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Submitted by:
Disanta Nath
M.Com 3rd Semester
Roll No. PC1710170033
G.U. Registration No- 051459 of 2013-14
Gauhati Commerce College
I
DECLARATION
I also hereby declared that the work embodied in this dissertation has not
been submitted for any other degree or diploma of this university or institute.
Disanta Nath
M.Com 3rd Semester
Gauhati Commerce College
R.G.Barooah Road
Guwahati-781021
Place: Guwahati
Date:
II
ACKNOWLEDGEMENT
I take this opportunity to give my sincere gratitude and thank all those who
have helped me in completing my dissertation for the partial fulfilment of my
M.Com Degree.
At the very outset, I am deeply indebted to my guide Prof. Deepjyoti
Chakraborty, Asst. Professor, Post Graduate Department of Commerce, Gauhati
Commerce College, Guwahati, for his constant encouragement of this research
work. I am extremely grateful to him for all the toil and trouble he has taken for
me.
I am very grateful to entire faculty members of Post Graduate Department of
Commerce, Gauhati Commerce College, Guwahati, specially our Co-ordinator
Sir Dr. R. K. Pathak for his constant encouragement.
I express my deep gratitude to all the respondents for sparing their valuable
time and kind co-operation.
I also give my heartfelt thanks to all my friends, relatives and family
members for helping and supporting me in my research work.
Disanta Nath
III
EXECUTIVE SUMMARY
IV
Findings: It was found that the average monthly savings of
most of the members after joining the SHG has
increased; main source of the family income of
majority of the families is agriculture.
V
LIST OF TABLES
Page No.
VI
LIST OF FIGURES
Page No.
VII
CONTENTS
Page
Certificate of Originality I
Declaration II
Acknowledgement III
Executive Summary IV
List of Tables VI
List of Figures VII
CHAPTER 1
1.1 Introduction 1
1.2 Review of Literature 3
1.3 Objectives of the Study 8
1.4 Research Methodology 8-10
1.5 Scope of the Study 10
1.6 Periodicity of the Study 10
1.7 Significance of the Study 10
1.8 Limitations of the Study 11
CHAPTER 2
2.1 Meaning of SHG 12
2.2 Basic Principles of SHGs 12
2.3 Characteristics of SHGs 12
2.4 Functions of SHGs 13
2.5 Women Empowerment 14
2.6 Evolution of Self-Help Groups in India 15
2.7 Initiative by NABARD 16
2.8 Role of Non-Government Organisations (NGOs) 18
2.9 Impact of Self-Help Groups 18
CHAPTER 3
CHAPTER 4
4.1 Findings 50
4.2 Suggestions 54
4.3 Conclusion 56
Bibliography i
Questionnaire iii
CHAPTER-1
1.1 Introduction
“Women are less likely to secure favourable outcomes for them in household decision
making process. Socio-economic development is not possible without participation and
empowerment of rural downtrodden women”
-Dr. Amartya Sen, Nobel Laureate in Economics
India is in its seventh decade of independence and it is on the threshold of the 21st
century. Despite the six decades of planned economic development, the achievement in the
sphere of women empowerment is considerably discouraging. In India women constitute
48.43% of total population as per census 2011. Majority of them, especially in the rural areas,
depend upon men for their livelihood and continue to be voiceless section. Though economic
value is not attached to women’s role, in bringing up the family their contribution is very
significant. It is very essential to employ this resource optimally in the interest of the nation
in general and her family in particular. Since household health and nutrition are generally in
the hands of women, the empowerment of women is necessary for ensuring their own welfare
and also the well-being of the entire household. In the past, women were not ready to
undertake any work, job and business due to shyness, fear and male dominance in the society.
However, of late, Indian women have come out of the four walls of the kitchen and shown
their willingness to take up entrepreneurial activities. Women of today want more economic
freedom. Many women have already proved that they are more efficient than men in
contributing to the growth of the economy. Now in India, Women’s contribution to the
industrial sector is rapidly growing in multidimensional basis. Government encourages the
women as independent and self-sustainable persons in the society.
Empowerment of women implies process by which women’s power of self-realisation
is promoted and reinforced. They develop the capacity for self-reliance out crossing the
relationship subordination on account of gender, social and economic status and the role in
the family and society. It encompasses the ability to make choices, control resources and
enjoy participatory relationship within family and community. The word “women
empowerment” is first announced in 2001 in India. She is empowered when she is valued as a
1
normal being of society who has the space to participate in public discourse. The educated
Indian women are empowered because they know their rights, but women belonging to the
weaker or poorer sections of the society still face problems like domestic violence, dowry
harassment, sexual harassment, etc.
Self-help groups emerge as an important strategy for empowering women and alleviating
poverty. The self-help group are playing a major role in removing poverty in the rural India
today. The group based model of self-help is widely practiced for rural development, poverty
alleviation and empowerment of women. This concept derives its roots from Bangladesh and
India has adopted the model in a modified form. Though several parameters exist to empower
women, their active role in formation and deriving economic benefit from Self-help groups
(SHGs) by providing self-employment is adopted as a main tool for empowerment and rural
development. Women Self-help groups play a vital role in enhancing the knowledge, skill
and good attitude of their members. The distinguishing feature of the Self-help groups is
creating social and economic awareness among the members. The social awareness enables
the members to lead their lives in a sound hygienic environment and pursue a better living.
The woman members involve themselves more in taking decisions regarding the education of
their children, the investment of the family, managing the economic assets of the family and
bringing up cohesion among the members of the family and others for a better living. Every
member of the Self-help groups has felt the need for more involvement in economic
activities. The spirit for social and economic upliftment of members is the significant
contribution of each and every Self-help group.
The Self-help groups are the most significant way of bringing about socio-economic
change in our society. It is integrating the low income segment with the rest of the rural
community through speeding up economic growth and improving the quality of women
community in rural area. Today Self-help groups have become the vehicle for changing the
poor and marginalized group of our society for the better by assisting women in adapting to
entrepreneurial activities. The successful functioning of SHGs will definitely lead to
economic independence of women, increase their bargaining power in the society and will
empower women both socially and economically which will ultimately strengthen the society
and economy.
