The Progression of the Self Help Movement in India for Women

CONTENTS

LIST OF TABLES

LIST OF CHARTS

FOREWORD

ACKNOWLEDGEMENTS

LIST OF ABBREVIATIONS

1 OVERVIEW ON SELF-HELP MOVEMENT

2 SAMPLING DESIGN AND METHODOLOGY

3 REVIEWS

4 SELF-HELP GROUPS CONTOUR

5 ECONOMIC ACTIVITIES OF SELF-HELP GROUPS

6 SELF-HELP GROUP MEMBERS CONTOUR

7 ECONOMIC ACTIVITIES OF SELF-HELP GROUP MEMBERS

8 SUGGESTIONS

APPENDICES

REFERENCES

LIST OF TABLES

CHAPTER 2

2.1 SELF-HELP GROUPS IN COIMBATORE DISTRICT AND SAMPLES SELECTED FOR THE STUDY

CHAPTER 4

4.1 DEMOGRAPHIC PROFILE - SELF-HELP GROUPS CONTOUR

4.2 DEMOGRAPHIC PROFILE - LEADERS/ANIMATORS PERSONAL PROFILE

4.3 FUNCTIONAL PATTERN OF SHGs - LEVEL OF AWARENESS AND KNOWLEDGE

4.4 FUNCTIONAL PATTERN OF SHGs - GENERAL FUNCTIONING SPECTRUM

4.5 FUNCTIONAL PATTERN OF SHGs: RECORD KEEPING - [MAINTENANCE OF RECORDS]

4.6 FUNCTIONAL PATTERN OF SHGs: RECORD KEEPING - [FREQUENCY OF INVESTIGATION OF RECORDS]

CHAPTER 5

5.1 ECONOMIC ACTIVITIES - BUSINESS PROFILE

5.2 PROBLEMS IN BUSINESS OPERATIONS

5.3 ECONOMIC ACTIVITIES: BUSINESS FEASIBILITY - [MARKETING AND TRAINING ACTIVITIES]

5.4 ECONOMIC ACTIVITIES: BUSINESS FEASIBILITY - [MARKETING PROBLEMS]

5.5 BUSINESS PROFILE AND BUSINESS FEASIBILITY

CHAPTER 6

6.1 SOCIO-DEMOGRAPHIC PROFILE OF SHG MEMBERS

6.2 ECONOMIC-DEMOGRAPHIC PROFILE OF SHG MEMBERS

6.3(a) FUNCTIONAL PATTERN - REASONS TO PERSISTENCE

6.3(b) FUNCTIONAL PATTERN: REASONS TO PERSISTENCE - [KNOWLEDGE OF BANK OPERATIONS]

6.4 FUNCTIONAL PATTERN -CONSTRUCTIVE EFFECT OF GROUP PARTICIPATION

6.5(a) STAGE 1 - FUNCTIONAL PATTERN - BENEFITS ENJOYED BEING A MEMBER

6.5(b) STAGE I1 - FUNCTIONAL PATTERN - BENEFITS ENJOYED BEING A MEMBER

LIST OF CHARTS

CHAPTER 4

4.1 DEMOGRAPHIC PROFILE – SELF-HELP GROUPS CONTOUR

4.2 DEMOGRAPHIC PROFILE - LEADERS/ANIMATORS PERSONAL PROFILE

4.3 LEVEL OF AWARENESS AND KNOWLEDGE

4.4 FUNCTIONAL PATTERN OF SHGs - GENERAL FUNCTIONING SPECTRUM

4.5 FUNCTIONAL PATTERN OF SHGs: RECORD KEEPING – [MAINTENANCE OF RECORDS]

4.6 FUNCTIONAL PATTERN OF SHGs: RECORD KEEPING – [FREQUENCY OF INVESTIGATION OF RECORDS]

CHAPTER 5

5.1 PROBLEMS IN BUSINESS OPERATIONS

CHAPTER 6

6.1 SOCIO-DEMOGRAPHIC PROFILE OF SHG MEMBERS

6.2 ECONOMIC-DEMOGRAPHIC PROFILE OF SHG MEMBERS

6.3(a) FUNCTIONAL PATTERN – REASONS TO PERSISTENCE

6.3(b) FUNCTIONAL PATTERN: REASONS TO PERSISTENCE - [KNOWLEDGE OF BANK OPERATIONS]

6.4 FUNCTIONAL PATTERN -CONSTRUCTIVE EFFECT OF GROUP PARTICIPATION

6.5 FUNCTIONAL PATTERN - BENEFITS ENJOYED BEING A MEMBER

About the Author

Dr. M. RajaRajeswari, M.Com., M.Phil., MCA., MBA., PGDIM., PGDHRM., PhD., NET., NET is a finance specialist with over 9 years’ experience of teaching, training and research in commerce, finance, accounts and microfinance areas. She has been associated with PSGR Krishnammal College for Women, Coimbatore as an Assistant Professor and Head of the Department of B.Com(Accounting and Finance) and B.Com(Business Analytics). She has authored several research papers and publications on marketing, finance, microfinance, rural livelihoods, cyber security and Digital Trading.

