The Capacity of Women Self-Help Groups in Social Capital Formation by Agro-Processing

Abstract

Social capital is simply the network of connections and contacts that a person has accumulated during their lifetime or can be described as a type of capital that generates public goods for a shared goal. In the case of bonding social capital, some social relationships already exist and should be used in the best way possible. Building social capital leads to the development of new ties outside of one's own social circle. Linkage social capital can be considered as developing relationships with influential people in order to advance with the aid of their authority and influence. Self-help groups includes all the three forms of social capital. Social Capital Assessment Tool (SOCAT)developed by the World Bank was used for social capital formation analysis. The study conducted, revealed that self-help groups working on the basis of agro-processing were able to produce medium level of social capital. More raw materials related to their agro-processing unit and financial assistance can be provided, which will boost social capital formation. By stimulating more cooperation and collective action, members will develop a greater sense of trust in one another, which will ultimately support the empowerment of women by encouraging them to collaborate within self-help groups.