University f My Of Mysore

D Department of Studies in Social Work

Manasagangothri, Mysuru - 570006

D Work
A Study on the Role of Self Help Groups in Socio Economic
Development of Women in Yaraganahalli Panchayat, Mysuru

A Major Project
Submitted in partial fulfillment of the requirements for the award of the
Master’s Degree in Social Work

Submitted by
Mr. Habibullah Ibrahimy
Reg. No. (SW118810)

Under the guidance of

Dr. Chandramouli
Assistant Professor and Chairman,
Department of Studies in Social Work,
University of Mysore,
Mysuru

September 2020
 Declaration

I, Habibullah Ibrahimy, hereby declare that this major project report entitled “A
Study on the Role of Self Help Groups in Socio economic Development of Women in
Yaraganahalli Panchayat, Mysuru”, is submitted to the Department of Studies in Social
Work, University of Mysore, in partial fulfilment for the requirements of the award of Degree
of Master of Social Work is a record of original and independent research work done by me
during the academic year 2018-2020, under the guidance of Dr. Chandramouli, Assistant
Professor and Chairman, Department of Studies in Social Work, University of Mysore,
Manasagangothri, Mysuru. I further declare that this project report in whole or part has not
been provisionally submitted for any other Degree or Diploma of this University or other
University.

Habibullah Ibrahimy
Reg. NO. SW118810

Place: Mysuru
Date:

I
 CERTIFICATE

This is to certify that the major project entitled “A Study on the Role of Self Help
Group in Socio economic Development of Women in Yaraganahalli Panchayat, Mysuru”, is a
record of original project work done by Mr. Habibullah Ibrahimy (SW118810) under my
guidance during academic year 2018-2020, in partial fulfilment for the requirements of the
award of the Degree of Master in Social Work, by the Department of Studies in Social Work,
University of Mysore. The major project has been approved as it certifies academic
requirements in respect of project work prescribed for the said degree. This is also to certify
that this project has not been submitted in part or full to any other university for any other
degree to the best of our knowledge and belief.

Dr. Chandramouli
Assistant Professor and
Chairman,
DOS in Social Work,
University of Mysore

Place: Mysuru
Date:

II
III
 ACKNOWLEDGEMENT
First and foremost, I would like to thank and honor the Almighty God for giving me
the strength to start and complete my studies.

My heartfelt thanks also extended to Dr. Chandramouli, Assistant Professor and

Chairman, my Major Project guide for his constructive criticism, suggestion and guidance
during the period of completing my Major project. He sacrificed his precious time in reading
and reviewing the draft and the final output of my work. Had it not been for his constructive
comments and cordial support and assistance, it would have been very difficult to bring this
study to the end.

My sincere gratitude goes to Dr. Shivappa R., Professor and Registrar of University of
Mysore, Dr. Joythi H.P., Assistant Professor, all the Guest Faculty members, Research
Scholars, and non-teaching staff in the Department of Studies in Social Work, University of
Mysore for their unconditional support and guidance in the pursuit of my academic
endeavour.

I extend my sincere gratitude and appreciation to Ms. Mary Lannett the Academic
Coordinator and all the staff of Organization for the Development of People (ODP), Mysuru.

I would also like to thank all the SHGs beneficiaries in Yaraganahalli panchayat,
Mysuru for their collaboration and cooperation for helping me to collect the data.

Finally, I thank all those who assisted me with ideas, comments, and support.

Thanking Everyone
Habibullah Ibrahimy

IV
 ABSTRACT

The Self Help Group (SHG) method is used by the government, NGOs and others
worldwide. Self Help Group (SHG) can act as an empowerment resource centers for women,
percolating the benefits to the society in general. Thousands of the poor and the marginalized
population in India are building their lives, their families and their society through Self Help
Groups.

The Self Help Group (SHG) development strategy is one of the efforts which is a
community owned and managed poverty alleviation programmeme designed to empower the
poor in general and the poor women in particular.

Microfinance is occupying a very strategic role in poverty alleviation and rural

development in India. Microfinance provides financial services such as micro credit, micro
savings and micro insurance to the rural poor.

In view of the fact that the SHG is an introduced development model in India, the
purpose of this study was to critically assess and evaluate its social and economic impact on
the life of the poor women. In the process of assessing the impact of SHG, seeking answer to
the research questions “What are the roles of SHGs in improving the socio economic
development of women; did involvement in SHGs improve the social acceptance of women
at the family and community level; Did participation in the SHG enhance the economic and
social capacity of poor women; and thereby the national poverty alleviation effort?”

In order to come up with an adequate reply to the questions under the study, both
quantitative and qualitative research methodologies were employed. Data gathered from
various groups of respondents were then analyzed and summarized.

Self Help Groups have been playing considerable role in participating various
trainings such as: communication skills, self-confidence, decision making skills and etc.
thanks to self-help groups, women’ living conditions have considerably ameliorated. They
started organizing themselves in small groups in order enhance their socioeconomic
conditions through the different loans either the internal loans or external ones. Internal
means through the group’s saving, the group can grant loan to its members, whereas internal
loan is the one from a bank. Any sustainable development requires women’s participation
especially in rural areas. Because they the most vulnerable in terms of financial

V
disempowerment and physical tiredness they come across in their respective places. SHG
becomes a tool through which they start to breathe at all level.

SHGs under ODP’s interventions in Yaraganahalli Panchayat of Mysore district

consisted of disempowered poor women, whom almost half of them were illiterate who
shouldered the responsibility of earning an income for their families. Thanks to its
interventions, women started new life style by self-sufficiency. Likewise, social work is a
profession that is concerned in helping underprivileged members of the society, enhancing
the well-being of people within their social context and addressing the well-being of society
as a whole. Such a resemblance of the two services calls for the close working relationship
between them. Thus, Self Help Groups, as an empowerment approach, need a close
collaboration with social work service provision organizations for the better benefit of their
clients.

Keywords: Self Help Group (SHG), Empowerment, Socio-economic Development,

Microfinance, Poverty alleviation.

VI
 CHAPTERIZATION

PAGE
CHAPTERS CONTENTS
NO

I INTRODUCTION 1 – 29

II LITERATURE REVIEW 30 – 54

III RESEARCH METHODOLOGY 56 – 63

IV DATA ANALYSIS AND INTERPRETATIONS 64 – 100

FINDINGS, SUGGESTIONS AND
V 101 – 111
CONCLUSION

BIBLIOGRAPHY 112 – 116

APPENDIX 117 – 124

VII
 TABLE OF CONTENTS

Page
SI.NO. Titles / Statements
No.

Declaration I
Certificate II
Certificate of Agency III
Acknowledgement IV
Abstract V
List of Chapters / Chapterization VII
Table of Contents VIII
List of Tables XI
List of Figures XII

CHAPTER I
INTRODUCTION
1.1 Background of the Study 2
1.2 Self Help Groups (SHGs) 5
1.3 Different SHG Models of Linkage 8
1.4 Features of Self Help Groups (SHGs) 9
1.5 Need of Self Help Groups (SHGs): 10
1.6 Microfinance and its Scope in Self Help Groups 10
1.7 Significance of the Study 11
1.8 Area of the Study 12
1.9 Operational Definitions 13
Organization for the Development of People (ODP) and Women
1.10 14
Empowerment
1.10.1 ODP Background 15
1.10.2 Key Focus Areas 16
1.10.3 Women Empowerment Programme 17
1.10.4 Structure of Mahilodaya 18
1.10.5 A few Major Achievement as per the 5 Sub Committees 26
1.10.6 Some Major Issues taken by the Group 28
1.10.7 Linkage Development 29

VIII
 CHAPTER II
LITERATURE REVIEW
2.1 The Concept of Self Help Groups (SHGs)
2.2 Principles of SHGs
2.3 The Importance of SHGs
2.4 Impact of SHGs on Micro-financing
2.4.1 Micro Finance Concepts
2.4.2 Advantage of Micro financing
2.4.3 Disadvantage of Micro financing
2.5 Self Help Groups; Tools for Poverty Alleviation
2.6 Self Help Groups and Women Empowerment
2.6.1 Political Empowerment and Contribution of SHGs
2.6.2 Economic Empowerment and Contribution of SHGs
2.6.3 Social Empowerment and Contribution of SHGs
2.7 Entrepreneurship Opportunities for Women
2.7.1 The Need for Women Entrepreneurs in India
2.7.2 Rural Women Empowerment and Entrepreneurship Development
2.8 Challenges Faced by Self Help Groups
CHAPTER III
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Statement of the Problem
3.3 Research Objectives
3.4 Research Questions
3.5 Research Design
3.6 Universe
3.7 Sampling Technique and Sample Size
3.8 Tools of Used for Data Collection
3.8.1 Data Source (Primary and Secondary Data)
3.9 Method of Data Collection
3.9.1 Research Instrument
3.9.2 Respondents

IX
3.9.3 Questionnaire
3.10 Scope of the Study
3.11 Limitations of the Study
3.12 Chapterization of the Study
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
4 Data Analysis and Interpretation 65 – 100

CHAPTER V
FINDINGS, SUGGESTATIONS AND CONCLUSION
5.1 Introduction
5.2 Findings
5.2.1 Nature of Self Help Groups Studied in Yaraganahalli, Mysuru
5.2.2 Social and Economic Impacts of SHGs
5.3 Suggestions
5.3.1 Providing Education and Awareness / Capacity Building
5.3.2 Providing Market Infrastructure and Assessment
5.3.3 Fight against Negative Social Customs and Evils
5.3.4 Attendance
5.4 Conclusion

BIBLIOGRAPHY 113

APPENDIX
118
Questionnaire

List of Tables
Tables
Tables Page No
NO
4.1 Age Group 65
4.2 Educational level 66

X
 4.3 Socio economic profile/ Caste 67
4.4 Marital status 68
4.5 Family Size 70
4.6 Occupation 71
4.7 Join in SHG (Years) 72
4.8 How did you know SHG? 73
4.9 Did SHG improve your lifestyle? 75
4.10 Do you suggest SHG to others? 76
4.11 Do you participate regularly in SHG meeting? 77
4.12 Who take the decision in SHG meeting? 78
4.13 Who is the head of family? 79
4.14 Influence in decision making 80
4.15 Did participation in SHG increase your awareness and knowledge? 81
Did SHG enable you to offer good quality of education to your
4.16 82
children?
4.17 Did SHG improve the health status of your family members? 83
Has participation in SHG increase your mobility and participation
4.18 84
in Social and Development Activities?
4.19 Did you come under Below Poverty Line (PBL)? 85
4.20 Do you have Agriculture land? 86
4.21 Are you living in your own house? 87
After being member of SHG what types of benefits you perceive
4.22 88
for yourself?
Being a member of SHG has reduced your income dependency
4.23 89
ratio (on husbands) at the household level?
Being a SHG member has enabled you to access to your favorite
4.24 90
utensils and furniture?
4.25 How much do you save monthly in SHG? 91
4.26 What is the main purpose of monthly saving? 93
4.27 How much was your monthly income before joining SHG? 94
4.28 How much is your monthly income after joining SHG? 95
4.29 Did you ask loan from SHG? 96
4.30 What is the purpose of getting loan from SHG? 97
4.31 Did you reimburse your loan on time? 98
4.32 Do you think that SHG lead to sustainability? 99
Do you participate in Gram Sabha or other meeting in Gram
4.33 100
Panchayat?

List of Figures
Figures
Figures Page No
NO
4.1 Age Group 65
4.2 Educational level 67
4.3 Socio economic profile/ Caste 68
4.4 Marital status 69
4.5 Family Size 70

XI
 4.6 Occupation 71
4.7 Join in SHG (Years) 72
4.8 How did you know SHG? 74
4.9 Did SHG improve your lifestyle? 75
4.10 Do you suggest SHG to others? 76
4.11 Do you participate regularly in SHG meeting? 77
4.12 Who take the decision in SHG meeting? 78
4.13 Who is the head of family? 79
4.14 Influence in decision making 80
4.15 Did participation in SHG increase your awareness and knowledge? 81
Did SHG enable you to offer good quality of education to your
4.16 82
children?
4.17 Did SHG improve the health status of your family members? 83
Has participation in SHG increase your mobility and participation in
4.18 85
Social and Development Activities?
4.19 Did you come under Below Poverty Line (PBL)? 86
4.20 Do you have Agriculture land? 87
4.21 Are you living in your own house? 88
After being member of SHG what types of benefits you perceive for
4.22 89
yourself?
Being a member of SHG has reduced your income dependency ratio
4.23 90
(on husbands) at the household level?
Being a SHG member has enabled you to access to your favorite
4.24 91
utensils and furniture?
4.25 How much do you save monthly in SHG? 92
4.26 What is the main purpose of monthly saving? 93
4.27 How much was your monthly income before joining SHG? 94
4.28 How much is your monthly income after joining SHG? 95
4.29 Did you ask loan from SHG? 96
4.30 What is the purpose of getting loan from SHG? 97
4.31 Did you reimburse your loan on time? 98
4.32 Do you think that SHG lead to sustainability? 99
Do you participate in Gram Sabha or other meeting in Gram
4.33 100
Panchayat?

XII
 CHAPTER - I
INTRODUCTION

1
 INTRODUCTION
1.1 Background of the study

Self Help Group (SHG) is a small group of rural or urban poor, who have voluntarily
come forward to form a group for improvement of the social and economic status of the
members. It can be formal (registered) or informal. Members of SHG agree to save regularly
and contribute to a common fund. The members agree to use this common fund and such
other funds (like granting loans from banks), which they may receive as a group, to give
small loans to needy members as per the decision of the group.

The broad goals of a Self Help Group are to bring about personal and socioeconomic change
for its members and society. Self Help Groups (SHGs) are becoming one of the important
means for the empowerment of poor women in almost all the developing countries including
India. Hence, poverty remains a chronic condition for almost more than 35% of India’s rural
population. Particularly poverty is very deep among the members of scheduled castes, tribes
and women in the country’s rural regions. In India more rural poverty prevails majority
among Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Orissa, Chhattisgarh and Karnataka
states. A major cause of poverty among India’s rural people, both individuals and
communities, is lack of access to productive assets and financial resources. Further, high
level of illiteracy, inadequate health care and extremely limited access to social services are
common among poor rural people.

Women in general are the most disadvantaged people in the rural regions of India. Even
though women largely participate in economic activities, mainly agriculture, their work is not
considered economic. Primarily poverty has lot of disadvantages on this group.

There are few ways to eradicate rural poverty in India. Mainly providing economic support to
the rural people, women in particular, has been proved very fruitful to reduce the poverty in
rural India. Providing economic support or loans to the rural women help them to empower,
not only economically but also socially, further this strengthens the whole society in general.
The discrimination of women on gender basis is evidently found almost everywhere in every
stream. Particularly in rural India not only ordinary men but also governmental policies (such
as credit schemes) had neglected the capacity of holding money by women.

2
Today, In India, Self Help Groups represent a unique approach to financial intermediation.
This combines access to low-cost financial services with a process of self-management and
development for SHG members. SHGs are formed and supported usually by NGOs or
(increasingly) by Government agencies. Linked not only to banks but also to wider
development programmes, SHGs are seen to confer many benefits, both economically and
socially. SHGs enable women to grow their savings and to access the credit which banks are
increasingly willing to lend. SHGs can also be community platforms from which women
become active in village affairs, stand for local election or take action to address social.

In India before 1990s, credit schemes for rural women were largely negligible. But in recent
years the most significantly emerging system called Self Help Groups (SHGs) is a major
breakthrough in improving lives of womenfolk and alleviating rural poverty. The concept of
women’s credit was born on the insistence by women oriented studies which highlighted the
discrimination and struggle the women had in accessing credit. Earlier there were certain
misconceptions about the rural poor people that they need loan at subsidized rates of interest
on soft terms, and they neither have education nor skills, capacity to save and therefore they
are not bankable. However, the significant success of several SHGs show that the rural poor
indeed efficient to manage credit and finance. Hence the present study is placed in this
context to examine the relationship between SHGs and socio-economic development of rural
community in general and women in particular of Yaraganahalli Panchayat, Mysore district
and also to suggest suitable measures for the effective improvement of functioning of SHGs
in improving the socio-economic conditions of the rural people.

One of the most essential features of development is the transformation of community, which
embraces social progress from traditional relations, social norms, and traditional ways of
health care, education and methods of production to more improved ones. Changes associated
with development provide communities as well as individuals with more control and
influence over their own destiny. Development enriches the lives of individuals by widening
the horizons of choices and freedoms by reducing their sense of isolation. Hence, the
development strategy that is planned to bring sustainable affirmative change into effect must
be aimed at facilitating the transformation of society by identifying the potential catalysts and
barriers to change. Experiences from various development attempts that have been made to
minimize the effect of poverty so far has demonstrated that there are efforts to change the
miserable life condition of many poor people in many parts of the globe but it is not easy to
occur. In the so-called poor nations of the world, many development strategies experimented

3
through various development agents/organizations, have not yielded the desired results.
However, it is evident that few countries have benefited from such development efforts and
have succeeded in rapid economic growth and poverty alleviation.

To quote of Jawaharlal Nehru “You can tell the condition of a nation by looking at the status
of its women”.

The main reason for considerable percentage of population below the poverty line and India
still remaining a developing country with lot of problems is due to the human resources not
being used at the optimum level. The first Prime Minister of Independent India, Pandit
Jawaharlal Nehru, has rightly said that, “the women of India should play a vital role in
building strong nation”. Further, the Father of the Nation, Mahatma Gandhi has said, “the
development of every village is nothing but the development of nation”. It is well known fact
that the growth of women in turn develops her family, village and the nation in general. Since
women constitute 48.46% of total population in India as per census 2011, it is very essential
to employ this resource optimally in the interest of the nation in general and her family in
particular. In the past, women were not ready to undertake any work, job and business due to
shyness, fear and male dominance in the society. However, of late, Indian women have come
out of the four walls of the kitchen and shown their willingness to take up entrepreneurial
activities. Women of today want more economic freedom. Further, many women have proved
that they are more efficient than men in contributing to the growth of the economy. Just as we
need two hands for the smooth functioning of our work, similarly, both men and women
should involve in productive activities to build a strong nation. To mitigate the problem of
unemployment and underemployment, the role of women should not only be confined to
generate employment, but also to provide employment to others. They have to undertake
entrepreneurial activities to create additional wealth for the nation and to solve the problem of
unemployment and poverty. Entrepreneurship development among women, particularly
among rural women, will strengthen the rural and national economy.

Empowerment of women has emerged as an important issue in recent times. The economic
empowerment of women is being regarded these days as a Sine qua non of progress for a
country; hence, the issue of economic empowerment of women is of paramount importance
to political thinkers, social scientists and reformers. The emergence of women entrepreneurs
and their contribution to the national economy is quite visible in India. The number of women
entrepreneurs has grown over a period of time, especially in the 1990s. Women entrepreneurs

4
need to be lauded for their increased utilization of modern technology, increased investments,
finding a niche in the export market, creating a sizeable employment for others, and setting
the trend for other women entrepreneurs in the organized sector. While women entrepreneurs
have demonstrated their potential, the fact remains that they are capable of contributing much
more than what they already are.

1.2 Self Help Groups (SHGs)

Sadhana Thakur (2012) defined that Self Help Group (SHG) is a group of rural poor who
have volunteered to organize themselves into a group for eradication of poverty of the
members. They are agree to save regularly and convert their savings into a common fund
known as the group corpus.

Self Help Group (SHG) is a method of organizing the poor people and the marginalized to
come together to solve their individual problem. The SHG method is used by the government,
NGOs and others worldwide. The poor collect their savings and save it in banks. In return
they receive easy access to loans with a small rate of interest to start their micro unit
enterprise. Thousands of the poor and the marginalized population in India are building their
lives, their families and their society through Self Help Groups. Self Help Group (SHG)-
Bank Linkage Programme is emerging as a cost effective mechanism for providing financial
services to the “Unreached Poor” which has been successful not only in meeting financial
needs of the rural poor women but also strengthen collective self-help capacities of the
poor ,leading to their empowerment.