About the Book

Ever since Independence a number of innovative schemes have been launched for the upliftment of women in our country. Indian Government has taken lot of initiatives to strengthen the institutional rural credit system and development programmes. Viewing it in the welfare programmes of Ninth Five Year Plan (1997-2002) and shifting the concept of Development to Empowerment. The Indian Government adopted the approach of Self Help Groups (SHGs) to uplift the rural women. The empowerment of women through Self Help Groups (SHGs) would lead to benefits not only to the individual woman and women groups but also the families and community as a whole through collective action for development. This book will be highly useful to students of social studies especially Women Studies, Social Work, Sociology, Economics and also to the students and research scholars specialising in Human Development and NGOs and also other functionaries dealing with women.

ECONOMIC PROGRESSION OF SELF-HELP MOVEMENT

Abbildung in dieser Leseprobe nicht enthalten

Equally, when such people get wealth, such wealth becomes the unfailing drug plant for society’s trouble tree coming to be in fruit. - Thirukkural 216 & 217

Foreword

Indian Government is well aware that poverty is a giant barrier in the footsteps of development of a nation. A wide range of anti-poverty policies have been introduced since 1950s, which nonetheless took effect after 20 years of implementation. India is facing the problems related to poverty, illiteracy, lack of skills and health care. These problems cannot be tackled individually but can be better solved through Group efforts.

According to survey conducted by National Sample Survey Organisations (NSSO), 59th Round (2003), only 48.6% of the total number of cultivator households received credit from both formal and informal sources (financial inclusion in a broader sense) and the remaining 51.4% did not receive any credit (total financial exclusion). Development programmes are implemented aiming to create employment opportunities and better standards of life by providing microcredit facilities to people.

In such perspective, Self-Help Groups have become the vehicle of change for the poor and marginalized in terms of microcredit to rule out the poverty. Self-Help Group is a homogeneous Group of micro entrepreneurs with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the Group from which small loans are given to the members for meeting their productive and emergent credit needs at such rate of interest, period of loan and other terms as the Group may decide.

In this perception, this book presents the Demographic and Economic report of an investigation study undertaken in Coimbatore. The feasibility of economic activities progressed through Self-Help Movement and its contribution to improve the economic portfolio of women Self-Help Groups and members is discussed in analytical format using statistical tools.

ACKNOWLEDGEMENT

The research work completed in its backdrop has the blessings of Lord Almighty. Therefore, at the outset, I offer my referential gratitude at the lotus feet of Lord Almighty who is my fortress, my strength, my refuge in times of trouble for standing by me in completing this arduous but delightful task.

I offer my profound thanks to Perur Adheenam Thavathiru Santhalinga Ramaswamy Adigalar, President, Santhalingar Mutt, Perur, Coimbatore for blessing me to submit my doctoral Study. I am grateful to express my sincere gratitude to Dr. V. Maruthachala Adigal, Illaya Pattam and Principal, Thavathiru Santhalinga Adigalar Arts, Science and Tamil College, Perur, Coimbatore, for his blessings and constant encouragement to complete my research work.

I express my sincere gratitude to my Supervisor and Guide Dr. S. Sethurajan, Associate Professor, Thavathiru Santhalinga Adigalar Arts, Science and Tamil College, Perur, Coimbatore for his splendid and constant motivation, meticulous care, compassion and endless encouragement, which have facilitated the successful completion of my research in a phased manner. Words are inadequate to express my deep sense of gratitude to him. Without his constant motivation and meticulous guidance, the completion of the thesis would not have been possible.

I am greatly indebted to Smt. R. Nandini, Chairperson, PSGR Krishnammal College for Women, Coimbatore and Sri. G. Rangaswamy, Managing Trustee, GRG Institutions, for providing me an opportunity to pursue my doctoral programme. I acknowledge my sincere thanks to Dr. N. Yesodha Devi, Secretary and Dr. S. Nirmala, Principal, PSGR Krishnammal College for Women, Coimbatore for reinforcing my efforts with support and guidance. I thank all my teachers of Commerce Department of our college for being a source of encouragement. The colleagues of my department deserve a special word of thanks for their understanding and compromises done within the department.

I acknowledge the help rendered by all the faculties of District Rural Development Agency (DRDA), Mahallir Thittam Office and NGOs for their assistance and timely provision of necessary data pertaining to my study. I take this opportunity to thank all the Librarians of Bharathiar University and Madras University and other Centres, who have been generous in allowing me to access the facilities. I appreciate all the SHG Group leaders and members of my study for their patient response to all my detailed queries.

Finally, I wholeheartedly thank my husband and my two sons for their endless help. Without their practical aid and patient understanding, the thesis would not have seen the light of the day. I am grateful to my parents and my relatives for their wonderful care and concern. I thank all my well-wishers who have extended their support in innumerable ways for the completion of this project.

M. RAJARAJESWARI

LIST OF ABBREVIATIONS

Abbildung in dieser Leseprobe nicht enthalten

CHAPTER 1 OVERVIEW ON SELF HELP MOVEMENT

After independence, India has been adopting aggressive national economic development plans through various public policies and the policy makers have been emphasizing upon the need of national development ever since the advent of planning process in the country. The ultimate objective of national development is eradication of poverty and improving the quality of masses. In India, there has been an aggressive effort on the part of the Government, concerned with improving the access of the poor to formal credit system through implementation of focused programmes for removal of poverty and thereby aiming economic fortification.

