American Journal of Rural Development, 2013, Vol. 1, No. 5, 121-130 Available online at http://pubs.sciepub.com/ajrdr/1/5/4 © Science and Education Publishing DOI:10.12691/ajrd-1-5-4 Self Help Groups as an Empowerment Model: Perceptions of Direct Stakeholders Sanjay Kanti Das 1,* , Amalesh Bhowal 2 1 Department of Commerce, Lumding College, Lumding, Nagaon, Assam, India 2 Department of Commerce, Assam University, Diphu Campus, Assam, India *Corresponding author: sanjay19711123@rediffmail.com Received October 23, 2013; Revised November 05, 2013; Accepted November 07, 2013 Abstract Self Help Groups (SHGs) emerge as an important strategy for empowering women and to alleviate poverty. India’s SHG movement has emerged as the world’s largest and most successful network of Community Based Organisations (CBOs). However, quality is the major challenge that the SHG movement is confronted with at this point of time in the country. The main objective of this paper is to assess the opinion of the direct stakeholders of SHGs regarding the issue whether SHG is an empowerment model. The study is conducted by using multi- stage random sampling method to collect primary data from the selected Development Blocks of Nagaon districts of Assam comprising promoter, donor, financial institutions and group members. From the ANOVA on overall score of variables on empowerment model, we conclude that at least one of the groups is not significantly different from the others. It is further observed from the descriptive statistics on item wise perception of stakeholders about SHG as empowerment model, out of forty (40) elements of empowerment, in thirty four (34) elements relating to Empowerment construct relating to SHGs whose mean value is positive are considered as the main elements of the respective construct. Keywords: direct stakeholders, empowerment model, micro finance, perceptions of stakeholders, self help groups Cite This Article: Sanjay Kanti Das, and Amalesh Bhowal, “Self Help Groups as an Empowerment Model: Perceptions of Direct Stakeholders.” American Journal of Rural Development 1, no. 5 (2013): 121-130. doi: 10.12691/ajrd-1-5-4. 1. Introduction Economic and social marginalisation of poor by formal credit agencies including co-operatives led to the emergence of Self Help Groups (SHGs). SHGs are an outcome of the neo-liberal paradigm of development (Chitagubbi et al., 2011 [1]), where the poor take charge of their lives and fashion new improved future through self-reliant and socially sustainable efforts. SHGs emerge as an important strategy for empowering women and in alleviating poverty. SHG is a “people’s scheme” and its organisation is a significant step towards empowering women. Women SHGs represent a form of intervention that is a radical departure from most current programmes. They are an effective strategy for poverty alleviation, women development and social empowerment. The women SHGs have enhanced the status of women as participant decision makers and beneficiaries on the democratic, economic, social and cultural spheres of life and sensitised the women members to take active part in socio-economic progress of rural India. SHGs in social change imply not only the change of outer form of a community or a society but also in the social institutions as well as ideas of the people living in that society. SHGs have been instrumental in empowerment by enabling women to work together in collective agency. A good number of researchers including MFIs claimed that this movement helped in empowering women. Further, SHGs are effective in reducing poverty, creating awareness and ensure sustainability of environment which finally results in sustainable development of the nation. SHGs are now emerging as the predominant model for poverty eradication, women empowerment and development agencies (Panda, 2005 [2]). The application of the strategy through UN’s Millennium Development Goals has made provision of financial support to the poor or low income people by realising the fact that instead of targeting individual development, it would be more useful to apply this idea in case of group development and interestingly the result found in most cases is very positive. In India, the SHGs constitute a widely accepted development strategy for poverty reduction as they are perceived as powerful vehicle for the promotion of micro- credit and micro-finance especially for women (Chen et al., 2007 [3]). SHG programme has emerged across India as one of the most popular strategy for empowering women (Chidambaram, 2004 [4]). The SHG model was introduced as a core strategy for empowerment of women in the Ninth Plan (1997-2002) in India (Planning Commission, 2002 [5]).The Ninth plan directed both states and the centre to adopt the ‘women’s component plan’ through which not less than 30% of funds and benefits are earmarked to the women related sectors. This strategy was continued during Tenth Plan (2002-2007)