ISSN: 0974-438X
Imapct factor(SJIF): 5.889

Home | About Us| Invitation For Manuscript| Review Process| Indexing| Subscription | Disclaimer

 

 

PBRI is now indexed in ESCI by THOMSON REUTERS. Pacific Business Review International is included in the UGC List of Recommended Journals (D.O. No. F. 1-1/2016 (PS) Amendment dated 10th January 2017) (S.No. 28633).

 
Editorial Board A Refereed Monthly International Journal of Management
Prof. B. P. Sharma
(Editor in Chief)
Prof. Mahima Birla
(Group Editor)
Dr. Khushbu Agarwal
(Editor)
Ms. Asha Galundia
(Circulation Manager)

 Editorial Team

Dr. Devendra Shrimali
Dr. Dharmesh Motwani
Mr. Jinendra Vyas
 
Go to back

Socio- Economic Empowerment of Women through Self Help Groups: An Empirical Analysis

(CMA)Dr.(Mrs).Meenu Maheshwari Shobhna Goyal

Assistant Professor & Former Head Assistant Prof Commerce

Aggarwal College Ballbhgarh

Research Scholar

Department Of Commerce And Management University of Kota,Kota

University of Kota, Kota shobhna2002@gmail.com

drmeenumaheshwari@gmail.com +919891015464

Abstract

Women emancipation and Inclusive growth have grabbed the attention of developmental economists the world over and has been on a priority in order to alleviate poverty and reaching to the most disadvantaged section of the society through formal financial institutions. For this dual objective microfinance interventions have been suggested as a measure. As through microfinance the landless labourers, marginal farmers and women can be roped in the formal financial system which has been a neglected area by the commercial banks as they are reluctant to tap this area due to high transaction costs and unassessibility. This paper attempts to explore one such microfinance intervention in the name of Self Help groups in Mewat district of Haryana and the role of SHGs in the socio-economic upliftment of women in this area which is known for the intense backwardness and the lowest female literacy rate. SHGs have been successful mainly in giving them a voice in their family, Govt. Offices and in the society against evils and violence and in making them financially independent up to some extent still there is a lot needed to achieve women emancipation. The paper will come up with some recommendations for the effective and efficient implementation of this microfinance intervention.

Key words: Microfinance, SHG, Women Emancipation

Socio- Economic Empowerment of Women through Self Help Groups: An Empirical Analysis

Introduction

Women empowerment and rural development has been the focus of almost all developmental policies of the Government. With the rural development nation’s development is consequential as per National Bank for Agriculture and Rural Development(NABARD), which is very true for a country like India whose 70% population resides in 6,38,345 villages. India has over a quarter of its population below poverty line. The World Bank reports that India is still home to some 260 to 290 million poor, numbers that rise to 390 million if poverty is measured by the international standard of those living on less than US$1 a day. It is estimated that approximately 2.5 billion people around the world live in poverty and India is a home to 1/3 of world’s poor. Families living in poverty struggle to afford adequate meals, clean water or basic education. Almost half of India’s poor approximately 133 million are concentrated in 3 states namely Uttar Pradesh, Bihar and Madhya Pradesh. Rural areas in India are home to ¾ of India’s poor which is strengthened by the increasing urban/rural disparities. Though many central and state Government poverty alleviation programs are currently active in India with a strategy focus on Infrastructure, Social Development (especially education and health) and rural livelihoods. But the poor access to credit markets and formal banking system has been identified as a root cause of poverty amongst the rural poor and the most disadvantaged section of the society. The credit needs of the rural masses in general and rural poor in particular are met via rural financial markets consisting commission agents, Moneylenders and landlords etc. However formal financial institutions have a low penetration due to poor infrastructure, low profitability and higher degree of risk. At this juncture Microfinance has been proposed as a possible solution for the maximum outreach and alleviation of poverty in the rural poor especially the disadvantageous sections of the society namely women, small and marginal farmers, and landless farmers. Micro financing is regarded as a tool for Socio-Economic benefit in a developing country like India. Micro finance as a means of poverty alleviation can give loans to poor individuals without sacrificing financial viability. Sivakumar Venkataramany, Balbir B. Bhasin (2009) focused on the success of the linkage between commercial banks and SHGs. The SHGs comprising predominantly women groups help in the social cause of alleviation of poverty, increased sustainability, reduction of vulnerability, improvement of capacity building and helping the weaker sections in building assets. India is the world’s 10th largest economy with Gross Domestic Product in 2012 of $1.824 trillion as reported by World Bank. The country’s growth is also strong, with real Gross Domestic Product growing in by 3.986% in 2012. Microfinance is one of the developmental approach that can contribute to achieve the National and International goal of improving the livelihoods of poor people. Nobel Laureate Mohammad Yunus is credited with laying the foundation of the modern Micro Finance Institutions with establishment of “Grameen Bank”, Bangladesh is 1976. Today it has evolved into a big industry exhibiting a variety of business models. Achieving balanced and inclusive growth is a key challenge faced by policymakers the world over. It was observed by Prasanthi, P Padma, A. (2010) that today microfinance through SHGs has become an integral part of all development programmes. The benefits of economic growth are accessible to relatively advantaged sections of the society who find it easier to participate in the growth process and the disadvantaged section has to wait much longer to reap the benefits of economic growth. Engaging these sections of the society in the economic mainstream is essential to achieve balanced growth for which access to formal financial services is a must.