Self Help Group is defined as a “self-governed, peer controlled information group of people
with similar socio-economic background and having a desire to collectively perform common
purpose.” Today the SHG movement is increasingly accepted as an innovation in the field of
rural credit in many developing countries including India to help the rural poor. It is
considered as a vehicle to reach the disadvantaged and marginalized section of the people,
which in the normal course cannot avail of credit facility from the formal financial
institutions.

Abdul (2007) analyzed that women and SHGs in many parts of the country have achieved
success in bringing the women to the main stream of decision making. The SHG in India has
become a source of inspiration for women. Welfare formation of SHG is a viable alternative
to achieve the objectives of rural development and to get community participation in all rural

5
development programmes. SHG is also a viable organized set up to disburse micro credit to
the rural women and encouraging them together into entrepreneurial activities. To alleviate
the poverty and to empower the women, the micro-finance, Self Help Groups (SHGs) and
credit management groups have also started in India.

Self Help Group (SHG) is a small voluntary association to form a group. It is informal and
homogenous group of not more than twenty members. SHGs consist of maximum 20
members because any group having more than 20 members has to be registered under Indian
legal system.

That is why, it is recommended to be informal to keep them away from bureaucracy,

corruption, unnecessary administrative expenditure and profit motive. In fact, it is a home
grown model for poverty reduction which simultaneously works to empower and shape the
lives of its members in a better way. Groups are expected to be homogenous so that the
members do not have conflicting interest and all the members can participate freely without
any fear. Self Help Groups (SHGs) movement has triggered off a silent revolution in the rural
credit delivery system in India. SHGs have proved as an effective medium for delivering
credit to rural poor for their socio-economic development.

Socio-economic Development through Self Help Groups has become a medium of making
formal banking services to the people from remote areas. Self Help Groups (SHGs) are an
organized group to help each other financially, socially and emotionally. Every person can
contribute for the development of his or her country if there are some amenities or
opportunities which guide the individual to develop his or her capability. Self Help Groups
can provide one of these opportunities that empower individuals to coup up with their
economic and social challenges so as to help themselves and contribute for the development
of their country.

Poverty and unemployment are the major problems of any underdeveloped and developing
countries, to which India is not an exception. A large number of anti-poverty and self-
employment generation programmes have been introduced from time to time through
successive plans especially for alleviating poverty and minimizing unemployment in rural
areas.

SHG formation is a social mobilization process which enables the poor to build their own
organization in which they participate freely, fully and directly and take decision on all issues
concerning poverty eradication, employment creation and income generation.

6
The idea of SHG is bringing perceptible change in different dimension of the society’s life in
most countries of the world.

The purpose of the groups is enabling the group members to come together and combine their
resource in order to access low-cost financial service with a process of self-management and
development. They can be formed and organized by authorized institutions or sometimes they
can be formed by the common interest of individuals living in the same life condition. The
group members save a certain money together for some period of time that can be used as
loan so that they can engage in different small business activities to improve their economic
life and living conditions. Beyond this they help each other during stiff problems by
establishing strong social network among the group members. Nevertheless, the vital purpose
of the SHG programme is to pave the way to access credit in order to help the members to
fight against poverty.

According to United Nation Industrial Development Organization, in 2003 women consist of

three-fifths of the world’s population. Their poverty level is worse than that of men as clear
gender disparities in education, employment opportunities and decision making power exists.
The need of women empowerment is a requirement for sustainable development, pro poor
growth and the achievement of all Millennium Development Goals. When women
empowerment is put into practices it will allow women to have more equitable access to
assets and services which in turn strengthen women’s rights, increase agricultural
productivity, reduce hunger and promote growth.

Most third world countries are developing various approaches to enhance their economic
growth. The most common method is the bottom up approach where the community develops
their own approach to empower themselves. In India SHG approach has been tapped by the
government through the National Bank for Agriculture and Rural Development programme
as it has strong grass root network.

Self Help Group (SHG) is usually formed with the ultimate goal of enhancing its members‟
economic empowerment process through recognizing and building its members capabilities.

The Self Help Group (SHG) is a development approach aimed at addressing socio-
economically marginalized and destitute groups of the community. This approach is based on
two basic principles. Every human being has tremendous, God given potential. This potential
can be unleashed when conducive environment is created and as an individual the poor are

7
voiceless, powerless and vulnerable. By bringing them together as a homogenous collective
aware of their rights, they have tremendous strength.

Self Help Group agrees to save on a regular basis and convert their savings into a common
fund known as ‘group corpuses. The model has grown at a very rapid speed and has gained
attention as a very innovative way of delivering microfinance services to the poor and the
needy people, who find it extremely difficult to reach the and gain access to formal banking
services. By integrating their personal savings into a single deposit, SHG minimizes the SHG
bank’s transaction costs and create an attractive amount of deposits. Through SHG, banks can
provide formal financial services to small rural depositors while paying them a market
interest rate. SHG is started by nonprofit organizations and also by Government organizations
that generally have broad poverty reduction agendas. SHG is seen as instruments for a variety
of goals, including giving control to women, increasing management ability among adverse
people, increasing school enrollments, and improving diet and the use of family planning
measures. SHG proves to be effective tools for poverty reductions and Capacity building of
rural natives. It provides women an opportunity to become socially and economically self-
sufficient. SHG provides them freedom express their views, feelings about the various
societal and political concerns. SHG also helps to create knowledge among its members
about social evils, the rights of women, about the laws and regulations of government in
general. The empowerment of women is vital for the economic development of a nation and
also plays a key role in building a base for societal change. To improve the socio-economic
conditions of the population of any country, it has become a prerequisite to empower women
by enhancing and making certain their role to the optimal level.

1.3 Different SHG Models of Linkage

There are 3 models of credit linkage of SHGs with banks that exist in India:
MODEL I: SHGs formed and Financed by Banks
Under this model, banks themselves act as Self Help Promoting Institutions i.e. engaged in
forming and nurturing the groups, opening their savings accounts and providing them bank
loans. Group members act as collateral security. In this model the credit is generally made
available to the group and members to be financed are identified by the group itself, which
takes the responsibility of loan repayment.

Members SHG Bank

8
Model II: SHGs Formed by NGOs and Formal Agencies, but Directly Financed by
Banks

Members SHG Bank

Credit rated as decided by SHG

NGO

Promotion, Training and Help in

Linkage with the Bank

MODEL III: SGHs Financed by Banks using NGOs and other Agencies as Financial
Intermediaries
In this model, NGOs take on the dual role of facilitators and financial intermediaries. They
help in formation of SHGs, nurturing them, train them in thrift and credit management.
Eventually the NGOs approach banks for bulk loan assistance for on-lending to these SHGs.

Members SHG NGO Bank

1.4 Features of Self Help Groups (SHGs)

a. SHGs are well accepted and established by the government or NGOs.
b. Self Help Group is a group of people from the same socio-economic background up to
20 members.
c. SHGs are promoted by Government agencies or NGOs with the aim of solving the
common problems of group members either financial or social through mutual help.
d. They can open accounts in the bank in its own name, receive government grants and
funds for various expansion activities.
e. They perform various activities as social intermediaries and often involved in
numerous social activities.
f. They keep their own books of accounts. It is a structured body, including electives,
Group President, Secretary, and Treasurer.
9
 g. They have the self-governing body. SHGs activate small saving and rotate it in a
group.

1.5 Need of Self Help Groups (SHGs)

The rural poor are incapacitated due to various reasons, because most of them are socially
backward, illiterate, with low motivation and poor economic base. Individually, a poor man is
not only weak in socioeconomic term but also lacks access to the knowledge and information
which are the most important components of today’s development process. However, in a
group, they are empowered to overcome many of these shortcomings. Hence, the role of
SHGs is highly essential which in specific terms covers the following as under:
a. To mobilize the resources of the individual members for their collective economic
development and uplifting the living conditions of the poor.
b. To create a habit of savings and utilization of local resources in form of utilizing
individual skills for group interest.
c. To create awareness about rights that help in financial assistance.
d. To identify problems, analyzing and finding solutions in the group.
e. To act as a media for socio-economic development of the village.
f. To develop linkages with institutions of NGOs.
g. To help in recovery of loans.
h. To gain mutual understanding, develop trust and self-confidence.
i. To build up teamwork.
j. To develop leadership qualities.
k. To use as an effective delivery channel for rural credit.

1.6 Microfinance and its Scope in Self Help Groups

Microfinance is occupying a very strategic role in poverty alleviation and rural development
in India. Microfinance provides financial services such as micro credit, micro savings and
micro insurance to the rural poor. In the recent past it has become one of the most promising
vehicles to achieve the objective of poverty alleviation and empowerment of rural women.
Microfinance strategy in the form of Self Help Group (SHG) scheme as a part of formal
credit delivery system is giving lot of freedom to Non-Government Organizations (NGOs) for
setting up SHGs based on various models. Microfinance and Microcredit are interrelated
concept. Microcredit gives more importance on loans while Microfinance includes support

10
services where channels for thrift, market assistance, technical assistance, capacity building,
social and cultural programmes are opened.

Microcredit is the extension of very small loans (microloans) to poor borrowers who typically
lack collateral, steady employment and a verifiable credit history. It is designed to spur
entrepreneurship, increase incomes, alleviate poverty and often also to empower women.
Microcredit is a part of microfinance, which is the provision of a wider range of financial
services, in particular savings, to the poor. Micro-credit financing system uses the social trust
as the collateral. Although there are different micro-credit financing models, the borrowers in
the pioneering models are usually members of small groups. Loans are given to individuals,
but an entire group is responsible for the repayment. Hence, the borrower who does not fulfil
his commitment to repay back will lose his/her social capital. Today, there are millions of
poor people around the world who turn to be entrepreneurs through the micro-credit sector.

Although micro-credit financing is considered as one of the most powerful tools for
combating poverty, the sector still faces several serious problems. Despite high repayment
rates, the cost of operating micro-credit financial institutions is much higher than their
traditional commercial counterparts. These institutions are usually charge excessively high
interest rates to cover the high administrative costs of the micro-loans they offer to the poor
people. This reality creates a tension between sustainability of the micro-credit sector and the
outreach. It also makes it a challenge to regulate micro-finance institutions.

Moser (1989) has pointed which one of the most important goals of the development
programmes and especially of micro finance programmes is that of the empowerment of
women. Micro finance programmes like SHGs in India have been increasingly promoted on
account of their positive economic impact on the one hand and their role in the empowerment
of women on the other hand.

The SHGs can be built on social capital of the local community especially women to carry
out thrift and credit activities to initiate micro-income generating activities for a sustainable
livelihood.

1.7 Significance of the Study

The result of this study is useful in adding to the existing body of knowledge and provides a
source of reference to the other studies. This study is also used for future academic

11
researchers to be able to understand the roles and impact of Self Help Groups on socio
economic development of women and factors that determine women empowerment.

It highlighted the need for the poverty reduction initiatives to target beyond increasing
household income and reducing poverty and seek the socio economic growth of women.

1.8 Area of the Study

Yaraganahalli Panchayath (Village), Mysuru:
Yaraganahalli is a small Village/hamlet (locality) in Tirumakudal-narsipur Taluk in Mysore
District of Karnataka State, India. It comes under Yaraganahalli Panchayath. It belongs to
Mysore Division. It is located 34 KM towards East from District headquarters Mysore. 125
KM from State capital Bangalore. Yaraganahalli Pin code is 570024 and postal head office is
Mysore Fort.
Yaraganahalli is surrounded by Malvalli Taluk towards East, Shrirangapattana Taluk towards
west, Yelandur Taluk towards South, Mysore Taluk towards west. Malavalli, Mandya,
Nanjangud, Shrirangapattana are the nearby Cities to Yaraganahalli.

Yaraganahalli Local Language is Kannada.

There are four (4) Schools, six (6) Healthcare center and Pharmacy and two (2) Park in
Yaraganahalli.

 Population
According to 2011 Census details of Yaraganahalli Village Total population is 2150 and
number of houses are 529. Female Population is 49.5%. Village literacy rate is 50.0% and the
Female Literacy rate is 22.7%.

Census Parameter Census Data

Total Population 2150
Total No of Houses 529
Female Population % 49.5 % ( 1064)
Total Literacy rate % 50.0 % ( 1075)
Female Literacy rate 22.7 % ( 489)
Scheduled Tribes Population % 0.0 % ( 0)
Scheduled Caste Population % 42.9 % ( 922)
Working Population % 39.5 %

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 Child(0 -6) Population by 2011 224
Girl Child(0 -6) Population % by 2011 48.2 % ( 108)
 Politics in Yaraganahalli
Bharatiya Janata Party (BJP), Janata Dal (Secular) JD(S), Indian National Congress (INC) are
the major political parties in this area.

 Polling Stations /Booths near Yaraganahalli

1. Government higher (Kannada) Primary School (A.G. Block ) Mysore 3rd Infantry N R
Mohalla
2. Industrial Training Educational Institute Back Side Room Bademakhan Mysore
3. Industrial Training Institute Iti Reading Room Bademakhan B.N. Road Mysore
4. Govt. Primary Boys Giriyabovipalya T.N. Pura Road Room No. 4 Mysore
5. Govt. Urdu Girls Lower Primary School New Ediga Corpn Building Room No 2 B.T.
Mill Road Mysore.

1.9 Operational Definitions

 Self Help Group

A group of ten to twenty destitute people who are organized to change their economic, social
and political life and to help each other during different problems financially, by saving some
amount of many for both economic advancement and for accidental problems and
emotionally, through their strong social bond among the group members.

 Women Empowerment
Enabling women to use their natural gift, talent and potential in order to coup up with their
economic, social, spiritual and political challenges.

 Poor women
Economically destitute women who are challenged to fulfill at least the basic life necessities
such as cloth, shelter, enough food and pure water.

 Microfinance

13
Microfinance is a type of banking service that is provided to poor people (Women) and
unemployed or low-income individuals or groups who would otherwise have no other means
of gaining financial services.

 Social Development
Social Development is a mechanism to support women access to microfinance and change in
decision making process, participation in social organizations and increased awareness about
women's role.

 Economic Development
Economic development is the provision of loans for women through microfinance to increase
their income generating activities, and bring positive changes in their household lives.

1.10 Organization for the Development of People (ODP) and Women Empowerment

1.10.1 ODP Background

The Organization for the development of people (ODP) is the Mysore diocesan social
services society, which was registered under the Karnataka Societies Registration Act on 04-
0-984. ODP is a voluntary, non-profit organization working for the integrated development of
the socio-economically disadvantaged, under privileged and marginalized sections of society
and aiming to enable community based peoples groups to become self-managed and self-
reliant. The working area of ODP comprises of the 4 districts of Mysore, Mandya, Kodagu
and Chamrajanagar, covering an area of 21051 Sq.kms.

 Vision
A society of Love, Peace & Justice.

 Mission
Empowering the marginalized to have legitimate rights along with change in unhealthy
attitude and value systems through a process of capacity building, networking and right based
action”.

 History of ODP’s Programmes

In the beginning, ODP had only 4 major programmes:

14
 a. Food Aid Schemes of CRS,
b. Adult Education Programmeme of the Government,
c. Non Formal Education Programmeme of Andheri Hilfe, and
d. Drinking Water Schemes of B.H. Misereor.

Over the years, based on emerging needs of the people and the experience of staff, the two
major TRUST AREAS of all ODP’s development interventions are – Women
Empowerment & Natural Resource Management for livelihood security. All the other
programmes of ODP are support programmes to these 2 major trust areas, like – capacity
building training, skill development training, HIV / AIDS awareness, education / family
sponsorship, rehabilitation of the handicapped, low cost housing, alternate renewable energy,
etc.

The Primary Strengths of ODP are:

a) Community Based Organization, i.e., The ODP men and women groups at different
levels and federations, i.e. Mahilodaya Women’s Federation and GVSSMO (farmers’
Federation).
b) The ODP Staffs – with their capabilities and commitment, many of who have been
with the organization for more than 10 to 12 years.

ODP’s role in the development process is that of catalyst, who will animate and motivate
people to:
a) Analyze their situation
b) Discover their capabilities and potential
c) Identify root problems which are detrimental to their growth and development
d) Enable them to unite and join together to collectively discuss and solve problems and
issues
e) Make their own rational decisions which are suited to the local situation and act
accordingly for a better civil society.

 ODP’s Evolution as a Development Organization

Over the 30 years there has been a lot of reflection about the response to social development
and different development approaches have been tried out, i.e.

a) The Charity, Relief and Welfare Approach

b) The Change Structure Approach

15
 c) The Self – Help Approach
d) The People’s Movement Approach
e) The Right Based Approach

Today ODP works with a Right Based Approach – with emphasis on empowering people and
making them knowledgeable about their rights and duties towards – each other / local
community / state / country so that they are actively involved in their growth and
development by mobilizing and utilizing the schemes and facilities available to them.

The poor in this process become subjects of development by shaping a bright future for
themselves.

 Working Areas

4 Districts
1. Mysore 2. Mandya 3. Kadagu 4. Chamrajanagar

20 Taluks
Mysore Mandya Madekeri Chamrajanagar
Nanjangud Maddur Virajpet Yelandur
T Narasipura Sriangapatna Somwarpet Gundlupet
Hunsur Pandavapura Kollegal
H D Kote K R Pet
K R Nagar Malavalli
Periapatna

210 Gram Panchayats/ 4 Municipalities

500 villages& Towns/ Slums

60 Panchayats 38 Panchayats 41 Panchayats 71 Panchayats

128 Villages 60 Villages 95 Villages 217 Villages
43 Towns / Slums 8 Towns / Slums 37 Towns / Slums 7 Town / Slums

1.10.2 Key Focus Areas

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 a) Women empowerment
b) Livelihood enhancement programme
c) Natural resource management
d) Good governance
e) Capacity building
f) Health and sanitation programmes
g) Academics

1.10.3 Women Empowerment Programmeme

Since centuries, women in India have had a secondary status in society and family in
comparison to men. A woman has to play the role of a good daughter, daughter in-law, wife,
mother and bread earner. In return, a woman has mostly been cornered and dominated by her
family / husband / in-laws, and lives under their control, listening to them and compromising
with their every wish. She is not treated equally in society and rarely allowed to voice her
opinion.

 Programme Growth
ODP initiated its Women Empowerment Programme (WEP) in 1984, to try and change the
above situation. With the help of food aid and the mother and child health education
programme supported by CRS, women started coming together and discussing their mutual
problems and social issues.

This provided ODP with a forum to impart non formal education to women. Through
constant motivation and animation, women started forming groups and more importantly
started finding solutions to the small problems and social issues, which were being discussed
by them.

When the women’s groups started becoming more united and strong, the concept of group
(sangha) formation came into being. The groups began meeting every month and provided a
forum for women to discuss problems / issues affecting their day to day life and finding
collective / mutual solutions to them. Women also started saving in a regular and systematic
manner, so that they could develop themselves economically.

Later, the groups were made into small and manageable Self Help Groups and the
programme focus expanded to include aspects of – organizing, savings, leadership, good
local governance, environment, health linkage building, tackling collective issues / problems,

17
etc. so that there was a more integrated and holistic approach; and recognition and visibility
of women became more in the family and the community.

With organization, women soon realized their strength in unity. They found that though
individual groups/ SHGs were strong, if all the groups got together and formed a larger
movement with more numbers, they would have much more power, especially when dealing
with government agencies.

This led to the formation of groups at different levels (Block / Taluk / District) and the apex
women’s federation – Mahilodaya.