Economic fortification, meaning financial enrichment or poverty alleviation is the main mandate of economic development and special efforts are made in all five-year plans and even in twelfth plan(2012-2017) an attempt is made to bring down the poverty level to below 10% by effectively converging various poverty reduction programmes. “Today, poverty prevails as the gravest human rights challenge in the world. Combating poverty, deprivation and exclusion is not a matter of charity, and it does not depend on how rich a country is. By tackling poverty as a matter of human rights obligation, the world will have a better chance of abolishing this scourge in our lifetime ...Poverty eradication is an achievable goal”.

Microfinance programmes in the recent past have become one of the more promising ways to use scarce development funds to achieve the objectives of poverty alleviation. The basic idea of Microfinance is simple: if poor people are provided access to financial services, including credit, they may very well be able to start or expand a microenterprise that will allow them to break out of poverty. Microfinance through Self­Help Movement has proved to be an effective tool for economic fortification and plays a very prominent role in developing economy.

The Self-Help Group Movement is focused as a vehicle to reach the disadvantaged and marginalized section, which in the normal course cannot avail of credit facility from the banks. Microcredit is extension of small loans to the poor to enable them to take up income generating activities. These loans are based on the savings of the poor and are beneficial not only in urban areas but also in rural areas. These days, the SHG Movement is increasingly accepted as an innovation in the field of microcredit in many developing countries including India to help the poor.

Since women comprise nearly half of the Indian population and in reality, imposed of intra-household and social discrimination, Indian Government has laid down macroeconomic policies and poverty eradication programmes to address the needs and problems of such women. The formation of SHGs for women around thrift and credit has emerged as one of the most effective methods for poverty reduction and women empowerment.

SHGs comprise very poor people who do not have access to formal financial institutions. They act as the forum for the members to provide space and support to each other. It also enables the members to learn to cooperate and work in a Group environment. The SHGs provide savings mechanism and a cost effective delivery mechanism for small credit to its members. They pool their resources, to become financially stable, taking loans from the money collected by that Group and by making everybody in that Group self-employed. The Group members use collective wisdom and peer pressure to ensure proper end-use of credit and timely repayment. This system eliminates the need for collateral and is closely related to that, of solidarity lending, widely used by microfinance institutions. To make the bookkeeping simple, flat interest rates are used for most loan calculations.

The women Self-Help Groups play an important role in the entrepreneurship development. The nationwide development programmes are focusing on the formation of women self-help groups and through these groups the families can march towards the overall development of the quality of life of women. The development of the women entrepreneurial skills gained its importance in India after the declaration of the International decade for women by the United Nations Organization, i.e. from 1975 to 1985. The hidden entrepreneurial potentials of women have gradually started changing with the growth sensitivity to the role and economic status in the society.

Ramya and Rajendran (2010), in their article “Micro-finance for Rural Women - A Study in Vellore District” found that, microfinance activities improved the knowledge and awareness on social development to a considerable level. The study reported a significant relationship between the loan amount and improvements in awareness and capacity building and the conclusion is that, the higher the loan amount, the higher the capacity building of rural women?

As Self-Help Groups have become the focal point of poverty reduction efforts and occupies pride of place in national programmes and is deemed to be a potential tool for the social integration and socio-economic betterment of the women a critical examination of the profile, organizational structure, mechanism of implementation and functionality, business strategies adopted, funds flow and its utilization, are analysed to find out whether those activities achieve poverty upliftment and empowerment.

In the course of economic development, the empowerment approach focuses on mobilizing the self-help efforts of the women, rather than providing them with economical welfare. As a consequence, Women Self-Help Group Entrepreneurs are inspiring. SHG entrepreneur is one that organizes, manages, and assumes the risk of a business enterprise jointly as an affinity group by mobilizing their savings and microcredit.

Indian Government percepts the goal of economic fortification through implementation of Self-Help Movement programmes and these programmes by improving women’s ability to earn an income for their livelihood and thereby increasing well-being for women and their families, have the potential to initiate a series of ‘virtuous spirals’ by enlightening economical, social and political empowerment and thereby humanizing women with overall empowerment. SELF-HELP GROUP - A PORTRAYAL

"A small, homogeneous affinity group of rural poor, voluntarily formed to save and contribute to a common fund to be lent to its members as per group decision and for working together for social and economic upliftment their families and community".

To breakthrough, Self-Help Group is a registered or unregistered group of micro entrepreneurs having homogenous social and economic backgrounds; voluntarily coming together to save regular small sums of money, mutually agreeing to contribute to a common fund and to meet their emergency needs on the basis of mutual help. The group members use collective wisdom and peer pressure to ensure proper end-use of credit and timely repayment. This system eliminates the need for collateral and is closely related to that of solidarity lending, widely used by microfinance institutions.