Current Status of Micro Finance in India

Micro Finance originated in India in 1969 with the nationalization of banks to see that 1% of the profits of these banks goes to the poor towards their micro enterprises. The then Prime Minister Smt. Indira Gandhi envisioned it to facilitate her 20 point programme to fight poverty among the poor and she called it “Garibi Hatao”. The Micro Finance initiative in private sector in India can be traced to the initiative undertaken by Shri Mahila SEWA (self employed women’s association) Sahakari Bank set up in 1974 by registering as an urban co-operative Bank at Ahmedabad city of Gujarat State. The main aim of the SEWA Bank was to provide banking services to the poor women employed in the unorganised sector. The initiatives of NABARD in 1992 in partnership with NGOs for promoting and extending financial services through SHGs has now blossomed into a “monolith” micro finance initiative. It has been recognised as a decentralized, cost effective and fastest growing micro finance intervention in the world enabling over 103 poor households access to a variety of sustainable financial services from the formal banking system by becoming members of nearly 8 million Self Help Groups. Steady progress of the project led to the mainstream of the SHG-Bank Linkage Programme (SBLP) in 1996 as a normal banking activity of the banks with widespread acceptance. As per a United Nations (2006) survey of bank managers in Madhya Pradesh revealed a perception that women borrowers were more trustworthy and less of a default risk. This can work as a benchmark for launching new schemes for women empowerment.

Microfinance activities are exercised through various models in India that can be categorised as:

1) SHG Model 2) Grameen Model 3) Co-operative Model 4) For –profit Model

SHG Model is the most popular Model in India amongst the four Models mentioned.

Performance of Microfinance through SHG

Out of the three models, SHG- Bank Linkage Programme (Model 1) emerged as most popular and successful over the years. About 73.41% of the credit linked SHGs (financed 81.12% of total loans) fell under Model-II followed by Model I (20%) as on 31 st March 2007. Only 5.67% of total SHGs fall under the Model III in which NGOs/ MFIs act as financial intermediaries. (RBI 2007- Report on Trend and Progress of Banking in India) SHGs work on democracy principles as Dr. Sushil Kumar Mehta et al (2011) had studied that SHGs movement comes from the people’s desire to meet their needs and determine their destines through the principle ‘By the People, For the People and Of the People’

To spread the outreach of Micro Credit, NABARD has taken up intensification of SHG- Bank Linkage Programme in 13 identified priority states which account for 70% of the rural poor population viz. U.P. Maharashtra, Orissa, West Bengal, MP, Gujarat, Rajasthan, Chattisgarh, Jharkhand, Bihar, UK, Assam and Himachal Pradesh. The programme has now assumed the form of a Micro-Finance Movement in many parts of the country and has started making inroads in the resource poor regions of the country as well. As pointed out by Rutherford (1996) that provision of financial services to poor people need not only be for increasing income, empowering women, or starting business it may simply aim to help them “manage better what little money they already have”.

Research Design

The formal financial institutions in India have not been successful in outreaching to the disadvantaged sections of the society so far. Topography, structural rigidities, high overhead costs in di

Research Designocial infrastructure means community based organizations can be used as a harbinger for successful implementation of the developmental plans and thereby attaining the Milleinium Goals. Few corporates like HUL, Colgate, CEMEX has already tried community based organizations as members of their distribution channel in order to have deep penetration in the emerging Rural Markets the same model can be replicated for the promotion of social and economic welfare schemes launched by the government from time to time. Organisation of Self Help Groups is a move in this direction which motivates small farmers, artisans and entrepreneurs (Especially Women) to come together and pool their small savings to make it a large corpus for individual and group help. P. K. Singh (2001) observed a positive impact on assets value and annual income. In the Southern India SHG scheme has a widespread and has been successful in uplifting the social and economic status of women by creating awareness among the members. It has enabled women to live a healthy, hygienic and respectful life and they have learnt to participate in family decision making matter concerning to education of children, marriage, family planning, and management of economic assets of the family.