In 1988 there were about 30 SHGs/ sanghas (groups). Today, ODP’s have 2200 Self Help
Groups with nearly 40,000 women members.

1.10.4 Structure of Mahilodaya

Self Help
Mahilodaya
District Taluk Central Groups
Federation
Federations Federations Committees 2200
Registered as a
5 25 203 With nearly
Society
4000 members

Functions of Groups at Different levels:

i. Self Help Groups (SHGs)

These are small groups in villages – each group having 15 to 20 members and 5 committees
for their effective functioning. They meet twice a month – once to discuss financial matters
and another time to discuss issues / problems. Each group has 3 to 5 office bearers and every
member is part of a committee. The SHG’s deal with village level issues, promote women for
local leadership, collect and revolve savings for immediate needs and are members of the
Mahilodaya federation.

 5 Sub Committees
In order to enable and encourage more integrated development of women, the concept of 5
sub-committees was created. The concept of sub-committees motivates women to become
involved in important areas of society.

a) Leadership and organization

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 b) Education
c) Health
d) Environment
e) Finance
1) Leadership and Organization Committee
Active involvement of women in decision making is essential for the growth and
development of a community as well as the entire nation. Through assuming leadership
positions, women are act as agents of change in promotion of their own rights, solving of
social issues and bring about advancement of the society.

Empowering women to gain confidence and become leaders in their communities as well as
in wider national scale is one the key focus areas of the ODP women empowerment
programme.

ODP has encouraged women to become active leaders and participate in finding solutions to
their problems through various activities and projects.

Due to leadership and organization sub-committee every SHG has 7-8 leaders in creation of 5
sub-committees as each committee has 1-2 leaders. The number of women with local political
position, the women representatives in ward sabhas and gram sabhas has increased and may
serious issues have been take up by women with protests, processions, poster slogans and
submissions of memoranda to the concerned officers.

Following Issues have been addressed

The Anti-Arrack Movement, which led to a nationwide government ban on the arrack
liquor. The movement formed in response to widespread misuse of arrack liquor, which
caused many men to become alcoholic and aggressive towards their wives and children in
their drunk state.

The Movement against Online Lottery System, which led to banning of the system that
had allowed many players to waste the money needed for the survival of their family.

Dowry Harassment and Domestic Violence, where women were beaten, starved, burnt and
murdered. Legal aid has been provided to those affected and a minimum of 20-25 cases are
handled yearly.

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The Kavery Water Issues for Non-release of Water from Karnataka to Tamil Nadu –
Jathas, which was taken up with protests by stopping trains.
Communal Clashes between Hindus and Muslims – especially in Mysore slum, where at
least 300 families have been affected and reached by peace and harmony campaign and legal
counseling when needed.

Proper Implementation of Panchayat Raj Act – where women representatives elected into
grama panchayats will be enabled to voice their true opinions and make decisions
independently. Even though women are elected into the grama panchayats, as a constitutional
requirement, they were not the real decision makers; but rather decisions were made by their
husbands and other male members in the panchayats.

Various other Issues such as child marriage issues, sexual assaults on women and children,
improper actions in government hospitals in Mandya and Mysore, and price hike on food
commodities and petrol have been addressed as well.

To quote Sheryl Sndberg “we need women at all levels, including the top, to change the
dynamic, reshape the conversation, to make sure women’s voices are heard and heeded, not
overlooked and ignored”.

2) Education Committee
Literacy and education are key focus in development of individuals and communities as they
enable community members to gain better jobs and place in the society. However, the village
school facilities are often lacking, functioning of the schools is sometimes disrupted and
children from poor families may be discouraged from attending school as they have no choice
but to help their families with work.

Toward improvement of the situation of the women and their families, as well as the whole
community.

The Members of SHG Education Committee

a. Educate their children of any gender at least till 12 th standard, as all members of
SHGs.
b. Become members of the school development monitoring committee (SDMC) of the
village.

20
 c. Ensure the SDMC meetings are held monthly and the village school functions
effectively.
d. Initiate projects to improve school facilities.
e. Take action to increase awareness of benefits of education.
f. If there are any drop-outs, encourage them to rejoin school.

3) Health Committee
Health is another essential factor permanent improvement of living conditions is providing all
members of society with opportunity to retain good health. Without good health, standing up
for one’s rights, contributing to the society and even just daily life can become very difficult.
With this in mind, various actions have been taken to improve health and hygiene the
villages, with initiation the women and support from ODP.

The Members of SHG Health Committee

a. Become members of the village health sanitation and nutrition committee (VHSN)
and ensure it is working effectively.
b. Oversee that the grant under (NRHM) is utilized for the right purpose care, nutritious
food and timely immunization at the Anganwadi.
c. Initiate construction of proper drainage, water points and toilets, as raise awareness of
importance of their use and ensure cleanliness is maintained in the village.
d. Make sure the Accredited Social and Health Activist (ASHA) visit the village and
give awareness on health camp.

In order to raise awareness of importance of good health and hygiene, health camps have
been organized.

4) Environment Committee
The environment is everywhere around us, it is everything that makes up our surroundings
and affects our ability to live on earth. The air we breathe, the water that covers most of the
earth’s surface, the plants and animals around us. That is why the environment is something
very important for everybody, and for the world. With support, motivation and skill training
from ODP, women have been encouraged and enabled to contribute to the conservation of
environment.

21
The Members of SHG Environment Committee
a. Raise awareness and encourage use of alternative renewable energy through solar
lightning, biogas plants and fuel efficient chuulas.
b. Actively build linkages with agriculture, forest and other related departments – to
avail all available government schemes and support programmes.
c. Initiate building and usage of soak pits and organic waste pits.
d. Promote use of kitchen gardens and herbal gardens.
e. Conduct mass awareness programmes on environment.
f. Ensure maximum water conversation and judicious usage.

Make sure tree plantation and seedling sapling planting is done as much as possible.

5) Finance Committee
While the SUF oversees loan sanctioning and repayment at highest level, the SHG have an
essential role in promoting saving and fund generation among the women well as identifying
beneficiaries.

Financial and fund Activities of SHGs

a. Regulate and systematic savings.
b. Usage on internal group savings for immediate and emergency needs.
c. Overseeing implementation of loans and monitoring their correct use.
d. Monitoring the right use of different schemes.
e. Oversee timely repayments of transactions.
f. Mobilizing financial resources for self-reliance.
g. Identifying needy and right beneficiaries as per criteria – for loans.
h. Maintaining account books.

Saving and Fund Generation Practices

a. All SHG members contribute monthly to the group savings with the amount.
b. Ever SHG deposits a minimum of Rs.3000/- fixed saving in the federation account.
c. SHG’s are encouraged to deposit surplus money of their saving in the federation
account.
d. Funds are disbursed to loan application sectioned with an interest of 12 per annum.
e. A loan contribution of Rs.10/- per thousand is collected to meet incident expenses.

Auditing

22
 a. Every SHG is audited at least once in two years.
b. There are two internal auditors who do financial and social incident expenses.
c. One time membership fee is Rs.300.
d. Annual subscription of Rs.1000/- per SHG.
e. Contribution of Rs.2/- per member every training.
f. Mobilization of local contribution for large events such as Women’s day.
g. Federation meetings and travel costs are also supported by the interest on lending.
h. The SHG’s fixed saving deposit earn money at the loan taken, for death of loaners.

In order to eradicate poverty and enable women to gain financial independence, multiple
projects have been initiated by ODP in support with other non-governmental and
governmental organizations. If one is fully dependent on others for their livelihood, it is
impossible for them to take control of their lives or excessive their rights. As such, the
projects focusing on bringing about financial knowledge and dependence essential to the
empowerment of women.

ii. Central Committees (CC’s)

In the beginning, ODP was concentrating only on the formation of women groups. The active
formation of men groups was initiated only about 4 years back. With the organization of men
groups came the realization that though men and women need a separate space for their
individual agendas, they also need a collaborative space to come together for taking up local
issues effecting the entire village / community.

The central committees consist of 1 or 2 representative from every sangha/group of the area,
both men and women, which meets every month and also has 5 committees.

The basic role of the central committee is that of a block level coordinating, promoting and
monitoring body represented by the local groups promoted by ODP for the integrated
development of the entire community of that particular village / area.

The central committee’s provide a collaborative space for men and women groups and are
also the means for future communication linkages. The central committee will look after the
effective functioning of individual groups and development programmes mobilized will be
linked to the working area through the central committee’s – who will be the point of contact
for development planning, implementation and monitoring. This will bring about a greater
feeling of ‘responsibility’ and ‘ownership’ in people.

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iii. Taluk Federations (TF’s)
The taluk federations consist of 17 to 27 representatives from SHGs (1 member from 4
SHG’s – who is a member of the central committee). The taluk federation’s also have 5
committees and meet once in 3 months – primarily to discuss the progress / functioning of
central committee’s and also larger community issues which need to be taken up the taluk
level. The taluk federation‘s promote taluk level linkage, information sharing and rapport
building.

iv. District Federations (DF’s)

The district federation members are elected from the taluk federations. Their main function is
to build up visibility at district level, plan for sustainability, tackle issues and build up
collaboration with governmental organizations and non- governmental organizations.

v. Mahilodaya Federation (MF)

Mahilodaya federation has a governing board of 11 members and a general body of 39
members. These representative are elected from the taluk federations. Mahilodaya federation
has 2 working committees – financial committee consisting of the 11 governing board
members – which meets every month to scrutinize financial status of the federation, loan
recovery, loan applications and their sanction. The social committee of all the 39 General
body members meets once in 2 months to assess and discuss the committee wise progress and
actions at district and taluk levels and plans for issues which need to be taken up at the apex
level.

Today, the focus of the women empowerment programme is Right Based, in order to
strengthen the groups in the project areas at all levels, i.e. SHG’s, Central Committees,
Taluk / District level Federations and the apex federation Mahilodaya, through development
of active and focused leaders and effective group meetings so as to enable women become
self-managed and take forward the programme by themselves.

The Mahilodaya women’s federation was formed on 10th November 1990 and Registered
under KSR Act, on 26th July 1992, with 3 Main Aims:

Animation Organization Self-Reliance

Continuous awareness Enable poor, needy and Women groups at all levels
building to capacitate marginalized women to to develop the capability to
24
 leaders on need based topics come together – to develop manage their own affairs
of empowerment in tune self-confidence, self- esteem with good savings, rapport,
with changes in thinking and and tackle issues and linkages
situations

 Vision of Mahilodaya
Active women leaders – as Effective Change Agents collaborative space for women –
alongside men Gender Equity.

 Goal of Mahilodaya
to enable poor and marginalized women gain equity, justice and a legitimate voice in their
lives, families and society and empower them to have access and control over resources and
abilities to exercise their rights with freedom – for integrated and sustainable development.

 The Objectives of Mahilodaya

a) Organize poor and marginalized women to develop courage and self-esteem.
b) Strengthen groups at all levels – through training’s awareness, exposure and
interactions with other groups / institutions.
c) Build up the capacity of grass root level leaders and groups to carry forward their
activities effectively – at least 5 good and able leaders in each group.
d) Enable leaders to become actively involved in the panchayat structures so that they
have a legitimate voice and evolve better local governance.
e) Build up and strengthen resources teams with effective local leaders – to continue
animation and capacity building.
f) Strengthen linkages with various government departments and financial institutions to
mobilize available schemes and resources.
g) Initiate savings among sangha / group members for mutual help and support during
times of need and to avoid exploitation by middle men / money lenders.
h) Increase income and assets for women – at individual, household and community
levels.
i) Enable women to manage resources productivity and expend their sources of
livelihood.

25
 j) Collaborate and co-ordinate with like-minded NGOs working in the field of women’s
development and form strong linkages with them to tackle common issues.
k) Promote collective actions for common good of the community and area.
l) Enable women to have an equal, just and respected statues in the civil society.

1.10.5 A few Major Achievement as Per the 5 Committees

1. Education & Organization

a) 90% of women members can sign and are able to read sign boards and simple
documents.
b) All children, both girls and boys, are being send to school by SHG members, till the
12th standard.
c) 320 women are selected as school development and monitoring committee members
in villages – for better functioning of village schools and monitoring of the mid-day
meal scheme.

2. Social & Panchayat Leadership

a) Every group has at least 5 leaders emerging and taking up responsibilities for women
empowerment and also for community development of the people of their areas. This
has happened due to the formation of the 5 sub committees in the SHGs.
b) Thus, today more than 12000 active leaders are working committedly for women
empowerment programmes.
c) ODP is also emphasizing the aspect of Right to Information and organizing media
workshops.

3. Natural Resource Management

a) 436 women members are involved in the village forest committees.
b) More than 450000 tress have been planted by women.
c) Nearly 6500 families are using alternate renewable energy sources like – biogas
plants, low fuel chulaas, solar lanterns and solar home lights.
d) In all ODP‘s intervention villages the women are doing shramadana regularly to keep
the drains and streets clean and free of plastics.
e) Farmers are being motivated to practice organic agriculture and more than 10,000
vermi-compost and organic compost pits have been promoted.

26
4. Community Health
a) 2270 women members have been selected as health volunteers to assist in the
Aganwadi and PHC programmes.
b) 816 members are employed under the Akshara Dasoha scheme of the govt. for
cooking nutritious food for school children.
c) 103 women groups got license for Kerosene depots.
d) 124 members have been selected as committee members of Kodagu Zilla panchayat –
for the government Swaccha Grama Yojane.
e) 2 members from Mysore and 6 members from Kodagu are selected as part of the
District hospital maintenance committees.
f) Drinking water problems have been solved in 235 villages.
g) More than 10,000 toilets have been constructed for individual households and 1328
toilets under the Nirmal Bharat Abiyan.
h) About 14800 women are having kitchen gardens for a better nutritious status.
i) Women SHG members are participating in the VSHNC meetings and improving the
health, hygiene and cleanliness of their villages.

5. Economic Self-Reliance
a) All the ODP’s SHGs have built up good linkages with the local banks and have
regular transactions with them.
b) Banks and other institutions like SIDBI, RMK, NABARD and NABFINs are coming
forward to give loans to SHG members which formed by ODP.
c) The financial wing of Mahilodaya federation has been able to mobilize funds and
bank loans to cater to the larger needs of women members, like – loans for housing,
income generation activities, agricultural operations, education / health needs, etc.
d) For all women milk cooperative societies have been promoted by ODP’s women
groups at – Shantipura, Jageri, Jettihundi and Jellopalayam.
e) The women groups have a savings of more than 25 crore – which is being revolved
among the members to meet their immediate needs of – buying rations for the family,
education / health expenses and small agricultural inputs.
f) ODP has developed revolving loan funds for – alternate renewable measures (biogas
abd solar lighting systems), toilet constructions, setting up water points and income
generation activities.
27
 g) The ODP women members are not going to money lenders for their needs as they are
able to borrow with dignity from the federation and local banks.
h) The ODP women empowerment programme is able to sustain itself to a tune of 52% -
through the financial transactions and systems.

 Women Achievers
Skill development programmes have been imparted to more than 14000 women and youth
which has provided them with life skills and livelihood security.

Some of the outstanding women achieves from ODP groups are:

a) 5 women auto divers – who are maintaining their families with their earnings
b) Mrs. Julekha Bi – elected as a counsellor of Madekeri Nagara sabha, Kodagu district
c) Mrs. Shailaja Monappa – who was selected as an athlete for the international sports
event at Sri Lanka
d) Mrs. Meena Kumari – was selected as a national level sports woman in shot put
e) Mrs. Savita Rai – director of a private TV channel and a active journalist
f) Mrs. Lakshmi – who started her own NGO
g) 25 women – who are presidents of Gram Panchayats
h) ODP’s are touching the lives of more than 40,000 poor and disadvantaged women and
their families.

1.10.6 Some Major Issues Taken by the Groups

Hundreds of issues have been taken up by all the committees based on their focus areas and a
lot of improvements have been made in the village communities.

The details of some of the major issues taken up by groups and members are:
a) For 7 long years the groups struggled to eliminate neera/ arrack/ liquor shops from the
villages- as they were taking away a lot of their hard earned money and also causing
violence/ discord in families. As a result the government passed orders to remove
arrack/ liquor shops from the village premises and set them at least 1 km away. They
also stopped issuing licenses to open new shops.
b) In 1995, with the NGO networks at Mysore (MYTRI) and Chamrajanagar (CDVON)
– ODP took the issue of quarrying in the Chamrajanagar district – with a signature
campaign and submission of memorandum. This has resulted in lessening the number
of quarries and better facilities for the quarry workers.

28
 c) In 1997-98, several of villages under intervention of ODP were badly hit by the
Cauvery water issue. ODP members held various protest rallies about this issue, ODP
opened a number of food kitchens and temporary shelters for the refugees in Kollegal
and together with women submitted several memoranda to the chief minister – to
resolve the issue at the earliest.
d) In 2005-06, women protested against the Chamalapura Termal plant construction at
Mysore district – due to expected radiation problems. As a result the construction was
stopped and the project was cancelled.
e) In 2007, women in all ODP working areas have held several rallies and protests
against women atrocities, dowry deaths, domestic violence, rape cases, child labour,
child marriage, etc. there were special rallies against the online lottery system,
Mutalik harassment of women in Mangalore, gang rape of a woman in a train at
Mandya, gang rape of Nibhaya in Delhi, attack on women at a homestay in
Mangalore, female infanticide, etc.
f) In 2009-10, protest rallies were hold on – electricity problem in villages, irregularities
in the APL/BPL card distribution systems, eradication of plastics, systematic
functioning of gram panchayats, price rise, etc.
g) In 2014, Mahilodaya organized a Karnataka Pajya Makkala Ulvigagi horata jatha
along with the Swaraj Network.

1.10.7 Linkage Development

Women groups at all levels have developed good linkages with the government and non-
government departments – women& child development department, social welfare board,
slum development department, SC/ ST and minorities corporation, DIC, Administrative
training institute, SIRD, horticulture department, Forestry department, Agriculture
department, KVIC, SGC, Milk diary, NABARD, SIDBI, Local banks, Local clubs/ Trusts,
Zilla Panchayats, Gram panchayats, Public health centers, Aganwadi, Hospitals, MYTRI,
CDVON, HIV +ve networks, etc.

More than 25,000 women and their families have been benefited with different schemes and
facilities like:
a) Widow/ old age/ physical disabled pensions/ equipments
b) Income generation programmes

29
c) Houses/ house repair grants/ house sites/ ration cards
d) Bore wells/ Bore well repairs/ water pipe line points/ water tank/ water tank repairs
e) Street lights/ electric poles
f) Drainage construction/ drainage repair/ dust bins/ road construction
g) Rain relief/ flood relief/ death relief funds, etc.

CHAPTER - II

LITERATURE REVIEW

30
 LITERATURE REVIEW

2.1 The Concept of Self Help Groups (SHGs)

Self Help Group (SHG) is a group of rural poor who have volunteered to organize
themselves into a group for eradication of poverty of the members. They agree to save
regularly and convert their savings into a common found known as the Group Corpus.

NABARD (1997) defines SHGs as “small, economically homogenous affinity groups of rural
poor, voluntarily formed to save and mutually contribute to a common fund to be lent to its
members as per the group members’ decision”.

Ministry of Human Resource Development (1996) explained “SHG is a homogeneous group

of 10 to 20 women each. These women select their own leader and also fix tenure for such
leadership SHGs are extremely helpful in allowing the NGOs to be known to a large number
of individuals intimately and to relate to them in a variety of ways including facilitating credit
availability”.