CONCEPT OF SELF-HELP GROUPS

The concept of SHGs has its origin in the co-operative philosophy and the co-operators by and large, including the National Federations in the credit sector, could not think of any better SHG than a primary co-operative credit society itself. As SHGs are small and economically homogeneous affinity groups of the poor, they are voluntarily coming together for achieving the following: 1) to save small amount of money regularly, 2) to mutually agree to contribute to a common fund, 3) to meet their emergency needs, to have collective decision-making, 4) to solve conflicts through collective leadership and mutual discussion and 5) to provide collateral-free loans with terms decided by the group at the market-driven rates.

The following are the distinguishing features of Self-Help Groups, say,

i) The form of such a group could be mostly on an informal basis (unregistered),
ii) It normally consists of not less than five persons (with a maximum of twenty) of similar economic outlook and social status,
iii) It promotes objectives like economic improvement and raising resources for development and freedom from exploitation,
iv) It has its own by-laws for the proper functioning of the group as well as for the observance of certain rules by the group members and regulations concerning membership,
v) Periodical meetings of members are held for solving their problems,
vi) Sources of funds are the contributions of members saving, entrance fee, interest from loans, proceeds of joint business operation and income from investments. Funds may be used for loans and common investment in business activities leading to economic empowerment,
vii) The savings of members is used for giving loans to members for purposes including consumption at the rate of interest decided by the group usually higher than the bank charges.

SIGNIFICANCE OF SELF-HELP GROUP

India is a country with diverse socio-economic conditions. This diversity is prominent in every aspect of life including financial services. Households with low income often lack access to banking services. These families find it more difficult to save

and to plan financially for the future. On the other extreme there are people enjoying all kinds of services. Lack of financial services has an impact on the economic condition of the people and is a major cause for poverty. Microfinance is increasingly acquiring a sacrosanct status in the poverty alleviation programmes and is hailed as the ‘manna’ in wiping out poverty from the face of the earth.

Understanding the vital need to increase the income level of the population who are not employed and to bring balance in the economy, the Government felt that SHG concept may be one of the methods that it can implement to minimize the problem of unemployment which is also expected to increase the income level of the population below the poverty line and in turn generating a positive impact on the empowerment of women.

Self-Help Movement programmes in the eye of Indian Government serve as the last-mile bridge to the low-income population excluded from the traditional financial services system to alleviate poverty.

NEED OF SELF-HELP GROUP

In India, women have been the vulnerable section of society and constitute a sizeable segment of the poverty-struck population. Women face gender-specific barriers to access education, health, employment and so forth. “Promote gender equality and empower women” is one of the eighth Millennium development goals initiated by United Nations Development Programme (UNDP).

The problem is more acute for women in countries like India, despite the fact that women's labor makes a critical contribution to the economy. This is due to the low social status and lack of access to key resources. Evidence shows that groups of women are better customers than men, the better managers of resources. If loans are routed through women, benefits of loans will spread wider among the household. Since women's empowerment is the key to socio-economic development of the community, bringing women into the mainstream of national development has been a major concern of government. Microfinance deals with women below the poverty line. Microloans are available solely and entirely to this target group of women as poor women generally lack education and they also lack access to other resources which would help them towards economical upgradation and social mobility through poverty alleviation.

Microfinance through Self-Help Groups is propagated as an alternative system of credit delivery for the poorest of the poor groups. The role of Self-Help Groups in the upliftment of families below poverty line is much appreciable in various other parts of India. The families in financial difficulties find SHGs as a boon in ameliorating their financial problems. Similarly, empowerment closely linked to economic independence is attained by financial stability reaped through SHGs group participation which is also victimized in various other parts of India. Many studies have shown that when women are supported financially and empowered, the society as a whole enjoys the benefits and communities become more resilient.

The National Policy for Empowerment of Women(2001) states that the constitution not only grants equity to women, but also empowers the state to accept measures of positive discrimination in favour of women. The assignment of Tamil Nadu State Rural Livelihoods Mission (TNSRLM) is “to bring the poorest of the poor and the unreached families into the SHG network, establishing and strengthening the self-managed institutions of the poor by enhancing their capacity and thereby promoting their livelihoods with incremental income at the household level through sustainable Community-Based Organizations”.

The economy of Coimbatore district is noted for its inequalities in income distribution, unemployment according to per capita GDP. Women constitute 50% of the population. Despite the prevalence of positive indicators like adequate literacy, low infant mortality, wide employment opportunities and raised standard of living, the condition of women has not improved as expected. New microfinance approaches through Self-Help Movement programmes emerged in India over the past decade has been implemented in the district involving the provision of thrift, credit and other financial services and products, with the aim to raise income levels and to improve living standards.

In this perception, this is attempted to investigate whether the economic activities progressed through Self-Help Movement is feasible to improve the economic portfolio of women Self-Help Groups and members.

CHAPTER 2 SAMPLING DESIGN AND METHODOLOGY

The methodology of the research indicates the general pattern of organizing the procedure for gathering valid and reliable data for the purpose of investigation. Research design is the framework that has been created to seek answers to research questions and provides a direction to the investigation being conducted in the most efficient manner. The design of the present study is descriptive, analytical and conclusive.

