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Digital Change and Women Empowerment: An Analysis of Self Help Groups in Rudrapur City (Uttrakhand) |
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| Paper Id :
19487 Submission Date :
2024-12-26 Acceptance Date :
2025-01-16 Publication Date :
2025-02-02
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.14875293 For verification of this paper, please visit on
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| Abstract |
The emergence of
digitalization has had a substantial impact on a number of industries,
including women’s Self Help Groups. SHGs are community based organizations that
have been established in India cities and villages to facilitate mutual support
in addressing specific difficulties faced by impoverished women. Throughout the
course of 25 years, the SHG movement has expanded significantly, with 85 lakh
units now active nationwide. SHGs have been essential in helping rural women
advance their socio-economic development and financial inclusion. The
effectiveness and reach of SHG microfinance services could be greatly increased
by incorporating digital technologies into their offerings. Overall, SHGs
empower women and promote inclusive and sustainable socio-economic progress in
India. Digital change plays a significant role in this process. SHGs have
raised the socio-economic standing of their members by utilizing digital
technologies and platforms. This study
utilizes a blend of observation, qualitative interviews and focus group
discussions to capture the measurable results and nuanced experiences of SHG
members.
This research seeks to assess how digital change is affecting Self-Help
Groups (SHGs) in Rudrapur city by examining the adoption of digital tools and
their success in empowering women both economically and socially. According to
research, digitalization has raised financial literacy, facilitated openness
and efficiency in financial transactions and improved access to financial
services. Women have become more economically independent by using digital
tools to start their own business and improve their money management. In
general, digital change is a strong driver of women’s empowerment through
self-help groups (SHGs), which promotes equitable and long-term socio economic
development in India. |
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| Keywords | Women Empowerment, Financial Inclusion, Digital Literacy, Entrepreneurship, Micro-Credit. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Introduction | “The
empowerment of women is the key to unlocking the potential of a
nation”……. Michelle
Obama In
order to achieve gender equality and sustainable development, women's
empowerment is essential. Self-Help Groups (SHGs), especially in rural and
semi-urban regions, have emerged as a key tool for women's empowerment in India
and many other nations. Since their initial concentration on microcredit, SHGs
have broadened their purview to encompass livelihoods, education, health, and
social networking. Due to the broad availability of mobile technology and the
internet, the digital revolution has opened up new avenues for women's
empowerment. Over the past ten years, advancements in digital technology
have reduced the significance of economic, geographic, social, and political
obstacles, as well as minimized the expenses associated with transactions. This
is resulting in increased transparency in productivity, governance, and citizen
empowerment. Does it offer equal opportunities for both men and women to make
the most of digital resources, or does the gender gap show up in digital
diversity. Today, the digital revolution offers fresh opportunities for women
to achieve economic empowerment and can play a role in increasing gender
equality. The Internet, digital platforms, mobile phones, e-commerce, and
digital financial services provide incredible prospects for everyone and can
assist in narrowing the gap by empowering women to earn extra income, expand
their job prospects, and obtain knowledge and information. Different research
and studies suggest that there are still structural inequalities in society
that hinder gender equality. Challenges such as barriers to entry, cost,
limited education, and ingrained biases and societal norms restrict women from
fully taking advantage of the possibilities provided by digital changes. Gender
stereotypes and the metaphorical glass ceiling place women on the unfavorable
side of digital diversity. Harnessing the vast capabilities of digital
technology and achieving real transformative empowerment that challenges
conventional gender norms will necessitate a united effort from all parties
involved in addressing the gendered aspects of ICTs and the gendered
socio-cultural and economic landscape. In the current digital era, e-marketing
is acknowledged as a more crucial platform for businesses and self-help groups
also frequently use it. Through social media, people may actively interact with
one another through virtual groups and networks, erasing traditional borders
and enabling global reach. Self-help organizations can use it to effectively
and economically market themselves to a big and potentially worldwide consumer
base. This gave the Self-Help Groups a chance to market their products, raise
product awareness and cultivate devoted relationships with their customers
around the world. In India, SHG programs intentionally target women because of
their marginalized situation in comparison to men and because women's SHGs have
proven to be successful and sustainable.