Shylendra (1998) analyzed which the concept of Self Help Groups gained significance,
especially after 1975 when Prof. Mohammed Yunus of Bangladesh began experimenting with
micro-credit and women SHGs. The strategy made a quiet revolution in Bangladesh in
poverty eradication by empowering poor women. Self Help Groups are small informal
associations created for the purpose of enabling members to reap economic benefit out of
mutual help, solidarity, and joint responsibility. The benefits include mobilization of savings
and credit facilities as a pursuit of group enterprise activities. The group-based approach not
only enables the poor to accumulate capital by way of small savings, but it also helps them to
get access to formal credit facilities. These groups by way of joint liability, enable the poor to
overcome the problem of collateral security and thus frees them from the clutches of money
lenders.

Desai and Namboodiri (2001) described some of the basic features of SHGs promoted by the
NGOs/Banks as organizations composed generally of poor and weaker sections of rural
people, particularly women, who were homogenous in the social and economic status,
undertook common activities. The group democratically elected or unanimously selected a
rotating leadership and met regularly.

Sandhu (2013) has pointed in India NABARD (National Bank for Agriculture and Rural
Development) had initiated in 1985, and it defined SHGs as “small, economically
31
homogenous affinity groups of rural poor, voluntarily formed to save and mutually contribute
to a common fund to be lent to its members as per the group members’ decision”. But the real
effort was taken after 1991-92 from the linkage of SHGs with the banks.

Women’s empowerment can be measured by factors contributing to each of the following i.e.
their personal, economic, familial, and political empowerment. Household and interfamilial
relations are to be included which is believed to be a central locus of women’s dis-
empowerment in India. To understand the change women undergo in becoming empowered
we look at the above aspects. Various studies show that the women have been empowered
based on factors such as income, households, political, decision making etc.

According to Zubair Meenai (2003) SHG is composed of about 10-20 members. Each
homogenous group meets monthly or weekly close to members home. At the designated
meeting, all members save a commonly agreed amount. The group then lends these savings to
its members, stores them in a cashbox, or deposits them in a group bank account in order to
leverage a group loan. In cases of emergency or need, members can access a loan quickly
from their group’s fund. The basic philosophy lies in the fact that shortcomings and
weaknesses at the individual level are overcome by the collective responsibility and security
afforded by the formation of a group of such individuals. The collective coming together of
individual members is also used for a number of purposes: education and awareness building,
collective bargaining power and peer pressure, among others. As the group mature, income
enhancement and entrepreneurial activities are initiated. These can be both individual as well
as group activities. Groups also start connecting with other groups in the area and start the
process of cluster formation, networking and federating, thus acquiring a larger status and
becoming a larger pressure group operating in an enhanced sphere.

According to Mohanan N. (1998) the Self–help scheme to benefit the poorest of the poor
must be at the heart of the new strategy to combat poverty. To him, the SHGs route is one of
the cost effective methods of delivery of credit to the poor for whom modern capital is
inaccessible.

Manimekali and Rajeshwari (2001) have explained the role of SHGs in empowering women.
The encouragement given by the SHGs help the organizers to form a group. They have
suggested giving training, which is linked with some kind of credit delivery mechanism
whether formal or informal.

32
Sadhana Thakur (2012) explored that the members of the group agree to use this common
fund and such other funds that they may receive as a group through a common management.
Generally, a Self Help Group may consist of 10 to 20 persons. However, in difficult areas
like deserts, hills and areas with scattered and sparse population and case of minor irrigation
and disabled persons, this number may be from 5-20. Generally, all members of the group
should belong to families below the poverty line. However, if necessary, a maximum of 20%
and exceptional cases, where essentially required, up to a maximum of 30% of the members
in a group may be taken from familiar marginally above the poverty line living contiguously
with BPL (below poverty line) families and if they are acceptable to the BPL members of the
group. This will help the families of occupational groups like agricultural laborers, marginal
farmers and artisans marginally above the poverty line, or who may have been excluded from
the BPL list to become members of the Self Help Group. A person should not be a member of
more than one group.

G. Vidya S. R. (2015) pin-pointed which the group should be able to draw up and agenda for
each meeting and take up discussions as per the agenda. The members should build their
corpus through regularly savings. The group should develop be able to collect the minimum
voluntary saving amount from all the members regularly in the group meetings. The savings
so collected will be the group corpus fund. The group corpus fund should be used to advance
loans to the members. The group should develop financial management norms covering the
loan sanction procedure, Repayment schedule and interest rates. The members in the group
meetings should take all the loaning decisions through a participatory decision making
process. The group should be able to priorities the loan applications, fix repayment schedules,
fix appropriate rate of interest for the loans advanced and closely monitor the repayment of
the loan instalments from the loaners. The group should operate a group account preferably in
their services area bank branch, so as to deposit the balances amounts left with the group
should maintain simple basic records such as Minutes book, Attendance and individual
passbooks. 50% of the groups formed in each block should be exclusively for the women.
The development of mutual aid within Self Help Groups appeared to be a part of a
strengthening social action movement among women in rural area. Although the groups were
originally encouraged by the grassroots non-governmental organization, which women can
made largely autonomous local decisions about what events and enterprises they would
support and to what extent. It appeared the Self Help Groups were having a significant impact
on the empowerment of women in rural areas.

33
Self Help Groups provided opportunities for women to serve as models of leadership for the
children that were often present in the background during group meetings. Girls and young
women watched their mothers, aunts and grandmothers serve as decision makers and persons
that were listened to by others. During the Self Help Groups meetings, women expressed
problems that affect their livelihood.

Since the 1990’s women have been identified as key agents of sustainable development and
women’s equality and empowerment are seen as central to a more holistic approach towards
establishing new patterns and process of development that are sustainable.

The World Bank has suggested that empowerment of women should be a key aspect of all
social development programmes. Although a considerable debate on what constitute
empowerment exists, in this document we find it useful to rely on Kabeer’s definition: “the
expansion in people’s ability to make strategic life choices in a context where this ability was
previously denied to them.” For women in India, this suggests empowerment in several
realms: personal, familial, economic and political.

Since the 1980’s the government of India has shown increasing concern for women’s issues
through a variety of legislation promoting the education and political participation of women.
International organizations like the World Bank and United Nation have focused on women’s
issues especially the empowerment of poor women in rural areas. In the late 1980s and early
1990s, non-governmental organizations have also taken on an increased role in the area of
women’s empowerment. NGO’s, previously catering to women’s health and educational
needs, have moved beyond this traditional focus to addressing the underlying causes of
deprivations through promoting the economic and social empowerment of women.

2.2 Principles of SHGs

According to Ghadoliya (2006 cited in Blay, 2011) and other studies the concept of SHGs is
based on the following principles:

a) Self Help Group supplemented with mutual help can be a powerful vehicle for the
poor in their Socio-economic development;
b) Participative, financial services management is more responsive and efficient;
c) Poor need not only credit support, but also savings and other services;
d) Flexible democratic system of working;
e) Amounts loaned are small, frequent and for short duration and periodic meetings;

34
 f) development;
g) Poor can save and are bankable and SHGs as clients, result in wider outreach lower
transaction cost and much lower risk costs for the banks;
h) Creation of a common fund by contributing small savings on a regular basis;
i) Loaning is done mainly on trust with a bare documentation and without any security;
j) Amounts loaned are small, frequent and for short duration;
k) Defaults are rare mainly due to group pressure; and
l) Periodic meetings non-traditional savings.

SHG approach helps members realize their potential and unleash it. As an individual, the
poor are voiceless, powerless, and vulnerable but collectively they can stand for their social,
economic, and political empowerment. Therefore, the SHG approach makes the poor realize
their hidden potential and unleash it through a gradual attitudinal change supported by
relevant capacity building inputs.

2.3 The Importance of SHGs

Self Help Groups as a new sustainable development strategy has been adopted by
government and some development organizations in India recently. Several studies have been
conducted by social scientists, and financial institutions, and agencies, which emphasize the
impact of SHGs on empowerment, credit accessibility and social change.

SHGs highly contributed for the social transformation of the community such as child
protection and rearing, women participation and improved relationship of men and women at
community level. SHGs also contributed for the welfare of the society in issues related with
HIV/AIDS, protecting their children from different evils around the community, active
participation in local government offices and support in local institutions like.
The women also shared their knowledge and hand craft skills for some community members
around them.

Concept of Women Empowerment is an active multidimensional process to enable women to

realize their identity, position and power in all spheres of life. Empowerment provides a
greater access to knowledge and resources, more autonomy in decision making, greater
ability to plan lives, more control over the circumstances which influence lives, and freedom
from customs, belief and practices. Empowerment demands a drastic and basic change in the
system of marriage and family, husband and wife relationship and attitude towards

35
socialization and remarriage. Empowerment is a process that gives a person freedom in
decision making. Women's empowerment is not a Northern concept. Women all over the
world, including countries in the South, have been challenging and changing gender
inequalities since the beginnings of history. These struggles have also been supported by
many men who have been outraged at injustice against women and their consequences for the
society.

Jaya (2002) analyzed the need to create a grassroots organizational base to enable poor
women to come together, to analyze their issues and problems themselves, and to fulfill their
needs was strongly advocated in countries like Indian, Bangladesh, and Pakistan. In these
countries such group-based participatory programmes have made a significant improvement
in the living conditions of poor women.

Self Help Group refers to a group of 10-20 people who come from similar socio-economic
backgrounds for various development programmes or to solve common problems. Such
groups are recognized by the governments and banks and can open bank accounts in the
name of the SHG. These groups tend to be autonomous and tend to involve themselves in
various activities, including social causes. So if a group of fifteen women in a village would
like to apply for a loan start a small enterprise selling bags and cushions, they would be
considered an SHG. These SHGs, by way of enterprise tend to create more employment
opportunities and inspire others to get involved in small enterprises as well.

Varshney (1993) defined that Self Help Groups contributed a lot for the progressive
empowerment of Indian’s rural sector especially in relation to political and leadership skills
of the community besides, in 1993, 40% of Indian parliament had a rural background as
opposed to about 20 per cent in the1950s.

A study conducted by Sundaram (2012) revealed that microfinance to Self Help Groups
brings a visible change in the process of women empowerment and poverty reduction of India
such as self-employment opportunities, improvement of life quality, improved nutrition and
health of the poor population, many families were able to address their basic needs better than
before and repayment of loans by women was become better than that of men.

According to this study, the members of Self Help Groups are empowered economically and
socially after joining SHG and the number of assisted group has increased from 35,000
between 1999 – 2000 to 1.15 million between 2007 and 2008. Accordingly, the members

36
took control over their lives because their empowerment is self-generated. The study also
found out that domestic violence reduced in 25 per cent especially due to reduction in
economic difficulties and members’ interaction with outsiders increased by 91 per cent while
in the pre SHG period it was 25 percent.

Soni (2001) defines “empowerment as an active multidimensional process, which should

enable women to realize their full identity and power in all spheres of life”.
Soundari and Sudhir (2001) reveals that the SHGs engage not only in productive economic
activities but also in social empowerment and capacity building of rural Dalit women.

Reddy (2012) has pointed out that for bridging gaps in gender inequality, women should be
empowered by making them as active partners in decision-making, implementation and
evaluation of all interventions initiated for energizing, organizing and sustaining their
livelihood. According to him, empowerment is an ongoing process and not an end by itself.
The processes involved in empowering are:
a. Growth in people’s awareness and confidence;
b. Ability to articulate problems;
c. Gaining access to resources and public facilities;
d. Negotiating over relations between different social groups.

Seibel and Kumar (2002) revealed that SHGs in Karnataka paved the way for empowerment
of women who are increasingly involved in community development programmes and local
politics. SHGs have potential to prevent social evils such as child marriage, child labour, and
dowry and prevent harassment of women.

Pazhani (2004) has analyzed the socio-economic conditions of women participating in

Panchayat Raj Institutions (PRIs) and the factors responsible for active participation of
women in panchayat raj institutions. He suggested that the NGOs may be used in a better way
to create social awareness among the rural population, especially women regarding panchayat
raj institutions and also other things relating to their environment.

Perumal (2005) observed that women who join SHGs are strengthened in many ways apart
from becoming economically empowered. They gain a say in family matters and their social
status is enhanced.

37
2.4 Impact of SHGs on Micro-financing

2.4.1 Micro Finance Concept

Sapovadia (2007) analyzed the dictionary meaning of ‘finance’ is the management of money.
The management of money denotes ‘acquiring & using money’. Micro finance is used when
financing done for promotion of micro enterprises or units. In fact, micro finance is emerged
in need of meeting special goal to empower under-privileged class of society who still
ignored by the formal financial institutions. The principles of micro finance are based on the
philosophy of cooperation and to promote equality, equity in human development and to
achieve a better life and mutual self-help.

Stewart et al (2010) pin pointed “The term ‘micro-credit’ was first coined in the 1970s to
indicate the provision of loans to the poor, to establish income-generating projects, while the
term ‘micro finance’ came to be used since the 1990s”.

Micro finance mainly includes micro credit, micro-saving, micro-insurance, micro leasing,
micro-franchising, money transfers for the poor, housing finance for the poor and other
financial services for the poor etc. have been added to the broad grouping of micro finance.

Hossain (2002) stated that “Micro-credit, which is part of micro finance, is the practice of
delivering small, collateral-free loans to usually unsalaried borrowers or members of
cooperatives who otherwise cannot get access to credit”.

Bansal, 2011; Gupta & Kapila, (2013) in his study reveals that generally, micro finance
involves provision of thrift, credit and other secondary financial services. It deals with the
financial products that are very small in nature, designed for the poor for enabling them to
increase their level of income and to improve their standard of living. In this regard, a number
of initiatives have been taken to initiate the flow of bank credit to the micro-enterprises in
rural and semi urban areas set up by vulnerable sections of society including women. Under
this programme, collateral free small loans are given to a group of poor people who make
savings regularly. The whole group remains responsible for the repayment of the loan and the
peer pressure within the group helps the successful and timely repayment of the loans that is
often used for starting new income generating economic activities and to create self-
employment and consequent development of rural economy.

In many parts of the world, micro-finance interventions are well recognized as an effective
tool for poverty alleviation and improving the socio-economic conditions of the poor. As

38
stated earlier, in countries like India, Pakistan, and Bangladesh, micro-finance is making
progress in its efforts for reducing poverty in general and empowering poor women in
particular.

In developing economies and particularly in rural areas, many activities that would be
classified in the developed world as financial are not monetized: that is, money is not used to
carry them out. This is often the case when people need the services money can provide but
do not have dispensable funds required for those services, forcing them to revert to other
means of acquiring them. The advocates of microcredit argue that microcredit can help to
substantially reduce poverty. According to the latest research done by the World Bank, India
is home to almost one third of the world’s poor (surviving on an equivalent of one dollar a
day).

Though many central government and state government poverty alleviation programmes are
currently active in India, microfinance plays a major contributor to financial inclusion. In the
past few decades it has helped out remarkably in eradicating poverty. Many studies show that
people who have taken microfinance have been able to increase their income and hence the
standard of living.

CRISIL (2007) explored that Micro finance in India started in 1974 in Gujarat as ‘Shri
Mahila SEWA Sahakari Bank’ which is registered as an Urban Co-operative Bank. They
provided banking services to poor women employed in the unorganized sector. Micro finance
later evolved in the early 1980s around the concept of informal SHGs that provided deprived
poor people with financial services. Now in a strong endorsement of micro finance, the
NABARD and Small Industrial Development Bank of India (SIDBI) have committed
themselves to developing micro finance. The micro finance sector has been ‘witnessing a
tremendous growth’ during the last few years in India in terms of loan portfolio, geographical
area and outreach. With India’s Gross Domestic Product (GDP) growing at the rate of 7.1%
the country’s socio-economic pyramid is turning around the story with millions of poor
people becoming entrepreneurs.

The Ministry of Rural development (Government of India) is accordingly implementing a

number of programmes aimed at sustainable development of rural areas with focus on the
most disadvantaged sections of the country.

39
Dasgupta (2001) in his paper entitled, “Informal Journey through SHGs”, observed that
micro-financing through the informal Self Help Group approach has effected quite a few
benefits, such as:
a. Savings mobilized by the poor;
b. Access to the required amount of appropriate credit by the poor;
c. Matching the demand and supply of credit structure and opening new markets for
financial institutions;
d. Reduction in transaction cost for both lenders and borrowers;
e. Tremendous improvement in recovery;
f. Heralding a new realization of subsidies and corruption less credit, and
g. Remarkable empowerment of poor women.

Manimekalai and Rajeshwari (2001) highlighted that the provision of micro financing by the
NGO's to women SHGs, has helped the groups to achieve a measure of economic and social
empowerment. It has developed a sense of leadership, organizational skills, management of
activities of businesses, establishing adequate financing, identifying raw material, market and
suitable diversification and modernization.

Manimekalai (2004) in his article commented that to run the income generating activities
successfully the SHGs must get the help of NGOs. The bank officials should counsel and
guide the women in selecting and implementing profitable income generating activities. He
remarked that the formation of SHGs have boosted the self-image and confidence of rural
women.

Mayrada (2002) maintained that SHGs are viable alternatives to achieve the objectives of
rural development and to involve community participation in all rural development
programmes. The paper further explained that the SHG is a feasible organizational setup to
disburse micro credit to poor women for the purpose of making them entrepreneurs and
encouraging them to enter into other entrepreneurial activities. The women led SHGs have
successfully demonstrated how to mobilize and manage thrift, appraise credit needs, maintain
linkages with banks and enforce financial self-discipline. The author further states that SHGs
enhance the equality of the status of women as participants, decision-makers and
beneficiaries in the democratic, economic, social, and cultural spheres of life; and encourages
them to take active part in the socio-economic progress of the society.

40
Sharma K.C (2001) stated that SHGs are the major tools for women’s empowerment. Their
participation in the economic activities and decision-making at the household and societal
levels are increasing and making the process of rural development participatory, democratic,
sustainable and independent of subsidy. He added that SHGs function in the place of money
lenders because loan can be taken at any time, when needed for any purpose.
Facts from the above-mentioned studies demonstrate that SHGs are dependable and
sustainable sources to interject micro financing to poor households, stimulate savings, and in
the process, help members to eliminate the vicious circle of poverty in their lives, in a
meaningful manner.

Olekar (2011) observed that SHG has attracted tremendous attention in recent years.
Microcredit is an alternative source of credit for the poor. This system provides credits for the
development of the poor sections of the society. SHG programme is the right participatory
approach for eradication of rural poverty and paradigm of rural development. From the
aforementioned discussion, it is evident that SHGs are playing a vital role in the process of
women empowerment.

Sahu and Tripathy (2005) in their edited book views that 70 per cent of world’s poor are
women. Access to poor to banking services is important not only for poverty alleviation but
also for optimizing their contribution to the growth of regional as well as the national
economy. Self Help Groups have emerged as the most vital instrument in the process of
participatory development and women empowerment. The rural women are the marginalized
groups in the society because of socio -economic constraints. They remain backward and
lower position of the social hierarchical ladder. They can lift themselves from the morass of
poverty and stagnation through micro finance and formation of Self Help Groups.

Nayak (2007) made an attempt to analyze the empowerment of the poor through SHG and
micro finance in the Kalahandi district of Odisha. The questionnaires were prepared and
presented to 997 members of sample 80 SHGs. The study found that 89194 families of
Kalahandi district benefited from SHGs and bank linkage programme and suggested
strengthening of cooperative sectors.

Kumararaja (2009) made an attempt to evaluate the performance of SHGs in Tamil Nadu.
The study highlighted the progress of SHGs in India and in Tamil Nadu. It revealed that there
has been a steady progress in the number of SHGs and amount of loan sanctioned. The study

41
concluded that a timely and regular check of the micro credit through SHGs will contribute to
a healthy progress and to the overall development of rural women.

Sivachithappa (2008) pin-pointed that SHGs- based micro-finance and bank linkage
programme has better outreach and positive impact on poverty.