The present study is undertaken to study the performance of SHGs in Mewat district of Haryana in India. The performance has been linked with the group profile variables like age of the group, literacy level of the leader, etc.

Objectives of the Study

· To explore the extent of Self Help Groups in the sample area

· To evaluate the performance of SHGs

· To analyse the impact of SHGs on women emancipation.

Area of the Study

At the time of its formation on 1st November, 1966, Haryana State had 7 districts. Thereafter 13 new districts were notified from time to time by changing the boundaries of the existing districts. The Mewat district was carved out from Gurgaon and Faridabad districts, which came into existence on 4th April 2005 as the 20th district of the State. The district headquarter is located at Nuh. The district comprises of five blocks namely Nuh,Taaru, Nagina, Firozpur Jhirka and Punhana. Sample respondents have been selected from three blocks of district Mewat namely Nuh, Firozpur Jhirka and Punhana. Mewat is known to be a backward district in Haryana with a low female literacy rate but a high sex ratio. A sample of 304 group leaders from these three blocks were selected by simple random sampling.

Demography of sample district

S.N.

Item

Sex

Total

Rural

Urban

1

Total area (Sq. Kilometers)

1507

1441.71

65.29

2

Total Households

160280

139975

20305

3

Population

1089263

965157

124106

Male

571162

506086

65076

Female

518101

459071

59030

4

Population (Age 0-6)

248128

225069

23059

Male

130168

117967

12201

Female

117960

107102

10858

5

SC Population

75251

57238

18013

Male

39743

30312

9431

Female

35508

26926

8582

6

Literate

454897

384749

70148

Male

308435

266086

42349

Female

146462

118663

27799

7

Total Workers

289964

258721

31243

Male

224642

197097

27545

Female

65322

61624

3698

8

Total Main Workers

204178

179382

24796

Male

175670

153188

22482

Female

28508

26194

2314

Cultivators

81608

79292

2316

Male

69305

67213

2092

Female

12303

12079

224

Agriculture Labourers

25426

24204

1222

Male

20337

19215

1122

Female

5089

4989

100

Households Industry Workers

4034

3251

783

Male

2938

2277

661

Female

1096

974

122

Other Workers

93110

72635

20475

Male

83090

64483

18607

Female

10020

8152

1868

9

Marginal Workers

85786

79339

6447

Male

48972

43909

5063

Female

36814

35430

1384

Cultivators

22629

22144

485

Male

7714

7472

242

Female

14915

14672

243

Agriculture Labourers

29852

28617

1235

Male

15923

15005

918

Female

13929

13612

317

Household Industry Workers

1989

1763

226

Male

903

764

139

Female

1086

999

87

Other Workers

31316

26815

4501

Male

24432

20668

3764

Female

6884

6147

737

10

Non Workers

799299

706436

92863

Male

346520

308989

37531

Female

452779

397447

55332

11

Sex Ratio (Female per 1000 males)

906

907

903

12

Literacy

56.10: (Male-73.00%, Female-37.60%)

13

Blocks

Nuh, F.P. Jhirka, Taoru, Nagina and Punhana

14

Tehsil

Nuh, F.P. Jhirka, Punhana and Taoru

15

Sub Tehsil

Nagina

16

Sub Division

Nuh and F.P. Jhirka

source : haryanaguv.in

Methodology

The present study is an empirical one to analyse the performance and impact of SHGs on women emancipation. A structured questionnaire was developed for the primary data collection. Simple percentage and cumulative percentage method has been used to analyse the primary data collected out of 304 group leaders of Self Help Groups. However secondary data sources have also been used to have a deep understanding of the topic. Official websites of Haryana Government, Mewat development Agency and NABARD have been referred to for secondary data.

Limitations

The report has been prepared on the basis of information available from the sample members and the secondary data. One of the biggest limitation of secondary data was that it was not updated, many of the Self Help Groups now have become non functional which are still shown on records. So locating the functional Self Help Groups was a problem during survey. Data of some particular months of some years were found missing which posed a problem in compiling secondary data tables. V. Batra (2012) covered 90 SHGs over the 3 sample districts in Haryana and identified the problems concerning management and governance of SHGs like irregularity in meetings, low level of skills and knowledge, absence of larger goals and lack of training. There are problems on part of banks for being unable to understand and accommodate the needs of SHGs in Haryana. To empower women and to reduce vulnerability literacy is very important.

