SHG–Bank Linkages and Rural Youth Entrepreneurship: Strategies for Sustainable Development Towards Viksit Bharat 2047

Abstracts: Self Help Group–Bank Linkage Programmes (SHG–BLPs) have emerged as a vital institutional mechanism for promoting financial inclusion and rural entrepreneurship in India. In the context of rapid digital innovations and national development initiatives such as Digital India and Viksit Bharat 2047, SHG–Bank linkages increasingly support rural youth through enhanced access to credit, entrepreneurial skill development, and sustainable livelihood creation. However, the effectiveness of these programmes varies due to challenges related to awareness, participation, and institutional constraints. This study examines the structural relationships among awareness of SHG–Bank linkage programmes, participation of rural youth, entrepreneurial skills development, access to credit, challenges in participation, and overall programme effectiveness. Using primary data collected from 300 rural youth respondents, the study employs correlation, regression, and Partial Least Squares–Structural Equation Modelling (PLS-SEM) techniques for empirical analysis. The findings reveal that awareness significantly enhances participation, participation positively influences entrepreneurial skills and access to credit, and effective mitigation of challenges substantially improves programme effectiveness. The results underscore the critical role of SHG–Bank linkages in fostering sustainable rural youth entrepreneurship and provide policy-relevant insights for strengthening inclusive financial and entrepreneurial ecosystems in line with the vision of Viksit Bharat 2047.