Relationship among Financial Socialization, Financial Inclusion and Economic Empowerment of Women members of SHG: An Empirical Analysis

Abstract

Women in Self-Help Groups (SHGs) are especially affected by financial socialization, which has a substantial impact on their financial behaviour, literacy, and decision-making. This study tries to evaluate how SHG engagement improves financial capability, well-being, and socio-economic advancement while examining the connection between financial socialization and financial inclusion. The study assesses whether financial socialization is essential to enhance financial inclusion among women SHG members taking into consideration the effects of peer pressure, social learning, and institutional support. The basic data used in this empirical study came from a sample of 300 women SHG members who are working in the district of Anugul (Odisha). To enhance the reliability of data collection, a strong questionnaire along with timetable were created utilizing standardized instruments created by reputable researchers. To gauge financial well-being and competence, here the study uses the Financial Well-Being Scale and the Financial Well-Being and Capabilities Scale. Individual, home, and familial socialization were also evaluated using a self-administered questionnaire, and socio-economic variables were recorded using a Demographic Profile Sheet. The study used a mixed-method approach to examine the null hypothesis (H₀), which states that financial socialization has no discernible effect on financial inclusion, financial capacity, or well-being. The results will help financial institutions and Government to create inclusive financial services and focused financial literacy initiatives for women. The study concludes by highlighting the critical role that SHGs play in facilitating socio-economic advancement and financial empowerment of Women Entrepreneurs of India vis-a vis Odisha.