Vinayamoorthy and Pithoda (2007) made an attempt to examine women empowerment

through SHGs in three villages of Tamil Nadu. They selected a sample of 398 members of 20
SHGs from Vellore, Thiruvannamalla and Dhrampur districts of the state. The main
objectives of the study were to examine the income, expenditure and the savings of the
members after joining SHGs and the role of SHGs in providing credit. They concluded that
economic activities of SHGs were quite successful.

2.4.2 Advantage of Micro financing

Microfinance is argued to have economic, social and humanitarian advantages. This study
tends to focus on the economic implications of microfinance, but also outlines social and
humanitarian aspects of microfinance in order to better understand the topic.

Many researchers argue that microfinance creates access to three types of capital. First, it
gives access to productive capital through microcredit. Second, it gives access to human
capital through vocational training and education. And third, social capital built through
creating local organization building, promoting democratic systems and fortifying human
rights. These endowments together are argued to enable people to move out of poverty.
Although it is nearly impossible to measure, increasing material capital strengthens the sense
of dignity of poor people and contributes to motivating poor people to participate in the
society. With a loan and a source of income people are argued to be able to improve the
socioeconomic position of their family and to make plans beyond only the survival of the
day. The existence of these conditions stimulates people to be actively involved in society.
Participation in microfinance programmes leads to a greater diversification of labour supply
across seasons. On the173 contrary, access to these programmes goes along with a reduction
in the variability of consumption across seasons. Apparently, although the programmes might
not increase consumption on average, they might offer households opportunities to smooth
consumption through smoothing income. For this reason, poor households are argued to
become less vulnerable due to microfinance.

42
In many cultures and countries, the subordination of women still exists. In many cases, men
take care of income and money and women take care of basic needs such as health care of
their children, education and nutrition and in addition also try to improve the development of
those basic needs. Microfinance creates the opportunity for women to get access to capital.
Pitt and Khandker argued that money spent by women leads to an increase of children’s
participation in education, better nutrition and health care. Microfinance for women thus is
argued to lead to positive external effects on the one hand and to the reduction of gender
inequality and dependency on the other hand.

2.4.3 Disadvantage of Micro financing

Microfinance is a much criticized strategy. Many intellectuals doubt that microfinance has
any influence on poverty alleviation, disagree with the proposition that microfinance reaches
the poorest and don’t think that microfinance will sort any effect on the long term economic
impact on SHG. Reaching the very poorest people is of crucial importance in order to reduce
severe poverty. An important point of criticism on microfinance is that the very poorest can’t
be reached with this method; researchers argue that microfinance can be successful for
individuals with a low consumption level who can realize a degree of savings. Vulnerable
people are not able to level their consumption and are quite sensitive to income shocks, and
thus have little advantage with the aid of microfinance. The effect of microfinance on the
very poorest and vulnerable people is argued to be very low. In practice a substantial share of
a loan will be invested directly by men, while at the same time women maintain responsible
for the repayment of the loan. Because women do not invest the money, positive external
effects disappear. Microfinance does then not contribute to the reduction of gender inequality
and the dependency position of women. Goetz and Gupta conclude that the chance of
daughters going to school diminishes when women become independent entrepreneurs.

Prominent fact is that the debate about the impact of female empowerment is controversial in
the literature. One camp believes that microfinance programmes positively contribute to
female empowerment. A second, more skeptical, viewpoint believes that microfinance
programmes do little to alter gender relations in favour of females but in fact may contribute
to reinforcing existing gender imbalances. Clearly, the international development community
and intellectuals have not reached an agreement yet on the influence of microfinance on
poverty alleviation.

43
2.5 Self Help Groups; Tools for Poverty Alleviation
According to World Bank (2001) economic growth is fundamental for generating resources
for development and poverty alleviation. Such growth is aimed at also sustaining
development, which can provide equal socio-economic access and opportunities to those who
presently lack it, as well as for future generations. To achieve this, practical goals need to be
translated, and development of programmes, and policies that focus on broadly based
economic growth areas that ensure sustained improvements in the earnings of the poor are
necessary.

Sharma (2001) in his review of the genesis and development of SHGs in India, revealed that
in the situation where the existing formal financial institutions failed to provide finances to
those who were landless, marginalized and disadvantaged groups, the establishment of SHGs
has enabled many poor people to become involved in various income-generating activities
through the small loans that they received from the groups.

Tasli (2007) stated that SHGs focuses primarily on poor women to enable them improve their
economic status by increasing women's employment opportunity and income-generation
activities like skill training as well as their access to productive resources Hence, this concept
is directly matches with the concept of SHG which promote women to mobilize their
resource, take skill trainings and to change their economic status through those income
generation activities (IGA).

2.6 Self Help Groups and Women Empowerment

Self Help Group (SHG) is a process by which a large group of women (10 – 20), with
common objectives are facilitated to come together voluntarily to participate in the
development activities such as saving, credit and income generation thereby ensuring
economic independence. SHG phenomenon definitely brings group consciousness among
women, sense of belongingness, adequate self-confidence. In fact, what she cannot achieve as
an individual, can accomplish as a member of group with sufficient understanding about her
own rights, roles, privileges and responsibilities as a dignified member of society in par with
man. When she becomes a member of SHG, her sense of public participation, enlarged
horizon of social activities, high self-esteem, self-respect and fulfillment in life expands and
enhances the quality of status of women as participants, decision makers and beneficiaries in
the democratic, economic social and cultural spheres of life. In other words, we can say that

44
SHG is an effective instrument to empower women socially and economically which
ultimately contributes in the overall development of the country like India wherein still large
segment of women population are underprivileged, illiterate, exploited and deprived of basic
rights of social and economic spectrum. As a group-oriented model, SHGs in India is a
mechanism for women's development to bring in individual and collective empowerment
through improvement in both condition and position of women.

As it was explained earlier, empowerment is a process of acquiring the ability to make

strategic life choices in a context where this ability has previously been denied. Several
recent assessment studies have generally reported positive impacts of SHGs.

As stated by Kabeer (2001) the ability to define one’s goals and act upon them, awareness of
gendered power structures, self-esteem, and self-confidence are the core elements of
empowerment.

Gudaganavar (2008) made an attempt to examine the empowerment of rural women through
SHG. They highlighted the process of SHGs in India from 1992-93 to 2006-07 in the region-
wise progress of SHGs and employment of women through SHGs. They concluded that no
development was possible without empowerment of women.

Zaman (2001) studied the impact of Self Help Groups micro credit schemes in Bangladesh.
Findings revealed that through asset creation, SHGs have played valuable roles in reducing
the vulnerability of the poor, bring a balance to income and consumption, provision of
emergency assistance, and empowering and emboldening women by giving them control over
assets and increased self-esteem and knowledge.

Ranadive (2004) stated that experiences from the developing countries show that
improvements in women’s education, health, employment opportunities, and social
participation contributes to economic growth in developing economies. He further elaborates
that investment in women not only benefits women themselves, but also has relatively high
social returns reflected in an improvement in their children’s welfare and a reduction of
fertility, poverty and gender bias. This fact shows that women focused development strategies
like SHGs have both social and economic return if they are handled wisely.

Vikrant and Sharma (2015) pointed out empowerment refers to increasing the economic,
political, social, educational, gender, or spiritual strength of individuals and communities. It
is the process by which one can take control and ownership of their choices. Empowerment is

45
a process of awareness and capacity building leading to greater participation, to greater
decision making power and control and transformative action. Generally speaking
empowerment can be classified as political, economic and social. These categories are
explained below.

2.6.1 Political Empowerment and contribution of SHGs

According to Brody, Dworkin, Dunbar, Murthy and Pascoe (2013) political empowerment is
defined as the ability to participate in decision-making around access to resources, rights, and
entitlements within communities. This can be measured using indicators such as awareness of
rights or laws, political participation such as voting, the ability to legally own land, the ability
to legally inherit property, and gain leadership positions in government.

According to Vikrant and Sharma (2015) Women’s political empowerment, usually

envisioned as political participation in elections and government, is necessary to give women
a voice in the policies that affect their lives. Political empowerment allows women to take
control of the policies that will benefit their economic standing. For instance in SHGs they
can elect their own leader. They can also participate in the management of SHGs. Hence, by
associating with each other in a group, women become part of civil society and can have a
louder voice when advocating policies that will benefit their lives and their groups
businesses.

According to Mindaye (2014) the poor women organized under SHG become confident and
realized their inner potentials. They developed leadership skill and the quality of emotional
intelligence which is one of the good qualities of leaders that help them to understand the real
situation of their followers. Accordingly, SHG approach has empowered women not only to
earn more income and decide on the use of their earnings at household level but also to
participate at community and local administrative levels. Therefore, poor women become
group and cluster level association leaders and resource person after they joined in SHG
programmes. The use of participatory and democratic leadership of SHGs and cluster level
association helped the members to develop their leadership skill.

Gebre et al (2014) mentioned In addition SHGs empowered by taking training like

facilitation and leadership skills, civil rights and advocacy are the major issues.

Kindernot hilfe (2014) stated the key principles of the political dimension of the SHG
approach are independence and involvement Self Help Groups take up issues of concern in
46
their neighborhood and work together towards a solution. They gain additional support to
work on larger issues by linking together at the cluster level association level. These cluster
level associations and Federations aim to function as a legitimate part of civil society to
ensure that the voices of their members can be heard throughout the local, regional and
national level governmental structures.

2.6.2 Economic Empowerment and Contribution of SHGs

According to Brody et al (2013) Economic empowerment is the ability to access, own and
control resources. Accordingly, it can be measured in a variety of ways, using outcome
indicators such as income generation, ownership of assets and land, expenditure patterns,
degree of participation in paid employment, division of domestic labour and control over
financial decision-making.

As the study of Vikrant and Sharma (2015) women’s economic empowerment, which entails
that women have the authority to make their own decisions regarding use of their resources,
leads to prosperity for families and communities. So that economic empowerment can
provide the clout for women to be empowered politically. With the help of SHGs they can
earn money and can become economically and financially strong.

With the help of SHGs women can earn money and can become economically and financially
strong. They can use this money for fulfilling their needs and can spend a happy life with
their family. They can get a say and right in their family's decision making by becoming self-
independent. Hence, by building a network of better business through SHG, women can get
economic empowerment.

Kebede, Getu and Negeri (2011) explored the SHG programme facilitates the poor and
disadvantaged members of the community to explore their potentials, gifts and the existing
assets through intensive and variety of trainings given by different professionals. It
encourages the members to save and get access for internal loan from the group account so as
to help the members to begin and expand their income generating activities. Trainings on
business skill development, saving and credit management have played central roles to
women’s economic progress. So, the basic needs are fulfilled, every school age child goes to
school and family assets are increased in the efforts of the women. As the same time the
groups also mobilize external resource to meet their financial need. This practice can be
linked with Asset Based Community Development approach which emphasize on the existing

47
assets of the community. The concept of SHG also strongly stresses on bringing community
based development via recognizing strengths and mobilizing local resources, individual skills
and capabilities.

Therefore, it will be easy to combine asset based community development (ABCD) model
with other similar concepts like SHG and with the existing traditional community institutions
established to help each other. So, SHG programme can function in the best way if the
practice is integrated with the concept of asset based community development theory.

As the study conducted by Mindaye (2014) the families of SHG members also empowered
indirectly. For example mothers teach their children by using loan access from the SHG. The
women also influenced their husbands to change the traditional attitude they had about work
and transform their attitude in to a rational and modern thinking. In addition, gender equality
is enhanced in families as the women become productive in their Income Generating
Activities (IGS) and changed the living style of their family based on the trainings given
about home management, family planning, hygiene and sanitation.

The SHG programme facilitates the poor and disadvantaged members of the community to
explore their potentials, gifts and the existing assets through intensive and variety of trainings
given by different professionals. It encourages the members to save and get access for
internal loan from the group account so as to help the members to begin and expand their
income generating activities.

As the study of Gebre Yntiso Deko et al (2014) economically also they take trainings like
saving and credit management, business planning, record keeping (financial statements),
banking, concepts of proposal writing, entrepreneurship, basic business skills, urban
agriculture, operational planning, resource management.

Kindernothilfe (2014) has pointed the key principles of the economic dimension of the SHG
approach are mutual trust, accountability, participation and creativity In addition, through
forming SHGs that collectively save agreed amounts of money and give loans to their
members to improve their economic situation, these principles are developed both in
individuals and the group.

48
2.6.3 Social Empowerment and Contribution of SHGs
Self Help Groups have weekly meetings on which different social issues raised and discussed
by the group members. These discussions help the members to be conscious about the social
evils around the community and to take action to prevent those complications. In addition,
SHG members establish a system which is comfortable for each particular group in order to
help each other during Socio-economic problems. Further, they build strong social bond
among the society in the process of mutual support and through the structural network of
SHG which tie the local community in SHGs, and Federation. These social networks
contribute for holistic development of the society.

According to Kebede (2011) Social networks of a particular community have different

functions such as social, symbolic or ritual, economic spiritual or religious, political, and
cultural or traditional function. The strong social network are important for the process of
bringing sustainable development. This shows the contributions of SHGs in building social
boned among the poor community in order to take advantage of the above functions.

Brody et al (2013) define social empowerment as the ability to exert control over decision
making within the domestic sphere. So that measures can include women’s mobility or
freedom of movement, freedom from violence, negotiations, and discussion around sex,
control over choosing spouse, control over age at marriage, family size decision-making, and
access to education. Moreover, Vikrant and Sharma (2015) argued social empowerment is
often achieved through public policy and education, liberates women from the mistreatment,
exploitation, and oppression that inhibit women from reaching their full potential. Social
empowerment reinforces the ability to participate economically and politically, which in turn
reinforces women’s standing in society.

They can get a secure place in society if they are socially empowered which can be achieved
through SHGs. Besides boosting the meager financial economy of the poor households from
bread winning to money making, SHGs have effectively contributed to positive social change
for the quality of life for its members. Self Help Groups as a tool for social development, if
managed and implemented properly, can undoubtedly play significant roles in empowering
the poor and in transforming the social status of the marginalized poor.

Many researchers, who studied the benefits of SHGs, found out that SHGs provide
considerable social protection and income opportunities to the members; and accordingly
have acquired prominent status in maximizing social and financial returns.

49
Puhazhendhi and Satyasai (2001) in their study attempted to evaluate the performance of
SHGs with special reference to social and economic empowerment. Their findings indicate
that SHGs, having institutional arrangements can positively contribute to the economic and
social empowerment of the poor. They also state that older groups have relatively more
positive social impacts than younger groups, due to the maturation of experience.

Having the knowledge base about SHG from the preceding literature review, the major
concern behind this study is to ascertain whether the above mentioned major social and
economic benefits gained by being member of SHG exist in the situation of beneficiaries.
Thus, study populations from which pertinent information regarding the benefit and
performance of the SHG can be gathered were identified.

Anitha and Revenkar (2007) made an attempt to study rural development through micro
credit, the growth of SHGs from 1992-93 to 2003-04, and agency wise SHGs linked on
March 31, 2004. They concluded that the success of SHGs not only improve the economic
status of women, but also brought lot of changes in their social status.

Besides boosting the meager financial economy of the poor households from bread winning
to money making, SHGs have effectively contributed to positive social change for the quality
of life for its members. Self Help Groups as a tool for social development, if managed and
implemented properly, can undoubtedly play significant roles in empowering the poor and in
transforming the social status of the marginalized poor.

Many researchers, who studied the benefits of SHGs, found out that SHGs provide
considerable social protection and income opportunities to the members; and accordingly
have acquired prominent status in maximizing social and financial returns.

Puhazhendhi and Satyasai (2001) in their study attempted to evaluate the performance of
SHGs with special reference to social and economic empowerment. Their findings indicate
that SHGs, having institutional arrangements can positively contribute to the economic and
social empowerment of the poor. They also state that older groups have relatively more
positive social impacts than younger groups, due to the maturation of experience.

Having the knowledge base about SHG from the preceding literature review, the major
concern behind this study is to ascertain whether the above mentioned major social and
economic benefits gained by being member of SHG exist in the situation of beneficiaries.

50
Thus, study populations from which pertinent information regarding the benefit and
performance of the SHG can be gathered were identified.

Anitha and Revenkar (2007) made an attempt to study rural development through micro
credit, the growth of SHGs from 1992-93 to 2003-04, and agency wise SHGs linked on
March 31, 2004. They concluded that the success of SHGs not only improve the economic
status of women, but also brought lot of changes in their social status.

According to Florescu (2009) the training is an essential component of the SHG strategy. As
this study implies the goal is to educate women on relevant health, nutrition, and IGA issues.
In addition, when women are trained to care for their children, to protect themselves from
disease like STIs, HIV/AIDS, and to manage household finances, they are expected to use the
loans toward the betterment of their household.

Kindernothilfe (2014) highlighted the key principles of the social dimension of the SHG
approach are affinity, trust, participation and mutual responsibility. So, there is a special
focus on individual and community level problem solving. In addition, the SHGs discuss
problems in their private lives or in their community and develop solutions together in their
meetings. The process is linked with the practical and financial support among the group
members, and therefore provides a holistic approach to improving the lives of members and
their communities.

Regarding significance of SHGs, Mindaye (2014) found that they highly contributed for the
social transformation of the community such as child protection and rearing, women
participation and improved relationship of men and women at community level. SHGs also
contributed for the welfare of the society in issues related with HIV/AIDS, protecting their
children from different evils around the community, active participation in local government
offices and support in local institutions.

According to Gebre Yntiso Deko et al (2014) the SHG approach focuses on establishing
strong social bonds and fostering mutual support among members. In addition some of the
social matters that SHG address include: rearing and protection of children, education of
children, sickness and health, death of family member s, home management, psychological
state of members, business activities of members, moments of happiness (birth, wedding,
graduation, etc among others. In addition socially they empowered by training like home

51
management, introduction to social insurance, awareness creation on HIV/AIDS, home-based
care, family planning, environmental sanitation, literacy.

2.7 Entrepreneurship opportunities for women

Murugan and Begum (2008) made an attempt to examine the predominant barriers to women
entrepreneurs. The study was based on the primary data collected from the sample 100
entrepreneurs of Chennai City. The study reveals that social and cultural barriers are
prominent formidable block for the development of women entrepreneurs. The study
concluded that entrepreneurs with ability to plan and run a business to deliver quality
products.

Sankaran (2009) made an attempt to analyze the trends and problems of rural women
entrepreneurs in India. The study highlighted the conceptual aspects of trends and problems
of rural women entrepreneurs in India. It concluded that women have creative ability, easy
adaptability and ability to cope with setbacks.

Vasanthakumari (2008) made an attempt to examine the role of micro enterprises in

empowering women in Kerela. The author took a sample of 328 micro entrepreneurs. The
study revealed that these enterprises helped in empowering rural women economically,
socially and individually. The study suggested giving priority to commercial viability of
enterprises.

Vidya Sagar Reddy G (2015) explored that entrepreneurship has been considered the
backbone of socio economic development of country. It has been well established that the
level of economic growth of a region to a large extent, depends on the level of
entrepreneurship activities in the region. One function of the Self Help Group is to promote
new business developments for local women and their families. While this could logically be
a sub theme of empowerment, the concept is sufficiency strong as to stand alone. “Women
that understand the purpose of the group and participate in income generating programmes
are starting small businesses and earning their own incomes.” Further, individual groups can
elect to participate in monthly regional meetings to “contribute observed Self Help Group
members in rural northern India villages provide financial support for entrepreneurship
opportunities such as the cow for selling milk, yarn for knitting scarves, bees for producing
honey, and wax for making candles. Women from one village taught women from another

52
village how to knit. The women developed their own wedding supply business. They loaned
members money for family weddings and bartered goods amongst each other.