Consolidated S.H.G. Financial information as on 31-03-2014

PARTICULAR

SMVS

SMVS

EMVS

NKMVS

NRMVS

JMVS

MDA

F.P.Jhirka

Punhana

NUH

TAURU

NAGINA

HATHIN

Total No. of Village

82

85

108

81

67

82

505

Village Covered

82

85

64

81

67

82

461

Total No of SHGs

372

354

340

383

417

347

2213

Total Members

4419

3930

4171

4603

5421

4121

26665

Total Saving

22840354

20029510

25629950

30590483

28137203

19865480

147092980

Amount of Loan issued

50114900

112831100

135408800

168801577

152720649

68526500

688403526

No. of Loans

3794

9159

8390

8385

11770

7841

49339

No.of SHGs issued Loans

267

325

247

338

418

289

1884

Amount Repaid

31044730

83918915

17905966

121128599

127703349

57425634

439127193

Interest collected

4362152

9341469

10220811

13627359

10353098

1443521

49348410

Credit from Bank

11954000

26270500

41890500

58561500

43195400

10245435

192117335

No. of Benifited SHGs

355

420

319

274

406

148

1922

MDA Matching Grant

2267265

2872850

1594384

1689581

1713088

2310829

12447997

No. of Benifited SHGs

204

422

204

215

224

305

1574

GDF

2168484

2727200

1279800

1630100

1759400

2100000

11664984

No. of Benifited SHGs

336

422

252

302

368

388

2068

NMDFC Loan Amounts

10485000

105300000

15255000

10935000

13903500

4360500

160239000

No of Benifited SHGs

55

66

91

63

69

23

367

No. of Loans to members

432

394

618

394

508

201

2547

Source: MDA, march 2014

It is evident from the above table that there is good spread of SHGs in the sample area. Total saving corpus is Rs. 147092980. Amount of loan issued is Rs.688403526 out of which Rs. 439127193 has been repaid i. e. repayment rate is 64%


CONSOLIDATED SHG INFORMATION AS ON 31-03-2014

Sr.No.

Particular

Unit

Achi.

Achievement

Achievement

Withdrawl SHG

Running SHG

Cumulative- MDA

1

Total No. of Village

No.

505

505

2

Covered Village

No.

461

461

3

Total No of SHGs

No.

1813

2213

4026

4

Total Members

Person

25195

26665

51860

5

Total Saving

Rs. In Crore

6.56

14.7

21.26

6

Amount of Loan issued

Rs. In Crore

24.44

68.84

93.28

7

No. of Loans to Members

No.

24027

49339

73366

8

No. of SHGs issude Loans

No.

1484

1884

3368

9

Amount Repaid

Rs. In Crore

21.53

43.91

65.44

10

Interest Collected

Rs. In Crore

3.67

4.93

8.6

11

Credit from Bank

Rs. In Crore

4.35

19.21

23.56

12

No. of Benifited SHGs

No.

1164

1922

3086

13

MDA Matching Grant

Rs. In Crore

1.24

1.24

14

No. of Benifited SHGs

No.

1574

1574

15

GDF

Rs.. In Crore

1.16

1.16

16

No. of Benifited SHGs

No.

2068

2068

17

NMDFC Loan Amount

Rs.In Crore

16.02

16.02

18

No. of Benifited SHGs

No.

367

367

19

No. of Loans to Members

No.

2547

2547

Source: MDA, March 2014

It is clear from the table that nearly 45% of the SHGs had withdrawn so the amount withdrawn is 30%. 62% of the total SHGs 62% received the benefits.


