Transcript

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.

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:0.615VOLUME 2, ISSUE 10, OCTOBER 2014

www.icmrr.org 74 [email protected]

WW

W.IC

MRR.ORG

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.

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:0.615VOLUME 2, ISSUE 10, OCTOBER 2014

www.icmrr.org 75 [email protected]

WW

W.IC

MRR.ORG

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.

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:0.615VOLUME 2, ISSUE 10, OCTOBER 2014

www.icmrr.org 76 [email protected]

WW

W.IC

MRR.ORG

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

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:0.615VOLUME 2, ISSUE 10, OCTOBER 2014

www.icmrr.org 77 [email protected]

WW

W.IC

MRR.ORG

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.

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:0.615VOLUME 2, ISSUE 10, OCTOBER 2014

www.icmrr.org 78 [email protected]

WW

W.IC

MRR.ORG

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.

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:0.615VOLUME 2, ISSUE 10, OCTOBER 2014

www.icmrr.org 79 [email protected]

WW

W.IC

MRR.ORG


Top Related