India’s digital initiatives have helped women make informed financial decisions by increasing financial
literacy and access to credit through mobile apps. This digital
Platform
connects self-help groups with marketplaces and learning resources, providing participants with better
income opportunities. Self-Help Groups (SHGs) are widely recognized as an essential avenue for financial empowerment, social and economic progress for women in rural areas, giving them the opportunity to secure loans, save money, and collaborate for common causes. Self-Help Groups are neighbourhood-based groups that support women's self-management by encouraging credit, savings, and entrepreneurship. The integration of digital technologies into these groups is increasing their capacity, improving their productivity, and expanding their influence. The incorporation of digital tools like mobile banking and digital wallets, along with online microfinance platforms, is making it easier to access financial services, enhancing financial literacy, and promoting transparency and efficiency in financial transactions. As a result, women in Self-Help Groups are more capable of handling their finances, starting their own businesses, and gaining increased economic autonomy. Nevertheless, there are difficulties accompanying this move to digital platforms. Many rural women continue to face a major obstacle due to the digital divide, as they do not have access to dependable internet services and digital devices. Moreover, different levels of digital literacy within SHG members present an additional hurdle, requiring ongoing training and assistance. Large cyber security risks emphasize the importance of strong measures to safeguard users from online fraud. In spite of these challenges, the outlook for digitalization in empowering rural women looks optimistic. Self-improvement is an intriguing but frustrating aspect of development. The journey is fluid and transcends the boundaries of any one developmental domain. The benefits of self-improvement are numerous and varied. It is a fundamental component of modern strategies for meeting fundamental needs and promoting individual empowerment. The complete potential of digital microfinance can be achieved through fixing infrastructure deficiencies, offering continuous education, and enforcing robust cyber security measures. |
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| Objective of study | The objective of this study is to evaluate the influence of digital change on the empowerment of women through Self-Help Groups (SHGs) in Rudrapur city. |
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| Review of Literature | Kuhn, Lisa, and Susy Cheston (2002) examined the efficacy of several microfinance initiatives in empowering women. The study concludes that although microfinance can improve women's economic standing, more steps are required to maximize empowerment, such as access to technology and digital literacy. Yunus, Muhammad (2003) has been talked about in detail the Grameen Bank model and its achievements in giving microloans to the underprivileged, especially women, in this ground breaking book. He emphasizes how microfinance may change lives and makes glimpses of how technology will play a part in extending the reach and influence of microfinance in the future. Swati Gupta (2018) examined the impact of digital financial services on Indian rural women's economic empowerment. Although the study addresses obstacles like digital literacy and infrastructure, it also shows that digital tools may greatly improve women's financial inclusion and economic potential. Consultative Group to Assist the Poor, or CGAP (2015) highlighted the advantages and difficulties of digital financial services in this CGAP paper, which offers a thorough examination of digital financial inclusion. It makes policy proposals to increase the effect and reach of digital financial instruments, especially for underserved populations like rural women. Digital technologies give women access to legal and health services as well as platforms for advocacy and social activity (Chakraborty & Kumar, 2018). A number of studies show that self-help group initiatives, which frequently take the shape of savings accounts and credit or microcredit schemes, have been successful in improving the lives of low-income women by paving the way for higher incomes and more self-esteem. SHGs have proliferated throughout the state, proving this. It is clear from the discussion above that although many studies on women empowerment through Self Help Groups have been carried out in India, with a variety of goals; more research is still needed to fully understand the issues surrounding, particularly digital change and women empowerment through Self Help Groups. An empirical investigation in this field is therefore urgently needed. |
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| Main Text |
Empowerment Several
countries have made women's empowerment a top priority on their developmental
agendas, and underprivileged women's cooperation is crucial to its
success. Self-help groups, or SHGs, have been an important
instrument in this effort, using a participatory method to effectively empower
women. In its
simplest form, empowerment is an expression of the
redistribution of power that challenges patriarchal ideology and male
dominance. It is the process of enabling women to
access and control material and informational resources. The Dictionary of Social Work (Barker, 1991) defines
empowerment as “the process of helping groups or communities gain political
influence or equivalent legal authority.” According
to Bandura (1986), “empowerment is the
process by which people gain a sense of efficacy, defined
as the extent to