2
1.2 Review of Literature
There are numerous studies have been carried out from time to time both by Indians and
Foreigners to explore the possibilities of empowerment of women with the help of
microfinance program and Self-help Groups (SHGs). The findings of the earlier studies have
paved the way for further studies and research. An attempt has been made in this chapter to
provide an overview of various aspects and issues of this study through the review of existing
literature. Some of the main studies selected for review have been discussed below.
Manimekalai (2004), in his article “Impact of Various Forms of Micro Financing on
Women” commented that to run the income generating activities successfully the Self-help
Groups must get the help of NGOs. The bank officials should counsel and guide the women
in selecting and implementing profitable income generating activities. He remarked that the
formation of Self-help Groups have boosted the self-image and confidence of rural women.
Krishnan, Sequeira and Snehalatha (2008), in their study “Empowerment of
Underprivileged Women through Self-Help Groups” analysed the formation and functioning
of Self-help Groups and the impact on socio-economic status of underprivileged women. The
study revealed that women come together as Self-help Groups as they were able to get hassle-
free and timely loans to meet emergence needs. Team spirit was acting as a binding factor to
bring unity and cohesiveness among the group members. The Self-help Groups approach,
apart from generating incremental income, helped them to upgrade the economic and social
status along with a sense of recognition contributing to the process of empowerment.
Rao (2011), in his research paper “Self-Help Groups and Empowerment of Women”
stated that education is an important variable of women empowerment. Therefore, the first
and foremost step for empowering women is the removal of illiteracy among them. Adult
Literacy Programmes should be implemented strictly in order to make the adult female
illiterates as literates so that empowering women is easy. The consciousness and mutual
efforts of men, women and society will lead to the empowerment of the women. The
governmental agencies should make wide publicity to motivate the women to participate in
the Self-help Groups.
Banerjee and Ghosh (2012), in their study “What Factors Play a Role in Empowering
Women? A study of SHG Members from India” stated that Self-employment held the key to
continuity of employment. Self-employed members of self-help groups fare better than their
wage-earning counterparts when it came to continuity of employment. The study dwelt on the
factors influencing the different indicators of women empowerment among the members of
3
26 matured all-woman Self-help Groups. It also isolated the socio-economic, demographic
factors influenced the joint probability of a group member being both empowered and
employed. The study concluded that training significantly influenced various dimensions of
empowerment, and the trained group members were more likely to be both empowered as
well as employed.
Choudhary (2013), in the research “A Detailed Study of Micro- Financing as a Tool for
Tribal Transformation in Area of Madhya Pradesh” inspected that Self-help Group is a
program to reach the poor families, importantly there is evidence of increased household
income after joining the Self-help Groups by saving habits. Impact indicator of the program
is where members took loan from a moneylender to fulfil their urgent need like sickness,
disease, emergency and food security, after joining Self-help Groups members taking loan
directly from Self-help Groups to meet these expenses. Along with economic freedom, their
decision-making at the family level has increased.
Jain and Nai (2013), conduct the research “SHG Helping Empower Women -A Study”
with the main objective to study the effectiveness of Self-help Groups in empowering women
as well as the interest of rural women towards Self-help Groups. In their study they found
that time association had got a significant impact on the benefit derived from Self-help
Groups. Greater the time of association; greater are the benefits derived. Joining after Self-
help Groups has helped in the significant reduction of poverty, made the women members
feel more independent; increased their standard of living.
Sahoo (2013), the research “Self-Help Group & Women Empowerment: A Study on
Some Selected SHGs” with the broad objective to examine the operating system of Self-help
Groups for mobilization of saving, delivery of credit to the needy, repayment of loans and in
building up of opinion of Self-help Groups members regarding increase in the power of
decision making found that that most of the women in Self-help Groups were in the age
group of 30 and women join Self-help Groups for taking a loan for personal use. Monthly
income and expenditure have been increased after the joining SHG and most of the women
accepted/feel that their power has increased in taking decisions after joining SHG’s either
inside or outside of their family.
Thangamani and Muthuselvi (2013), in their research “A Study on Women
Empowerment Through Self-Help Groups with Special Reference to Mettupalayam Taluk in
Coimbatore District” they found that Self-help Group is powerful tool to enrich the savings
activities and poverty alleviation. They also found that the socio- economic factor of the
members has been changed after joining the Self-help Groups. There are emerging issues that
4
need to be addressed to make the role of women in the long run. It is clear that by involving
voluntary organizations in social mobilization and creating an enabling policy environment,
micro finance can achieve a vast scale and can become a rational movement.
Chetry (2014), in the study “Women in Action: The Role of SHG in Women
Empowerment in Goalpara District, Assam” examine that through Self-help group women
members make able to raise their voice on any platform from family to community at large.
In Self-help Groups they learned to handle and earn economic in more reasonable and perfect
way. The illiterate members of the Self-help Groups make a significant importance in the
family and they break the patriarchal convention.
Vasantha (2014), in the research “Challenges of Self-Help Group Members Towards
Income Generation Activity” states that Capacity building training is important to improve
the capacity, capability, professional and entrepreneurial skill of Self-help Group members,
which helps them to engage in income generation activity successfully. The trained members
have a confidence, entrepreneurial skill, knowledge, and more positive attitude towards
dealing various problems. The sustainability of Self-help Group depends on the growth of
income generation activity and entrepreneurship among women self-help Group members.
Barman and Bhattacharjya (2015), in their study “Role of SHGs In Rural Development
of Assam –A Study of Some SHGs of Kamrup District of Assam” they indicate that as the
members of Self-help Groups are mostly poor women and from remote places, they face
problem in reaching the bank and government offices for official purpose and financial
support and moreover they find problem in marketing their products. The researchers
suggested that the Govt. and agency should give emphasis to the rural women for increasing
their economic as well as entrepreneurial activities and there should be more exhibitions,
melas for products of Self-help Groups. They also suggested that Training programme should
be organized at regular intervals by the NGOs and other Government officials to aware about
bank loan, maintenance of proper accounts, self-management, regulation of group etc.
Das and Baishya (2015), from the study “Role of Self-Help Groups in Empowering
Rural Women: A Case Study On Selected SHGs in Rani Block of Kamrup District of Assam”
it is found that micro finance through self-help group is helping the poor and upgrading
women empowerment by making them financially strong. SHGs have increased their habit of
savings and investment in some developmental activities. Thus it is universally accepted that
Self-help Groups and Bank linkage programme has profound influence on the economic
status, decision making process and level of dependence of women in India.