CONSOLIDATED INFORMATION ABOUT SHGs LOANS AS ON 31-03-2014

Particular

SMVS,Punhna

SMVS, F.PJhirka

JMVS, Hathin

NRMVS, Nagina

NKMVS, Tauru

EMVS, Nuh

MDA,Cummulative

Loan

Amount

Loan

Amount

Loan

Amount

Loan

Amount

Loan

Amount

Loan

Amount

Loan

Amount

Buffalo

1978

25795850

921

14185500

3867

41805625

3974

66688401

2267

52272455

1785

47217152

14792

247964983

Sheep/Goat

207

1206300

112

1904750

92

280421

528

3127058

98

726550

370

2425980

1407

9671059

House Repair

545

6635550

117

1330300

445

4025484

399

5351650

568

14154845

722

11769960

2796

43267789

Purchasing Land

113

2707800

81

2313500

25

202531

133

2493000

47

1026300

131

997320

530

9740451

Paying loans

365

3620200

115

766500

131

1365500

204

2217800

192

2414600

324

3833160

1331

14217760

Petty Shop/Busin

2292

36600350

964

16181700

512

5061764

2074

31102600

1306

37269200

1598

35364580

8746

161580194

Education

30

491500

91

1256250

238

1167926

59

638100

96

1833250

178

1390420

692

6777446

Medicine

185

1042600

122

796650

314

2195351

156

829900

212

4335600

324

3013720

1313

12213821

Fooder

83

445000

105

925350

461

1860900

285

2103800

270

2679447

525

3363520

1729

11378017

Marriage

663

10482550

204

2700000

261

2730450

464

6860500

567

14390800

572

8089880

2731

45254180

Consumption

1473

7050450

307

1471450

913

4118436

2486

13390570

2323

29529540

641

3852600

8143

59413046

Agriculture

436

4204550

398

2661950

481

3307570

642

9519960

205

3326350

421

8112480

2583

31132860

Mudha Making

42

414000

3

22500

0

0

3

25000

1

2500

84

250240

133

714240

Flour mill

26

246500

35

791000

0

0

12

229000

12

323440

109

471360

194

2061300

Shoe Making

107

1034000

10

18500

4

7600

29

148200

34

276500

17

68000

201

1552800

Cycle-Ricshaw

38

354000

17

45250

8

43200

55

633400

57

1431000

93

284240

268

2791090

Sewing Machine

85

606300

42

293250

0

0

17

264700

20

243900

87

316132

251

1724282

Camel Cart

81

824100

11

222000

18

22742

38

615300

9

140000

16

262000

173

2086142

Milk Purchasing

146

3016000

55

1295500

59

90250

49

725500

13

468000

105

1135600

427

6730850

Festival

1

2000

5

45500

0

0

0

0

34

256800

146

1043256

186

1347556

Diesel Engine

81

1908500

40

312750

4

137500

121

4872000

30

1165500

50

917240

326

9313490

FooderCutt.Mechine

1

30000

4

22500

0

0

3

77000

5

37000

16

152320

29

318820

Pigery

4

47000

0

0

0

0

15

23710

0

0

14

214880

33

285590

Poultry Farm

35

735500

18

423000

8

103250

18

722500

6

208000

21

350200

106

2542450

Diesel Eng.Rep.

98

1612000

16

108750

0

0

6

61000

11

163000

3

99800

134

2044550

Fisheries

16

349500

1

20500

0

0

0

0

2

127000

38

412760

57

909760

Cop. Job

0

0

0

0

Sanitation

6

77000

6

77000

Bakery

6

300000

6

300000

Comp. Job

1

10000

1

10000

Vechile Purchase

2

500000

2

500000

Tent

1

100000

1

100000

Hand Fan

11

282000

11

282000

Marval Machine

1

100000

1

100000

Total

9159

112831100

3794

50114900

7841

68526500

11770

152720649

8385

168801577

8390

135408800

49339

688403526

Source: MDA


Demographic profile of sample respondents:

Table -1: Religion wise distribution of sample members

Frequency

Percent

Cumulative Percent

Valid

Hindu

231

76.0

76.0

Muslim

71

23.4

99.4

Meo

2

0.6

100.0

Total

304

100.0

Source : Primary Data

It shows that majority of the sample members are hindus i.e. 76% and 23.4% are muslim and a mere .7% are meos. The results are quite surprising in a sense that despite of a Meos dominant region they are not indulged in saving-lending activities.

Table 2: Caste wise distribution of sample members

Frequency

Percent

Cumulative Percent

Valid

SC

39

12.8

12.8

ST

27

8.9

21.7

OBC

94

30.9

52.6

BC

55

18.1

70.7

GEN

61

20.1

90.8

Meo

28

9.2

100

.

Total

304

100.0

Source: Primary Data

In the region almost all categories exist and woman belonging to any community can become a member. However majority of them belong to OBC category i.e.30.9%.

Table 3: Distribution of SHGs on the basis of tenure of SHGs

Tenure

Frequency

Percent

Cumulative Percent

Valid

<12 months

29

9.5

9.5

12-24 mojths

53

17.4

27.0

24-36 months

89

29.3

56.3

> 36 months

133

43.8

100.0

Total

304

100.0

Source: Primary Data

It was observed during survey that 43.8% groups are more than 3 years old and 29.3% are 2 to 3 years old. However new formation of groups is disappointing which indicates that to keep the scheme alive Government should encourage women to open SHGs.

Table-4: Distribution of SHGs on the basis of educational qualification of Leader

Educational Qualification of the leader

Frequency

Percent

Cumulative Percent

Valid

Illiterate

2

.7

.7

Primary

123

40.5

41.1

Middle

83

27.3

68.4

H.Sc and above

96

31.6

100.0

Total

304

100.0

Source: Primary Data

Most of the group leaders were observed to be literate but poorly i.e. 40.5% of them are literate upto primary level 31.6% are Higher secondary passed. Qualification of the group leader plays an important role in formation as well as in functioning of the group.

