WOMEN ENTREPRENEURSHIP THROUGH SHGs: PROMOTION,
PERFORMANCE AND PROBLEMS (3Ps)
Dr. M. JULIAS CEASAR
Dean of Arts & Assistant Professor / Commerce, St. Xavier’s College (Autonomous) Palayamkottai.
ABSTRACT
Women is a mother, wife, daughter, sister and child who bring happiness and cheer in the family
through their presence, role and responsibility in their own way
Self Help Group is a small homogeneous, affinity group, engaged in thrift and credit activities
working together for common purpose of mutual help. The group lends money to the members who
are in need of financial support for productive and consumption purposes or for making investment in
business operated by them either in group or individually. These loans are very helpful to the rural
women to start a new business or help them to become an entrepreneur. Empowerment is the major
focus of the SHGs and NGOs among their members and more particularly among women from rural
segment who participate in the activities of these agencies. The challenge before the members is to
evolve strategies to break the stereotypes of the past by solving the problems of poverty,
unemployment and the like. To empower women, it is necessary to make women equal partners in the
national development process and equip them to make choices in order to actualize their self worth. In
this light an attempt is made by the researcher to study the promotion, performance and problems of
rural women entrepreneurs through SHGs in Tiruchirappalli District.
INTRODUCTION
Women are the cheer and happiness in the family who play a major role in the development process
of the society more particularly in the context of the family and society, including its economic and
social system. In most of the countries, women have less access to education, jobs, income and power
than men and the rural women in India. In recent years, equality of status of women has gained
greater importance by social reformists, social workers and political leaders. Social status of women
can be improved significantly only by making women to be self-dependent by raising their economic
status that leads to progress and development of the entire country (Mehta 1982). In order to make
credit available to rural masses the National Bank for Agriculture and Rural Development
(NABARD) is giving special financial assistance through Banks, Micro Financial Institutions (MFIs)
and Self Help Groups (SHGs).
Self Help Group is a small homogeneous, affinity group, engaged in thrift and credit activities
working together for common purpose. Each member has to pay a fixed sum for a fixed period of time
in a bank account which will be in the group. The banker being satisfied with the co-operation and
involvement of the members provide loan to these groups. The group lends the amount to the
members who are in need of financial support for productive and consumption purposes or for making
investment in business operated by them individually or collectively. A moral responsibility is created
to prompt repayment of loans. These loans are very helpful to the rural women to start a new business
or help them to become an entrepreneur.
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DEFINITIONS AND CONCEPTS
Entrepreneurs: An entrepreneur is an individual or group of individual or groups of individuals, who
as a single decision maker, keen planner and sole risk taker, organizer, manager and runs the
enterprise whereby reallocates resources beneficially for best interest of his / her venture.
Entrepreneurship: Entrepreneurship is a purposeful activity of individual or a group of associated
individuals, undertaken to initiate, maintain or profit by protection or distribution of economic goods
and services.
Women entrepreneurs: Women entrepreneurs can be defined as an adult woman who creates, owns
and runs an entrepreneurial form of business.
Self employed women entrepreneurs: The self employed women entrepreneur or individuals, who
do so in their own home or offices and are not normally listed on anyone’s payroll.
Women enterprises: Women enterprises are those, where more than half of ownership control is in
the hands of women.
Non Governmental Organization: NGOs are organizations set up to implement the projects and
policies of the government for the upliftment of the society.
Subsidy: It refers to a concessional finance extended to the weaker sections of the society shared
equally by the central and state government.
Revolving Fund: Revolving fund is a fund given by the government through SED scheme to the
SHGs.
STATEMENT OF THE PROBLEM
The concept of self help group has brought revolutionary change in rural economy by creating the
way for self reliance to the rural people especially to the weaker section through the promotion of
entrepreneurship and entrepreneurial traits; it has proved to be the remedy for many problems of the
rural flock. It is the right time to study on this as its growth is multifold in a short period.
REVIEW OF PREVIOUS STUDY
The reviews of past studies will create a basis for the research and give a direction to the researcher by
giving insight into the topic. The researcher hence, has made a review to find the past directions on
the topic by various researchers.
V.S Genesamuthy, et.al., States that women development schemes is intended to promote economic
development and social empowerment of the poorest women through the network of SHGs formed
with active support of NGOs. They conclude as “in some area the SHGs are functioning effectively
where as in some area they are face problems. Since SHGs help women to achieve economic
empowerment this falls measures contribute a lot to the nation”
C.Ville, (2003) The main objectives of self help group is to promote savings among the poor and
provide small and short term loans to its members at a lesser interest to meet their consumptions and
small income generative activities or through micro enterprises.