5
Jamal, Muhammad and Sasaki (2015), in the study “Impact Analysis of Self-Help Group
on Women Empowerment: A Case Study of Pakistan” shows quantitatively that, in Pakistan,
Self-help Groups have played the great role in poverty alleviation through women
empowerment by making them financially strong. It has also been found that the SHGs
created confidence and social and economic self-reliance of the members. The researchers
have suggested that the women in Self-help Groups are mostly illiterate; hence they have
difficulty in keeping their records. Hence, more efforts to provide them with literacy skills
need to be made. It would improve activities of Self-help Groups in a more efficient way.
Navas (2015), in the study “Self-Help Groups in India: A Tool for Empowering Rural
Women and Eradicating Poverty?” attempted to determine if rural women of a Self-help
Group are more empowered compared to non-members and the answer of this research
question is yes. Indeed, the Self-help Group approach is helping its members but some
similarities and differences were found between the two samples. After concluding this
research, some gaps between intentions and results from the movement were found,
underlining that being part of Self-help Group does not automatically lead to greater
economic autonomy for poor rural women. It cannot be assumed in a simple way that women
will take control over loans and additional incomes just because they belong to a group. To
achieve noticeable changes in their position within the household and the community;
education, training and awareness building programs are some of the measures that are
missing in the studied group and have to be taken into consideration.
Shettar (2015), in her research “A Study on Issues and Challenges of Women
Empowerment in India” examine that woman empowerment would be achieved if their
economic and social status is improved. This could be possible only by adopting definite
social and economic policies with a view of the total development of women and to make
them realize that they have the potential to be strong human beings. So they have right to get
Education, Employment and Change in Social Structure are only the enabling factors to
Women Empowerment.
Singh (2017), in his research paper “Self-Help Groups and Women Empowerment:
Appraisal of Drang Block in Mandi District of HP” with an attempt to construct a study of
women participation in decision making and how socio-economic benefits impacting on
women empowerment through microfinance found that participation in Self-help Group has
improved the access to credit, this has helped women to reduce their dependency on money
lender. Self-help Groups provide a platform to women to start own ventures with the support
of Self-help Groups credit and also to discuss social issues in the group. On the basis of the
6
study, the researcher suggested for balanced development and proper utilization of Self-help
Groups strength, need proper rating and categorization, categorize Self-help Groups on the
basis of their capacity or skill.
Vivekanand (2017), in the paper “A study on Role of Self-Help Groups in Women
Empowerment” the researcher intends to assess the level of change brought about in various
domains of empowerment by joining Self-help Groups. Additionally, it purposively
investigates the level of change Self-help Groups were able to influence on certain key
psychological factors related to the self. This study confirms that women’s status is inferior to
men. Women face discrimination within families as well as in society, where society
maintains double standards in the case of education, marriage, spousal relationships, domestic
violence, laws of patriarchal society, property laws, dowry system, sexual morality, sexual
harassment as well as discriminatory social stigma and also less recognition and respect for
women’s work.
7
1.3 Objectives of the Study
1. To study the benefits derived by the women of rural areas through Self-help
Groups.
2. To analyse the financial and overall family status of the sample respondents.
3. To study the functioning of Self-help Groups in rural areas.
4. To examine the factors that influences the women empowerment through Self-
help Groups.
8
1.4.3 Method of Data Collection
A. Primary Data
The basic methodology adopted for primary data collection is the Schedule
cum Questionnaire method. To serve the purpose of the research, a structured
schedule cum questionnaire has been designed for the respondents and they are asked
to fill up questionnaire by marking preferred option and the investigator interviewed
the respondents and collect information. It has been designed in such a way that
maximum relevant information can be gathered.
B. Secondary Data
The method for collecting secondary data is mainly of search and find where
the researcher looks into various available literatures, journals, books and web
searches and thus obtain them for the purpose of research.
9
1.4.6 Tools for Data Analysis
For the purpose of analysing the data, simple percentage method have been applied.
It is calculated as:
( ) ×100
The study is restricted to Bijulibari village of Maroi Gaon Panchyat under Sipajhar
Block (Darrang). The village is situated near the Brahmaputra River which is about 8km
away from the village. NH 15 has passed through the village. The villagers are mainly
dependent on agriculture. Researcher feel comfort and convenient of choosing this area for
the study.
Time taken for the study is approximately 3 months. The research work is initiated and
survey is done after which analysis of data collected and final report is prepared within the
given time period.
The research study is an attempt to assess the performance of the Self-help Group. The
study will enable us to get an insight and gain more knowledge about Self-help Groups.
Furthermore, the study gives the researcher experience in the field of research and thus gains
knowledge from it. Self-help Groups are necessary to overcome exploitation, create
confidence for economic self-reliance of rural people, particularly among women who are
mostly invisible to the social structure. This study will help Self-help Groups to critically
10
understand challenges facing them and how to overcome these barriers. Finally, the study is
an addition to the corpus of literature on Self-help Groups.
The study is done with utmost care to provide as much information as possible for best
accuracy. But some limitations stand on the way which disables enough facts and figures for
the purpose of the study. The limitations that need to be acknowledged and addressed
regarding the present study are as under.
1. The study is restricted to the Bijulibari village of Sipajhar Block (Darrang) only.
Therefore, the findings may not be generalising to a large area or to the whole
state of Assam.
2. The study is based on the opinion survey of respondents. But, the opinion
expressed may differ according to time and situation.
3. The study does not cover the NGO‟s and Government officials for data collection.
4. Time constraint is another factor limiting the study.
11
CHAPTER-2
SHG is a small group of rural poor people particularly from the same socio-economic
background, who have voluntarily come forward to form a group for improvement of the
social and economic status of the members. It can be formal (registered) or informal. The
concept of Self -Help Groups serves the principle of “for the people, by the people and of the
people.” The SHG promotes small saving amongst its members. In India SHGs have been
functioning since 80’s. At present approximately 22 lakhs SHGs operating all over the
country.
