This study contributes to a stream of literature by developing a conceptual framework to
understand promising influence of Self‐Help Group (SHG) on poor people’s lives through
microfinance, as SHG is a function of microfinance institutes. In particular, this study
highlights the drawbacks of SHG with regards to microcredit, training and social network
with respect to SHG members. It is found that less attention and studies has been paid and
formally documented about drawbacks or negative aspects of SHGs. Three hypotheses are
proposed concerning the relationship of SHG with self‐sustainability, predicting a negative
relationship between self‐sustainability and micro‐credit but the ambiguous relationship is
found between self‐sustainability and other SHG dimensions (i.e., social‐network, and
micro‐training). Furthermore, this study investigates different situations through which
SHG affect negatively on self‐sustainability of poor people. Finally, this study highlights
different conditions in which microfinance institute services such as SHG does not fulfill its
original goal and make the condition of poor people more miserable.