which individuals perceive that they have control over their circumstances.” Pillai, J. K. (1995),
“Women empowerment is an active, multidimensional process which enables women
to realize their full identity and powers in all spheres of life. Power is
neither a commodity to be transacted nor can it be given away as alms. Power
has to be acquired, and once acquired it needs to be exercised, sustained and
preserved.” Kabir, N. (2001), “empowerment is defined as the process by which women gain control and responsibility for their lives by expanding their range of choices. It is therefore the process by which they gain the ability to make strategic life choices in situations where this ability was previously denied. The core elements of empowerment have been identified as agency (the ability to define and act on one’s own goals), awareness of gendered power structures, self-esteem, and self-confidence.” Origin of The Self-Help Group Movement The
concept of Self-Help Groups follows the
principle of “by women, for women, and by women.” Self-Help Groups originated from
the Grameen Bank in Bangladesh, which
was founded by an economist professor. Mohammed
Yunus of Chittagong University in
1975 Created solely for the poor. Grameen Bank in Bangladesh
provided loans without requiring borrowers to offer collateral or engage in
formal employment. In India, the National Bank for Agricultural and Rural Development
(NABARD) launched Self-Help Groups (SHGs) in 1986-87, but significant progress
occurred post-1991-92 when SHGs were linked with banks. Self-Help Group Concept Self-Help
Groups are unofficial gatherings of 15–20 low-income women from the same neighbourhood.
Each organization selects its members and chooses its own name. All members
attend the regular meetings when member savings are gathered and loans are
distributed among group members according to the individual's need and the
loan's intended use. Self-Help Groups can use the loans to purchase livestock,
open a shop, or engage in other small-scale microbusiness ventures. The members
of the group decide on the payback schedule or instalments. The group members
keep a cashbook, general ledger, ledgers for each member, minute’s book,
etc. Every group has a bank account that is operated, and its
surplus savings are deposited there. In
order to improve and elevate the impoverished, each organization functions as a
financial institution that is owned and run by them. Members' savings,
including the common fund, interest on loans, and loan repayment are internal
sources of funding for Self-Help Groups. External sources include loans from
grants and subsidies from the government and non-governmental organizations. To
lend to the members in need, each organization gathers savings from all of its
members. Additionally, it allows members to pay membership and administrative
costs. The emergence of microfinance in India has also led to the formation of
credit and Self-Help Groups. The SHG movement has therefore expanded to offer
microfinance to the rural populations of India. Pattern
of Self-Help Group Operations
SHG
Development: Transitioning From Conventional To Digital Conventional
Self-Help Groups Mutual
aid, local entrepreneurship, and group savings have been the main tenets of
traditional SHG operations. With little access to outside funding and
technology, these organizations frequently have an unstructured structure. The
Digital Transformation's Inception New
platforms and tools brought about by the digital age have the potential to
revolutionize SHG operations. Social media platforms, online marketplaces,
digital record-keeping, and mobile banking give SHGs previously unheard-of
access to information, financial services, and market prospects. This change
involves reconsidering the entire structure that SHGs operate inside, not just
implementing new technologies. The
Importance Of Women Empowerment Women’s empowerment
is a critical component of sustainable development. Empowering women
means enabling them to fully participate in economic life
across all sectors and at all levels of economic
activity. This includes increasing their access to economic
resources and opportunities, such as jobs, financial
services, real estate, and other productive assets. Empowered
women make significant contributions to the health and
productivity of their families and communities,
improving the prospects of future generations. Despite significant progress in India,
women still face numerous challenges, including limited access to
education, health care, and economic opportunities.
Rural women in particular are often excluded
from the formal
financial system. Self-Help Groups have become a
powerful tool to bridge this gap by providing a mechanism for
financial inclusion and economic empowerment. Digitalization
and Micro-Credit Digitalization
refers to the adoption of digital technologies
to transform business models and provide
new opportunities for revenue generation and value creation. It
involves the process of transitioning to a digital business. Digitalization involves incorporating digital technologies into daily activities, leading to substantial changes in how information and services are accessed. In
the context of microcredit, digitalization can improve the
efficiency, accessibility, and scalability of financial services. This includes using mobile
banking, digital wallets, online lending platforms, and other digital
tools to provide financial services to the unbanked and under
banked population. Digital finance has the potential to transform the
microcredit sector by reducing transaction costs, increasing transparency, and
improving service delivery. Digital platforms facilitate better decision-making
by offering crucial information on prices, industry trends, and best practices.
