Published Paper Details:

Women's Self-Help Groups (SHGs) are a powerful tool for financial inclusion and social empowerment in developing countries. However, not all groups grow at the same pace. Some thrive while others struggle. This study examines how group cohesion and group efficiency interact to influence the development of SHGs in the microfinance sector. It also looks at the role of loan size as a moderator and group efficiency as a mediator in this relationship. Data from 200 SHGs were analyzed using structural equation modeling in SmartPLS 4.0. The results show that cohesion and efficiency together strengthen group development. Collaborative decision-making, mutual support, and participatory culture improve communication, confidence, and help members achieve literacy and income goals. Larger loan sizes further enhance efficiency and strengthen these benefits. The study offers practical insights for policymakers and practitioners, highlighting that targeted interventions to build cohesion and efficiency can make SHGs more sustainable.