Table 5: Distribution of SHGs on the basis of size of the group

Size of the group

Frequency

Percent

Cumulative Percent

Valid

< 12 members

190

62.5

62.5

12-15 members

110

36.2

98.7

> 15 member

4

1.3

100.0

Total

304

100.0

Source: Primary Data

Majority of the SHG s were having 10 to 11 members that means a moderate size is supposed to be the best practice in the sample area. Only 1.3% of the total sample were found to be having more than 15 members. The result are different as compared to the prescribed limit of membership is 10-20 member by NABARD.

It was also found that 16.8% of total groups have a sole purpose of SHG formation as to increase their income which is supposed to be the most justifiable purpose of this scheme. Secondly 16.4% groups have been formed to start entrepreneurial activity in the form of shops and dairy mainly. Both purposes are complementing each other i.e. increasing income by setting up some enterprise. Formation of groups to promote savings took third place i.e. 11.3% and to uplift the social status of the members is also a purpose to form SHGs. The results are satisfactory in a sense that these have been designated as the primary objectives to initiate this scheme.

Table6: Distribution of SHGs on the basis of group meetings held

Frequency of SHG Meetings

Frequency

Percent

Cumulative Percent

Valid

Once in a week

122

40.1

40.1

once in a month

181

59.5

99.7

twice in a month

1

.3

100.0

Total

304

100.0

Source: Primary Data

As per the guidelines group leader has to organise group meetings to discuss various issues and collection of mandatory monthly savings and disbursement of credit at least once a month. 59. 5 % groups are following the norms of holding the meeting once a month and 40% groups are even holding meetings once in a week which is quite interesting to know as more and more meetings give women a confidence to speak and share her problems with other members which they were unable to before becoming members of SHG i.e. SHG ( women collectives) give them a voice. Increased self confidence and communication are strong indicators of social upliftment.

Table 7: Distribution of SHGs on the basis of regularity of meetings

Regularity of meetings in last 6 months

Frequency

Percent

Cumulative Percent

Valid

100% meeting held

202

66.4

66.4

75-99% meetings held

102

33.6

100.0

Total

304

100.0

Source: Primary Data

SHGs were found to be regular in holding meeting at least once in a month. 66.4% groups held 100% meetings and 33.6% of the groups were also found to hold more than 75% of the mandatory meetings. Regularity in meetings is a most desirable feature of a Self Help Group to have a congenial group working and cohesion.

Table 8: Distribution of SHGs on the basis of attendance at meetings

Attendance at meeting

Frequency

Percent

Cumulative Percent

Valid

>90 %

270

88.8

88.8

75-89%

34

11.2

100.0

Total

304

100.0

Source: Primary Data

The results are encouraging. Majority of the groups record more than 90% attendance which shows that women want to get together to discuss problems of their own and of others and possibly came out with solutions. 88.8% of the sample groups have recorded more than 90% attendance and minimum attendance recorded is also not disappointing it is still not less than 75%.

Table 9: Distribution of SHGs on the basis of member participation in decision making

Participation of members in decision making

Frequency

Percent

Cumulative Percent

Valid

>75% members participate

162

53.3

53.3

55-75% member participate

142

46.7

100.0

Total

304

100.0

Source: Primary Data

It is evident from the above table that SHGs have a positive social impact on women as most of them started participating in decision making which was earlier supposed to be male domain. SHGs have helped in women emancipation. In 53.3% cases more than 75% of the group members participate in decision making when it comes to credit disbursements, getting together for a social cause, or solving some individual problem with the group efforts.

Table 10: Distribution of SHGs on the basis of training program conducted

Whether any training program conducted for SHG

Frequency

Percent

Cumulative Percent

Valid

Yes

5

1.6

1.3

No

299

98.4

100.0

Total

304

100

Source: Primary Data

The response is disheartening as Government has not spent much on training programmes in this area although it was found during survey that women are keenly interested in taking up some work but the two main issues what to make and where to market? 98.4% of the respondents said the no training was ever given to them whereas a mere 1.6% said they attended 1-2 days training about formation of SHGs and account opening and keeping minutes of meetings which again was not to undertake any entrepreneurial activity.

Table 11: Distribution of SHGs on the basis of regularity of savings

Regularity in Savings

Frequency

Percent

Cumulative Percent

0

1

.3

.3

100%

303

99.7

100.0

Total

304

100

Source: Primary Data

Members were found to be very regular about their savings with the group. 99.7% of the respondents were found regular in depositing their monthly savings on the meeting day. This has resulted in a big group corpus with the banks and some groups even need not to take any loan from the bank. Most of the groups were found to be in no loan category in the sample area.