2.7.1 The Need for Women Entrepreneurs in India

Lalit Kumar Sharma (2019) has pointed the following needs of women entrepreneurs in
India;
a) A lot of and higher access to finance/credit.
b) Access to business support and data, together with higher integration of business
services.
c) Training on business issues and related issues.
d) Better access to local and foreign markets.
e) Day care centers & nurseries for children, and also for the elderly;
f) Positive image-building and alter in mentality amongst women, whereby women see
themselves as capable achievers and build up confidence.
g) Breaking through ancient patrons and structures that inhibit women’s advancement.
h) Role modeling of women in non-traditional business sectors to break through
traditional views on men’s and women’s sectors.
i) More involvement and participation in legislation and decision-making processes.
j) Removing of any legislation that impedes women’s free engagement.
k) Awareness-raising at the governmental furthermore as non-public level and really
produce entrepreneurial opportunities and not simply programmes that remain paper.

2.7.2 Rural Women Empowerment and Entrepreneurship Development

The emergence of women entrepreneurs and their contribution to the national economy is
quite visible in India. The number of women entrepreneurs has grown over a period of time,
especially in the 1990s.

Women entrepreneurships need to be lauded for their increased utilization of modern

technology, increased investments, finding a niche in the export market, creating sizable
employment for others and setting the trend for other women entrepreneurs in the organized
sector.

While women entrepreneurs have demonstrate their potential, the fact remains that they are
capable of contributing much more than what they already are.

53
Women's empowerment is “a process whereby women become able to organize themselves to
increase their own self-reliance, to assert their independent right to make choices and to
control resources which will assist in challenging and eliminating their own subordination".

Hashemi and Schuler (1993) defined the empowerment of women through the use of six
spheres:
a) Sense of self and a vision of the future, including resisting negative behaviors of the
husband. Mobility and visibility, including how women are treated when they are
traveling.
b) Economic security, including cash income, new skills and knowledge.
c) Status and decision-making power within the household, including making purchases
on their own.
d) Ability to interact effectively in the public sphere, such as joining credit programmes,
and
e) Participation in non-family groups, such as credit programmes and solidarity
movements.

Sharmina Afrin, Nazrul Islam and Shahid Uddin Ahmed (2010) explored and identified the
factors related to the development of entrepreneurship among rural women through the
microcredit programmes of providers. Social empowerment, rural entrepreneurship,
Innovation, Risk-taking, Opportunity-seeking, financial management skill and group identity,
creative urge and self-interest, family funds and female involvement, employment of family
members and the creation of new jobs, independence and keeping oneself busy, family
experience and option limitation being the constructs, found that Microcredit providers
should give importance to the development of the financial management skills of the
borrowers and create group identity of the borrowers. They also should identify the rural
women who have their family experience and no other options but to do business or get
involved with loan providers. Loan providers should also be mindful of the fact that the rural
women of Bangladesh have an independent mentality and they would like to take on the
challenge of being entrepreneurs.

2.8 Challenges Faced by Self Help Groups

Mindaye (2014) explored the major challenges of SHGs which hindered them from achieving
more were the illiteracy of some SHG members. According to this study the presence of

54
illiteracy brought a negative effect in the leadership cycle of the system because SHGs and
leaders have to be capable of writing and reading the record and report of their activities and
for proper bookkeeping. These challenges forced the progress of empowerment and
development of women to continue in slow pace.

Van Kempen (2009) analyzed some of capacity gaps facing SHG include both the internal
factors which are within their control and also the external factors which are beyond their
control. The most common internal factors are the management and the technical skills. The
management skills include lack of governance structure, strategic plan, financial
management, constitution, and poor monitoring and evaluation tools. The technical skills
include poor marketing skills, accounting skills and financial planning skills.

A study conducted by Mukherjee and Purkayastha (2011) noted some of the group business,
despite producing excellent quality products, suffered huge inventories due to poor marketing
strategy as a result of lack of brand identity of their produce, and poor distribution network.
Some of the external factors include lack of control over policies making such as to gap
exploitative markets, enable them have access to good roads, friendly bank lending rates. The
greatest absurdity is that most government officials who make these policies are thousands of
miles away continually shaping new solution to problems they have never experienced for the
people whom they have never consulted and thus some of the policies developed to alleviate
the poor do not work.

Pattnaik (2003) in her study reveals that SHGs are continuously striving for a better future for
tribal women as participants, decision -makers and beneficiaries in the domestic, economic,
social and cultural spheres of life. But due to certain constrain like gender inequality,
exploitation, women torture for which various SHGs are not organized properly and
effectively.

Das (2012) defines with the growing competition there is a need to equip Self Help Groups
members with technical skills such as marketing, entrepreneurial, and financial planning to
stand the test of time.

Self Help Group (SHG) has proved to be a good grass root approach to poverty eradication
by the community. Most government and NGOs have notice this approach, and wants to
override in these structures without undergoing necessary restructuring and re-orientation to
suit the structure. For example some NGOs who want to supplement the group loan through

55
aid end up burdening the group with a lot of paper work such as proposal, budget, work
plans, prior approval of aid without building their capacity to on those areas. This may lead to
delay which may not much community priorities.

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 CHAPTER – III

RESEARCH METHODOLOGY

57
 RESEARCH METHODOLOGY

3.1 Introduction
Mari E (2011) defined the Research methodology is a way to systematically solve the
research problem (It can be understood as a science of studying how research is done
scientifically. It is necessary for the researcher to know not only the research methods or
techniques but also the methodology. Thus, research methodology has many dimensions and
research methods do constitute a part of the research methodology. Therefore, in this section,
Problem Statement, Research Objectives, Research Questions, Universe, Sampling size, Data
Collections instruments, Scope and Limitation of this study were presented.

3.2 Statement of the Problem

Traditionally, Socio-cultural beliefs and other impediments have long limited women’s
participation in the economy and their access to resources for development especially in
developing countries. In general, women also make up the majority of unemployed, the lower
paid, unorganized informal sector of most economies. However, there is a general consensus
that in order for women to play a meaningful role in socio-economic development, they must
be empowered both at the economic and social level.

Economic development of a country means that the per capita income of that country moves
increases. Similar to any other country of the world, India has been endowed with natural and
human resources who need appropriate utilization by adopting recent technology for growth
and development of the economy. The empowerment of women is crucial for the
development of the country. Empowerment is about the extent of rearrangement of power
relations between men and women to bring a structural transformation in the society. In India,
where population maintains an equal ratio of males with females, the appearance of women
entrepreneurs have great importance or else it will be amounting to neglecting 50 per cent of
the entrepreneurial ability of the country. Therefore, it would be worthwhile to reflect on the
potentialities of SHGs in bringing such structural transformation. The study is an attempt to
provide a holistic view of empowerment, specially the Socio economic development taking
place through SHGs in the lives of women in the Yaraganahalli panchayat, Mysore.

58
3.3 Research Objectives
The study is mainly focused on the following objectives:

1.3.1 General objectives:

1. The general objective of this study is to explore and describe the roles of Self Help
Groups in Socio economic Development of women in Yaraganahalli panchayat, Mysuru.

1.3.2. Specific Objectives:

1. To examine the relationship between SHGs and Socio-economic Development of women
in Yaraganahalli Panchayat, Mysore district.
2. To study the Self Help Group approaches for the empowerment of women by providing
access to Economic Resources.
3. To identify the changes in Socio-economic of the beneficiaries through Self Help Groups.
4. To examine the role of SHGs in Rural Development.
5. To suggest suitable measures for the effective improvement of functioning of SHGs in
improving the Socio economic conditions of the rural people.

3.4 Research Questions

This study addressed the following research questions:
1. What are the roles of Self Help Groups in improving the Socio Economic Development of
Women?
2. Has involvement in the SHGs improve the Social acceptance of women at the family and
community level?
3. Has participation in the SHGs enhance the Economic capacity of the poor women?
4. What are the significance of SHGs in mitigating poverty at the national level?

3.5 Research Design

As the objective of this study is to assess and understand the role of Self Help Groups (SHGs)
in Socio economic development of women, it is exploratory and descriptive research design.

Descriptive research is usually structured and specifically designed to measure the

characteristics of data described in research questions. It is descriptive because the general
Socio-economic characteristics of the study group are described by sex, age group, source
and size of income, level of education, family size, religion, ethnic group, etc. Since the

59
objective of descriptive research is to portray an accurate profile of respondents and events of
situation, it is necessary for the researcher to have a clear picture of the phenomena on which
the researcher wishes to collect data.

The study is exploratory as it investigates the Socio economic situation of the subjects under
the study, as well as it was a valuable means of finding out what is happening, to seek new
insights and to assess phenomenon in a new light. Therefore, the research design employed in
this study was a combination of exploration and description.

Thus, the nature of the study required using both a quantitative as well as qualitative data
collection techniques. Because a mixed method research design is a technique for collecting,
analyzing, and mixing both quantitative and qualitative methods in a single study or a series
of studies to understand a research problem. The other reason why the researcher selected
mixed method research design was that mixed method research design is a good design to use
and build on the strengths of both quantitative and qualitative data.

The quantitative method employed in this study was simple statistics expressed in frequencies
and percentages; and they were used to give explanations on the demographic and socio
economic characteristics of the study subjects. In order to seek answers to research questions,
a qualitative research method was also used in this study.

In this study an attempt has been taken to analyze the socio economic development of women
in Yaraganahalli Panchayat of Mysore District, Karnataka State. The questionnaire has been
developed based on the earlier studies conducted by various researchers. To assess the impact
of Microfinance and Self Help Groups, the respondents have been asked on various
dimensions before and after joining SHGs and access to Microfinance.

3.6 Universe
The total universe of the study includes all the beneficiaries of 10 Self Help Groups (SHGs)
in Yaraganahalli Panchayat of Mysore District, Karnataka State of India.

3.7 Sampling Technique and Sample Size

The Objectives stated earlier were examined through an exploratory study of the functioning
of selected SHGs in the Yaraganahalli Panchayat. The project is purposively chosen
considering that Yaraganahalli panchayat is one of the geographical area under intervention

60
of “Organization for the Development of People” (ODP) where the Socio economic problems
that affect the well-being of the poor community, particularly those of the poor women, will
be solved through empowerment of women and organized groups. Moreover, as the project
under the study is believed to be one of the first in this geographical area, it is hoped that this
study will promote the concept of SHGs in Yaraganahalli panchayat of Mysore, India.

The items selected constitute what is technically called a sample. Four members are selected
randomly from every one of 10 Self Help Groups (SHGs) which responds to the
questionnaire. Thus a total number of 40 Self Help Group (SHG) members are taken from
Yaraganahalli panchayat, Mysore.

3.8 Tools of Used for Data Collection

3.8.1 Data Source (Primary and Secondary Data):

a. Primary Data
Primary data is very significant which decides the frame work with in the research whereas,
the secondary data is to support the primary data. Both primary and secondary data used in
the research.

The primary sources of data refer to the first-hand information. Primary data is collected
during the survey with the help of Questionnaire and Focus Group Discussion to the selected
beneficiaries.

b. Secondary Data
Secondary data is one which already exists and is called from the published sources. The
source from which secondary data was collected from different books, journals, annual
reports and other periodicals and reports of the Government and other agencies.

3.9 Method of Data Collection

In the research survey method used for collection of data. For the collection of data it was
also needed to explain the responds that the purpose is purely for academic and research
purpose than agree and came out to fill-up the questionnaire.

61
3.9.1 Research Instrument
The data collection techniques employed for the research include the use of structured
questionnaire and interview.

The questionnaire were used for the collection of data from members in the selected SHGs.
The questionnaire embodies both closed-ended questions for randomly selected members of
the various groups. Interviews were conducted for institutions involved in the survey using
interview schedule.

3.9.2 Respondents
To conduct the research the responds are taken as 40 women of SHG members which can
give a brief idea what women feel about their status.

3.9.3 Questionnaire
Questions are framed in such a way that the answers reflected the ideas and thoughts of the
respondents. The questionnaire has total 33 questions and like scaling techniques has been
used for each question. The scale is such as:

i. Yes / No questions
ii. a) Strongly agree b) Agree c) Neither agree or disagree d) Disagree
e) Strongly disagree

3.9 Scope of the Study

The study is carried out with Ten Self Help Groups (10 SHGs) members in Yaraganahalli
panchayat of Mysore district, Karnataka state of India. It uses the qualitative and quantitative
method of research, only women respondents are chosen for the study.

There are many scope for empowering the women, but in this research only focused on the
role of Self Help Groups in Socio economic development of women. The study may give
more wide range information if it was covered the entire Yaraganahalli of Mysore district.
However the research work is limited to women clients who are the member of any Self Help
Groups. Hence, generalization of some facts and finding of the study may be limited to the
specific geographical area considered in the undertaking.

62
3.10 Limitations of the Study
The present research study has the following limitations:
This study was focused on the role of Self Help Groups in Socio economic Development of
women in specific area and may not cover all the related concept to empowerment of women.

Only those Self Help Groups (SHGs) members which have been formed under intervention
of Organization for the development of people (ODP) are selected for the study.

The study is confined only within the Yaraganahalli region of Mysore district, Karnataka.

The study conducted with short time period, so as detailed and comprehensive study could
not be made.

The language barrier was another problem for researcher, which researcher couldn’t conduct
deep interview among the SHGs members. The researcher only used from questionnaire tool
for data collection.

3.12 Chapterization of the Study

Considering the nature and subject matter of the present research work, the work has been
elaborated into five chapters. The following chapterization highlights the schedule of the
work.

Chapter - I
The first chapter introduces the background and present work with theoretical and conceptual
frame work of Socio economic development of women through Self Help Groups. The
chapter also derives the Definitions, different model of SHG, features and need of SHG,
microfinance and its scope, significant of the study, area of the study and the Organization for
the development of people background and formation of SHGs for women empowerment.

Chapter - II
The second chapter reviews the literatures related to women empowerment programmes and
SHGs strategy in India and abroad to constitute the contemporary thinking with theoretical
and practical knowledge.

Chapter - III
The third chapter deals with the research methodology.

63
This chapter is consist of research methodology, statement of the problem, research
objectives, research questions, research design, universe, sampling technique and size,
method of data collection, scope of the study, limitation and chapterization.

Chapter- IV
The fourth chapter deals with the data analysis and interpretation of present study.

This chapter presents the data collected from the field in accordance with the research
objectives and the research questions framed for the study. This chapter includes tabular
representations of the statistical data.

Chapter- V
This chapter has accounted the major findings, suggestions and conclusion of the study
following by the primary and secondary sources of data.

This chapter makes a summary of the major findings of the study. The chapter also prescribes
some recommendations and suggestions for socio economic development of women, drawn
out through the present study.

64
 CHAPTER - IV

DATA ANALYSIS AND INTERPRETATION

65
 DATA ANALYSIS AND INTERPRETATION

a) Personal information:

Table No. 1: Age Group

Number of
Age Group Percentage
Respondents
18-25 years 4 10%
25-35 years 10 25%
35-45 years 15 37.5%
45 year – above 11 27.5%
Total 40 100%

Diagram No. 1

Age

27.5% 10%

25% 18-25 years

25-35 years
35-45 years
45 year - above

37.5%

According to the above table and diagram, the average of age goes from 18 years old and
above.
The details of age group are below:
 10% of respondents are (18 - 25) years old,
 25% of respondents are (25 - 35) years old,
 37.5% of respondents are (35 - 45) years old,

66
 27.5% of respondents are (45 – above) years old.
Table No. 2: Educational Level

Number of
Educational Level Percentage
Respondents
Illiterate 14 35%
1st to 7th standard 19 47.5%
8th to 10th standard 5 12.5%
PUC 2 5%
Degree and above 0 0%
Total 40 100%

The above table shows the following level of respondents:

 35% of respondents are illiterate meaning that they are unable to write and read,
 47.5% constitute those women who left from 1st to 7th standard,
 12.5% of the respondents are from 8th to 10th standard. These level of SHGs members are
mostly those who take records of the group during the meetings,
 5% of respondents are pre-university courses students,
 0% of SHG members have degree and above. This percentage means that none of the
respondents has degree.

This the explanation of this part which shows the different levels of education of Self Help
Groups in Yaraganahalli Panchayat ,Mysuru.

For more details, the researcher has used the bar chat to give a comprehensive explanation
about education below.

67
Diagram No. 2

Educational Level
47.5%
50%
45%
40% 35.00%
35%
30%
25%
20% 12.5%
15%
10% 5.00%
5% 0.00%
0%
Illiterate 1st to 7th 8th to 10th PUC Degree and
standard standard above

Table No. 3: Socio economic profile/ Caste

Number of
Socio economic Profile/ Caste Percentage
Respondents
General 3 7.5%
SC 20 50%
ST 0 0%
OBC 5 12.5%
Minority 12 30%
Total 40 100%

The Socio economic Profile/Caste of the Respondents

Here, the present study has shown the following socioeconomic profile and caste to illustrate
its work:

68
 7.5% of the respondents belong to the general class among the elf help groups in Mysore
Taluk,
 50% of the SHG members belong to Schedule Caste (SC) according to the responses
given,
 0% of respondents come under Schedule Tribes (ST),
 12.5% of the respondents from the SHG members belong to Other Backwards Class
(OBC),
 30% of the respondents are minorities.

Diagram No. 3

Socio economic profile/Caste

General
7.5%
Minority
30%

SC
OBC 50%
12.5

General SC ST OBC Minority

Table No. 4: Marital Status

Number of
Marital Status Percentage
Respondents
Single 2 5%
Married 26 65%
Widow 8 20%
Divorced 3 7.5%
Husband left 1 2.5%

69
 Total 40 100%

Diagram No. 4

Marital Status

7.5% 2.5% 5%

Single
Married
20% Widow
Divorced
Husband left

65%

Marital Status

The above table and diagram reveals that:

 5% of women SHGs who responded are single women,

 65% of respondents are married women,
 20% of Self Help Groups of Mysore Taluk are widow , which means that their
husbands passed away,
 7.5% of respondents are divorced from their husbands, and only
 2.5% of women in that particular area have been abandoned by their partners.
 This data shows that almost the majority of the respondents are married women,
followed by 20% of widows.

70
Table No. 5: Family Size

Number of
Family Size Percentage
Respondents
Joint Family 16 40%
Nuclear Family 24 60%
Total 40 100%

Diagram No. 5

Family Size

Jiont Fam-
ily
40%

Nuclear
Family
60%

The interpretation of table and diagram No.5 shows that we have two types of families among
the SHGs in Yaraganahalli Panchayat, Mysuru.

They are:

 40% of the respondents are living in joint families whereas,

 60% of women live in nuclear families.

71
Nuclear family is composed of Father, mother and two or three children. The opposite is joint
family where we meet father, mother, grandfather, grandmother and a lot of children and
grandchildren.