12
2. The SHGs evolve a flexible system of operations often with the help of Non-
Government Organisations (NGOs) and manage their common pooled resources
in a democratic manner.
3. SHGs consider loan request in periodical meetings, with competing claims on
limited resources being settled by consensus regarding greater needs.
4. Loaning is mainly on the basis of mutual need and trust with minimum
documentation and without any tangible security.
5. The amounts loaned are small, frequent and for short duration of time.
6. Rates of interest vary from group to group depending upon the purpose of loans
and are often higher than those of banks but lower than those of money-lenders.
7. At periodical meetings besides collecting money, emerging rural, social and
economic issues are discussed.
8. Defaulters are rare due to group pressure and intimate knowledge of the end use
of the credit as also the borrower’s economic resources.
13
2.5 Women Empowerment
According to many disciplines, empowerment is defined as increasing the degree of
freedom of a person in social, psychological and economic matters. Empowerment provides a
greater access to knowledge and resources, more autonomy in decision making, greater
ability to plan lives, more control over the circumstances which influence lives, and freedom
from customs, belief and practices. Empowerment is a process that gives a person freedom in
decision making.
“Women empowerment” is a term that has gained currency in the human development
and government discourse. Amongst the 8th millennium economic development goals,
women empowerment is one of the most crucial goals. The word “women empowerment” is
first announced in 2001 in India. Women need to be viewed not only as beneficiaries but also
as active participants in the progress of development. Women empowerment could be
achieved through community participations, assertion of their rights related to their economic
and social well-being and so on. Women will be empowered when they will be involved in
economic activities and social development, where they play their own roles. As majority
women lack assets that help contribute to their empowerment and well-being, economic
independence through self-employment and entrepreneurial development must be paid
attention to. So, the government of India has provided the Self-Help Groups. Empowerment
is not essentially political alone; it is a process having personal, economic, social and political
dimensions with personal empowerment being the core of the empowerment process. In fact
political empowerment will not succeed in the absence of economic empowerment.
Education is the main component for women empowerment which is out of reach in
many Indian women. Women empowerment is still a cry in India. In rural India women are
deprived of basic needs and education. So until and unless women are educated in the true
sense, women empowerment will remain a distant dream.
14
Providing minimum needs like Nutrition, Health, Sanitation, Housing.
Other than this society should change the mentality towards the word women
Encouraging women to develop in their fields they are good at and make a career.
1. 1987: The National Bank for Agriculture and Rural Development (NABARD)
provided MYRADA with a grant of D1 million to enable it to invest resources in
identifying affinity groups, building their capacities and matching their savings
after a period of 3-6 months.
15
3. 1992: NABARD issued guidelines to provide the framework for a strategy that
would allow banks to lend directly to SHGs.
16
poor into the formal banking system and to inculcate among the poor the thrift and credit
habits, a natural corollary is for the group members to graduate into seeking more and
better livelihood opportunities with access to credit. NABARD instigated Self-help
Groups to link with banks by financing them by commercial banks. Reserve Bank of
India also advised the commercial banks to consider them to lend. It has received support
from Reserve Bank of India, central and state governments of India and leading Non-
Government Organisations. Some of the major steps taken by NABARD in regard to
promote Self-Help Groups in India are-
17
2.8 Role of Non-Government Organisations (NGOs)
As per NABARD guidelines, the NGOs have been paying an active role in fostering
the growth of SHGs for furtherance of their basic objectives. It has been observed that
NGOs, as a fundamental principle of their developmental role, always aim to make the
rural poor economically self-sufficient through development of the individuals with
group support of his fellow villagers. This traditional concept took an interesting turn
with the introduction of linkage of the SHGs with the formal banking system, started by
NABARD in India through Pilot Project from the year 1991-92. Consequently, the role
of NGOs also assumed an additional dimension to economic upliftment o the poor. In the
backdrop of these development and the traditional promotional activities undertaken by
the NGOs for the SHGs the NGOs are expected to support the SHGs in the following
areas-
To motivate the rural people to organise themselves and to form into Self-Help
Groups at village level.
To educate, train the group members in managing the group activities like
maintenance of books of accounts, conducting meetings, management of funds
etc.
To inculcate, promote thrift and savings habit among the group members and to
help in institutions building along with the development of individuals.
To help the SHGs in identifying raw materials and local resources.
To help the group members to upgrade their skills and technology to make best
use of resources.
To make available credit facilities and to act as a link between the rural poor and
the bank.
To help the group members in exploring market for their products.
18
income generation there by ensuring economic independence. SHG phenomenon defiantly
brings group consciousness among women, sense of belongingness, adequate self-confidence.
In other words we can say that Self-Help Group is an effective instrument to empower
women socially and economically which ultimately contributes in the overall development of
the country like India wherein still large segment of women population are underprivileged,
illiterate, exploited and deprived of basic rights of social and economic spectrum. The
financial mobility due to participate in the SHG has led to an improvement in the quality of
life according to some of the successful groups. Overall, many families were able to address
their basic needs better than before. The members of SHGs availed themselves of loan for
both consumption and production purpose. During the early years of the group’s formation, a
majority of members availed themselves of loan for consumption purpose whereas in the
letter period of group functioning, the major amount of loan was disbursed for production
purposes.
19
CAHPTER-3
This chapter presents a detailed discussion of the study and interpretation around them in
line with the specific objectives. In order to collect primary data, a total of 54 respondents
were selected belonging to various age groups. The data were collected with the help of a
questionnaire (Schedule). The data thus collected, helped in better understanding of role of
SHG in women empowerment of rural areas.
Analysis of collected data has been done using percentage analysis, tabulation, diagrams
and descriptive analysis of facts.
( ) ×100
Less than 30 12 22
30-40 23 43
40-50 8 15
50-60 8 15
60 and above 3 5
Total 54 100
Source: Field Survey, September 2018
20
5%
15% 22%
15%
43%
Interpretation: From the table 3.1 and figure 3.1 it was found that 22% of the respondents
were less than 30 years of age, 43% of respondents were 30-40 years of age, 15% of the
respondents were of 40-50 years of age, 15% of the respondents were 50-60 years of age and
5% of the respondents were 60 and above years old.
