Women empowerment is a prerequisite for socio-economic development and social revival of a society. It can be an effective strategy to remove the obstacles in the way of rural and urban development. Various national level initiatives have been taken so far and one of them is Self Help Groups (SHGs). In the past one decade, SHGs have become instrumental in all spheres for empowering women. Cumulative progress in formation of SHGs has become the women empowerment movement across the country. The present study is an attempt to discuss the role of SHGs for promoting women entrepreneurship through local resources in the state of Punjab from the point of view of available literature. It has also discussed the impact of empowerment of women on various economic, social and political aspects. The literature survey shows that the formation of SHGs is not only a micro credit project rather it is an empowerment process. The beneficiaries have empowered personally, economically, socially and psychologically. This policy does not provide individual benefits to the related women but it provides collective benefits to the whole family and group related to them. Overall, the study concludes that the policy of SHGs has greater impact on women empowerment.

KEYWORDS: Women Empowerment, Self Help Groups, Punjab.