BK Birla College of Art, Science and Commerce

‘‘A study of business run by self help group”

A Project Submitted to

B. K. Birla College (Autonomous), Kalyan,

for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

BY

Masarrat Rafik Shaikh

Under the Guidance of

Prof. Bipin Chandra Wadekar

BK Birla College (Autonomous) , Gauripad, Kalyan-421301

December 2019

1
 BK Birla College of Art, Science and Commerce

‘‘A study of business run by self help group”

A Project Submitted to

B. K. Birla College (Autonomous), Kalyan,

for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

BY

Masarrat Rafik Shaikh

Under the Guidance of

Prof. Bipin Chandra Wadekar

BK Birla College (Autonomous) , Gauripad, Kalyan-421301

December 2019

2
 INDEX
Sr. Titke of the chapter Page No.
No.
1. CHAPTER1-Introduction 7
1.1 Meaning of self help group 7
1.2 Background of self help group 9
1.3 Characteristics of self help group 10
1.4 Formation of self help group 11
1.5 Functions of self help group 12
1.6 loan system 15
1.7 Problems faced by self help group 18
2 CHAPTER 2 – RESEARCH METHODOLOHY
2.1 Objective of study 21
2.2 Hypothesis 22
2.3 scope of study 22
2.4 limitation of study 23
2.5 importance of study 24
2.6 challenges of study 24
2.7 data collection 25
2.8 sample size of data 25
2.9 collection of primary data 26
2.10 collection of secondary data 29
3 CHAPTER3-LITERATURE REVIEW 33
4 CHAPTER4-DATA ANALYSIS
Data interpretation and presentation 36
5 CHAPTER5- CONCLUSION AND SUGGESTION
5.1finding 38
5.2 conclusion 39
5.3 suggestion 41
5.4 bibliography 44

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 CERTIFICATE

This is to certify that Ms. Masarrat Shaikh has worked and duly completed her Project Work for
the degree of Master in Commerce under the Faculty of Commerce in the subject of and her/his
project is entitled ,“A Business run by self-help group’’ under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree or Diploma of any University.

It is her/ his own work and facts reported by her/his personal findings and investigations.

Name and Signature of Guiding teacher

Date of submission:

4
 DECLARATION

I the undersigned Ms. Masarrat rafik shaikh here by, declare that the work embodied in this
project work titled ‘‘A Business run by self-help group”, Forms my own contribution to the
research work carried out under the guidance of Name of the guiding teacher is a result of my
own research work and has not been previously submitted to any other University for any other
Degree to this or any other University. Wherever reference has been made to previous works of
others, it has been clearly indicated as such and included in the bibliography. I, here by further
declare that all information of this document has been obtained and presented in accordance with
academic rules and ethical conduct. Acknowledgment

Name and Signature of the learner :-

Certified by Name and signature of the Guiding Teacher:-

5
 ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not forget
to thank them.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, Mr Avinash Patil for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator Mr Bharat Bahgul, for her moral support and
guidance.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

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 INTRODUCTION

India is a country of villages. Nearly 6,99,000 villages are in India with 68.2% people living in
them. Even Planning Commission data say that a large number of rural people (30% i.e 35.46
crore) still live under very miserable conditions spending only 26 Rs. Per day. Until and unless
the quality of life of these poor is improved and they are brought into the main stream of the
economy (inclusive growth) no goal of economic and social development can be achieved. For
this we have to change our approach and attitude as according to C.K.

Prahlad, “If we stop thinking of the poor as victims or as a burden, and start recognizing them as
resilient and creative entrepreneurs and value conscious consumers, a whole world of
opportunity will open up.”

This challenge of bringing them into main stream (inclusive growth) can be achieved through
policy changes by encouraging them to become self-entrepreneurs by establishing their own
micro enterprises with support of government. But before coming to this let us come to the
basics first what are SHGs, their structure, functions, objectives etc

MEANING

Self Help Groups (SHGs) or in-short SHGs is now a well-known concept. It is now almost
twodecade old. It is reported that the SHGs have a role in hastening country’s economic
development. SHGs have now evolved as movement.

Mainly, members of the SHGs are women. Consequently, participation of women in the
country’s economic development is increasing. They also play an important role in elevating the
economic status of their families. This has led boost to the process of women’s empowerment.

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In the recent years, empowerment has been recognized as the central issue in determining status
of women. Since women become more potent source of development empowering them is
prerequisite for over all development. By empowering women not only make them to share in
the development progress but also bring out their lasting efficiency.

Empowerment of women is sinqua non to achieve the goals of social development. It is

necessary that women must be brought in the main stream of national development. Programmes
by empowering them to discharge all types of roles. Empowerment of women cannot be ignored.
While devising various policies for socio-economic development. The economic status of
women is now accepted as an indicator of an economy’s level of development. This does not
mean that economic development necessarily results in improving the women who constitute
about 50 percent of the population.

Empowerment is the recent approach articulated by the third world countries women. It seeks to
meet women’s strategic gender needs due to their subordinate position to men, through bottom
up mobilization around 1 practical gender need according to their accepted role in society. It
aims at increasing women’s power in terms of their self-reliance and internal strength to
determine choices in life and to influence the direction of change.

The empowerment of women through SHGs would lead benefits not only to the individual
women but also for the family and community as a whole through collection action the
development. These SHGs have collection action. Empowering women is not just for meeting
their economic needs but also more holistic social development. The SHGs empower women and
train them to take active part in socio-economic progress of the nation.

Formation of SHGs with women has empowered them largely SHGs are now gaining
acceptance as an alternative system credit delivery for meeting the credit needs especially to the
people who are the poorest of poor generally comprising small/marginal farmers and landless
agricultural labors.

The origin of self-help group can be traced is from Grameen bank of Bangladesh, which was
founded by Mohamed Yunus. SGHs were started and formed in 1975. In India NABARD
initiated in 1986-1987. The absence of institutional credits available in the rural area has led to

8
the establishment of SHGs. The concept of self-help groups has been evolved to organize the
rural poor to meet their productive and consumption needs out of their saving.

A self-help group is a small economically homogeneous affinity group of the rural poor
voluntarily coming to gather to save small amount regularly. Which are deposited in common
fund to meet member emergency needs and to provide collateral free loans decided by the group.

India has adopted the Bangladesh model in a modified form. To alleviate the poverty and
empower the women. The micro-finance has emerged as powerful instrument in the new
economy. With availability of micro-finance, self-help group (SHGs) and credit management
groups have also started in India. And thus the movement of SHG has spread out in India. In
1991-92 Nabard started promoting self-help groups on a large scale. And it was the real take off
point for the SHGs movement. In 1993, the Reserve Bank of India also allowed SHGs to open
saving accounts in banks facility of availing bank services was a major boost to the movement.