21
3.2 Marital status of the sample Respondents
The marital status of the sample respondents in the study are presented in Table 4.3
100
90 80%
80
70
60
50
40
30
15%
20
5%
10 0%
0
Interpretation: The above table 3.2 and figure 3.2 it was observed that 80% of the
respondents were married, 5% of the respondents were unmarried, there were no any
divorced women participating in the SHGs and 15% of the respondents were widowed.
22
3.3 Level of Literacy
The educational qualification of the sample respondents are shown in the table 3.3
Illiterate 31%
0 10 20 30 40 50
Interpretation: Table 3.3 and figure 3.3 indicated the literacy level of the respondents.
From the table and the figure it was found that 31% of the respondents were illiterate, 15% of
the respondents have studied up to Primary School level, 22% of the respondents were High
School passed, 28% of the respondents have Higher Secondary level of literacy and only 4%
respondents have degree and above level of literacy.
23
3.4 Main source of family Income
Main source of family income of the respondents are shown in table number 3.4
70
61%
60
50
40 35%
30
20
10 4%
0% 0%
0
Agriculture Job Own Business Daily Working Other
Interpretation: The above table 3.4 and figure 3.4 represented the main source of family
income of the sample respondents. It was found that 61% respondents mainly depended on
Agriculture for earning, 4% respondents depended on Job, no one has any business as a main
source of income, 35% respondents depended on Daily working and 0% respondents
depended on any other activity as main source of income.
24
3.5 Association with the SHG
For how long the member are associated with the SHGs are shown in table number 3.5
80
72%
70
60
50
40
28%
30
20
10
0% 0%
0
Less than 1 Year 1-3 Years 3-6 Years Above 6 Years
Interpretation: From the table 3.5 and figure 3.5 it was found that 72% respondents were
associated with their respective SHGs for more than 6 years, 28% respondents were
associated with their respective SHGs for a time period 3-6 years and there is no such
respondents who were associated with their SHGs for less than 3 years.
25
3.6 Average Monthly Savings
The average monthly savings of the members of the SHGs before and after joining their
respective SHGs are shown in table 3.6
TABLE 3.6: AVERAGE MONTHLY SAVINGS BEFORE AND AFTER JOINING SHG
Average No. of Respondents Percentage No. of Respondents Percentage
Monthly Savings Before Joining SHG (%) After Joining SHG (%)
<D500 7 13 4 7
D500-D1000 23 43 19 35
D1000-D1500 18 33 22 41
D1500-D2000 6 11 9 17
>D2000 0 0 0 0
Total 54 100 54 100
Source: Field Survey, September 2018
35 35%
33%
30
25
20
17%
15
13%
10 11%
7%
5
0 0%
<R500 R500-R1000 R1000-R1500 R1500-R2000 >R2000
Source: Table 3.6
FIGURE 3.6: AVERAGE MONTHLY SAVINGS BEFORE AND AFTER JOINING SHG
Interpretation: Table 3.6 and figure 3.6 show that before joining SHG 43% respondents’
average monthly savings is between D500-D1000 and after joining SHG 41% respondents’
monthly average savings is lies between D1000-D1500. Like that before joining SHG monthly
average savings of 13% respondents is less than D500, 33% is between D1000-D1500, 11% is
between D1500-D2000 and no one is above D2000. Again, after joining SHG 7% is less than
D500, 35% is between D500-D1000, 17% is between D1500-D2000 and no one is above
D2000.
26
3.7 Below Poverty Line (BPL) Status
The BPL status of the respondents are shown in the table 3.7
Total 54 100
120
100%
100
80
60
40
20
0%
0
Below Poverty Above Poperty
Line Line
Interpretation: The above table 3.9 and figure 3.9 indicate the Below Poverty Line (BPL)
status of the respondents. It is found that all the respondents i.e. 100% of the respondents live
below the poverty line i.e. BPL. There is no any member who lives above the property line.
27
3.8 Various reasons for Joining SHG
Various reasons as mentioned by the members for joining the SHGs are presented in the
table 3.8
60 57%
50
40
30
20 15% 15%
13%
10
0%
0
Getting loan Promoting Economic As a source of Increase social
savings independence income status
Interpretation: As the table 3.8 and figure 3.8 showed majority of the respondents’ i.e. 57%
join SHGs for promoting savings. 13% respondents join SHGs to get loan, 15% joins for
economic independence, 15% joins SHGs as a source of income.
28
3.9 Bank account status of the respondents
Whether the respondents have bank accounts in their name or nor is shown in the table
3.9
43%
57%
Bank account holder
No bank account
Interpretation: Table 3.9 and figure 3.9 indicate the distribution of bank account holders and
non-bank holders of the respondents. It is found that 57% of the total respondents have banks
accounts in their own name and 43% of the respondents do not have bank accounts in their
names.
29
3.10 Benefit of the Village from the SHGs
Benefit of the villages from the SHGs according to the members are shown in the table
3.10
Mutual co-operation 14 26
Women empowerment 12 22
Easy credit availability 23 43
Increases social status for women 5 9
Total 54 100
Source: Field Survey, September 2018
50
43%
40
30 26%
22%
20
9%
10
0
Mutual co-operation Women Easy credit Increase social status
empowerment availibility for women
Interpretation: It is found that 43% of the respondents think that Easy Credit
Availability is the major benefit of the SHGs to their villages. 26% think mutual co-
operation as another benefit for the villages, 22% identified women empowerment as a
benefit and 9% thinks increase social status for women as a benefit of SHGs toward the
villages.
30
3.11 Members opinion on benefits derived from SHGs
3.11.1 Increase in self confidence
No opinion 26%
Strongly disagree 0%
Disagree 0%
agree 50%
0 10 20 30 40 50 60 70
Interpretation: Table 3.11.1 and figure 3.11.1 indicates member’s opinion on the statement
“SHG increases self-confidence”. 24% of the respondents strongly agree that, 50% of the
respondents simply agree the statement and 26% respondents choose no opinion for the
statement. Whereas no one disagree the statement “SHG increases self-confidence”.
31
3.11.2 Increased ability in decision making
50
43%
40
33%
30
24%
20
10
0% 0%
0
Strongly agree agree Disagree Strongly No opinion
disagree
Interpretation: From the above table 3.11.2 and figure 3.11.2 it was found that 33%
respondents strongly agree the fact that SHG increases the ability to decision making,
43% respondents simply agree that fact and 24% respondents have no opinion in it.