The variables used in the study for analyzing the objectives are identified based on the review, discussions with the officials of the NABARD and the NGOs and a preliminary interview with the selected Self-Help Groups. Based on the variables identified it is understood that it requires the collection of data from both the Self-Help Groups and Members engaged in Self-Help Group business activities. Hence, two schedules are prepared, one for the SHGs and another for the members of the SHGs. The interview schedule so drafted is circulated among some research experts, research scholars and office bearers of SHGs for a critical review with regard to the format, sequence, wording and the likes.

The key aspect of the present research is to identify the preliminary respondents through an interview with a few selected leaders and members. Further, a study has been conducted and the data have been collected from 50 SHG leaders and 150 SHG members and the results of the survey have necessitated certain changes for the final structuring of the interview schedule meant for the SHG leaders (500 Nos.) and SHG Members (1500 Nos.) chosen for the study.

After modification of necessary information to the interview schedule, the same members are again met and their responses are collected again for validating the interview schedule and are included in the samples and analysed. The analysis of the results revealed that the objectives of the study could be measured clearly.

INSTRUMENTATION

Two different interview schedules have been used to collect the information from the respondents. The first schedule has been used to draw information from the Group leaders (Animators) of the Groups and the second schedule has been used to extract information from the Self-Help Group members. The first part of both the instrument pertains to demographic profile and the remaining parts are classified based on objectives to be studied. A Five-Point Likert scale has been used for measuring the sub-dimensions and further to measure the internal reliability of the items, Cronbach’s Alpha is applied. Excel spreadsheet is used for recording and calculating the samples. Also Statistical Package for Social Sciences (SPSS), a computer software package of statistical tools for deploying different statistical tools, is used. A specimen of the interview schedule is shown in the Appendix I & II(App-I & App-II) of the present study.

SAMPLING DESIGN

Sampling design refers to the process of selecting samples from a population. For the purpose of the study, stratified sampling method has been adopted for the selection of area and samples. Stratified samples are samples within samples where each stratum is fairly homogenous. With stratified sampling, the researcher divides the population into separate, likely, called strata. Then, a purposive selection based on the research synthesis factor is drawn.

A stratified purposeful sampling approach can lend credibility to a research study. The logic and power of purposeful sampling lies in selecting information-rich cases for study in depth. Information-rich cases are those from which one can learn a great deal about issues of central importance to the purpose of the research, thus the term purposeful sampling. For example, purposefully samples are selected from the stratum by practice size (small, medium and large) or practice setting (urban, suburban and rural). This factor may be contextual, methodological, or conceptual. When enough information is known to identify characteristics that may influence how the phenomenon is manifest, then it may make sense to use a stratified purposeful sampling approach.

SAMPLE AREA

Coimbatore district is selected for the study. There are 14 blocks in Coimbatore district as given in Table 2.1, of which one block having only rural area (Thondamuthur) and two blocks having only urban areas (Coimbatore Corporation and Valparai) are omitted for data collection and the remaining 11 blocks are considered for sample selection.

SAMPLE SIZE

Of the selected 11 blocks with both rural and urban Self-Help Groups, 500 Self­Help Groups are selected based on Groups business practice for five and more years and 1500 Self-Help Members are selected based on three Members from each selected 500 Groups based on their involvement in the business for five and more years as samples for the study and is illustrated in the below table. The sampling framework in detail is shown in Appendix III (App-III. i to iii) of the present study.

TABLE 2.1: SELF-HELP GROUPS IN COIMBATORE DISTRICT AND SAMPLES SELECTED FOR THE STUDY

Abbildung in dieser Leseprobe nicht enthalten

Source: MahalirThittam (MATHI), Coimbatore 2013

(Note-* denoted blocks have not been considered for the study as those blocks cover either rural or urban areas)

The justification of the sampling technique will ensure adequate representation of both rural and urban category thereby providing greater reliability and also guarantee the precision of sample estimates. In all, a total of 500 groups and 1500 members are considered as the samples for the study.

PRIMARY DATA

The major source of the data used to carry out the analysis is primary data. In order to fulfill the objectives set out; a sample study is undertaken by the use of a well-framed questionnaire which has duly been filled in through an interview schedule. The first step in the collection of primary data is to identify the 500 samples of Self-Help Groups in the selected blocks of Coimbatore District and three members amounting to a sum total of 1500 members from the identified groups having 5 and more years of business activities under Self Help Group identification.

SECONDARY DATA

The secondary data to be elucidated is also integrated in the questionnaire and collected based on inspection of the records maintained through the interview schedule. The sources of secondary data includes the records maintained by the Self-Help Groups, data collected from Mahalir Thittam Office, Tamil Nadu Women Development Corporation, NABARD, District Rural Development Agency, Lead Bank District Statistical Office, doctoral thesis of various institutions, books, journal articles, various other published reports and unpublished reports, and so on.

STUDY PERIOD

The period considered for the study has been from 2009-2014.