Table 12: Distribution of SHGs on the basis of set of rules and regulations

Do the group has a set of Rules and Regulations

Frequency

Percent

Cumulative Percent

0

42

13.8

13.8

Yes

262

86.2

100.0

Total

304

100.0

Source: Primary Data

86.2% of the respondents replied that they had group norms in the form of rules and regulations which comprise of attending group meetings at least once in a month, repayment of the credit allocated to avoid heavy rate of interest and priority based lending out of group corpus.

Table 13: Distribution of SHGs on the basis of existence of rules

Rules are in existence only

Frequency

Percent

Cumulative Percent

Yes

2

.7

.7

No

302

99.3

100.0

Total

304

100.0

Source: Primary Data

Majority of the respondents said that rules are not just existent but are followed as well. Each and every member follows the group rules and regulations not by force but by their choice. They know it is an effort of the members, for the members and by the members.

Table 14: Distribution of SHGs on the basis of implementation of rules

Rules have been implemented as well

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

304

100.0

100.0

100.0

Source: Primary Data

It is evident from the above table that rules are not just framed they are implemented as well for the smooth functioning of the group. The results are 100%.

Table 15: Distribution of SHGs on the basis of election of office beares

Do you conduct periodic elections for the office

Frequency

Percent

Cumulative Percent

Election conducted once a year

151

49.7

49.7

Once in two years

9

3.0

52.6

Beyond two year

88

28.9

81.6

Never held

56

18.4

100.0

Total

304

100.0

Source: Primary Data

49.7% of the groups hold election once in a year to elect office beares namely the group leader and treasurer. 28.9% groups do not change their leaders every year and 18.4% of the groups never held elections rather their office bearers are unanimously chosen.

Table 16: Distribution of SHGs on the basis of books of accounts maintained

Are the books of accounts and documents maintained

Frequency

Percent

Cumulative Percent

Cash book

1

.3

.3

Cash book and Ledger

128

42.1

42.4

cash Book and Member Passbook

175

57.6

100.0

Total

304

100.0

Source: Primary Data

57.6% of the groups maintain journal and bank pass book for recording savings , disbursements and interest. 42.1% maintains journal and cash book. Overall each and every group maintains at least two books of records which is a healthy practice.

Table 17: Distribution of SHGs on the basis of status of recording in these books

Mention the status of recording in these book

Frequency

Percent

Cumulative Percent

Up to date and correct recording

277

91.1

91.1

Up to date but incorrect recording

27

8.9

100.0

Total

304

100.0

Source: Primary Data

It was found that 91.1% groups have up to date and correct recording in the books maintained by the group. This correlates the fact that at least some of the group members are literate enough to enter the transactions correctly and preparing the minutes of the meetings. It was also explored that even if no member is capable of recording then any educated child of any member of the group can be asked for doing this work which shows the group is specific about recording and updating the transactions.