Again not a single respondent disagree that statement.
32
3.11.3 Increased income
70
60
50
40
30
57%
43%
20
10
0% 0% 0%
0
Strongly agree agree Disagree Strongly No opinion
disagree
Interpretation: From the above table it was found that 57% respondents strongly
agree that SHGs helps in increasing income, 43% simply agree that fact and no body
this agree that SHGs helps in increasing income. There is no one with no opinion for
this fact.
33
3.11.4 Increased communication skill
60
50 46%
39%
40
30
20 15%
10
0% 0%
0
Strongly agree agree Disagree Strongly No opinion
disagree
Interpretation: From the table 3.11.4 and figure 3.11.4 it was found that 15%
respondents strongly agree that SHGs increases communication skills, 39%
respondents simply agree the fact that SHGs increases communication skills and 46%
respondents do not have any opinion about it. No any respondent disagree the
statement.
34
3.11.5 Increased social awareness
60
52%
50
40
30%
30
20 18%
10
0% 0%
0
Strongly agree agree Disagree Strongly No opinion
disagree
Interpretation: From the table 3.11.5 and figure 3.11.5 it was found that 52%
respondent strongly agree the statement that SHGs increases social awareness, 30%
respondents simply agree that statement and 18% respondent opted for no opinion.
There is 0% respondent who disagree the statement.
35
3.12 Factors contributing to the success of SHG
Effective leadership 9%
0 10 20 30 40 50 60
Interpretation: From the above table 3.12 and figure 3.12 it was found that majority
of the respondents i.e. 54% indicate active participation of the members as the major
factor contributing to the success of SHGs, 20% respondents thinks Regular SHG
meetings is the important factor for success of SHGs, 9% respondents identified
effective leadership as one of the important factor, and17% respondents thinks that
proper maintenance of accounts is the important factor.
36
3.13 Do you think leadership and management skills influences how your
group performs?
0%
Yes
No
100%
Interpretation: It is observed from the table 3.13 and figure 3.13 that 100% of the
respondents believe that leadership and management skills influences how does the
SHG perform.
37
3.14 Does the group leader maintain proper books of accounts?
0%
Yes
No
100%
Interpretation: From the table 3.14 and figure 3.14 it is observed that 100% of the
respondents agreed that their group leader maintain a proper book of accounts.
38
3.15 Opinion about the skills of the group leaders
3.15.1 Financial record keeping
70
61%
60
50
39%
40
30
20
10
0% 0% 0%
0
Excellent Above average Average Below average Very poor
Interpretation: From the above table 3.15.1 and figure 3.15.1 it was found that 39%
respondent rate the financial record keeping skill of their group leader as above average and
61% respondents rate this as average. Interestingly no one thinks that this skill of the group
leader is neither excellent nor below average or poor.
39
3.15.2 Encouraging participation
80
65%
70
60
50
35%
40
30
20
10 0% 0% 0%
0
Excellent Above average Average Below average Very poor
Interpretation: From the above table 3.15.2 and figure 3.15.2 it was found that 35%
respondent denote the skill of encouraging participation of their group leader as above
average and 65% respondents rate this as average. On the other hand no one thinks that this
skill of the group leader is neither excellent nor below average or poor.
40
3.15.3 Communication skill
Very poor
0%
Below average
0%
Average
57%
Above average
43%
Excellent
0%
0 10 20 30 40 50 60 70
Interpretation: From the above table 3.15.3 and figure 3.15.3 it was found that 43%
respondent denote the communication skill of their group leader as above average and 57%
respondents indicate this as simply average. On the other hand no one thinks that this skill of
the group leader is neither excellent nor below average or poor.
41
3.15.4 Involving members in decision making
60
50 46%
40 35%
30
19%
20
10
0% 0%
0
Excellent Above average Average Below average Very poor
Interpretation: From the above table 3.15.4 and figure 3.15.4 it was found that 35%
respondent denote the skill of their group leader to involve members in decision making as
excellent, 46% respondents indicate this as above average and 19% respondent think it as
simply average. On the other hand no one thinks that this skill of the group leader is neither
below average nor poor.
42
3.15.5 Money management skill
60
50%
50
39%
40
30
20
11%
10
0% 0%
0
Excellent Above average Average Below average Very poor
Interpretation: The table 3.15.5 and figure 3.15.5 shows that 11% respondent denote the
money management skill of their group leader as excellent, 39% respondents indicate this as
above average and 50% respondent think it as simply average. On the other hand no one
thinks that this skill of the group leader is neither below average nor poor.
43
3.16 Have your SHG given you as much as loan required at the time of
your need?
11%
Yes
No
89%
Interpretation: From the table 3.16 and figure 3.16 it was observed that 89% of the
respondent agreed that their group provide as much as loan to them at the time of their
requirement and 11% respondent did not agreed to the fact.
44
3.17 What is the loan repayment period of your SHG?
120
100%
100
80
60
40
20
0% 0% 0%
0
Weekly Fortnightly Monthly Once in three
month
Interpretation: Table 3.17 and figure 3.17 showed that 100% of the respondent
indicates that the loan repayment period of their SHGs is monthly instalments. There is
no other system of loan repayment in the SHGs of the sample respondent.
45
3.18 Opinions about the performance and function of the SHGs
70 65%
60
50
40
30%
30
20
10 5%
0%
0
Excellent Good Average Poor
Interpretation: Table 3.18 and figure 3.18 describes that 5% respondent thinks that their
SHG performs excellently, 65% respondents believe that the SHG is performing well and
30 % respondent thinks that thee performance is average. No respondents think that thee
performance is poor.
46
3.19 How often does your group meet?
120
100 100%
80
60
40
20
0% 0% 0%
0
Once a week Once a month Twice a month Once in two month
Interpretation: Table 3.19 and figure 3.19 showed that 100% of the respondents indicate
that their group members meet once in every month, that means the SHGs follow the system
of monthly group meetings.
47
3.20 Activities undertaken for self-employment through SHG
Other 7%
Tent house 4%
Agriculture 9%
Weaving 37%
0 5 10 15 20 25 30 35 40 45 50
30%
Yes
70% No
Interpretation: From the above table 3.21 and figure 3.21 it is known that 70% of the
respondent get employment training course through SHG and the rest 30% do not get any
such training.
