Are SHGs catalysts of inclusive sustainable rural development? Impact assessment of SKDRDP interventions in India

ABSTRACT

The objective of this study is to analyse whether self-help groups (SHGs) play catalyst role in the inclusive and sustainable development of rural poor. This has been empirically examined in Indian scenario with a specific case of SHGs promoted by Shri Kshetra Dharmasthala Rural Development Project (SKDRDP), using secondary and primary data. A sample survey of 419 SKDRDP-promoted SHG members was conducted in Dakshina Kannada and Madikeri districts of Karnataka state in India. The data collected are analysed by adopting factor analysis technique. The results exhibit that SKDRDP-promoted SHGs contribute significantly to reforms in the society, enhance the capability of rural poor, and enable economic well-being and financial inclusion of the poor. Thus, SHG activities enable inclusive and sustainable rural development. The results have significant implications to the policymakers, non-government organisations, and local government organisations of underdeveloped economies.

KEYWORDS:

• SHGs
• rural development
• microfinance
• inclusive growth
• impact measurement

Acknowledgement

The author acknowledges the support extended by Dr. Srilakshminarayana.G, Assistant Professor-Quantitative Methods, SDMIMD, Mysore in data analysis.

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

This work was supported by the Shri Dharmasthala Manjunatheshwara Institute for Management Development.