Research Proposal

Self Help Groups promoting to entrepreneurship activities in Patna District,

Bihar

Research Guide: Dr. Anjali Kulkarni

Presented By: Bhaskar Kumar, Roll No: 01, Tata Institute of Social Sciences

Introduction

Entrepreneurship plays an eminent function in creating an avenue for employability for rural

communities, providing self-employment for those who have started-up a business of their own

and enhancing the economic status of the rural sector as well. Entrepreneurship has transformed

many entrepreneurs into successful business persons and generated income for rural

communities. Women Entrepreneurs may be defined as the women or a group of women who

initiate, organize and operate a business enterprise. Self-Help Group is a small voluntary

association of poor people preferably from the same socio-economic back drop. The micro-credit

given to them makes them enterprising; it can be all women group, all-men group or even a

mixed group. A self help group (SHG usually composed of 10–20 local women. In India, many

SHGs are 'linked' to banks for the delivery of micro credit for small business.

Statement of problem

Women in India have been oppressed culturally, socially, economically and politically for

centuries. They are exploited at home, in the families, in the society and in the country. In the

Multi ethnic and multi cultural society like that exists in India, such exploitation takes various

Forms. The core of the problem is that they shoulder a number of responsibilities, but they are

not given adequate participatory or decision making power in the family or elsewhere. Women

Can gain such power, if their economic status, cultural and social status improves. Such type of

Overall improvement can be taken care by SHGs. Involvement in Self Help Groups has enabled

women to gain greater control over resources like material possession, intellectual resources like

knowledge, information, ideas and decision making in home, community, society and nation.

But, questions remain here, What is the uniqueness in SHGs?

It typically comprises a group of micro-entrepreneurs having homogenous social and

economic backgrounds; all voluntarily coming together to save regular small sums of

money, mutually agreeing to contribute to a common fund and to meet their emergency

needs on the basis of mutual help. They pool their resources to become financially stable,

taking loans from the money collected by that group and by making everybody in that

group self- employed.

The group members use collective wisdom and peer pressure to ensure proper end-use of

credit and timely repayment. This system eliminates the need for collateral and is closely

related to that of solidarity lending, widely used by micro-finance institutions. To make

the bookkeeping simple enough to be handled by the members, flat interest rates are used

for most loan calculations.

With the central and state Governments, along with the National Bank for Agriculture

and Rural Development (NABARD), extending the required support for women SHGs as

a strategy for women empowerment, the SHGs has taken firm roots in India. The

movement is eventually expected to reduce gender inequalities in the country.

.Make micro-finance available to cater to the consumption and production needs of poor

women;  Provide a platform for poor women to participate in mainstream economic

activity; and Help in capacity building by providing greater awareness on various

development and welfare programmes relating to women and child health in general and

education of children in particular.

The SHGs, by providing access to financial services and informing the women members

about the various welfare programmes especially targeted to women and children, truly

empower women by making them partners in bringing about the needed social and

economic transformation. The efforts of SHGs are thus, to a very great extent,

contributing to address the gender issues of economic development in India.

Review of literatureSl.

No

Name of Books/

Journal/

Articles/ Reports

Name of

Author

Publishing

year/ issue

date/

Journal no

Methodology Learning's/ Findings

1. THE IMPACT OF SHGS, MICRO FINANCE AND LIVELIHOOD IN IMPROVING THESOCIO-ECONOMIC STATUS OF RURAL WOMENA study of SHG members in Patna district of Bihar

SWARNA YADAV

ISSUE DATE: 16/07/ 2014

Primary data through personal interview, Type of questionnaire: Semi structured questionnaire,Type of sampling: Stratified random sampling, Number of respondents: 150 (50 from each village) i.e., Kurkuri, Lohanipur and Maner

Approximately 74% of the total respondents were illiterate,The average income lies between Rs. 50 to Rs. 100 per day in all the three villages,After 6 months of their SHG functioning, They got offers to serve food to Zila parishad Schools under Mid Day meal scheme. This help them building their Financial Stability. Getting 3500- 4000 monthly salary

2. Potential of Self Help Groups as an Entrepreneur: A Case Study from Uttar Dinajpur District of West Bengal

Anjali Sharma, Bikash Roy and Deepa Chakravorty

J Soc Sci, 30(1): 83-87 (2012

Randomly selected8 villages of three blocks viz. Chopra,Islampur and Itahar of Uttar Dinajpur district,Total 25 SHGs and a sample of 300 women members,The questions asked were interpreted inthe tabular form in simple percentages

About 94.9 percent women involved in SHGs had taken the responsibilities like..,

To decide on the domestic matters of their Families,Started innovative activities like “Potato cultivation in a hay stack”, “multi-purpose crutch for physically challenged”, “multipurpose farming machine”, “disease resistant brinjal through grafting”, “pedal grinder”, “paper rolling machine”, “machine for reusing waste water” and “Herbal fruit ripener”.