For Self-Help Groups, digitization can mean
better record keeping, easier access to credit,
and increased financial literacy among
members. These changes can significantly empower women
by giving them the tools they need to manage their finances, start
and grow businesses, and achieve economic independence. The
use of digital technologies in SHGs is a relatively new field of study.
Numerous studies have looked at how mobile phones and online financial services
can help women become more economically and socially empowered. Aker and Mbiti
(2010), for example, contend that mobile phones make it easier to obtain
financial and informational services, especially in rural areas. Digital
platforms can also help women reach their full potential as entrepreneurs by
giving them access to marketplaces, lowering transaction costs, and allowing
them to sell goods online, according to Jain (2019). Area of The Study According to Udham Singh Nagar (Uttrakhand) state's official census from 2011 and the district's population figures from 2024, Hindus make up the majority. According to the 2011 census, Udham Singh Nagar district has a total population of 1,648,902. The majority of people in Udham Singh Nagar—66.98%—are Hindu. There are 154,554 people living in the Rudrapur UA/Metropolitan region overall. This population is composed of 81,340 men and 73,214 women.
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| Methodology | The current research is grounded in both primary and secondary sources of information. The observation, interview schedule served as the primary means of gathering data from the respondents. SHG leaders, facilitators and members participated in focus groups and in-depth interviews. These qualitative techniques offered more profound understandings of individual experiences and viewpoints. Primary sources of secondary data included books, journals, and newspapers. In order to contextualise the findings and give a thorough background on the digital revolution and its influence on women’s empowerment, reports from government agencies, non- governmental organizations (NGOs) and academic research were reviewed. The study has been attempted to be clarified by both descriptive and inferential analysis. In view of the aforementioned, the present study was carried out to find out the digital change and women empowerment through self-help group specifically in Rudrapur city, district Udham Singh Nagar. Udham singh Nagar district has total Self-Help Groups 7837 in which Rudrapur city has total Self-Help Groups 884. |
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| Sampling |
Given
the time constraints and respondent characteristics, a sampling strategy is
used for the investigation. A sample of 100 SHG members in the study area was
selected using a purposive sampling technique for a more thorough analysis.
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| Analysis | The goal of the current investigation was to learn more about impact of digital change on women empowerment through Self-Help Groups in urban areas. The total of 100 respondents made up the sample. In order to do this, the following outcomes were obtained from the data after it was examined using the proper statistical method: Table-1: Impact of Digital Change and Women Empowerment through Self-Help Groups
The table above illustrates that 19 respondents (19%) out of 100 enhanced financial services accessibility because to digitalization. They now find it simpler to perform financial transactions without having to travel to banks, which are frequently located far from their communities. In addition to reducing travel expenses and time this has boosted the frequency of their bank transactions.17 respondents (17%) out of 100 improved their small businesses by providing simple access to resources, offering advice and information, digital payment methods lessen reliance on middlemen and doing away with the necessity for a real market. 06 respondents (06%) out of 100 enhanced their abilities. Online training programs help respondents operate their enterprises more effectively by improving their digital literacy and entrepreneurship abilities. 12 respondents (12%) out of 100 increased effectiveness and transparency in their business. Digital technology has improved the security and efficiency of financial transactions. The time and expense associated with financial transactions have decreased as a result. 09 respondents (09%) out of 100 increased financial inclusion and literacy. NGOs and government organizations have provided training programs that have given respondents the skills they need to use digital platforms and smartphones. 10 respondents (10%) out of 100 have been increased greater co-operation and social networking. Online forums and social media improved community relationships, encouraged co-operation and support among the respondents. 11 respondents (11%) out of 100 enhanced self-determination through entrepreneurship. SHG acquired microloans have been utilized to fiancé small-scale industries, livestock, and agriculture. Digital financial management has improved profitability and streamlined operations, giving respondents more financial independence. 05 respondents (05%) out of 100 increased ability to access markets. Better decision-making is made possible by digital platforms, which offer vital information on prices, market trends and best practices. 04 respondents (04%) out of 100 have contributed to a decrease in corruption because digital technologies make financial transactions more transparent. 