The concept of SHG was not new to Maharashtra. Beginning with a tiny amount of only 25
paise, the women of Maharashtra from Amravati District had established on SHG long back in
1947

WHAT ARE SHGs?

SHG is a development group for the poor and marginalized.

It is recognized by the Government and does not require any formal registration.

The purpose of the SHG is to build the functional capacity of the poor and the marginalized in
the field of employment and income generating activity.

People are responsible for their own future by organizing themselves into SHGs

BACKGROUND

The self help groups (SHGs) are voluntary association of 15-20 people formed to attain a
collective goal. Members of SHGs who are homogenous with respect of socio-economic
background. The genesis of 3 SHGs could be traced to mutual aid and trust in Indian rural

9
society. Self Help Groups (SHGs) is the brain child of Noble Peace Prize Winner
Prof.Mohammed Yunus who started Grameen Bank of Bangladesh as early as in 1976. Self help
groups (SHGs) and Microfinance (MF) is the recent past has emerged as a potential instrument
for poverty alleviation and financial inclusion and women empowerment. The basic principles of
the SHGs are group approach, mutual trust of small and manageable group, spirit of thrift,
demand based lending, collateral free, poor-friendly loan, peer group pressure in repayment, skill
training, capacity building and empowerment (Lalitha 1998). In the decade of nineties and
twentieths National Agriculture Bank for Rural development (NABARD), Government
Organization, Non government Organizations (NGOs), Micro Finance Institutions(MFIs),
initiates and started Self help groups for microfinance, micro credit activities for the objectives
of poverty alleviation, women empowerment and financial inclusion. Government of India had
decided to restructure the self-employment programmes, the earlier programmes were no long in
operation. A new programme known Swarnjayanti Gram Swarozgar Yojana (SGSY) has been
launched from April 1999. Broadly, the microfinance could be classified into the following
model.

1) Grammen Model

2) The group approach.

3) Individual credit

4) Community Banking

In India, group approach model is very popular. The SHGs become the basis for socio-economic
revolution and build as a relationship of mutual trust to among members and promoting
organization credit delivery through thrift and credit groups.

- Indian Scenario

India has adopted the Bangladesh’s model in a modified form. To alleviate the poverty and to
empower the women, the micro-finance has emerged as a powerful instrument in the new
economy. With availability of micro-finance, self-help groups (SHGs) and credit management
groups have also started in India. And thus the movement of SHG has spread out in India.

10
In India, banks are the predominant agency for delivery of micro-credit. In 1970, Ilaben Bhat,
founder member of ‘SEWA’(Self Employed Women’s Association) in Ahmadabad, had
developed a concept of ‘women and micro-finance’. The Annapurna Mahila Mandal’ in
Maharashtra and ‘Working Women’s Forum’ in Tamilnadu and many National Bank for
Agriculture and Rural Development (NABARD)-sponsored groups have followed the path laid
down by ‘SEWA’. ‘SEWA’ is a trade union of poor, self-employed women workers.

Since 1987 ‘Mysore Resettlement and Development Agency’ (MYRADA) has promoted Credit
Management Groups (CMGs). CMGs are similar to self-help groups. The basic features of this
concept promoted by MYRADA are: 1] Affinity, 2] Voluntarism, 3] Homogeneity and 4]
Membership should be limited to15-20 persons. Aim of the CMG is to bestow social
empowerment to women.

In 1991-92 NABARD started promoting self-help groups on a large scale. And it was the real
takeoff point for the ‘SHG movement’. In 1993, the Reserve Bank of India also allowed SHGs to
open saving accounts in banks. Facility of availing bank services was a major boost to the
movement. 3 The movement of SHG was nourished innourished in the states of Gujarat,
Maharashtra, Andhra Pradesh, Rajasthan, Tamilnadu and Kerala.

Now nearly 560 banks like NABARD, Bank of Maharashtra, State Bank of India, Cooperative
Banks, Regional rural banks, the Government institutions like Maharashtra Arthik Vikas
Mahamandal (MAVIM), District Rural Devlopment Agency (DRDA), Municipal corporations
and more than 3,024 NGOs are collectively and actively involved in the promotion of SHG
movement.

India In India three different models of linkage of SHGs to the financial institutions

NGOs and other agencies but financed By banks.

CHARACTERISTICS
-These groups are based on the concept of ‘self-help’

-They can become members of a cooperative society;

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-They need not be registered with any official agency;

-They are fully autonomous and free from official controls;

-They can form their own associations/federations;

-Associations are legal entities

-SHGs can be gender-biased or mixed groups;

-They are engaged in thrift and credit activities;

-They are managed by the members themselves;

-They have their own leaders and secretaries;

-They maintain their accounts well and which are clearly understood by all;

-Very little funds are borrowed from the banks for internal circulation;

-Almost all their needs are met from out of group’s own funds;

-Almost all the members use the group funds for their benefit;

-Whatever loans are taken from the group/bank are returned in time;

-They generally deposit their surplus funds with the bank or in FDs;

-A part of the earning from the wages is deposited with the group;

-All groups hold their meetings regularly and every month;

-SHGs encourage inter-group lending

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FORMATION OF SELF HELP GROUP
Micro finance is recognized as a key strategy for addressing issues of poverty alleviation and
women's empowerment. Access to financial services and the subsequent transfer of financial
resources to poor women enable them to become economic agents of change. Women become
economically self-reliant, contribute directly to the well-being of their families, play a more
active role in decision-making, and are able to confront systemic gender inequalities.

In this regard Foundation facilitated the concept of SHGs among community women to
encourage them to participate in their development and work towards day-to-day problems
through small savings. It was a major step to realize economic freedom. 10 SHGs are
successfully functioning in the various villages. The meetings for the formation of new groups
and follow-up with the existing groups are a regular feature of the programme. These SHGs have
given the members a sense of identity and a common platform to discuss their grievances.

The matters of common interest have instilled a sense of unity. The funds created by their own
savings helps them meet urgent monetary needs without depending on their men folk or
moneylenders. Recently AIF organized weeklong training to 50 women of three Self Help
groups of Mirbhitta Uttartola and Mirbhitta Dakshintola in Powakhali Panchayat. Resource
persons sent by Khadi and Village Commission, Patna conducted it in three trades of candle
making, agarbatti making and detergent making. This was a unique experience for the women as
it was for the first time this type of training was conducted in such remote villages.

Most of the women had come out of their homes for the first time at the local Madarsa building
where it was being conducted. Infact most of them had never spoken in front of the outsiders
before. However their confidence was highly inspiring. They all decided to work together to
fully utilize this training. We were happy to see that even the men folk, especially their husbands
and guardians fully supported them and pledged to help them in setting up small units.

