Women micro-entrepreneurs, resources and the role of self-help groups - a social embeddedness perspective

This study explores how women micro-entrepreneurs in emerging economies access resources by participating in self-help groups (SHGs). It discusses how SHGs help micro-entrepreneurs to access the different forms of capital that enable them to initiate and grow their entrepreneurial initiatives. It also describes the impact of this capital on the women, their enterprises and their home environments. A social embeddedness lens is employed to discuss how SHGs help women micro-entrepreneurs to progressively access and develop dimensions of financial, human and social capital. Evidence for the study’s findings is provided by twenty interviews with women micro-entrepreneurs operating in both smaller and larger markets in Bugesera district, Rwanda. A surprising finding is that over time, women often join multiple SHGs, so that they gain access to different categories and levels of capital. The study shows that these levels relate to women’s ability to leverage resources associated with financial, human, and social capital. Progression through these levels supports not only the creation and growth of women’s microenterprises, but also their own wellbeing and that of their households. The study contributes to the literature on women’s entrepreneurship, social embeddedness, and studies of entrepreneurship that discuss how entrepreneurs leverage networks to create resources. Its findings emphasize the potential of SHGs to encourage entrepreneurship, improve livelihoods, and reduce wealth disparities in emerging economies.