METHOD OF ANALYSIS

Data collected from the respondents through interview schedule is analysed using percentage method,

RELIABILITY SCALE

A Five-Point Likert scale, carrying the scores of weight as follows: Strongly Disagree=1, Disagree=2, Neutral=3, Agree=4 and Strongly Agree=5 is used for measuring the dimensions considered to ascertain information from the respondents. Further to measure the internal reliability of the items, Cronbach’s alpha is utilised. The result of the Cronbach’s alpha suggests the overall reliability, say, the co-efficient of the test. Cronbach’s alpha is not a statistical test and can be written as a function of the number of test items and the average inter-correlation among the items. Cronbach’s alpha also has a theoretical relation with factor analysis. When using Likert-type scales it is imperative to calculate and report Cronbach’s alpha coefficient for internal consistency reliability for any scales or subscales used in the analysis.

STATISTICAL TOOLS FOR ANALYSIS

The following statistical tools are employed to analyse and interpret the surveyed data, namely,

1. PEDESTAL TOOLS -

a. PERCENTAGE METHOD: This method represents raw streams of data as a percentage (base: 100) for better understanding of collected data and states its frequency.

2. ARITHMETIC TOOLS -

a. WEIGHTED AVERAGE MEAN: It is an average resulting from the multiplication of each component by a factor reflecting its importance.

b. HENRY GARRETT RANKING TECHNIQUE: It is used to rank the preference indicated by the respondents on different factors. As per this method, respondents have been asked to assign the rank for all factors and the outcomes of such ranking have been converted into score value with the help of its relevant formula.

c. MEAN SCORE ANALYSIS: It is used to analyse the average of data according to the range of values scaled.

3. STATISTICAL HYPOTHESIS TOOLS -

a. CHI-SQUARE TEST: It is a statistical method assessing the goodness of fit between a set of observed values and those expected theoretically. It is used to determine whether there is a significant association between the two variables. Null hypothesis states that there is no significant association between two variables.

To interpret the results, it compares the P-value to the significance level equal to 0.01, 0.05, and rejecting the null hypothesis when the P-value is less than the significance level. The P-value is the probability of deviation on observing a sample statistic from the expected to the extreme based on degrees of freedom. Degree of freedom is the number of values in the final calculation of a statistic that are free to vary.

CHAPTER 3 REVIEWS

INDIAN REVIEW

Chiranjeevulu (2003) in his article, “Empowerment of Women through Self­Help Groups” has revealed that, the multi-pronged strategy including local marketing to export has been contemplated. The product will be thoroughly popularized among all the SHGs in the district and channels for distribution of product to all the strategic marketing locations will be developed. He has also highlighted that network with other marketing enterprises of SHG women in neighboring districts will be established. Consumption points under the control of government like hostels and devasthanams would be approached for bulk orders. Product will also be marketed through PDS and Gruhamithra supply channels.

Anita Panda (2004) has explained in her article, “SHG: A Boon for Many” that, initially the women were assisting the men in the business, but subsequently the women came forward to start business independently. She has revealed in her study that, the members utilized the loan for their family business and repaid the due amount on time.

Rosappu and Kalyana Sundar (2004) have discussed in their article, “Economic Independence through Self-Help Groups” that, in the absence of extra time and government jobs, the role of SHGs in generating funds, getting loan from the banks and indulging in various business like making soaps, mats, chocolates, pappads building toilets, coconut spoons, running tea shops, stone quarries, installing gas plants and solar energy networks is highly commendable.

Sheik Mohammed (2004) has mentioned in his article, “Self-Help Groups for the Success of Women Entrepreneurs” that, women are contributing significantly in modern business and commercial world in their own way. Working women can be classified into different categories like women entrepreneurs, highly qualified professionals, employees in the organized private and public sectors and women workers in unorganized sector.

Kamaraju (2005) has mentioned in his article, “Self-Help Groups: Emerging Rural Enterprises” that, in rural areas SHGs utilized the loan for purchasing milk animals, goats and for meeting personal urgent needs. Some SHGs have purchased power tillers for agriculture purpose on hire basis. Investment in power tiller will increase their income both individually and collectively. He has also indicated that, the SHGs should function as a non-political and non-controversial one.

Sakthivel Murugan and Begum Ayesha (2008) have made an attempt in “Predominant Barriers of Women Entrepreneurs” based on the primary data collected from the sample of 100 entrepreneurs of Chennai City. The study reveals that social and cultural barriers are prominent formidable block for the development of women entrepreneurs. The study concluded that entrepreneurs with ability to plan and run a business deliver quality products.

Kumararaja (2009) in analyzing the “Performance of SHG in Tamil Nadu” has observed that, SHG women are currently involved in economic activities. The SHG women monitor the normal and proper functioning of the ration shops, maintain vigil on brewing of illicit liquor and help the aged, deserted and widows to obtain loan. The project has achieved 100% repayment in the case of lending to SHGs, by banks and 95% in internal lending of Self-Help Groups. Repayment rates of direct borrowers have increased from 30% to 70%. Banks disburse the credit to SHGswithin seven days at their doorsteps. SHGs help in forming Village Development Council (VDC). These VDC members are involved in social and infrastructural development works.