49
CHAPTER-4
4.1 Findings
Based on the responses of the schedule from the respondents which include members of
SHGs, the researcher found several important findings. The following points highlighted the
findings of the study.
Majority of the respondents of the Self-Help Group members i.e. 43% are
belonging to age group of 30 to 40 years. 22% are belonging to the age group of
less than 30 years. In both the age group 40-50 years and 50-60 years there are
15% respondents respectively and in the age group 60 years and above there are
only 5% members.
Majority of the respondents i.e. 80% are married women. 15% women are
widowed, 5% are unmarried and there is no any divorced respondents
participating in the SHGs.
31% respondents are illiterate, 28% have a qualification up to higher secondary
level, 22% have studies up to high school level, 15% have completed only
primary schooling and only 4% respondents have studied degree and above.
As a whole the numbers of literate members are more compared to the illiterate
members but compare to the various level of literacy the rate of illiterate
participants is higher.
The main source of family income of the majority of the respondents i.e. 61% is
agriculture. 35% consider daily working as the main source of family income.
Only 4% respondents can consider job as a main source of family income.
All the members of the SHGs are associated with their respective SHGs for more
than 3 years. 28% respondents have associated for 3-6years and other 72% have
associated for 6 years and more.
There is an increase in the rate of average monthly savings of the members of the
SHGs after joining SHGs. Before joining SHGs the most of the respondents i.e.
43% monthly save an amount between D500-D1000 on average but after joining
SHGs 41% respondents save in between D1000-D1500. There is no one in both
the situations before joining SHGs and after joining SHGs who save more than
D2000.
50
All the members of the SHGs fall under the category of Below Poverty Line
(BPL). In other words 100% respondents are of BPL category.
Out of the total respondents 57% members i.e. the majority joins SHGs to
promote savings. 15% respondents join SHGs as a source of income and also for
economic independence respectively. Only 13% members join SHGs to get loan.
Majority of the respondents i.e. 57% have bank account in their names on the
other hand 43% respondents do not have bank accounts in their names.
43% respondents thinks that the major benefit derived by the villages from the
SHGs is easy credit availability, 26% thinks that mutual co-operation is the most
important benefit derived by the villages, 22% respondents thinks women
empowerment is the benefit villages earned from the SHGs and only 9%
respondents thinks SHGs increases social status for women.
Out of the total respondents 50% agree that SHGs increases the self-confidence
of the members, 24% respondents strongly agree that statement and 26%
respondents have no opinion on that matter.
43% of the respondents have agreed that SHGs has increased the decision making
ability of the members in various fields, 33% respondents strongly agreed that
and 24% respondents have no opinion on that fact.
Out of the total respondents 57% of the respondents have strongly agreed that
SHGs increased their income, 43% simply agreed that statement. There are no
any respondents who have disagree the statement.
46% of the respondents have no opinion about the fact that SHGs increases
communication skills of the members whether 39% of the respondents agreed
that statement and the other 15% respondents have strongly agreed that fact.
Majority of the respondents i.e. 52% have agreed that SHGs have increased the
social awareness among the members, 30% respondents have simply agreed that
statement and other 18% respondents have no opinion in that point.
54% respondents i.e. the majority of the total respondents have agreed the point
that active participation of the members is the main factor that contributing to the
success of their SGHs. 20% of the respondents thinks that regular SHG meetings
is one of the main factor for the success of SGHs, 17% respondents indicate
proper maintenance of account is as one of the factor and only 9% people
consider effective leadership as the factor for the success of the SHGs.
51
Out of the total respondents, 100% respondents think that leadership and
management skills influence the performance of their SHGs.
100% of the respondents have agreed that the group leader of their SHGs
maintains proper books of accounts.
According to the 61% of the respondents the financial record keeping skill of the
leaders of their SGHs are average and 39% respondents rate the skill of their
leaders as above average. No respondents rate the skill of the group leaders as
excellent or poor.
Majority of the respondents i.e. 65% respondents thinks that their group leader’s
performance in encouraging participation is average and the other 35% rate it as
above average.
Out of the total respondents 57% rate the communication skill of their group
leaders as average and the other 43% thinks that the communication skill of the
group leaders is above average.
According 46% of the respondents their group leaders involve the members in
decision making in a very good way, they rate this skill of their leaders is as
above average, 35% rate it as excellent and the other 19% rate it as simply
average. No respondents rate it as poor or below average.
50% of the respondents identified the skill of money management of their group
leaders as average, 39% respondents rate it as above average and 11%
respondents thinks that the money management skill of the group leaders is
excellent.
Out of the total respondents majority of them i.e. 89% agreed that their SHGs
give them as much as loan required at the time of their need. Only 11% thinks
that their SGHs cannot supply them as much as money they need.
According to 100% of the respondents the loan repayment period of their SHGs
is monthly basis. That means all the SHGs consider monthly repayment of its
loans by the loan holders.
Majority of the respondents i.e. 65% respondents rate the performance of their
SHGs as good, 30% rate the performance as average and only 5% respondents
thinks it as excellent.
52
100% of the respondents consider the frequency of the meetings of the SHGs as
once in a month. In case of any emergency or important issues to discuss urgently
then they meet upon the call of the leaders.
Out of the total respondents 37% are engaged in weaving as a tool of self-
employment, 30% are engaged in livestock farming, 13% are engaged in dairy
farming, 9% respondents are engaged in agriculture,7% are engaged in other
activities like silk worm farming and 4% respondents are engaged in tent house
business.
According to 70% respondents they get some employment training courses
through SHGs and the other 30% respondents did not get any such course.
53
4.2 Suggestions
The following are the suggestions given based on the observations and findings from the
research work
The first and foremost priority should be given to the education of women, which
is the grassroots problem. Hence, education for women has to be paid special
attention.
SHG members should try to carry out group income generating activities so that
the risk, responsibility and profit will be shared equally among all members.
Training centres should be established at every district and block level for
imparting skill training for income generating activities, entrepreneurial skills
development, maintaining accounts, book-keeping etc. to run their businesses
smoothly.
