludes that Self-Help Groups are an effective instrument for advancing women's financial empowerment and promoting financial inclusion in Kerala. The study recommends expanding financial literacy programmes, strengthening entrepreneurship development initiatives and improving access to digital financial services to enhance the long-term economic empowerment of women.