This led to a loan of Rs.1,07,000 from a nationalized bank which further help them in expanding.

The current annual sales turnover of this unit is Rs. 2,306,67 and also have been able to repay the bank loan.

3. Case study of Dibyajyoti SHG group

Manasi Mahanta

23/03/2010 Primary data through personal interview, Type of questionnaire: Semi structured questionnaire,

Started a small business venture independently.

12 members of the SHG has set a bench mark in micro-enterprise entrepreneur-ship by establishing the brand of Maa Pickles in Jajpur.

A loan of RS 1,070,00 from a nationalized bank.

They have reached an annual sales turn-over of Rs 2,306,67 and also have been able to repay the bank loan. All this has happened due to sear entrepreneurial skills and initiative shown by 12 members of the SHG.

4. Case study of Annai- Indhira SHGs

Erode district 2013 Secondary data taken from SGSY and different district officials.

 This SHG was formed on 16.05.1998 with the initiative of its 13 members .They involved themselves in mulberry cultivation and silkworm rearing.They  forwarded a proposal for Economic Assistance under SGSY for sericulture. Their proposal got sanctioned and a project cost of Rs.2,40,000 (comprising of subsidy of Rs.1,20,000 and a matching bank credit) was disbursed to the SHG members. They generate 7 to 8 harvests in a year and since all the family members are involved in the trade, each family is able to earn a weekly wage of Rs.1,500.

5. Microfinance Self- Help groups in India

Frances Sinha Rawat Publications, 2009

Primary data collection, Personal interview,Sample size: 20 women from Therpatti, Dharapuram.

Having literacy level low. This group of 20 people started together to work on Kora Silk Weaving.Started remitting weekly small savings of Rs.120 (@ Rs.10 per member).Graded for Economic Assistance (EA) under SGSY which led to increment of their  family income of around monthLy Rs.3,500 to Rs.5,000.

Objective

To study the entrepreneurship activities undertaken by women with the help of loan

provided by SHGs.

To understand how SHGs is helping in developing women as an entrepreneur.

To find out inputs by different organization through training to SHGs to developed and

sustain entrepreneurs.

Methodology

Random sampling

Place of study: Patna

Taking 4- 5 villages’ randomly in order to find individual or

group entrepreneurs who took credit from SHGs in order to

lead their entrepreneurship activities.

Method of selecting women from different villages

If they are indulge in entrepre- My basis of selecting entre-

preneurial activies with the help preneurial activities. If they

of SHGs Bank-Linkage Prog. are engaged in Indulge in

Bangle selling activities,

Cloths selling, Investing in

Fields i.e., Crop growing

activities, Small Food Pro-

cessing units like..,Masala

Making etc..,

Sometimes, women need very small amount of money in order to expand or say, start their

entrepreneurial activities in that way, it might be possible they took loans from their SHGs

directly.

Expected sample size would be 50-60. This sample size includes women/ men doing any type of

entrepreneurial activities by taking the loan from SHGs or through Bank Linkage.

Data collection through in- depth interview

Based on my topic, questionnaire would be designed which will comprised from personal details

to their professional details.

Secondary data comprising of official websites, journals, magazines and articles

This will help me while differentiating the data etc (if needed). Different Organizations are:

NABARD, BRLPS, WDC, and NIDAN Etc. To whom I will be referring.

References

http://www.thehindu.com/thehindu/2002/09/16/stories/2002091605570400.htm

http://www.ritimo.org/article4795.html

http://www.indiacode.nic.in/acts2014/7%20of%202014.pdf

http://www.microfinancegateway.org/sites/default/files/mfg-en-paper-micro-

housing-loans-for-micro-entrepreneurs-a-needs-assessment-jan-2010.pdf 

http://citeseerx.ist.psu.edu/viewdoc/download?

doi=10.1.1.468.2328&rep=rep1&type=pdf