Leadership in female SHGs: traits/abilities, situational or forced?

Purpose – Microfinance/microcredit/self-help groups (SHGs), as an instrument of women's empowerment, have attracted the attention of many researchers. However, despite being one of the most important aspects of SHGs, leadership in these groups has been neglected in the existing literature. The purpose of this paper is to focus on leadership in women-SHGs, and particularly on factors contributing to the emergence of leaders. Design/methodology/approach – The research followed quantitative methodology. The study was conducted on women-SHGs in Dharavi (Mumbai, India), one of the largest slums in Asia. An equal number of leaders and non-leader members from women-SHGs were interviewed. Findings – The findings demonstrates that a “participative/democratic style of leadership” is preferred by non-leader members within female SHGs. It also highlights that apart from traits/abilities of members and their situation within family and the group, other external factors also contribute to the emergence of leaders within SHGs. Often, rules and regulations of formal institutions and government policies force the group to replace its most efficient leader with another with no proven leadership qualities. The findings compelled us to re-think: “Is it really traits or situations that influence the emergence of leaders within women-SHGs?” or, “Is it a matter of forced leadership?” Leadership in female SHGs needs to be understood in totality, within the framework of their domestic world and their socio-economic context. Practical implications – The findings of the study provide scope to governments and other formal institutions to re-evaluate their existing policies, rules and regulations in dealing with female SHGs in order to help women's empowerment in a real sense. Originality/value – The study was conducted using a limited number of female SHGs, but it provides an insight to existing practitioners, governments and other formal institutions that are working on microfinance and using SHGs to empower women.