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FUNCTIONS OF SELF HELP GROUP

a. The group functions democratically with 2-3 office bearers elected by a consensus of the
group. Two office bearers viz. the President and Secretary are essential, while a third office
bearer i.e. a Treasurer is optional.

b. Office bearers should rotate at least once in two years. Ideal rotation would be once every
year, depending on availability of educated members to act as Secretary.

c. Group meets periodically at fixed intervals to discuss, reflect on and find solutions to
socioeconomic issues / problems of members, the group and of the community.to transact
business.

d. All members’ attendance and active participation at meetings is essential.

e. Decisions are taken at meetings by a consensus of the group and not by the President and
Secretary alone. The President and Secretary manage the administration of group as per the bye-
laws and group consensus.

f. All business is transacted at meetings and not privately with the President or Secretary at their
residence. The business that is transacted at meetings is related to:

i. Collecting savings, fines, interest on loans, installments of refund of loans, and

ii. Contribution for nominal administrative expenses.

iii. Decision on loan applications, and the amount to be sanctioned.

iv. Decision to take up any social or common activity in the village.

v. Decision to take up a common economic activity to build up the group’s corpus

vi. Deliberation and decision on disciplinary action against any member.

vii. Deliberation and decision on disciplinary action against the President or Secretary in case of
mismanagement of the affairs of the group or the funds of the group.

viii. Decision on application for admission as a member or for resignation from membership.

Ix. Decision to participate in any SHG meeting or training program organised by the
government or by any NGO

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LOAN SYSTEM
SHGs must save for at least sixth months before they can be linked to a bank credit or provide
loans to its members. The interest rate in lending among the members from the groups fund will
be decided by the group as well as the amount to be given and the interest rate to be charged.
Loans may be given to members for either productive or consumption purposes subject to the
group’s decision. All types of income generating activities of SHGs must be support by a concise
market survey. All income generating activities require functional skills which promote its
members to be trained in their selected activity to enhance their capability for sustainable surplus
production.

SHG Bank-Linkage Models:

Since the beginning of financial sector reforms in 1991, the banks are using these distinct linkage
models to finance SHGs

. Model I-Banks provide micro finance to Non-Governmental Organizations (NGOs), SHGs

and ultimately to the micro entrepreneur. (It covers about 27 percent of SHGs) 16

Model II-Banks provide financing directly to SHGs for lending to micro entrepreneur. (It
covers about 17 percent)

Model III-Banks finance directly to SHGs for lending micro entrepreneur with intervention of
NGOs as a social mobilizers and facilitators (It covers 56 percent of SHGs)

Model IV-The fourth model envisages bank loans directly to individual members of SHGs
upon recommendations of the SHGs and NGOs. In this matter the NGOs assists the bank in
monitoring, supervising and recovery of loans.

Formal and Informal Systems:

Traditionally, the formal sector banking institution in India has been serving only the needs of
commercial sectors and providing loans for middle and upper income groups. In India, we have
multi-agency rural credit delivery structure comprising Commercial Banks, Regional Rural
Banks and Cooperative Banks with a huge network of more than 1, 53,000 retail credit outlets
(One for every 4100 population). Yet, reaching poorest, whose credit requirements are very

15
small, regular and unpredictable, is still a difficult task and ‘Sahukars’ (the rural non-formal
money lenders) continues to be the main agency. Further, the system and lengthy procedures of
the banking institutions which

Commercial banks, Housing Finance Institutions, NABARD, and Rural Development Banks,
Land Development Banks, Co-Operative Banks etc. are the major formal financial institutions.
Urban Cooperative Banks and Urban Credit Cooperative Societies are the two Primary
Cooperative Financial Institutions operating in the urban areas. The informal financial sources
generally include funds available within family sources or local money lenders. The local money
lenders charge high rates of interests due to their informal behavior and absence of other sources
of credit for non conventional needs. Chit funds and Bishis are other forms of credit operated by
group of people for their mutual benefit. Lately, few of the NGOs engage in the activities related
to community mobilization for their socio-economic development have initiated savings and
credit programmes for their target groups. The community based financial system can be
categorized into two models.

1. Group based financial intermediary, and

2. NGO linked financial intermediary.

Most of the NOGs like Sharan in Delhi, Federation of Thrift and Credit Association (FTCA) in
Hyderabad, Society for the Promotion of Area Resources Centers (SPARC) in Bombay, Self
Employed Woman’s Association (SEWA) in Ahmadabad shows the experience of the informal
intermediaries that although the savings of group members, small in nature do not attract high
returns, it is still practice due to security reasons for getting unsecured loans without much
formality and collaterals at lower rates comparative to that available from money lenders. In his
book “The Fortune at the Bottom of the Pyramid”, Prof. C.K. Prahlad comments, “A well
understood but poorly articulated reality of development role of women. Women are central to
the entire development process. They are also at the avant-garde of social transformation. For
example, Grameen Bank’s success is based on lending only to women. The SHGs at ICICI bank
are all women, as are the Shakthi Ammas at Hindustan Liver Limited (HLL). The women
entrepreneurs are responsible for saving and accessing credit. In the case of Cemex Management

16
Pvt. Ltd, the company works only with women. Amul, a milk cooperative, depends on women
for their milk origination in villages. Women have achieved a new social status by collecting
cash for the milk. Access economic independence can change the long tradition of suppression of
women and denial of opportunities.

16 The success of Avon, Mary Kay and Tupperware in US and parts of world are based on the
role of women entrepreneurship.

Micro Finance and Micro Credit:

Since formal credit institutions rarely lend the poor, special institutional arrangements become
necessary to extend to credit to those who have no collateral to offer. Micro Finance (MF) by
providing small loans and savings facilities to those who have been excluded from commercial
financial services has been promoted as a key strategy for reducing poverty in all its forms by
agencies, all over the world, particularly in developing countries.

Micro Credit (MC) has been defined as “programmes that can provide credit for self
employment and other financial and business services (including savings, technical assistance,
training networking and peer support) to very poor persons (Micro Credit Summit, 1997). The
task force on supportive policy and regulatory framework for micro finance (NABARD, 1999)
defined it as ‘provision of thrift, credit and other financial services and products of very small
amounts to raise the income levels of clients, and improve their living standards.”

While micro credit loans generally advance for self employments projects, but also sometimes
advance for consumption, repayment of earlier loans, and other social needs as well. It is
mandatory for micro credit institutions to get borrowers make the transition from consumption
loans to production or loans for income bearing projects. According to the definition of
International Labour Organization (ILO), micro finance is an economic development approach
that involves providing financial services through institutions to low income clients. Presently,
micro finance represents something more than micro credit. Micro Finance (MF) is a financial
service of small quantity provided by financial institutions to the needy poor. These financial
services include savings, credit, insurance, leasing, money transfer, equity transaction etc. Any
type of financial service is provided to customers to meet their normal financial needs i.e., life

17
cycle, economic opportunity and emergency, with the only requirement that (i) that transaction
value is small, and (ii) the customers are poor (Dasgupta, 2005).