Rasure. K (2002) Says that “the genesis of SHGs could be traced to mutually aid in the form of
cooperation, self help, self reliance and strategies of survival as well as development for the poor.
Micro financing provides credit access to the poor with no collateral obligation which encourages
savings and promoting income generating activities.
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K.Sudha Rani, et.,al (2002) The multi- dimensional process of empowerment requires awareness,
education and training, participation in decision making and politics. It also aims at mobilization of
women for economic self reliance, self confidence, leadership and entrepreneurial development.
Sneh Lata Tandon (2001): Four thousand self employed women with a capital of Rs. 60,000
initiated establishment of the separate bank for poor, self employed in SHG christened as the Shri
Magila Seva Sahakan bank which was established in 1974. These self employed women workers
included hawkers, vendors and home based workers- like viewers, potters, beedi and paper rollers
manual labourers and service providers.
G.Thanmozhi (1997) has studied the women entrepreneurship in Coimbatore district tried to bring
out the socio economic factors influencing the women entrepreneurs. She has analyzed the problems
encountered by them and came out with a suggestion that promotes women entrepreneurship.
T. Chiranjeevulu (2003) says, Andhra Pradesh government has been vigorously pursuing the micro
finance agenda for embowering poor women. DRDA Warangal has made special efforts to thoroughly
internalize this new paradigm of development. As a result organization of women into SHGs had
really taken the shapes of a movement in the density. It also believed that the promotion of non-farm
related micro enterprises is an integral part of plan strategy for securing balanced development of
economy of the poor women.
T. Prabakar (2002) has done a research on the entrepreneurship in household in Trichy town. He has
tried to find out the factors responsible for entrepreneurship and the problems faced by them. He has
found through the field study that the entrepreneurs are facing problems regarding finance; marketing
and he suggested that the SHG could be promoted to undertake the business activity of the rural area
also.
OBJECTIVES
To study the impact of socio-economic factors of the entrepreneurial activities of rural women
entrepreneurs of SHGs in the study area.
To study the factors involved in promoting rural women entrepreneurs the study area.
To find out the various factors involved in entrepreneurial activities of rural women.
To identify the various problems encountered by the rural women entrepreneurs.
To analyze the impact on rural women entrepreneurs after becoming the members of SHG with
reference to personal, economical, social and entrepreneurial factors.
HYPOTHESIS
There is no significant relationship between the group membership and the personal, social and
economic factors of the respondents.
The impact of group membership in the entrepreneurial development factors of the respondents
is weak.
METHODOLOGY
SAMPLING
It is a sample survey to study the entrepreneurial traits of women SHGs formed by 21 NGOs in
Tiruchirappalli District. Among them four NGOs were selected for this research study, these groups
are engaged in entrepreneurial activities and rendering marketing of goods and services to the general
public. Of the total entrepreneurs a sample of Sixty eight respondents were selected from these groups
based on the convenience sampling approach.
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COLLECTION OF DATA
Primary Data: The primary data were collected through a structured questionnaire.
Secondary Data: The secondary data relating to the study were collected from books, journals,
magazines and printed materials.
ANALYSIS OF DATA
The collected data were analyzed by using simple frequency tables, cross tabulation between the
various groups and the personal, social, economic and entrepreneurial development factors of the
respondents.
SCOPE OF STUDY
The present study is limited to the promotion, performance and problems of rural entrepreneurs who
are functioning under the women SHGs. The performance the entrepreneurs are assessed on the basis
of the savings, income earned and their capacity to borrow and repay the borrowings. It is hoped that
the findings of the study may help in evolving strategies for the development of rural entrepreneurs.
LIMITATION
The study is limited to women entrepreneurs associated with women SHGs.
The respondents were not ready to co-operate with researcher due to some unwarranted fear.
The sample size is limited to sixty eight respondent on reason of the time constrain.
Results and Discussions
SHGs and NGOs give prime importance economic empowerment and improving the economic
condition of the people. The super market concept together with their own products and small iddly
shops in villages in an innovation and is picking up well for SHGs to do entrepreneurial business which
is mostly supported by Mahalir Thittam, SHGs and NGOs. The main objectives of the groups are to
increase the social status of the members and giving them financial assistance to make them sustainable
economically. The sustainable economic development aims at increasing and improving their attitude
towards the development of some entrepreneurial traits. The membership in SHGs relieves them from
the clutches of money lenders and gets their financial requirements met through SHGs and group
business aspect is the win-win strategy adopted by the groups. Thus the researcher has understood the
NGOs do major role in motivating the group members to start the business of their own to gain more
profit from out of their savings.