Table No. 6: Occupation

Number of
Occupation Percentage
Respondents
Self employed 6 15%
Agriculture 7 17.5%
Animal husbandry 7 17.5%
Labor 2 5%
Small business 4 10%
House wife 14 35%
Others 0 0%
Total 40 100%

Diagram No. 6

occu pa tion
40% 35.00%
35%
30%
25%
20% 17.5% 17.5%
15.00%
15% 10.00%
10% 5.00%
5% 0.00%
0%
r

s
re

e
ss
ed

ry

bo

er
if
tu

ne
da
oy

th
w
la
ul

si
an

O
pl

se
ic

bu
em

sb

ou
gr

hu

H
A

al
lf

Sm
Se

al
m
ni
A

The above table and diagram (representation graphic) reveals the following determines:

 15% of the respondents are self-employed, meaning that they work for themselves,

72
  17.5% of Self Help Group members in Mysore Taluk are practicing Agriculture,
 17.5% of respondents stated that they are in the field of animal husbandry which
assure their income, and enable them to solve their financial problems,
 5% of women respondents are labor workers,
 10% of respondents are doing small businesses in the Taluk of Mysore,
 35% of those women who responded are house wives,
 0% of respondents practice other activities apart from the above mentioned ones.
 In short, one can notice that the major number of respondents who are house wives or
34% of them. And the other activities are balanced according to the data of this table
above.

b) Self Help Group:

Table No. 7: Join in SHG (Years)

Number of
Join in SHG (Years) Percentage
Respondents
0-1 year 3 7.5%
1-5 years 7 17.5%
5-10 years 18 45%
10-above years 12 30%
Total 40 100%

Diagram No. 7

73
 Jion in SHGs (Years)

10-above 30%
years

5-10 years 45%

1-5 years 17.5%

0-1 year 7.5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Joining in SHGs

The analysis of the above table and diagram shows the following results:

 7.5% of the respondents joined the SHG just one year,

 17.5% of women joined Self Help Groups from 1 to 5 years ago,
 45% of the respondents affirmed that they have joined the groups in between 10 years
which means that most of them have 10 years’ experience in SHG life, and
 30% of women answered that they have more than 10 years’ experience in SHG life.

Though some members are new in SHG life, the majority of women in Yaraganahalli
Panchayat, Mysuru have experiences in working together as a group work.

Table No. 8: How did you know SHG?

Number of
How did you know SHG? Percentage
Respondents
Through friends 8 20%

74
 Through Government 7 17.5%
Social media activities 6 15%
NGOs 17 42.5%
Any other services 2 5%
Total 40 100%

Diagram No. 8

How did you know SHG?

42.5%

40%
30% 20% 17.5% 15%
20%
5%
10%
0%
t

s
ds

es
en

ce
O
iti
en

nm

vi
G
tiv
fri

er
N
er

ac

rs
h

ov
ug

he
al
G

ci
ro

ot
h

So
Th

ug

ny
ro

A
Th

The Ways Women have known the Self Help Group

The table and diagram No.8 reveals that the following ways have been identified:
 20% of respondents came to know the SHG through their friends,

75
  17.5% of women said that have known the SHG through the government different
schemes in Mysore Taluk,
 15% of the respondents got to know the SHG through social media which is one of
the fast means of communication today,
 42.5% of respondents knew SHGs through different Non-Governmental
Organizations. And finally,
 5% of respondents said that they have known SHGs through other means.
 The general remarks showed that more than 45 % of women respondents knew the
Self Help Group through NGOs, which implies that NGOs which are working in the
Taluk of Mysore work in a way the communities have access to the community based
services.

Table No. 9: Did SHG improve your lifestyle?

Number of
Did SHG improve your lifestyle? Percentage
Respondents
Strongly agree 5 12.5%
Agree 25 62.5%
Neutral 6 15%
Disagree 4 10%
Strongly disagree 0 0%
Total 40 100%

Diagram No. 9

76
 SHGs improve the Lifestyle

Strongly 0%
disagree

Disagree 10%

Neutral 15%

Agree 62.5%

Stronly agree 12.5%

0% 10% 20% 30% 40% 50% 60% 70%

Lifestyle of SHG Members

The above table and diagram analysis shows the following:

 12.5% of respondents strongly agreed that their lifestyle have been improved,
 62.5% of women who responded agreed that their life living standard has improved,
 15% of respondents have been neutral regarding their lifestyle,
 10% disagree, they said that their lifestyle has changed.
 The majority of women are agreed which the SHGs improve their lifestyle.

Table No. 10: Do you suggest SHG to others?

Number of
Do you suggest SHG to others? Percentage
Respondents
Yes 32 80%
No 8 20%
Total 40 100%

Diagram No. 10
77
 Suggest the SHG to Others

20%

80%

yes No

Recommending Other People to Join SHGs

The interpretation of table and diagram No. 10 gives the following information:

 80% of respondents are in favor of recommending other women to join the SHGS
because of its benefits,
 20% of the respondents find the Opposite of this point, which means that is
unnecessary to join Self Help Groups.

Table No. 11: Do you participate regularly in SHG meeting?

Number of
Do you participate regularly in SHG meeting? Percentage
Respondents
Yes 29 72.5%
No 11 27.5%
Total 40 100%

Diagram No. 11

78
 participating regularly in SHGs meeting
27.5%

72.5%

yes No

Participation in Meeting:

According to this table and diagram, the frequency of members meeting is measured as
follow:

 72.5% of respondents regularly attend the group meetings,

 27.5 % of respondents don’t attend regularly the group meetings.

Indeed, one can say that more than the majority attends the meeting. If people don’t attend
meeting, it is a signal of group disbanding.

Table No. 12: Who take the decision in SHG meeting?

Number of
Who take the decision in SHG meeting? Percentage
Respondents
All members 40 100%
President 0 0%
Secretary 0 0%
NGO's Staff 0 0%
Total 40 100%

79
Diagram No.12

Decision makers in SHGs meeting

100%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10% 0% 0% 0%
0%
All members President Secretary NGO's Staff

The Decision Makers in the Groups

According to the data of the above table and diagram, the following interpretations have been
pointed out:

 100% of group members participate in decision making.

 The NGO’s Staff is only guiding the SHG members and not interfere them.
 Everybody has right to share their thought during the meeting.

c) Social and Economic impact of SHGs

Table No. 13: Who is the head of family?
Number of
Who is the head of family? Percentage
Respondents
My self 6 15%
Husband 25 62.5%
Father in law 2 5%
Father 4 10%
Mother 3 7.5%
Total 40 100%

80
Diagram No. 13

Head of Families

70% 62.5%

60%

50%

40%

30%
15%
20%
10%
7.5%
5%
10%

0%
My self Husband Father in law Father Mother

Chieftaincy:
 15% of respondents said that they are head of their own family,
 62.5% of respondents replied that their husbands are the chief of their family,
 5% of women who responded the questions said that their father in laws are the chief
of family,
 10% of respondents confirmed that their father is chief of family, and
 7.5% of respondents manifested that mother is the head of the family, meaning that
matriarchy.

Table No.14: Do you have any influence in decision making in the household level?

Do you have any influence in decision making in Number of

Percentage
the household level? Respondents
Strongly agree 2 5%
Agree 20 50%
Neutral 8 20%
Disagree 10 25%
Strongly disagree 0 0%
Total 40 100%

81
Diagram No. 14

Influences in Decision making in the Household level

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0% Stronly agree Agree Neutral Disagree Strongly disagree

Influence in Decision Making: Table No. 14

 5% of the respondents strongly agreed that they have very good level of decision
making in their house,
 50% of women in responses of these questions proved that they agree the
improvement of their decision making skills of course at the household level,
 20% of the respondents stayed neutral,
 25% of the respondents completely disagreed about the improvement of decision
making in the family,
 0% of the respondents strongly disagreed with the question of decisions making.

Table No. 15: Did participation in SHG increase your awareness and knowledge?

82
 Did participation in SHG increase your awareness Number of
Percentage
and knowledge? Respondents
Strongly agree 4 10%
Agree 26 65%
Neutral 4 10%
Disagree 6 15%
Strongly disagree 0 0%
Total 40 100%

Diagram No. 15

Increase Social Awareness and Knowledge

70%

60%

50%

40%

30%

20%

10%

0% Stronly agree Agree Neutral Disagree Strongly disagree

The above table and diagram shows the following:

 10% of respondents strongly agreed that participation in SHGs’ meeting improved
their Knowledge and self-awareness,
 65% of the respondents agreed that participation enabled them to improve their
awareness and knowledge,
 10% of women who responded that they are neutral about the questions,
 0% of respondents strongly disagreed.

Table No. 16: Did SHG enable you to offer good quality of education to your children?

83
 Did SHG enable you to offer good quality of Number of
Percentage
education to your children? Respondents
Strongly agree 5 12.5%
Agree 23 57.5%
Neutral 5 10%
Disagree 7 20%
Strongly disagree 0 0%
Total 40 100%

Diagram No. 16

Offer Good Quality of Education for Children

60%

50%

40%

30%

20%

10%

0% Stronly agree Agree Neutral Disagree Strongly disagree

Education Provided to Children

The above table reveals the following percentage:
 12.5% of the respondents have shown their total satisfaction of the quality of
education their children received thanks to SHGs,
 57.5% of the respondents agreed that SHGs have provided good quality of education
to their children,
 10% of the respondents stayed neutral relative to the question,
 20% disagreed with the question, whereas
 0% of the respondents strongly disagreed with the question.

84
Table No. 17: Did SHG improve the health status of your family members?
Did SHG improve the health status of your family Number of
Percentage
members? Respondents
Strongly agree 4 10%
Agree 26 65%
Neutral 6 15%
Disagree 4 10%
Strongly disagree 0 0%
Total 40 100%

Diagram No. 17

SHGs are Improve the Health status of Family

Members

70%
60%
50%
40%
30%
20%
10%
0% Stronly agree Agree Neutral Disagree Strongly disagree

Health Status of the Family Members through SHGs

According to the table and diagram No. 17, the following are the result of the data analysis:

 10% of the respondents strongly believe that their family members receive good
health through SHGs,
 65% of the respondents agreed that health of the family is assured since economy is
supposed to be increased,
 15% of those respondents were neutral relative to the question,

85
  10% of the respondents totally said that the SHGs have not changed their family
members’ health status, and
 0% of the respondents strongly disagreed.

Table No. 18: Has participation in SHG increase your mobility and participation in
Social and Development Activities?

Has participation in SHG increase your mobility and Number of

Percentage
participation in Social and Development Activities? Respondents
Strongly agree 5 12.5%
Agree 24 60%
Neutral 7 17.5%
Disagree 4 10%
Strongly disagree 0 0%
Total 40 100%

Diagram No. 18

86
 SHGs are increse the mobility and participation in Social
and Development Activities

60%

50%

40%

30%

20%

10%

0% Stronly agree Agree Neutral Disagree Strongly disagree

Mobility and Participation

The above table and diagram reveals the following:

 12.5% of the respondents fully agreed that they have seen increase in their life
through the participation in social and developmental activities,
 60% of the respondents agreed that the social and development activities have been
increased,
 17.5% of women in Mysore Taluk who responded these questions stay neutral,
meaning they don’t have choice,
 10% of the respondents disagreed with the question, and
 0% of the respondents strongly disagreed with this statement.

Table No. 19: Did you come under Below Poverty Line (PBL)?

Number of
Did you come under Below Poverty Line (PBL)? Percentage
Respondents
Yes 23 57.5%
No 17 42.5%
Total 40 100%
Diagram No. 19

87
 Living under Below Poverty Line (PBL)

42.5%

57.5%

Yes No

Poverty Level

The above table and diagram shows the poverty level in Yaraganahalli Panchayat, Mysuru as
following:

 57.5% of the Self Help Groups who responded that question have confirmed that they
used to come under the Below Poverty line (BPL), and
 42.5% of the respondents have not come under the Below Poverty Line.

Table No. 20: Do you have Agriculture land?

Number of
Do you have Agriculture land? Percentage
Respondents
Yes 7 17.5%
No 33 82.5%
Total 40 100%

Diagram No. 20

88
 having agriculture land
Yes No

17.5%

82.5%

The Ownership of Agricultural Land

The table and diagram No. 20 reveals that in Yaraganahalli Panchayat:

 17.5% of respondents have agricultural land for their own, meanwhile

 82.5% of women in Mysore Taluk have not got the ownership of the agricultural land.

Table No. 21: Are you living in your own house?

Number of
Are you living in your own house? Percentage
Respondents
Yes 24 60%
No 16 40%
Total 40 100%

Diagram No. 21

89
 Living in their own houses

40%

60%

Yes No

Ownership of House

 60% of the respondents have expressed that they are living in their own house,
 40% of women who responded that question confirmed that they are not living in their
own houses, which means that they are monthly paying the rent fees to the owner in
the risk of being kicked out in faults of payment.

Table No. 22: After being member of SHG what types of benefits you perceive for
yourself?

After being member of SHG what types of benefits Number of

Percentage
you perceive for yourself? Respondents
Social 4 10%
Domestic 3 7.5%
Financial 21 52.5%
All 12 30%
Total 40 100%

Diagram No. 22

90
 Types of benefits for SHGs Members

60%

50%

40%

30%

20%

10%

0% Social Domestic Financial All

The following results are from the above table:

 10% of the respondents benefit social supports,
 7.5% of women in Mysore Taluk benefit the Domestic supports,
 52.5% of the respondents confirmed they benefit financial support being the members
of Self Help Groups,
 30% all the respondents of benefit social, domestic, financial.

Table No. 23: Being a member of SHG has reduced your income dependency ratio (on
husbands) at the household level?
Being a member of SHG has reduced your income
Number of
dependency ratio (on husbands) at the household Percentage
Respondents
level?
Strongly agree 7 17.5%
Agree 14 35%
Neutral 8 20%
Disagree 11 27.5%
Strongly disagree 0 0%
Total 40 100%

91
Diagram No. 23

Reduce income dependency ratio (on husbands) at the

household level

35%
30%
25%
20%
15%
10%
5%
0% Strongly agree Agree Neutral Disagree Strongly disagree

The table and diagram shows the following interpretation:

 17.5% of the respondents replied that SHGs has enabled them which being a
member of SHG reduced their income dependency ratio on their husbands,
 35% of respondents agree that they are access to money and not depend on their
husbands,
 20% of the respondents stay neutral,
 27.5% of women are depend to their respectful husbands,
 0% of respondent strongly disagreed to the question.

Table No. 24: Being a SHG member has enabled you to access to your favorite utensils
and furniture?
Being a SHG member has enabled you to access to Number of
Percentage
your favorite utensils and furniture? Respondents
Strongly agree 4 10%
Agree 18 45%
Neutral 6 15%
Disagree 12 30%
Strongly disagree 0 0%
Total 40 100%

92
Diagram No. 24

Access to Favorite Utensils and Furnitures

45%
40%
35%
30%
25%
20%
15%
10%
5%
0% Strongly agree Agree Neutral Disagree Strongly disagree

The table shows the following interpretation:

 10% of the respondents replied that SHGs has enabled them to access their favorite
utensils and furniture,
 45% of respondents agree that they accessed to furniture and utensils through SHGs,
 15% of the respondents stay neutral,
 30% of women disagreed with the question,
 0% of respondent strongly disagreed to the question.

Table No. 25: How much do you save monthly in SHG?

Number of
How much do you save monthly in SHG? Percentage
Respondents
100 5 12.5%
150 5 12.5%
200 20 50%
250 10 25%
300&above 0 0%
Total 40 100%

93
Diagram No. 25

Monthly saving in bank

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0% 100 150 200 250 300&above

The Amount of Money Saved Monthly by the Members

The above table shows the following:

 12.5% of the respondents said that they save 100 rupees per month,
 12.5% of the respondents affirmed that they save 150 rupees per month,
 50% of women in Mysore taluk said that they monthly save 200 rupees,
 25% of the respondents save 250 rupees in a month,
 0% of respondents are not able to save above 300 rupees in a month.

Therefore, the data of this table shows that women in Mysore Taluk have the capacities to
save money from 100 rupees up to 250 Indian rupees.

94
Table No. 26: What is the main purpose of monthly saving?

Number of
What is the main purpose of monthly saving? Percentage
Respondents
Self 10 25%
Education 7 17.5%
Health 4 10%
Agriculture 6 15%
Emergencies 9 22.5%
Others… 4 10%
Total 40 100%

Diagram No. 26

Main purpose of Monthly Saving

25%
23%

18%
15%

10% 10%

Self Education Health Agriculture Emergencies Others…

The Main Purpose of Monthly Saving:

 25% of the respondents are favorable for self,

 17.5% of those women who responded chose education as a mean,
 10% of respondents monthly save for the health of the family,

95
  15% of respondents save money and use into agriculture ,
 22.5% of the respondents monthly save in case of emergencies,
 10% of respondents cumulate money monthly for various other reasons.

Table No. 27: How much was your monthly income before joining SHG?

How much was your monthly income before joining Number of

Percentage
SHG? Respondents
No income 14 35%
200-2000 24 60%
2000-5000 2 5%
5000-above 0 0%
Total 40 100%

Diagram No. 27

Montly income before joining SHG

60%

50%

40%

30%

20%

10%

0% No income 200-2000 2000-5000 5000-above

The Income of Members after Joining SHGs

The above table shows the following interpretation:

 35% of the respondents didn’t have income before joining SHG,

96
  60% of the respondents had monthly income from 200 up to 2.000 rupees,
 5% of the respondents have been received from 2.000 up to 5.000 rupees per month
before joining SHG,
 0% no one had income more than 5.000 rupees before joining SHG.

Table No. 28: How much is your monthly income after joining SHG?

How much is your monthly income after joining Number of

Percentage
SHG? Respondents
No income 8 20%
200-2000 24 60%
2000-5000 5 12.5%
5000-above 3 7.5%
Total 40 100%

Diagram No. 28

Monthly income after joining SHG

60%

50%

40%

30%

20%

10%

0% No income 200-2000 2000-5000 5000-above

Income after Joining SHGs

The above table present the economic situation of the women:

 20% of the respondents don’t have any income after joining SHGs,

97
  60% of women who responded save at least from 200 up to 2.000 rupees per month
after joining SHGs,
 12.5% of the respondents save at from 2.000 to 5.000 rupees per month after joining
the SHGs,
 7.5% of the respondents save 5.000 and above per month.

Table No. 29: Did you ask loan from SHG?

Number of
Did you ask loan from SHG? Percentage
Respondents
Yes 37 92.5%
No 3 7.5%
Total 40 100%

Diagram No. 29

ask loan from SHGs

Yes No
8%

93%

Loan Situation

 92.5% of the respondents asked for loan and got it,

 7.5% of women from the Self Help Group did not ask for loan.

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Table No. 30: What is the purpose of getting loan from SHG?

Number of
What is the purpose of getting loan from SHG? Percentage
Respondents
Personal 9 22.5%
General household expenditure 8 20%
Agricultural 7 17.5%
Animal husbandry 7 17.5%
Medical and health care 2 5%
Education 3 7.5%
Marriage 0 0%
Festival 4 10%
Total 40 100%

Diagram No. 30

Purpose of Getting Loan from SHGs

22.5%
25% 20%
17.5% 17.5%
20%
15% 10%
8%
10% 5%
5% 0%
0%
l
al

e
on
l

ry

re
re

va
ra

g
n

ca
nd

ria
itu

ati
ltu

sti
rso

ba

ar
uc
nd

h
icu

Fe
Pe

alt

M
us

Ed
pe

gr

he
h
ex

al

nd
d

m
ol

la
ni
eh

ica
A
us

ed
ho

M
al
er
en
G

Purpose of Getting Loan from SHGs

This table above here expresses the internal loans:
 22.5% of the respondents ask loan for personal issues,
 20% of SHG members ask loan for general household expenditures,
 17.5% of the respondents took loan for Agricultural issues,

99
  17.5% of the women who responded said that they ask loan in the pursuit of their
animal husbandry,
 5% of the respondents asked loan for insuring health situation in the family,
 7.5% of the respondents ask loan for education purposes,
 0% for marriage purpose,
 10% of the respondents asked loan for different festival.

Table No. 31: Did you reimburse your loan on time?

Number of
Did you reimburse your loan on time? Percentage
Respondents
Yes 32 80%
No 8 20%
Total 40 100%

Diagram No. 31

Reimburse the loan on time

20%

Yes
No

80%

This above table shows the number of people who reimburse on time:
 80% of the women who took loan reimburse on time,
 20% of women are not regular in reimbursement on time.

In short, the majority pays on time which should be thanked and encouraged.

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Table No. 32: Do you think that SHG lead to Sustainability?