Thus, micro finance refers to the entire range of financial and nonfinancial services, including
skill up gradation and entrepreneurship development, rendered to the poor for enabling them to
overcome poverty. Beside, size and clientele group, what makes micro credit different from
normal is credit is that the latter is “Walk in” and the former is “Walk out” business for the
financial institutions. Normally, micro credit is linked with the collateral substitute and credit
plus services unlike normal credit. Thus, micro credit is distinct from other regular credit, where
not only the credit amount is

The basic unit of micro finance is a group of persons called self-help groups (SHGs). SGHs are
small informal associations of 15-20 persons created for the purpose enabling members to
obtained economic benefit out of mutual help, solidarity and joint responsibility. These small and
homogeneous groups involved in savings and credit activity are capable of taking care of
challenges through peer monitoring. The informal voluntary associations of SHGs are form to
attain a collective goal. To some extent, micro credit is not a new concept in India, priority sector
credit in general and weaker section credit in particular was actually a kind of micro credit. So
far as micro savings services are concerned, these are indeed recent with the advent of self-help
group movement, from 1992, with the initiative of the Reserve Bank of India (RBI) and National
Bank for Agriculture and Rural Development (NABARD) in introducing pilot projects of SHGs
with savings and credit objectives and adoption of best management practices.

PROBLEMS FACED

The important problems are briefly stated below:

1. Ignorance of Members/Participants: Even though the authorities take measures for creating
awareness among the group members about the schemes beneficial to them, still majority of the
group are unaware of the schemes of assistance offered to them. Many are Ignorant about the
scheme.

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2. Inadequate Training Facilities: The training facilities given to the members of SHGs in the
specific areas of product selection, quality of products, production techniques, managerial
ability, packing, other technical knowledge ate are not adequate to compete with that of strong
units.

3. Problems Related with Raw Materials: Normally each SHG procures raw materials
individually from the suppliers. They purchase raw materials in smaller quantities and hence they
may not be able to enjoy the benefits of large scale purchase like discount, credit facilities etc.

Moreover, there is no systematic arrangement to collect raw materials in bulk quantities and
preserve them properly. There is no linkage with major suppliers of raw materials. Most of the
SHGs are Ignorant about the major raw material suppliers and their terms and conditions. All
these causes high cost of raw materials.

4. Problems of Marketing: Marketing is an important area of functioning of the SHGs. However

they face different problems in the marketing of products produced by them.

Following are the major problems relating to marketing.

(a) Lack of sufficient orders.

(b) Lack of linkage with the marketing agencies.

(c) Lack of adequate sales promotion measures.

(d) Lack of permanent market for the products of SHGs.

(e) Absence of proper brand name.

(f) Poor/unattractive packing system.

(g) Poor quality of products due to the application of traditional technology, resulting In poor
market,

(h) Stiff competition from other major suppliers.

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(i) Lack of a well-defined and well-knit channel of distribution for marketing.

5. Lack of Stability and Unity Especially among women SHGs: In the case of SHGs dominated
by women, it is found that there is no stability of the units as, many married women are not in a
position to associate with the group due to the shift of their place of residence. Moreover, there is
no unity among women members owing to personal reasons.

6. Exploitation by Strong Members: It is also observed that in the case of many SHGs, strong
members try to earn a lion’s share of the profit of the group, by exploiting the ignorance and
illiterate members.

7. Weak Financial Management: It is also found that in certain units the return from the business
is not properly invested further in the units, and the funds diverted for other personal and
domestic purposes like marriage, construction of house etc.

8. Low Return: The return on investment is not attractive in certain groups due to inefficient
management, high cost of production, absence of quality consciousness etc

9. Inadequate Financial Assistance: It is found that in most of the SHGs, the financial assistance
provided to them by the agencies concerned is not adequate to meet their actual requirements.
The financial authorities are not giving adequate subsidy to meet even the labour cost
requirements.

10. Non-co-operative Attitude of the Financial Institutions: The Financial Institutions do not
consider SHGs seriously while providing finance and other help.

11. Inadequate and ill-trained staff to meet the challenges: The attitude of the staff of the rural
development department is not encouraging. They are not well trained to accept the challenges
and equip the SHGs self-reliance.

12. Inadequate Support from Line Department: For obtaining assistance and support, the group
members have to approach the line officers. However the line officers are not co-operative with
the SHGs. This will hamper the very objective of the schemes.

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 RESEARCH AND METHODOLOGY

OBJECTIVE

The purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not
been discovered yet. The specific objectives of the study are listed below:

1) To study the current scenario, working and growth of Self Help Groups in the region and to
analyze the impact of SHGs in women empowerment with respect to Durg region.

2) To study the activities of self help group in the study area and to identify employment and
livelihood skills of women’s related to Self Help Group.

3) To study and analyze the management and administrative structure of the Self Help Groups.

4) To study the operating system and capital structure of the Self Help Groups and to evaluate
their Financial Positions.

5) To ascertain the Marketing policies, government support and future prospects in marketing of
the Self Help Groups.

6) To study the socio economic background of the members of the Self Help Groups and to
identify the reasons for women joining self help Group.

7) To ascertain the credit availability of the women’s of the group from different sources.

8) To identify problems related to the Self Help Groups at different levels and to analyse and
evaluate the challenges faced by the Self Help Groups.

9) To ascertain the role of C.G. Mahila Kosh in financing and forming of Self Help Groups and
also to study the implications related to policy decisions.

10) To submit the recommendations and suggestions for effective role of Self Help Groups in
women empowerment and to diversify their activities and area of interest for better working of
the groups.

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HYPOTHESIS

A hypothesis simply means a mere assumption or some supposition to be proved or disproved.

But for a researcher hypothesis is a formal question that he intends to resolve. Thus hypothesis
may be defined as a proposition or set of proposition set forth as an explanation for the
occurrence of some specified group of phenomena either asserted merely as a provisional
conjecture to guide some investigation or accepted as highly probable in the light of established
facts. It is a predictive statement, capable of being tested by scientific methods, that relates an
independent variable to some dependent variable.