In many of the Self Help Groups, the same person is continuing in the offices as
group secretary. So, rotation of the group’s secretary is necessary for equitable
exposure to the banking transaction.
The rural people, especially the women community should be educated about the
various financial services and products offered by various financial institutions
and banks.
Awareness programmes need to be organized for creating awareness among
women especially belonging to weaker sections about their rights.
In order for people to reach SHGs, they first have to know about SHG. Therefore
the government and other relevant organizations should communicate with them
about effectiveness of SHG.
Rotation of responsibility in an SHG should be made compulsorily so that it will
lead to women empowerment more.
As long as the period of association with the SHGs the income generation is more
so it is recommended to be a member of SHGs for a longer period of time.
The members should have bank accounts so that they can save their earnings in
regular basis in their bank accounts.
Self-Help Groups are helpful in increasing the self-confidence, decision making
ability, income, communication skills etc. Therefore it is very important for
empowering women of rural areas.
54
Leadership and management skill influences the performance of a SHG therefore
the authorities should take necessary steps to develop the leadership skills and
management skills of the leaders as well as the members of SHGs.
Equal opportunities and encouragement should be given to all the members for
their full participation in the meeting and in all the activities of the group.
The members should promote and protect the unity and integrity of the group.
55
4.3 Conclusion
Women constitute nearly half of the world’s population. In India, majority of our
population live in rural area and women living in rural India have no idea about the
importance of women’s empowerment as they are not properly educated. Women have been
playing an important role for the socio-economic development of the society since time
immemorial. They are considered as the back bone of a family. But women in particular often
bear the brunt of poverty and limited access to economic opportunities, including
unfavourable financial access. Thus it is very important to empower the rural women through
self-help groups for economic development. From the study, it is clear that by involving
voluntary organizations in social mobilization and creating an enabling policy environment,
micro finance can achieve a vast scale and can become a rational movement. Micro finance
through self-help group is helping the poor and upgrading women empowerment by making
them financially strong. SHGs have increased their habit of savings and investment in some
developmental activities.
The micro financing services would surely lead to achieve the motive of poverty
reduction. However, Government efforts alone cannot solve the problem of financial
inclusion without the cooperation of the banking sector particularly, in the developing nations
like India, where most of poor people do not have access to any kind of banking services.
Commercial banks will definitely lead to good financial governance by changing their
conventional attitude towards the poor that they are bankable as their good repayment
behaviour is evident through various studies (especially women beneficiaries). With the
concept of Self-Help Groups (SHGs) the women are now participating in all productive
activities and are at par with men. The monthly income of the women is in the rising trend
properly matching with their monthly expenditure. Women, through this SHG movement
have asserted a dignified position in the family as well as in the society. Their decision
making power has immensely enhanced not only in their family but also in the society. No
doubt, the SHG movement in India has been moving in the right direction, but still a long
way to go. It is necessary to empower the women more and more in social, cultural,
economic, political and legal matters, for the interest of the family in particular and the nation
in general.
“When women move forward the family moves, the village moves and the nation
moves”. It is essential as their thought and their value systems lead the development of a
good family, good society and ultimately a good nation. The best way of empowerment is
56
perhaps through inducting women in the mainstream of development. Women empowerment
will be real and effective only when they are endowed income and property so that they may
stand on their feet and build up their identity in the society.
The Empowerment of Women has become one of the most important concerns of 21st
century not only at national level but also at the international level. Government initiatives
alone would not be sufficient to achieve this goal. Society must take initiative to create a
climate in which there is no gender discrimination and women have full opportunities of self-
decision making and participating in social, political and economic life of the country with a
sense of equality.
57
Bibliography
Books
Journals
i
7. Sahoo, “Self Help Group & Woman Empowerment: A study on some selected SHGs”
International Journal of Business and Management Invention ISSN (Online): 2319 –
8028, ISSN (Print): 2319 – 801X Volume 2 Issue 9ǁ September. 2013ǁ PP.54-61.
8. Shettar, “A Study on Issues and Challenges of Women Empowerment in India” IOSR
Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN:
2319-7668. Volume 17, Issue 4.Ver. I (Apr. 2015), PP 13-19.
9. Thangamani and Muthuselvi, “A Study on Women Empowerment through Self- Help
Groups with Special Reference to Mettupalayam Taluk In Coimbatore District”,
IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-
487X.Volume 8, Issue 6 (Mar. - Apr. 2013), PP 17-24
Website
1. drishtiias.com/upsc-exam-gs-resources-Self-Help-Group, 8/09/2018
2. youthkiawaaz.com/2017/05/self-help-groups-an-anecdote-of-women-empowerment-
in-India, 8/09/2018
3. http://megselfhelp.gov.in/faqs.htm, 15/09/2018
4. https://en.wikipedia.org/wiki/Self-help_group_(finance)#mw-head, 18/09/2018
5. yourarticlelibrary.com/india-2/self-help-group/self-help-group-shg-of-india-meaning-
need-and-objectives/66718, 18/09/2018
ii
SAMPLE QUESTIONNAIRE
Dear Madam,
Disanta Nath
a. Married c. Divorced
b. Unmarried d. Widowed
iii
5. For how long are you associated with the SHG?
7. Does your family come under the Below Poverty Line (BPL)?
a. Yes b. No
a. Yes b. No
10. In what ways do you think that your village is benefitted from the SHG’s?
a. Mutual co-operation
b. Women empowerment
c. Easy credit availability
d. Increases social status for women
iv
11. Members opinion on benefits derived from Self-Help Groups-
opinion
Disagree
Strongly
Strongly
disagree
Agree
agree
No
SHG has resulted in
Increased income
12. What are the factors that you think contributing to the success of your SHG?
13. Do you think leadership and management skills influences how your group performs?
a. Yes b. No
a. Yes b. No
v
15. Please rate the skills of your group leader-
Excellent
Average
average
average
Above
Below
Skills
Very
poor
Financial record keeping
Encouraging participation
Communication
16. Have your SHG given you as much as loan required at the time of your need?
a. Yes b. No
a. Weekly b. Fortnightly
c. Monthly d. Once in three months
18. What is your opinion about the performance and functioning of your SHG?
a. Excellent c. Average
b. Good d. Poor
vi
19. How often does your group meet?
a. Yes b. No
***
vii