07 respondents (07%) out of 100 established new job opportunities. Members were empowered by SHG-led employment opportunities, which gave them financial autonomy and decision-making ability beside this, offering assistance and resources for small business start-up and operation. The financial services industry now has more job opportunities because to digital technologies. Economic development of the respondents has benefited from this. Therefore, the largest segments of the respondents (19%) enhanced financial services accessibility. They said that they can now conduct financial transactions more easily thanks to mobile banking, digital wallets and online credit facilities. In addition to saving time and money on travel, this has made their financial transactions more frequent. Prospects For The Future And Their Policy Implications Governments, non-governmental organizations, IT companies, and financial institutions must all work together to successfully digitally transform SHGs:
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| Conclusion |
The establishment of Self-Help Groups (SHGs) has enhanced the livelihoods of women from socially and economically disadvantaged backgrounds. Additionally, SHGs have contributed to their financial autonomy and stability. The advancement of women’s empowerment can be achieved through the growth of SHGs. SHGs have been recognized as a means to meet the financial requirements of women. The digitization of microfinance via Self Help Groups (SHGs) in Rudrapur city has demonstrated considerable potential for advancing women's empowerment. This research emphasizes the beneficial effects of incorporating digital technologies into the microfinance landscape, such as improved accessibility to financial services, increased financial literacy, and greater efficiency and transparency in financial dealings. Women have utilized these digital solutions to enhance their financial management, engage in entrepreneurial activities, and attain higher economic independence. Ultimately, the digital transformation of Self-Help Groups (SHGs) in Rudrapur serves as a significant driving force for empowering women. It promotes enhanced financial inclusion, active economic involvement, and social progress. Ongoing initiatives to incorporate and enhance digital technologies within SHGs will not only uplift individual women but also further the overarching objectives of sustainable development and gender equality in rural India. Besides this there are obstacles along the way. One major obstacle is the digital divide, which is characterized by rural areas’ restricted access to dependable internet and electronic devices. Furthermore, SHG members’ levels of digital literacy differ greatly, making continual training and assistance necessary to guarantee efficient use of digital tools. In order to foster trust and protect financial transactions, cyber security issues must also be addressed more and more. The potential for digitalization to empower rural women remains bright despite these obstacles. The full potential of digital microfinance can be achieved by filling in infrastructure gaps, offering on going education and putting strong cyber security measures in place. To establish an environment that facilitates digital financial inclusion, policymakers, non-governmental organizations and financial institutions must work together increasingly. Digital platforms further give women a forum to advocate for change and participate in conversations about social issues. Raising awareness of sexual harassment, gender-based violence, and other types of discrimination can now be accomplished effectively using social media. Connecting with like-minded people and groups can help women raise their voices and influence legislation. Women are empowered by SHGs to overcome obstacles, exercise their rights, and contribute to inclusive and sustainable development by giving them access to resources, skills, and support networks. To overcome the remaining obstacles, stakeholders must remain committed and implement all-encompassing plans that put women's empowerment at the forefront of all aspects of life. In conclusion, digital change is a potent driver of women’s empowerment in Rudrapur SHGs. It promotes social change, increased economic engagement and financial inclusion. |
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| Suggestions for the future Study | Women’s empowerment has been transformed by the incorporation of digital tools into self-help groups. Although there are many ways that digital technology can enhance social support, education and financial inclusion, issues with infrastructure, gender prejudice and digital literacy must be resolved. To get past these obstacles and make sure that digital tool can be used to support women’s long term empowerment in marginalised and especially in rural communities. To gain a better understanding of the opportunities and problems faced by women, future research should be multidisciplinary approaches that integrate gender studies, digital technology, economics and social sciences. Digital tools have enormous potential to improve women’s empowerment, especially in rural regions and to revolutionise self-help groups. So the future studies should concentrate on examining the long-term impacts of digital interventions, creative rural solutions and legislative frameworks that support digital fairness. It could be said that the most marginalized and disadvantaged groups benefit from digital transformation by cultivating a digital ecosystem that encourages women’s empowerment through self-help groups in rural areas. | ||||||||||||||||||||||||||||||||||||||||||||||||
| References |
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