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Microfinance "Plus": The Impact Of Business Training On Indian Self Help Groups

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Executive Summary

The provision of business training with microfinance leads to a positive impact on assets for the participating households. The authors correct for membership selection bias and account for potential training endogeneity with propensity score matching, using data from the Self Help Group microfinance program in India. The Self Help Group (SHG) program in India has outpaced private MicroFinance Institutions (MFIs) with over three times the number of members to become the largest and fastest growing microfinance program in the world. Like MFIs, SHGs have been fraught by the 'Minimalist' and the Microfinance 'Plus' debate. 'Minimalists' state that households already have the human capital and only need financial capital.

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