Number of
Do you think that SHG lead to Sustainability? Percentage
Respondents
Strongly agree 5 12.5%
Agree 25 62.5%
Neutral 5 12.5%
Disagree 5 12.5%
Strongly disagree 0 0%
Total 40 100%

Diagram No.32

SHGs are lead to Sustainability

70%

60%

50%

40%

30%

20%

10%

0% Strongly agree Agree Neutral Disagree Strongly disagree

Sustainability

The interpretation of the above table shows the following:

 12.5% of the respondents have the strong agreement that the SHG lead to the
sustainability with examples,
 62.5% of the respondents agree that living in group is the best manner for maintaining
sustainability,
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  12.5% of the respondents stay neutral or reluctant regarding to that question,
 12.5% of women who responded totally disagree that it should be a way for
sustainability,
 0% similarly disagree.

Table No. 33: Do you participate in Gram Sabha or other meeting in Gram Panchayat?

Do you participate in Gram Sabha or other Number of

Percentage
meeting in Gram Panchayat? Respondents
Yes 22 45%
No 18 55%
Total 40 100%

Diagram No. 33

participating in Gram Sabha or other meeting in

Gram Panchayat

45%

Yes
55%
No

Panchayat Meeting
This table above shows the level of participation in panchayat meeting:
 45% of the respondents affirmed that they participate to Gram Panchayat meeting,
 55% of the respondents did not participate in panchayat meetings.

Here, we can notice a weak rate participation in political activities.

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 CHAPTER - V

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS, SUGGESTIONS AND CONCLUSION

103
Introduction
This chapter unveils the major findings emanating from the study regarding the socio
-economic development of women through SHGs. In efforts to improve the activities of Self
Help Groups, the chapter also presents the recommendations that are made in accordance to
the major findings of the study. The chapter ends with conclusion of the study.

5.1. FINDINGS

According to this study, the following are the major findings presented along the
objectives of the study.

5.1.1 Nature of Self Help Groups Studied in Yaraganahalli, Mysuru

The study revealed the existence of several women Self Help Groups in the Yaraganahalli
panchayat of Mysore. It was found out from the study that the age of 37% of the SHGs
members are between 35-45 years, 27% are in 45-above years, and 25% are in 25-35 years,
which 4 percent of members are under 25 years. It is show that the young generation are busy
with their studying in different institution.

This study show that in the past 30 to 50 years were not an equal opportunities or there were
less opportunities for rural women to go to school and colleges. The 47.5% of SHGs
members have studied till 7th Kannada standard, 35% of them didn’t have opportunities for
pursuing their studying and 17.5% of SHGs members are accessed to education till 10 th
standard and PUC.

The women from different religions are came together to support each other in the
community. The SHGs are composed from 70% of Hindu and 30% of Muslim and Christian,
which spread their love of unity and exist solidarity.

The 65% of the respondents are married and the others are single, divorced, widow and
husband left. The researcher found one case which the husband left his wife due to evil social
custom.

104
The 60% of the respondents are living in nuclear families (with their children) and others are
living with their parents, children, spouses of the children and their offspring in one
household.
The 35% of respondents noted their occupation as house wife and the others are doing
agriculture, animal husbandry, self-employed, labour and small business.

The 75% of respondents are with background of more than 5 years and 25% of them are
being as members of SHGs less than 5 years.

The 42% of respondents highlighted which encourage by NGOs services and others are
revealed that known the SHGs concept and importance through government, social media
activities, friends and other services.
The 62% of respondents are agree which the SHGs are effect their life style, which 12.5% are
strongly agree with the impact of SHGs, 15% didn’t have any idea and only 10 percent of
respondent are disagree that the their life style are not changed by SHGs.
The 80% of respondents are happy to recommend the other women in the community to join
with SHGs and 20% of them are not suggest for the other people.
72.5% of respondents are active and participating regularly in every meeting and the 17.5 %
are not take serious the meeting. Its means that still they are not satisfied being as member of
SHGs.
All the respondents are involving their self in decision making process.

5.1.2 Social and Economic Impacts of SHGs

15% of respondents are claimed that they are the head of family, 62.5% of respondents said
their husband are the head of families and the others families are run by their respectful
father, father in law or mothers.

55% of respondents have influence in decision making in their household level, 15% of them
don’t have influence in decision making and 20% are neither agree, nor disagree in term of
household level decision making.

75% of respondents are believed which participating in SHGs increase their awareness and
knowledge, which 15% are disagree and 20% are no idea.

105
The 70% of respondents are stated that they offer the good quality of education for their
children. 20% of them still couldn’t offer the good quality of education and 10% of them
don’t have idea.

The 75% of respondent are happy that being as member of SHG improve the health status of
themselves and their respectful families. 10% are disagree and 15% have nothing to share.

The 72.5% of respondents claimed that they are dealing with different social and
development activities. 10 percent of respondent are not involving themselves in such kind of
activities and 17.5% are don’t consider it yet.

The 57.5% of respondent are come under below poverty line (BPL) and the 42.5% are don’t
come under BPL.

The 17.5% of respondent have agriculture land, which 82.5% don’t have it and doing other
income generation activities.

The 60% of respondents said they are living in their own house, which 40% of them have not
their own houses and living in rent or lease house.

The respondents said after being members of SHGs, they are getting benefits such as
financial, domestic, social or all of them.

The 52.5% of respondents noted that the SHGs reduce their income dependency on their
husband, which 27.5% among them are depend on husband income and 20 of respondents are
said neutral.

The 55% of respondents are accessed to their favorite utensils and furniture, which 30% of
them couldn’t buy their favorite’s dishes and furniture, and 15% said neutral.

The respondents said that they are saving 100, 150, 200 or 250 rupees per month in a bank. It
show that the monthly saving money are depend on the SHGs members. Its and opportunities
to improving saving culture.

They are saving monthly a regular amount of money for different purposes such as personal,
education, health, agriculture, emergencies and other purposes.

106
The respondents said their monthly income are increased after joining in SHG, or some of
them which didn’t have monthly income, now they are getting a less mount monthly. But still
some of the respondents don’t have any regular income.

The 92.5% of respondents are said that they ask loan from SHGs, which 7.5% of respondents
are not got loan from SHGs. One of the most thing which encourage the women to join in
SHGs are receiving loan from SHGs. The SHGs are provide loan for their members with 2%
interest.

They are getting loan for different purposes such as personal, general household expenditure,
agriculture, animal husbandry, medical and health care, education and festival.

The 80% of respondents said that they reimburse/ return back the loan on time and 20% said
which not return back the loan on time.

The 75% of respondents are believed that SHGs are leading to sustainability. 12.5% of
respondents are disagree and 12.5% are don’t have any specific idea.

The 55 percent of respondents are participating in Gram Sabha or other related meeting in
Gram panchayat, which 45% of respondents are neither participate, nor interest involving
themselves at those meetings.

In briefly we can analyze the social, economic and political/ leadership impact of SHGs:
 Social
a) Strong Group Dynamics and Conflict Resolution
b) Strong social support
c) Community Services
d) Breaking Negative social and social recognition
 Economic
a) Improved saving culture
b) Access to loan
c) Economic independence of women
d) Improved household income and living condition
e) Economic independence and asset holding
f) Acquired Skills
 Leadership /political

107
 a) Developed leadership skill
b) Decision making skill
c) Assertiveness
d) Sensitive to injustice happened in the community
e) Identify their right and responsibility
5.2. SUGGESTIONS

The SHGs have been able to get recognition in the entire World as a useful tool for
poverty alleviation and for improving Socio-economic status of rural poor. In India too, these
have been making progress in the direction of reducing poverty and empowering rural
women.

Implementation mechanism may follow the design of the programme. It may be kept in mind
that a proper role transformation strategy and implementation of the same in letter and spirit
is essential for the development of people’s institutions. After joining SHG the income levels
of the respondents have increased and with the help of increased income level they could
overcome the poverty. Loan facility is available for all the members without any restriction.
Thus SHGs are formed with the idea of mobilizing small savings from the members.

SHGs are not treated as financial system but they are formed with a view to social and
economic change of the rural people especially for the rural women.

Through a network of the cooperatives, commercial banks, regional rural banks, NABARD
and NGO’s, SHGs have so far been largely a supply driven and in providing financial
services to the poor.

Proper emphasis should be given to group lending and SHGs formulation for alleviate
poverty. In avoiding of any misuse of money, there should be a need of proper regulating
authority at each level such as saving, depositing, and money lending.

5.2.1 Providing Education and Awareness / Capacity Building

Create a safe space through gather women and talk about issues like gender equity, women’s
rights, or health. Provide a safe and trusted space for women to gather and learn it can be also
helpful for women education and build up their confidence.

108
 Capacity Building for SHGs Beneficiaries
Women should be properly educated so that they will enhance the capability to manage
communities and community projects. The NGOs and the State government must also
monitor at a regular interval the overall performance of SHGs and the members included in it.
There is a need for establishing a computerized MIS for SHGs and SHG federations to
monitor their performance on a regular basis.

Periodical training programme at regular intervals to group members may be organized by

the NGOs and other Government officials to aware about bank loan, proper accounts
keeping, self-management, decision making etc.

People should not only be made aware about the benefits of the programmes but also of the
ways of getting benefit from them. This can be achieved by conducting a proper awareness
programmes, and revealing the success story of same programmes which already
implemented in other area through literature channel as well as video documentary with
understandable language.
The SHG beneficiaries should be given training for developing managerial and leadership
skills to carry out their responsibilities effectively. This may help in leadership development
in Social, economic and political term for women in the community.

 Training for Community Based Organizations

The existing Self Help Groups (SHGs), youth clubs, aganwadi workers etc. working in the
village can also play a role of catalyst in bringing the schemes and programmes at the
doorstep of those for whom they are made. The leaders of SHGs can motivate rural women to
overcome social/cultural barriers and to come out from the four walls of their houses to get
benefit of the schemes and programmes implemented for their development. The capacity
building programmes too should be organized on regular basis by NGO’s activists,
volunteers, Panchayat representatives, members of youth clubs etc. to promote small savings
and to encourage women’s active and positive role in development process for ensuring their
rights, entitlements and due share in developmental benefits. Members should be given
intensive training in motivation, leadership, accounting and entrepreneurship. More attention
should be given to the capacity building of those members who belong to the socio-
economically weaker sections of the society.

109
5.2.2 Providing Market Infrastructure and Assessment
NGOs and Government should take necessary steps for marketing the goods produced by
SHGs.
Developing marketing infrastructure, market assessment, product design, packing, etc. are
important areas to be addressed for sustenance of SHGs.

 Market Infrastructure
In general, the SHGs members have to be made aware of the potential market for their
products. They should also be given clear ideas on the various available marketing
infrastructures from which they can get more benefit. Need of the hour is that more and more
marketing facilities be provided at the state and district levels for the sale of products of
SHGs. There is need to evolve training packages for entrepreneurship development to enable
rural women to become successful business managers for sustaining microenterprises.
Market information of different products and innovative technology should be publicly
announced in order to get its acceptance among the rural entrepreneurs.
Infrastructure is essential for the success of micro enterprises. It may be either for production,
processing, quality testing, storage, design development, value addition, diversification of
products and marketing.

 Market Assessment
Strength and weakness of income generation activities of SHGs beneficiaries should to be
identify and then they must be properly motivated to become entrepreneurs and economically
independent. Now the majority of them have not done any type of market assessment prior of
starting the activity. As the outcome of income generation depends upon the selection of key
activity, more importance should be given to market assessment.

5.2.3 Fight against Negative Social Customs and Evils

SHG services can be utilized to fight against social evils like child labour, dowry system, to
promote small family norms, infrastructure development and in other useful social works.
Instead of officials or village leaders, motivating the women to form into group to serve its
members, people should come together on their own volition.

110
5.2.4 Attendance
Attendance at meeting and workshops should be made mandatory so that the members can
enhance their group cohesiveness.

Some of SHGs beneficiaries which are not participating regularly in meeting, the NGOs and
government should initiative motivating programmes for them to be present in every SHGs
meeting and workshop in different level.
5.3. CONCLUSION
In this study, the role of SHGs in socio economic development of women has been
assessed. It was found out that involvement in the SHG has multi variant effects to the
members and the summary of some of the salient findings was discussed.

Women are an integral part of every economy. All round development and harmonious
growth of a nation would be possible only when women are considered as co-partners in
progress with men.

Women represent half the world’s population and gender inequality exists in every nation on
the planet. Until women are given the same opportunities that men are, entire societies will be
destined to perform below their true potentials. The greatest need of the hour is change of
social attitude to women.

SHG is a powerful instrument for poverty eradication in the new economic era. As women
are the most vulnerable section of the society the quick progress of SHG is an upward vehicle
for women empowerment.

Self Help Group (SHG) Programme clearly plays a central role in the lives of the poor. The
programme in various blocks all seem to be very successful in reaching poor clients
importantly; there is evidence of increased household income. This is a very significant
indicator of impact. Standard of living for the programme participants have increased and
also the food security is much more for the programme clients. Programme loans are one of
the main ways beneficiaries overcome food insecurity with sickness, disease, emergencies
and crises, where programme participants seem to transfer the loan source to SHG members
to meet these expenses.

The study revealed that SHGs empower members by awakening self-assertiveness and
confidence among them, increase their income level, help them acquire skills, participate in

111
decision making at home and in their communities, gives them the ability to resist negative
cultural practices and improve upon their living conditions.

SHGs have not only produced tangible assets and improved living condition of members but
also helped in changing much of their outlook and attitude. In the present study, it has been
found that SHGs have served the cause of women empowerment, social-solidarity and socio-
economic betterment of poor rural women. SHG serves as a democratic tool for grass root
development for women. SHG promotes self-reliance by generating its own funds. It breaks
the vicious cycle of debts. It is an effective agent for change and serves as a solid platform for
women empowerment.

At the individual level, there is evidence that the programme attracts already relatively
empowered people and that empowerment occurs among some beneficiaries through
programme participation. The process of empowerment manifests itself in increased self-
esteem. Programme participation is also associated with changes in decision-making at the
family level as well as community level. Programme participants are far more aware about
the various programmes and organizations and have an access to these organizations.

When women move forward the family moves, the village moves and the nation moves. It is
essential as their thought and their value systems lead the development of a good family,
good society and ultimately a good nation. The best way of empowerment is perhaps through
inducting women in the main stream of development. Women empowerment will be real and
effective only when they are endowed income and property so that they may stand on their
feet and build up their identity in the society.

The Empowerment of Women has become one of the most important concerns of 21st
century not only at national level but also at the international level. Government and NGOs
initiatives would not be sufficient to achieve this goal. Society must take initiative to create a
climate in which there is no gender discrimination and women have full opportunities of self-
decision making and participating in social, political and economic life of the country with a
sense of equality.

Microfinance is playing a significant role in alleviate poverty and rural development. Since
women are the sole family caretaker, proper emphasis should be given to the rural women
and for empowering the rural women finance is required. Microfinance to the rural SHGs is a
way to raise the income level and improve the living standards of the rural women. The Self
Help Groups (SHGs) have proved the way for economic independence of rural women. Thus,

112
it can be concluded that the Self Help Groups contribute substantially in pushing the
conditions of the female population up and through that chip in poverty eradication as well.

From the above analysis we can conclude; Self Help Groups have been playing considerable
role in socio economic development of women, self-confidence among sample members,
communication level of members, change in family violence, improving their life style,
change in the saving pattern of SHG members, change in the cumulative saving pattern of
SHG members per month, influence in decision making, leadership, reduce income
dependency on their husband, offer good quality of education for their children, access to
their favorite utensils and furniture, involvement in politics, achieving social harmony,
achieving social justice, involvement in community action, sustainable quality and
accountability, equity within SHGs, defaults and recoveries, and sustainability - financial
value.

113
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114
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APPENDIX

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 APPENDIX

Questionnaire

A Study on the Role of SHGs in Socio economic Development of Women in

Yaraganahalli panchayat, Mysuru.

Introduction

I am Habibullah Ibrahimy the student of 4th semester, Department of Studies in Social Work,
University of Mysore, Manasagangothri, Mysuru, doing my project work entitled “A Study
on the Role of Self Help Groups in Socio economic Development of Women in
Yaraganahalli panchayat, Mysuru.

This is for the partial fulfilment of my MSW Degree and I requested among beneficiaries to
give me your valuable feedback on questionnaire. I assure you that the information will be
kept confidential and used for academic purpose only.

Thanking you
Yours sincerely,
Habibullah Ibrahimy

Name of Respondent:
Address:

a) Personal information:
1. Age
a. 18 – 25
b. 25 – 35
c. 35 - 45
d. 45 – above

2. Educational level
a. Illiterate
b. 1st to 7th standard
c. 8th to 10th standard

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 d. P U C
e. Degree and above

3. Socio economic profile

a. General
b. SC
c. ST
d. OBC
e. Minority

4. Marital status
a. Single
b. Married
c. Widow
d. Divorced
e. Husband left

5. Family size
a. Joint family
b. Nuclear family

6. Occupation
a. Self employed
b. Agriculture
c. Animal husbandry
d. Labour
e. Small business
f. House wife

b) Self Help Group:

7. When did you join in SHG?
a. 0 -1 years
b. 1 -5 years
c. 5 -10 years
d. 10 - above

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8. How did you know SHG?
a. Through friend
b. Through government
c. Social activities
d. Any other services

9. Did SHG improve your life style?

a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

10. Do you suggest SHG to other women in the community?

a. Yes
b. No

11. Do you participate regularly in SHG meeting?

a. Yes
b. No

12. Who take the decision in Group meeting?

a. All members
b. President
c. Secretary
d. NGO’s staff

c) Social and Economic impact of SHGs:

13. Who is the head of family?

a. My self
b. Husband
c. Father in law
d. Father or
e. Mother

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14. Do you have an influence in decision making in the household level?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

15. Did participating in SHGs activities increase your awareness and knowledge?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

16. Did SHG enable you to offer a good quality of education to your children?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

17. Did SHG Improve the health status of your family members?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
18. Has participation in SHGs increased your mobility and participation in social and
development activities?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

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19. Did you come under Below Poverty Line (PBL)?
a. Yes
b. No
If yes, do you have the BPL card? Yes / No

20. Do you have agriculture land?

a. Yes
b. No

21. Are you living in your own house?

a. Yes
b. No
If No, please mention the type of your house……………………….

22. After being member of SHG what types of benefits you perceive for yourself?
a. Social
b. Domestic
c. Financial
d. All of the above

23. Being a member of SHG has reduced your income dependency ratio (on husbands) at the
household level?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

24. Being a SHG member has enabled you to access to your favorite utensils and furniture?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

25. How much do you save monthly in SHG?

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 a. Rs. 100
b. Rs. 150
c. Rs. 200
d. Rs. 250
e. Rs. 300 & above

26. What is the main purpose of monthly saving?

a. Self
b. Education
c. Health
d. Agriculture
e. Emergencies
f. Others….

27. How much was your monthly income before joining SHG?
a. No income
b. Rs. 200 – 2000
c. Rs. 2000 - 5000
d. Rs. 5000 & above

28. How much is your monthly income after joining SHG?

a. No income
b. Rs. 200 - 2000
c. Rs. 2000 - 5000
d. Rs. 5000 - above

29. Did you ask loan from SHG?

a. Yes
b. No

30. What is the purpose of getting loan from SHG?

a. Personal
b. General household expenditure
c. Agricultural
d. Animal husbandry

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 e. Medical and health care
f. Education
g. Marriage
h. festival

31. Did you reimburse your loan on time?

a. Yes
b. No

32. Do you think that SHG lead to sustainability?

a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

33. Do you participate in Gram Sabha or other meeting in Gram Panchayat?

a. Yes if yes, which………………………….

b. No

Signature or Name of respondent

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