1. Self Help Groups are promoting women empowerment.

2. Government organisations are eager to promote self help groups for women empowerment.

3. There has been a positive impact on the socio-economic conditions of women working in Self
help Groups.

4. There will not be a difference in the work satisfaction level of the management and members
of the self Help group.

Scope of study

As per DRDA office records, there were 1150 Women SHGs working in Kannad Block of
Aurangabad district as on 31St March 2013, for the purpose of the study. 115 groups have been
selected on Simple Random basis, i.e. 10% of the total Self Help 1150 Women Groups in
Kannad block of Aurangabad district of Maharashtra state

Limitation of study

The biggest limitation for this project was the lack of time. Since I only had two months to
conduct my research, I needed to quickly find a realistic project. Due to the time-constraint, I
needed to narrow my interests of gender equality and microfinance into a reasonable topic of
SHGs. Unfortunately, my project was only limited to Dokur. If permitted more time, I would
have developed a more comprehensive report that included another village and VDSA data to
correlate my findings.
22
Another obvious limitation was the language barrier. Although I had two very intelligent and
well-spoken translators, there were still words lost in translation between the respondents, the
translators and myself. In some interviews, other villagers would speak on behalf of the
respondent. As a result, their answers were impacted by other people’s comments. Since I was a
recent high school graduate during this internship, my lack of knowledge on SAT and SHGs
served as a minor barrier in this project. I had never learned about the SAT nor heard about
SHGs until I stepped foot on the MIP Program. Although I did not have primary knowledge, I
was properly mentored by Dr. Bantilan, Padmaja and Kavitha. After an intensive first week of
researching and learning, I finally came up with my research project.

Importance of study

The study focuses on determining the financial and social status and empowerment of women.
The many SHGs are interlinked with the banks to get micro-credit facility. The banks are
providing needed facility to all SHGs to achieve their social needs and financial gaols. The SHGs
are been successful in the development of Indian economy. The SHGs more focusing on rural
background and poor people because to develop their living status. They are empower to
overcome many of the shortcomings

1.To mobilizing the resources of individual‟s for their development

2. To create a habit of savings among the people

3. To create awareness about the rights.

4. A Study on Women Empowermwnt through Self Help GroupsTo identify the problems of the
individual‟s and SHGs.

5. To act media for socio-economic development.

6. To help to cover loans.

7. To create good relationship among the people.

8. To build a team work.

23
 9. To create awareness about the necessity of SHGs.

10. To educate the people.

11. To build a decision power among women.

12. To make women independent.

13. To help to generate employment opportunities

Challenges of study

Develop a doable topic.Determine what resources you have available—time, money,

people—and choose a topic that you can do justice. Getsch scrapped an initial study idea of
replicating another researcher’s study because it would be too resource-intensive.
Read everything you can on the topic. Getsch “stumbled across” systems theory, an
interdisciplinary framework for understanding systems in science and society. The topic was
outside her required class reading, but ultimately provided Getsch’s theoretical framework.
Find a theoretical basis to support your topic. The key is having an overarching theoretical
context for your results. “I was really thrilled when I found these theories that fit my study like a
glove,” Getsch says.
Make sure the topic will hold your interest. You’ll be spending at least a year on a
dissertation or any large research project, so it has to be compelling enough that you’ll go the
distance.
Look for a niche in which you can make a difference … My view is that you really should
be offering something new to the field,” says Getsch.
… but remember you can’t change the world with one dissertation. Getsch’s dissertation
committee chair, Dr. Stephanie Cawthon, helped her focus on the crux of what she wanted to
explore. “She gently pointed out that I couldn’t change the whole world with my dissertation, but
I could add to the body of knowledge,” says Getsch.
Let yourself shift gears. Getsch admits that the topic she started out with was “in no way”
what she ended up with.

24
 Fine-tune your topic based on input from others. “Take every opportunity you can to pick
the brains” of experts, Getsch recommends. “I went across disciplines. I drove people crazy. And
each time, I would revise slightly based on what the last person taught me.”

DATA COLLECTION ON SELF HELP GROUP

1)SAMPLE SIZE:- is the act of choosing the number of observations or replicates to include in
a statistical sample. The sample size is an important feature of any empirical study in which the
goal is to make inferences about a population from a sample. In practice, the sample size used in
a study is usually determined based on the cost, time, or convenience of collecting the data, and
the need for it to offer sufficient statistical power. In complicated studies there may be several
different sample sizes: for example, in a stratified survey there would be different sizes for each
stratum. In a census, data is sought for an entire population, hence the intended sample size is
equal to the population. In experimental design, where a study may be divided into
different treatment groups, there may be different sample sizes for each group.

Sample sizes may be chosen in several ways:

 using experience – small samples, though sometimes unavoidable, can result in

wide confidence intervals and risk of errors in statistical hypothesis testing.
 using a target variance for an estimate to be derived from the sample eventually obtained, i.e.
if a high precision is required (narrow confidence interval) this translates to a low target
variance of the estimator.
 using a target for the power of a statistical test to be applied once the sample is collected.
 using a confidence level, i.e. the larger the required confidence level, the larger the sample
size (given a constant precision requirement).

25
2)COLLECTION OF PRIMARY DATA

Primary data is data that is collected by a researcher from first-hand sources, using methods
like surveys, interviews, or experiments. It is collected with the research project in mind, directly
from primary sources.

The term is used in contrast with the term secondary data. Secondary data is data gathered from
studies, surveys, or experiments that have been run by other people or for other research.
Typically, a researcher will begin a project by working with secondary data. This allows time to
formulate questions and gain an understanding of the issues being dealt with before the more
costly and time consuming operation of collecting primary data.

Primary data collect method

.
Questionnaire
Questionnaire is a set of questions has been prepared to ask a number of questions and collect
answers from respondents relating to the research topic. A number of questions usually in
printed or electronic form are to be answered by the individuals. The forms often have blank
spaces in which the answers can be written. Sets of such forms are distributed to groups and the
answers are collected relating to research topic. A questionnaire is a series of questions asked to
individuals to obtain statistically useful information about a given topic. When properly
constructed and responsibly administered, questionnaires become a vital instrument by which
statements can be made about specific groups or people or entire populations. Inappropriate
questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire format can
make the survey valueless, as it may not accurately reflect the 11 views and opinions of the
participants. A useful method for checking a questionnaire and making sure it is accurately

26
capturing the intended information is to pretest among a smaller subset of target respondents. In
a research or survey questions asked to respondents, and designed to extract specific
information. It serves four basic purposes: to
(1) collect the appropriate data,
(2) make data comparable and amenable to analysis,
(3) minimize bias in formulating and asking question, and
(4) to make questions engaging and varied. For our study purpose a set of questions has been
prepared to collect information relating to the topic of the study. In this study a structured
questionnaire has been used with different types of questions such as closed ended and open
ended. Special case has been taken to select the scales for the questions for collection of
responses very effectively.

Telephone, Mobile Phone and Facsimile

Telephone and other devices can be used for collecting data verbally and written on fax from
respondents located away from the researcher and having these facilities plus the researcher
having their contact numbers. Use of interviewers encourages sample persons to respond,
leading to higher response rates. Interviewers can increase comprehension of questions by
answering respondents' questions. It is fairly cost efficient, depending on local call charge
structure. It is good for large national or international respondents and gives wider coverage. It
cannot be used for non-audio information (graphics, demonstrations, taste/smell samples) this
instrument is not suitable for the respondents where the telephone facility is not available.