Satpal Sunil Phougat and Silender Hooda (2010) stated in “Swarnajayanthi Gram Swarozgar Yojana Programme implemented in Haryana” that, there is a lack of diversities in the Self-Help Groups activities in the State. Highest amount of resource have been spent on primary sector and mainly on milk cattle. There is less attention given in other areas such as handlooms, handicrafts and other activities in the State. The problem of marketing of the goods by Self-Help Groups is a big constraint in achieving the targets. So, there is need for proper attention to solve such type of problems under SGSY.

FOREIGN REVIEW

Churchill (1995) undertook a study entitled, “Get Ahead Foundation Programme” to assess the impact of microenterprise credit on the small scale enterprises, on the living conditions of entrepreneurs and their families and on the benefits to the next generation in the programmes of the Get Ahead Foundation in South Africa. He points out that, microcredit has a positive impact on the monthly profit but little impact on job creation.

Wanyande and Okebe (2001) stated in “Discourses on Civil Society in Kenya, Nairobi: Africa Research and Resource Forum” that, credit brought into house by women, whether they manage or not, results in greater benefits to themselves, their children and husband, than does credit in men’s name. It also increased women’s self esteem and contributed to the formation of social and business networks outside the household.

SnchLataTandom (2001) stated in “Self-Help New Mantra for Empowerment” that, Self-Help Groups are encouraged to come together as cooperative societies at the village level by federating them under the mutually aided Cooperative Society Act (1995). These societies will be accessing credit from financial institutions, donor agencies, District Rural Development Agency (DRDA) and voluntary organisations and help the women members of the Self-Help Groups in availing bigger loans for economic activities as well as help in collective bargaining in the marketing of products, purchasing of raw materials etc. Due to this massive Self-Help Movement, there is a perceptible improvement in the socioeconomic status of the rural women.

CHAPTER 4 SELF-HELP GROUPS CONTOUR

Self-Help Group is, also known as mutual help, mutual aid, or support groups, are groups of people who provide mutual support for each other. In a self-help Group, the members share a common problem, often a common disease or addiction. Their mutual goal is to help each other to deal with, if possible to heal or to recover from, this problem. It is an informal organisation of not less than 10 and not more than 20 people from the poorer section of the society, organised, owned, operated and controlled by the members in a democratic manner, based on solidarity, reciprocity, common interest and resource pooling. These are similar to traditional Group activities in all communities.

Self-Help Group is a new form of a movement which aims at reducing the incidence of poverty through the provision of easy credit. All Self-Help Groups are not necessarily linked to lead/focal bank because they do not need external credit except the support from their sponsoring organisations. The main objective of the Self-Help Group is to provide economic opportunities to the economically disadvantaged groups to establish and gradually improve their entrepreneurial ambitions through regular and small savings to improve their socio-economic status by organising and participating in their own voluntary and democratic association. Self-Help Groups generally have broad anti­poverty agendas. The real aim of creating Self-Help Groups is to empower persons and their families and to make Group members self-sufficient and self-reliant by self­employment.

DEMOGRAPHIC PROFILE OF SELF-HELP GROUPS

A ‘Demographics’ study of a population is important as it gives the background representation of the respondents statistically. Demographic Profile of Self-Help Group is studied in three aspects, Group contour, leaders/animators personal profile and Group functional pattern and analysed using percentage analysis. The percentage analysis proportionately represents the analysed variables count to the total base value to a common base value of 100 and is represented in percentage.

Hence, to analyse the same, the groups are selected with minimum five years business experience and its contour are classified based on location of the Self-Help Group, year of inception, years of operation, number of members, nature of homogeneity in the affinity Group andfinally, Group under the purview of institution.

TABLE 4.1: DEMOGRAPHIC PROFILE - SELF-HELP GROUPS CONTOUR

Abbildung in dieser Leseprobe nicht enthalten

Source : Primary Data

The above table reveals that, majority (75.2%) of the SHGs are from urban areas and 24.8% of the SHGs are from rural areas.

Less than half (43.4%) of the SHGs stated that, they started their operations in the year 2008; and 22.8% of the SHGs said that their SHG was started in the year 2007; and 11% of the SHGs averred that their SHG was started in the year 2009; and each 10.8% of the SHGs said that their Groups were started in the year 2005 and in the year 2006; and finally, 1.2% of the SHGs stated that their Group was started during the year 2004.

It is understood from the above table that, (66.2%) of the SHGs have affirmed that their SHG has been functioning for 5 to 7years; 22.8% of the SHGs have indicated that their SHG has been in function for more than 7 years, and the remaining 11% of the SHGs have averred that their SHG has been functioning for 5 years.

It is clear from the above table that majority (75%) of the SHGs have stated their SHG has 13 to 15 members from the date of inception; and 14.4% of the SHGs have said that their SHG has 16 to 20 members, and another 10.6% of the SHGs have observed that their SHG has 10 to 12 members after the inception of the Group.

A maximum of (39.8%) of the SHGs have intimated that the members of their SHG are all of the same age; 34% of the SHGs have said that their SHG consists only neighbours of the same area; and 9.2% of the SHGs have declared that the members of their SHG have the same occupational status; and 9% of the SHGs have said that their SHG has only relatives; and the remaining 8% of the SHGs have revealed that the members of the SHG belong to the same caste.

