Pursuing Goal of Self‐Sustainability but Leads towards More Instability: Challenges and Way Forward of Self‐Help Groups (SHGs)
Date
2018-02Author
Waseem Ul Hameed
Hisham, Mohammad
Hanita Kadir Shahar
Metadata
Show full item recordAbstract
This study contributes to a stream of literature by developing a conceptual framework to
understand promising influence of Self‐Help Group (SHG) on poor people’s lives through
microfinance, as SHG is a function of microfinance institutes. In particular, this study
highlights the drawbacks of SHG with regards to microcredit, training and social network
with respect to SHG members. It is found that less attention and studies has been paid and formally documented about drawbacks or negative aspects of SHGs. Three hypotheses are proposed concerning the relationship of SHG with self‐sustainability, predicting a negative relationship between self‐sustainability and micro‐credit but the ambiguous relationship is found between self‐sustainability and other SHG dimensions (i.e., social‐network, and micro‐training). Furthermore, this study investigates different situations through which SHG affect negatively on self‐sustainability of poor people. Finally, this study highlights different conditions in which microfinance institute services such as SHG does not fulfill its original goal and make the condition of poor people more miserable.