Mail
For collection of data from the respondents who are located at a long distance and do not have
any communication facility. They can be contacted through mailed questionnaire. Only thing is
required that the researcher should have the postal addresses of the respondents. The
questionnaire may be handed to the respondents or mailed to them, but in all cases they are
returned to the researcher via mail. The cost involved is very less but no clarification can be
given to the respondents if required. Respondents can answer at their own convenience. The
respondents cannot be biased by the researchers and the detail information can be collected 12

27
for the research purpose. Only one disadvantage this instrument gives is that the response rate is
very less due to lack of interest in the topic of respondents and low literacy rate.

Interview
In this method the interviewer personally meets the informants and asks necessary questions to
them regarding the subject of enquiry. Usually a set of questions or a questionnaire is carried by
him and questions are also asked according to that. The interviewer efficiently collects the data
from the informants by cross examining them. The interviewer must be very efficient and tactful
to get the accurate and relevant data from the informants. Interviews like personal
interview/depth interview or telephone interview can be conducted as per the need of the study.

Advantages of primary data:

Advantages of primary data are as follows:

• The primary data are original and relevant to the topic of the research study so the degree of
accuracy is very high.

• Primary data is that it can be collected from a number of ways like interviews, telephone
surveys, focus groups etc. It can be also collected across the national borders through emails and
posts. It can include a large population and wide geographical coverage.

• Moreover, primary data is current and it can better give a realistic view to the researcher about
the topic under consideration.

• Reliability of primary data is very high because these are collected by the concerned and
reliable party.

Disadvatages of primary data:

Following are the disadvantages of primary data

28
• For collection of primary data where interview is to be conducted the coverage is limited and
for wider coverage a more number of researchers are required.

• A lot of time and efforts are required for data collection. By the time the data collected,
analysed and report is ready the problem of the research becomes very serious or out dated. So
the purpose of the research may be defeated

• It has design problems like how to design the surveys. The questions must be simple to
understand and respond.

• Some respondents do not give timely responses. Sometimes, the respondents may give fake,
socially acceptable and sweet answers and try to cover up the realities.

• With more people, time and efforts involvement the cost of the data collection goes high. The
importance of the research may go down.

• In some primary data collection methods there is no control over the data collection.
Incomplete questionnaire always give a negative impact on research

. • Trained persons are required for data collection. In experienced person in data collection may
give inadequate data of the research.

SECONDARY DATA

Secondary data are the data collected by a party not related to the research study but collected
these data for some other purpose and at different time in the past. If the researcher uses these
data then these become secondary data for the current users. These may be available in written,
typed or in electronic forms. A variety of secondary information sources is available to the
researcher gathering data on an industry, potential product applications and the market place.
Secondary data is also used to gain initial insight into the research problem. Secondary data is
classified in terms of its source – either internal or external. Internal, or in-house data, is

29
secondary information acquired within the organization where research is being carried out.
External secondary data is obtained from outside sources.

There are various advantages and disadvantages of using secondary data

. Advantages of Secondary Data:

Advantages of secondary data are following:

• The primary advantage of secondary data is that it is cheaper and faster to access.

• Secondly, it provides a way to access the work of the best scholars all over the world.

• Thirdly, secondary data gives a frame of mind to the researcher that in which direction he/she
should go for the specific research.

• Fourthly secondary data save time, efforts and money and add to the value of the research
study.

Disadvantages of Secondary data:

Following are the disadvantage of secondary data:

• The data collected by the third party may not be a reliable party so the reliability and accuracy
of data go down.

• Data collected in one location may not be suitable for the other one due variable environmental
factor.

• With the passage of time the data becomes obsolete and very old

• Secondary data collected can distort the results of the research. For using secondary data a
special care is required to amend or modify for use.

• Secondary data can also raise issues of authenticity and copyright. Keeping in view the
advantages and disadvantages of sources of data requirement of the research study and time

30
factor, both sources of data i.e. primary and secondary data have been selected. These are used in
combination to give proper coverage to the topic

SOURCES OF SECONDARY DATA

Published Sources:

The sources of published data are as below:

i. Official publications of Central and local governments.

For example: CBS, NRB, different Ministries, etc.

ii. Official publications of semi government statistical organization. For example: Tribhuvan
University, Nepal Bank Ltd., NIDC, Nepal Telecom Ltd, NEA etc.

iii. Official publication of foreign government or international bodies like the UNO, World
Bank, ADB, WTO, UNESCO, etc.

iv. Reports and publications of Trade union, Chamber of Commerce, Commercial Banks, Co-
operatives, Stock Exchange etc.

v. Report submitted to economists, re-search scholars, universities and various educational and
research institutions.

vi. Reports of various committees and commissions appointed by government.

vii. Newspaper and Periodicals.

31
Some of them may be continuous or regular and others are periodical and irregular.

Unpublished Sources:

The statistical data needn’t always be published. There are various sources of unpublished
statistical material such as the records maintained by private firms, business enterprises, scholars,
research workers, etc. They may not like to release their data to any outside agency.

32
 LITERATUTE REVIEW

Roshan Singh et al. (1978), studied the design pattern of credit flow in Bichpuri development
block of Agra district in Uttar Pradesh. They found that the pattern of financing agriculture was
similar both at the national and district level. Theproportion of bank finance to agricultural
showed a stable but slow increase over a period of four years. The overall share of large farmers
in total finance to agriculture was much higher as compared to the small and medium farmers in
all the years (1972 to 1977). The share of small farmers showed an increasing trend mainly
during the years 1976 and 1977 when deliberate efforts were made to direct the flow of bank
credit in favour of small farmer.

Ramlingam et al (1987) in their study entitled “Socio economic impact of IRDP on weaker
section: A comparative analysis” showed that the social status of the respondents had increased
considerably from low status to higher status.

Mahabub Hussain, while assessing the performance of the Garmeena Bank in Bangladesh laid
the hypothesis that “If the poor are supplied with the working capital, they can generate
productive self employment without additional external assistance”, and the results showed that
the Garmeena bank has reached 6 percent of villages and 4 percent target households (1987).

Ramdass measured the institutional credit flow in Pondicherry and observed that the short term
credit advance by the institutions had grown gigantic, while the long term credit lagged behind.

33
He suggested the need for institution to come forward to provide long term credit and utilize the
saving mobilized in rural areas exclusively for rural investment

Molly, found that there is lion’s share of NGOs programmes in the selected organizations related
to the factory type employment such as readymade garments, Khadi and Village industry, candle
making etc. The major production schemes especially on house hold basis, which occupied 24
percent of total schemes, were animal husbandry, poultry, sericulture, fodder cultivation, kitchen
garden and others.