More than 70% of the groups (respondent) participate in training programmes conducted for a period
ranging from 5 to 10 days. Half of the respondents select their business on reason of simple technology.
1/3rd
respondents have attended entrepreneurial development programs (EDP) and have agreed that
Mahalir Thittam is the only sponsoring organization that has given training to the group members with
the aim to encourage women entrepreneurs. Half (50%) of the respondents felt that they purchase raw
materials from their group’s markets, because every group has to invest their money into their group’s
market and they give goods on credit basis. There is no much competition in the marketing process as
the women group is very strong and women members make their purchase for family requirements
they prefer to buy from the SHG owned business. More than 3/4th (79.4%) of the respondents have the
feeling that there is no special problem faced by them as women entrepreneur. Majority (60.3%) of the
respondents have experienced that inadequacy of finance is one of the most important problem. The
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overall finding is that, there is a high level of satisfaction in the personal, economical, social and
entrepreneurial factors of women.
SUGGESTIONS
There should be a periodical review of the performance of the SHG to measure how far it has
contributed to the improvement of the economically backward people who come forward to be
members of the SHG with a big dream to have their social and economical status improved.
It is suggested to the NGOs and government officials to inform the main objectives of Mahalir
Thittam or SHG and their role in the women development. It is very much important as women
in village are ignorant of various schemes available at the National and State level for their
promotion and development.
It is suggested that SHGs must plan out a strategy that may help them to measure the personal,
social and economic improvement which is the main aim of starting and becoming members in
SHGs.
It is suggested to the SHGs to have thorough knowledge about the sponsors to the NGOs they
belong to, as the NGOs are given huge sum of money both by government and private agencies
at of reasonable interest rate together with subsidy.
It is suggested to the groups to frame a technique that will measure the performance of the small
scale business they have launched and how far members benefit out of it.
It is suggested to every group to collect opinion of their members as this members act as sales
personal approaching customer directly to sell the product launched by their group. The study
may help the groups to understand how far the money is invested in the common interest of the
SHGs.
It is suggested to identify the social status, the economic condition and independent thinking of
their members. This improvement may help them to identify a business of their own and may
make them an independent entrepreneur. Having identified the performance the NGOs or the
sponsoring banks should identify one or two individual members and must help them to enter
into an individual business of their own which is the real growth in this system.
Though members are in the groups, the NGOs must find a chance to identify individuals and
promote them individually on their entrepreneurial skills by providing orientation and training to
launch a business of their own.
CONCLUSION
The genesis of Self Help Groups could be traced to mutual aid in a form of cooperation. Self-help and
reliance are strategies of survival as well as development for the poor. Hence, Self Help Groups and
Micro Credit should be seen as a solution to accelerate the socio-economic development particularly
of the rural poor women in India. A judicious mix of Micro Credit along with other activities with
emphasis on development and empowerment strategies and processes would certainly make Micro
Credit an effective instrument of social and economic development particularly of the women
development in a holistic and integrated manner.
Books & Journals Referred
1. P.S Ganesamurthy, et.,al A study on Thrift and Credit Utilization pattern of Self Help Group,
B. Lakshmi Vilas Bank Suriyampalam Branch, Erode. Indian Journals of Marketing. January
2004 Vol:XXX1V, No I, PP 12-16.
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2. C. Villi, “Self Help Group-Micro Enterprises” Tamil Nadu Journals of Co-operation, July
2004, Vol:3 , No:9 , PP 20-25.
3. K.A Rasure, “Women Empowerment Through Self Group”, Facts For You Nov 2002, PP 40-
46.
4. Sudha, Uma Devi and Surendra, “SHG’s Micro-Credit and Empowerment”, Social Welfare Feb
2002, PP 18-24.
5. Sneh Lata Tandon, “Self Help-New Mantra For Empowerment, Social Welfare Oct 2001 PP
25-31.
6. G. Thenmozhi(1992) “A Study on Women Entrepreneurship in Coimbatore District”
Unpublished Ph.D Thesis.
7. S. Iswari Devi 2003, A Study on Empowerment of Concern through SHG in Nagapattinam
Dist , Unpublished Ph.D Thesis PP 33.
8. Regina Mary, The study on Women Entrepreneurs with reference to SHG in Tiruchirapalli
District (2003).
9. Prabahar(2002), “A study on Entrepreneurship in household industries in trichirapalli town” Un
published PhD thesis.
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