abstract

Self-help groups (SHGs) have emerged as a transformative tool for empowering rural women, addressing poverty, and fostering socio-economic development. This study explores the role of SHGs in improving the socio-economic status of women in rural areas through increased access to credit, enhanced income-generating activities, and greater participation in decision-making processes. Utilizing both qualitative and quantitative methodologies, the research examines case studies, interviews, and survey data from SHG members across selected rural regions. The findings reveal that SHGs significantly contribute to improving women's economic independence by promoting savings habits, facilitating micro-enterprise development, and reducing dependency on informal credit sources. Additionally, SHGs foster social empowerment by enhancing women's self-confidence, leadership skills, and involvement in community decision-making. Challenges such as limited training, inadequate financial literacy, and societal barriers are also discussed, alongside recommendations for strengthening SHG operations and their impact on rural communities. This paper underscores the importance of SHGs as a grassroots mechanism for driving sustainable development and empowering rural women, offering policy insights for governments, NGOs, and development agencies to support and scale these initiatives effectively.