Pathak , reported that SHG is being comprised a group of persons, who gets empowered to solve
most of their problems of non- financial nature like raw materials, inputs supply, marketing,
better adoption of technology, education and training for realizing the human potential for
development.

Reddy and Gupta , studied the credit management in Self Help Groups(SHGs) under South Asia
Poverty Alleviation Programme (SAPAP) revealed that the data on purpose wise allocation of
credit showed that sample groups allocated 34 percent, 22 percent and 22 percent of the total
credit to small businesses, animal husbandry and agriculture respectively. Under animal
husbandry, members take loan to purchase milk animals, sheep and goats, under agriculture,
members take crop loan to purchase, plough and bullock carts. The other major purposes include
domestic consumption (13 percent), and clearing of old debts (7 percent) and share of health and
education is only three per cent. Thus, the members in the sample groups have taken credit
mainly (78 percent) for productive income generating activities during the study period.

34
Joseph and Easwaran (2006), stated that in all parts of the country, self-help groups are
organized by governmental and non-governmental organizations (NGOs). The government,
banks and nongovernmental organizations facilitate them by providing revolving fund,
organizational and training, credit etc.

Subbiah and Navaneetha (2006), reported that there are three models under the SHG-bank
linkage programme, about 72 percent of the SHGs are formed byNGOs/government agencies
and the like financed by banks. They stated that the programme has been advantageous not only
to members of SHG but also to the banks.

Savita Shankar (2006), conducted Studies on efficient credit models in micro finance, in Tamil
Nadu; the most popular model for the dispensation of micro credit in India is the group-lending
model. As per Sa-Dhan (Industry Association of Community Development Finance Institutions
in India) data, group loans account for 93% of the microfinance in India.

Dasaratharamaiah et al. , reported that 10.0 percent of beneficiaries had income between Rs.7,
201 and above, 20.67 percent have income between Rs.4,801 to 7,200 and 31.33 percent have
income Rs.3, 601 to 4,800 and 38 percent have income below Rs.3, 600 per annum after
implementation of DWCRA. And it was found that there are no persons without any income.
And it was also found that 50 percent of beneficiaries have less than 100 man days of
employment, 21.67 percent of the beneficiaries have employment between 101 to 180 man days,
20.00 percent of the beneficiaries have employment between 181 to 240 man days as against
8.33 percent of the beneficiaries who have employment between 241 and above man days of
employment per annum

35
 DATA ANALYSIS

The study is conducted in Kannad Block of Aurangabad district, covering about17 villages. 115 Women
SHGs promoted byNGOs and operating in Kannad block are selected randomly. One member from each
sample SHG totaling 115 are selecteddeliberately. The study attempts to review the resource
management of SHG operating in Kannad, theirfunctioning, working,contribution, development and
improvement in one-self and group. The present study is based on primary data. The primarydata is
collected from the sample respondents by adopting the method of Interview schedules, Personal
InterviewandObservations. To elicit the required information a well structured schedule was
designed with probing questions

Table No..1: Age wise Distribution of group

Sr.no Age (years Percentag

1 25-35 43.4
2 36-46 34.7
3 47-57 13.9
4 58 & ABOVE 7.8
TOTAL 100
115 Women respondents were selected and distributed according to their age. Table No.1 reveals the
distribution of womenrespondents as per their age, in the age group of 25 years to 58 years and above. 50
respondents (43.48%) of the total were inthe age group of 25 years to 35 years. 40 respondents (34.78%)
of the total were in the age group of 36 years to 46 years. them (13.91%) were in the age group of47
years to 57 years and only 9 of them (7.83%) were in the age group of 58 yearsand above.

table No.2: Education wise Distribution of Women of SHG

Sr. No Education No of %
respondents
1 illetrate 26 22.6
2 5-10 47 40.8
3 HSC 35 21.7
4 Graduation 13 11.3
5 Post Graduation 4 3.48
115 100

Eucation plays a key role in all the sectors in today’s world. Literacy factor has also been
considered for the distributionof women of SHG. Table No.2 distributes the Women respondents
as per their education. Out of 115 Women respondents, 26respondents (22.61%) were illiterate.

36
47 respondents (40.87%) of the total lies in the range of 5thstd to 10thstd. 25 of them(21.74%) of
the total were HSC passed. 13 ofthem (11.30%) were Graduate and only 4 Women respondents
(3.48%) were

Table No. 3: Distribution of the Respondents as per their Marital Status

Sr. No. Marital status No of respondent %

1 married 88 76.5
2 divorced 8 6.9
3 widow 19 16.5
115 100

Table No.3 gives the distribution of Women respondents as per their marital status. It was found
that mostly married womenwere involved in SHG. Out of 115 Women respondents, 88
respondents(76.52%) were Married. 8 respondents (6.96%) wereDivorcee and 19 of them
(16.52%) were Widow and involved in various SHG

37
 CONCLUSION AND SUGGESTION

FINDINGS
memberFrom the study, it is found that individualmember’s contribution for saving ranges
SHGwere to the tune of Rs. 29, 520, against this loan disbursed amounted to Rs. 10, 500.

 Overall if we look at the income point of view 75 members out of the 143 members
whoare involved in Income Generating Activity falls in the range 5,000 to 7, 000 rupees.
 12 SHG’s of the total 38 sampled groups (i.e. 32%) have received a maximum loan
amount of rupees five lakhs.
 In Mamallapalli village most of the SHG’s are doing the activities of dairy and crop
production by taking the land for lease from landlords but due to the impact of inflationa
nd rise in prices for all the commodities, lease rate were also increased thus making
itdifficult for the groups to adjust with the present TFI limit of rupees 5 lakhs.
 30% of the SHG’s i.e. 11 groups out off total 38 sampled groups interviewed during the
study have availed financial assistance from the SHG federation. And all the
sampledgroups (100%) are the members of the SHG federation in their respective
villages.
 Beneficiaries were facing problems in order to graduate themselves into
microenterprise,majorly due to reasons of Lack of group cohesiveness (15.6%), Dual
responsibility(13.8%), in the field of Marketing (12.5%), Lack of entrepreneurship
(12%), Risk(11.3%), Technology (10.6%), Value chain & Awareness both (8.1%), Skill
andknowledge (4.4%) and Finance (3.8%).
 The activities taken up with the loan by the members are as follows :

a.To meet their self needs

b.Purchase of inputs for agriculture crops

c.Construction of house/Indiramma housing/Individual toilets

d.Purchase of buffalows/miltch animal.

e.Business like grocery shops, cloth shop, auto rickshaw , fruit shop, dairy,tailoring, pickle
making, used plastic bags conversion to cloth for drying/covering agriculture produce etc.

 Bapatla, Nizampatnam, Repalle the sea coast villages where SHG’s are doing
wet and dry fish procurement and marketing.
 Major activities taken up by the Self Help Group members in Guntur district are
Majorcrop production, Milch animal, pit looms, tailoring, pickle making, small grocery
shops,fruit and vegetables shops etc.

