Psychological Empowerment as a Mediator Between SHG Participation and Economic Mobility: A Gender-Based Multi-Group Analysis

Self-Help Groups, Psychological Empowerment, Economic Mobility, Gender Differences, PLS-SEM, Community Development, Empowerment Theory.

This study examines the role of psychological empowerment as a mediating mechanism between Self-Help Group (SHG) participation and economic mobility, while also exploring gender-based differences in these relationships. Drawing on empowerment theory and community development perspectives, the study aims to explain how participation in SHGs contributes to socio-economic mobility through psychological processes. A quantitative research design was employed, and data were collected from SHG participants using a structured questionnaire. The proposed conceptual framework was tested using Partial Least Squares Structural Equation Modelling (PLS-SEM) along with multi-group analysis (MGA) to compare structural relationships between male and female participants. The findings reveal that economic conditions, institutional support, socio-cultural environment, policy support, and capacity-building initiatives significantly influence SHG participation. However, SHG participation alone does not directly translate into economic mobility; rather, psychological empowerment acts as a crucial mediating pathway linking participation with improved economic outcomes. The results also indicate gender-based variations, with women experiencing relatively stronger empowerment effects, while economic motivations influence male participation more strongly. The study highlights that SHGs function not only as financial platforms but also as mechanisms of empowerment and capability development. The findings provide important policy and managerial implications, suggesting that governments and development agencies should strengthen capacity-building programs, supportive institutional frameworks, and gender-sensitive SHG policies. Future research may employ longitudinal and comparative approaches and incorporate additional mediating factors such as social capital, financial literacy, and entrepreneurial orientation to further understand the pathways linking SHG participation with sustainable economic mobility.