WOMEN ENTREPRENEURSHIP THROUGH SHGs: PROMOTION ... ENTREPRENEURSHIP THROUGH SHGs: PROMOTION, PERFORMANCE AND PROBLEMS ... engaged in thrift and ... Entrepreneurship is a purposeful activity

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  • WOMEN ENTREPRENEURSHIP THROUGH SHGs: PROMOTION,

    PERFORMANCE AND PROBLEMS (3Ps)

    Dr. M. JULIAS CEASAR

    Dean of Arts & Assistant Professor / Commerce, St. Xaviers 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 anyones 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 groups markets, because every group has to invest their money into their groups

    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, SHGs 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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    PAPER 1.pdfPAPER 2.pdfPAPER 3.pdfPAPER 4.pdfPAPER 5.pdfPAPER 6.pdfPAPER 7.pdfPAPER 8.pdfPaper 9.pdf

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