Abstract

This study develops a conceptual understanding of the role of Self-Help Groups (SHGs) in promoting women’s empowerment and sustainable livelihood transformation in rural contexts. Based on a thematic synthesis of existing literature, it identifies four key dimensions: financial inclusion, livelihood development, empowerment outcomes, and structural constraints. The findings indicate that while SHGs improve access to credit, savings, and income-generating opportunities, empowerment is not immediate but evolves through a multi-stage process. The study proposes a conceptual framework linking SHG participation to sustainable livelihoods through stages such as financial inclusion, capacity building, enterprise development, income enhancement, and decision-making power. It highlights the critical role of capacity building and institutional support in converting financial access into meaningful empowerment. Furthermore, empowerment is understood as multidimensional, encompassing economic, social, and psychological aspects. The paper contributes by offering a process-oriented framework that integrates fragmented findings and emphasizes that effective SHG interventions must go beyond microfinance to include training, market linkages, and institutional support for sustainable outcomes.