Role of Women Entrepreneurship and Self-Help Groups in Rural Economic Empowerment in Rajasthan: An Analytical Study

Abstract

Women entrepreneurship and Self-Help Groups (SHGs) have become important components of rural economic development in India, particularly in states where agriculture, informal employment, and household-based economic activities constitute major sources of livelihood. Rajasthan provides a significant setting for examining the contribution of women-led enterprises and SHGs to income generation, financial inclusion, employment opportunities, and rural economic empowerment. Women in rural Rajasthan participate in agriculture, animal husbandry, handicrafts, food processing, textile production, and small-scale trading activities, but their economic participation is frequently constrained by limited access to finance, markets, technical skills, productive assets, and independent decision-making opportunities. Self-Help Groups provide an institutional mechanism through which women can mobilize savings, obtain credit, undertake collective economic activities, and develop entrepreneurial capabilities. Government initiatives, particularly the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), Rajasthan Grameen Aajeevika Vikas Parishad (Rajeevika), and the SHG–Bank Linkage Programme, have contributed to the institutional development of women's collective economic activities. This paper examines the economic role of women entrepreneurship and Self-Help Groups in rural Rajasthan, with particular emphasis on household income, livelihood diversification, financial inclusion, employment generation, human capital development, and regional economic opportunities. It also considers the relationship between women's economic participation and household decision-making, along with constraints involving credit availability, market access, social norms, business sustainability, and institutional support. The discussion draws on government reports, institutional publications, and established academic research. The paper argues that SHGs can strengthen rural economic empowerment when access to credit is accompanied by productive investment, entrepreneurial training, market connectivity, and sustained enterprise development. Greater integration between women's collective institutions and rural value chains can improve income opportunities and contribute to more inclusive economic growth in Rajasthan.