It is obvious from the above table that 89.8% of the leaders/animators have confirmed that their SHG is under the purview of banks; and 7.8% of the SHGs have declared that their SHG has NGOs as intermediaries, and 2.4% of the SHGs have stated that their SHG is under the purview of NGO facilitators.

CHART 4.1: DEMOGRAPHIC PROFILE - SELF-HELP GROUPS CONTOUR

Abbildung in dieser Leseprobe nicht enthalten

DEMOGRAPHIC PROFILE - LEADERS/ANIMATORS PERSONAL PROFILE

The personal profile of the leader/animator is further collected apart from Self­Help Groups contour to understand the characteristics of the leaders/animators of the selected Group, and is classified based on age of the leader/animator, marital status, educational qualification and income of the leader/animator as presented in the table below.

TABLE 4.2: DEMOGRAPHIC PROFILE - LEADERS/ANIMATORS

Abbildung in dieser Leseprobe nicht enthalten

Source : Primary Data

It is observed from the table that, more than half (54.6%) of the respondents belong to the age between 31 and 40 years, followed by 20.8% of the respondents who belong to the age below 30 years, 16% of the respondents belong to the age between 41 and 50years and 8.6% of the respondents belong to the age group more than 51 years.

It is clear that, majority (80.8%) of the respondents are married, while 11.6% of the respondents are unmarried and the 4.4% of the respondents are widows and the remaining 3.20% belong to other categories (divorced, separated, and so on).

It is understood that, most (31.6%) of the respondents are qualified upto primary level, 21.6% of the respondents are higher secondary qualified, 20.2% of the respondents are qualified with middle/secondary education, 18.8% of the respondents do not possess any formal education and are illiterates and the remaining 7.8% of the respondents are having other qualifications (technical education, graduation, and so on).

It is evident that, majority (68%) of the respondents are having an income between Rs.10001 and 20000 per month, 17.8% of the respondents are having an income more than Rs.20001 per month and the remaining 14.2% of the respondents are having an income of less than Rs.10000 per month.

CHART 4.2: DEMOGRAPHIC PROFILE - LEADERS/ANIMATORS PERSONAL PROFILE

Abbildung in dieser Leseprobe nicht enthalten

DEMOGRAPHIC PROFILE - FUNCTIONAL PATTERN OF SHGs

Wherever two or more people come together, certain rules of behaviour develop automatically. Many of these rules are informal or governed by custom. But wherever people join together for a common objective and financial transactions take place there is a need to have rules written down.

In democratic organisations, these rules must be agreed to and understood by all the members and they must be followed strictly. Any deviant behaviour must be discouraged through a set of procedure. Self-Help Group is a financial intermediary committee usually composed of 10-20 local women framing of rules for its proper functionality becomes necessary. Hence, their Functional Pattern is analyzed based on level of awareness and knowledge about the SHG rules and regulations, general functioning and record maintenance spectrum.

LEVEL OF AWARENESS AND KNOWLEDGE

Self-Help Groups are democratic institutions and they must follow the norms of democratic self-governance. These norms, necessarily in the written form, are called the bye-laws of Self-Help Groups.

These bye-laws must contain the following: objectives of the Group, procedure for election of representatives, periodic change of representatives, time of meeting and periodicity of meeting, the amount and periodicity of saving, operation of the bank account, procedure for sanction of loan, amount of loan, purpose of loan, rate of interest to be charged, repayment period, fines/penalties for non-attendance in meetings, late payment of savings, late or nonpayment of loan instalments or other undesirable behaviour, activities to be taken up by the Group other than saving and credit, procedure for withdrawal from membership, distribution among members of income from Group business. These rules must be written in the local language at the end of the second meeting of the Group. The rules must be evolved through consensus.

It is pertinent to understand the level of awareness of the Group leaders/animators on important aspects such as knowledge of Self-Help Group rules, knowledge offunctions and procedures of meetings and finally, knowledge of maintenance of records are presented in the table taking the level of awareness on a three point Likert Scale viz. high, average and low respectively.

TABLE 4.3: FUNCTIONAL PATTERN OF SHGs - LEVEL OF AWARENESS AND KNOWLEDGE

Abbildung in dieser Leseprobe nicht enthalten

Source: Primary Data Note: Figures in parenthesis represents percentage

The above table shows that, majority (69.8%) of the respondents stated that, the Group members possess low level of knowledge about the SHG rules, while 19% of the respondents opined average knowledge and the remaining 11.2% of the respondents indicated high knowledge among members about the SHG rules.

It is evident that, nearly half (49%) of the respondents stated that, the Group members have low level of knowledge with regard to function and procedures of the meetings, 44.6% of the opined average knowledge and the remaining 6.4% of the respondents indicated high knowledge.

It is clear that, less than half (48.2%) of the respondents have low knowledge towards maintenance of records, while 41% of the respondents indicated average knowledge and the remaining 10.8% of the respondents stated high knowledge possessed by the Group members towards maintenance of records.

CHART 4.3: LEVEL OF AWARENESS AND KNOWLEDGE

Abbildung in dieser Leseprobe nicht enthalten

[...]