38
  Most of the activities taken up the SHG’s are those activities which are traditionally
followed from their ancestors.
 At the time of the study, training is been given by ABIRD, on the activities like
Fabric painting, soft toy making, pottery works, bouque making etc in komaripudi and
pratipaduvillages of Narasaraopeta division.
 The SHG’s haveutilized the bank loans in rotating among the members at 24 %
interestand were able to increase group savings.
 Women empowerment, not only includes the psychological and behavioral changes,
butalso the cognitive development like getting new ideas, sharing knowledge and
opinion,transformation of knowledge into responsible roles like leadership etc..
Likewiseeconomic score, the knowledge score of loan availed found that groups who
availed morelinkages with the bank (6th link groups) are high compared to the groups
who availed loanonly thrice, as they are more responsible and exposed more to group
practices and procedures of loan availement.
 All the groups interrogated are prompt in repayment of loan without default .This
isevidenced through continuous sanction of loans by bankers and over the years the
SHG’s have advanced from the first spell amount of rupees 20000 to present spell
amountincreased to rupees 5 lakhs.
 Out of the total 38 SHG’s interviewed, 31 SHG’s are been trained in orientation
programme given by banks and out of the total 175 members, only 49 members haveatten
ded the Income Generating Activity like soft toy making, fabric painting, potterymaking
and bouque making etc in komaripudi and pratipadu villages by ABIR

CONCLUSION

1. SHGs is now about 20 years old, it is observed that every third year one of the earlier SHGs
get closed down and a new one is established. Some members of the earlier SHG join the new
SHG, and the other discontinue. That is why it can be said that the process of women’s
empowerment is started; but the pace is very slow.

2. There are many good results of the business run by self help group, such as:

a) The women have started coming together to think about their problems on a scale larger than
before.

b) At some places women have begun to consider solving their problems unitedly.

39
c) The women have acquiring courage to stand before the society.

d) Their confidence level is obviously increasing.

e) They are acquiring knowledge of day-to-day worldly affairs.

f) Their decision-making ability is on increase.

g) The woman has acquired somewhat elevated status in her family.

h) Women have started to come out of their homes to take part in social activities.

i) There occurs greater participation of the women in political activities where there is a woman
Sarpanch.

j) The women, however, desire that the SHGs should continue. With these good results certain
things are there, which are not yet achieved. They area:-

a) The women still believe the same traditional thinking on issues of dowry, inter-caste marriage,
female education etc.

b) Many women have the bad habits of chewing tobacco or applying misri.

c) It is, however, observed that there is no sufficient awareness regarding women’s problems. d)
Women’s issues are equated with problems regarding roads, electricity, water and health etc.

e) The efforts to solve the problems are going on, but not on big scale.

f) It is observed that some bad elements have crept in this movement. If the institutions and their
coordinators remain vigilant, the bad elements can be kept in check.

40
SUGGESTIONS

 Raw material banks need to be established by federations/SHGs/NGOs/Rural marts at

sub -divisional level to facilitate timely supply of quality raw materials at affordable cost.
Help from
 Microfinance Innovation Fund with NABARD should be provided for establishing
rawmaterial banks.
 For about 22% of the sampled beneficiariesare involved in the Animal husbandryactivity
in Guntur district and most of themare engaged in dairy activities, thus scope fordairy is
high and Government, DRDA officials and NGO’s should facilitate these
 SHG to be motivated and support to be givento them to establish a dairy plants, collection
centers and chilling units. Milk units can beestablished by solar hybrid milk chiller which
enables food suppliers to store and preserve perishable food items such as milk, fruits and
vegetables without the need for expensivediesel-powered generators. Still furthers studies
need to be done to know the exact benefits to the SHG’s.
 SHGs should be organized into federation for collecting the products from beneficiaries
and to tag them to corporate house, wholesaler, retailer, rural Mart etc. Interlinking of
Rural Mart need to be attempted for supply chain management.
 One suggestion for better marketing is to promote the products of one SHG among
other SHG members.
 Product of one SHG should be distributed to other SHG members through federation in
the beginning, which later can be widened to all SHG members of district/State.]Thus, it
should be ensured that the product of SHGs would have wider demand and market ability
 Capacity building for micro-entrepreneurship development through interaction with
successful entrepreneurs, field visits to the successful units, organizing training on
regular interval ,identification of good NGOs for hand holding support, scotting services
by NGOs etc, would help in micro-entrepreneurship development.
 In order to make full use of the microfinance and ensure the success of micro-enterprises,
the project management should understand that all SHG members need not/cannot start a
micro-enterprise at the outset. Some, who are able to take risks , should start first
and offer wage employment to other SHG members. Entrepreneurs need to have some

41
 behavioural competencies liketaking initiative, having vision, planning, seizing
opportunities, takingrisks, making decisions, solving problems, collecting information,
perseverance, time andquality consciousness, etc.
 SHG members often shy away at the beginning but are able todevelop these
competencies over a period.
 Groups to graduate into microenterprise, members in the group who has the skills
ofentrepreneur should take the initiative to take the risks and startup the business and
the others assleeping partners should provide them with financial assistance to run
the business, few othermembers can also do the work of marketing their products. Thus,
in this way group membersshould divide their responsibility in which they are good at.
 Additionally, the SHG members must be given guidance on the opportunities available in
theirsurroundings. Let us assume that an SHG member shortlists five business
opportunities. TheSHG member may thereafter be asked to conduct a mar ket survey,
wherein the customers’needs or expectations and the competitors’ weaknesses are
mapped and looked into.
 This process helps us to further zero in on the options.
 Active intervention by district administration, professional bodies and voluntary
organisations is precondition for the successful conception of micro enterprises in terms
of skill training,designing products, providing new technology and access to marke

42
BIBLIOGRAPHY

1.APMAS SHG Federation in India (2007), A Status report, APMAS, Hyderabad, India.

2.Dasgupta, Rajaram (2001), Working and Impact of Rural Self Help Groups and Other forms of
Micro Financing”,Indian Journal of Agriculture Economics, 56 (2)

.3.Ganguli, B. M. (2013), Empowering Rural Women, A SteptowardsInclusiveGrowth,

Kurukshetra, A Journal onRural Development, 61(10) pp. 5-7.

4.Kulshrestha, R., and Gupta A. (2001), Self Help Groups: Innovations in Financing the Poor,
Kurukshetra

5Lokhande, M.A (2014), Financial inclusion initiatives in India-A review, Intercontinental

Journal of FinanceResearch Review, ISSN: 2321-0354, 2 (pp.

.6.Lokhande, M.A. (2009), Microfinance initiatives in India, Kurukshetra, Journal of Rural devel
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