Conclusion and Recommendations

The research on Microfinance and women empowerment depicts that SHG based micro finance has contributed as a catalyst of the social change and empowerment of poor is proved to be a boon for the rural women in some states of India. Moreover it has created opportunities for promotion of income generating activities and have enabled them to come above poverty line. There is a geographic/Regional concentration of the SHG concept which needs to be scattered across the nation as poverty has a global concern. Poor people’s access to formal banking system would act as a key to economic growth and sustainable development. It is evident that SHGs have touched the lives of rural women in all respects whether it is social, economic or personal thereby contributing effectively in women emancipation. SHGs are seen to confer many social and economic benefits which can be community platforms for women to become active in village affairs, stand for local election or take action to address social and community issues like – abuse of women, alcohol, the dowry system, the schools and water supply (Umakanata; Padhi, Pragnya Laxmi (2011) of late the women have started recognising their immense potential and have learnt that self dependence is the best form dependence. Joining a Self Help Group has given them enough confidence to speak, to come forward to be a part in family decision making which is supposedly a male domain, assessing the banks for loans and discussing with the managers without taking their husbands along (in the sample district women were seen discussing gold loan provisions with the Bank manager and that too without their husbands accompanying them) which is indeed an indicator of upgradation of self confidence which can be attributed to Self Help Groups. Aloysisus P. Fernandez (2007) (MYRADA) observed that SHGs are not only an instrument for the empowerment of poor and marginalized sectors but they have proved to be an effective instrument for changing oppressive relationships in the home and in the society. As far as the performance of SHGs is concerned the results are very much encouraging in almost all respects except the training part which needs government’s attention as out of total expenditure from the allocated fund nothing has been spent on marketing and very less on imparting training. In Haryana out of 8308 swarozgaris 6150 i.e. 74.02% are engaged in primary sector and only 25.98% are engaged in secondary sector like village industry, handicrafts, Handloom etc. There is a need to make SHG movement more entrepreneurial. SHG members can be roped in as a member of distribution channel by the corporate in order to have deep penetration in the rural market in a cost effective manner without inventory piling up. This would be a two way strategy of empowering rural women and having a better outreach. Some of the insurance companies are also now targeting Self Help Groups to sell their insurance products in rural markets. So in near future association with the Self Help Groups will help rural women to (2007) (MYRADA) observed that SHGs are not only an instrument for the empowerment of poor and marginalized sectors but they have proved to be an effective instrument for changing oppressive relationships in the home and in the society. As far as the performance of SHGs is concerned the results are very much encouraging in almost all respects except the training part which needs government’s attention as out of total expenditure from the allocated fund nothing has been spent on marketing and very less on imparting training. In Haryana out of 8308 swarozgaris 6150 i.e. 74.02% are engaged in primary sector and only 25.98% are engaged in secondary sector like village industry, handicrafts, Handloom etc. There is a need to make SHG movement more entrepreneurial. SHG members can be roped in as a member of distribution channel by the corporate in order to have deep penetration in the rural market in a cost effective manner without inventory piling up. This would be a two way strategy of empowering rural women and having a better outreach. Some of the insurance companies are also now targeting Self Help Groups to sell their insurance products in rural markets. So in near future association with the Self Help Groups will help rural women to have avenues for larger incomes apart from the saving lending mechanism which will benefit their families and society as a whole in terms of better and respectable living.


ReferencesEntrepreneurship among Women? Microfinance and Microentrepreneurship First Edition, Vista International Publishing House, 204-209.

Minakshi Ramji , (26 January 2009) ”Financial Inclusion in Gulbarga: Finding Usage in Access”, Working Paper Series no.

MYRADA , (July 2007) Occassional Papers, “History and Spread of the self help affinity group movement in India”.

Painoli,Girish Kumar, Losarwar, Sunil G (Nov2011) Paper Presentation on Self Help Groups and Women Empowerment. International Journal of Business Economics and Business Research 2.11, 125-130

Rutherford, Stuart, (2002) Money Talks: Conversations With Poor Households In Bangladesh About Managing Money,” University Of Manchester Institute For Development Policy And Management, Finance AndDevelopment Research Programme Paper 45.

Sarma, Sri Gunindra Nath (Oct 2012) Constraints of Women's Empowerment through Self-Help Groups: A Case Study in Lakhimpur District of Assam.International Journal of Business Economics and Management Research 3.10: 13-24.

Satish, P., (July-Sept., 2001) Some Issues In the Formation of SHG's. Indian Journal Of Agricultural Economics, Vol. 56 (3).

Sheel, Ranjana, Krishna, Sangeeta (Jul 2002)Towards Women's Empowerment Role of Self Help Groups and Micro-Credit. Philosophy and Social Action28.3, 23-39

Sivakumar Venkataramany, Balbir B. Bhasin , (Nov 2009) Path to Financial Inclusion: The Success of Self-Help-Groups- Bank Linkage Program

Thakral, Shefali Verma, Uppal Nitima, Chawla Esha (Dec 2010) Empowerment of Women through Micro Finance: A Boon for Development of Economy. International Journal of Research in Commerce and Management 1.8: 146-150.

Tripathy, Umakanta, Padhi,Pragnya Laxmi (Dec 2011) Socio-economic Conditions of Self-Help Groups: A Study on Litimunda Village of Sambalpur District. International Journal of Business Economics and Management Research 2.12: 90-111.

V Savitha, Rajashekhar H (Apr 2012) Role of Self Help Groups on the Development of Women Entrepreneurs--A Study of Mysore District, Karnataka State. International Journal of Research in commerce and Management 3.4: 77-80

Vikas Batra , (March 2012) Management and Governance of Self Help Groups in Rural Areas: A study of Microfinance Programmes in Haryana,IJMRS vol.01, Issue 01

www.mda.in

www.nabard.in

www.nirc.in

www.haryanaguv.in

 
 

Pacific Institute of Management, Pacific Hills, Airport Road, Udaipur - 313001, E-mail: edit@pbr.co.in
Phone : +91-294-2494506, +91-294-2494507

©Pbr.co.in, All Right Reserved IT Department , Pacific Group