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“SELF HELP GROUP: A PATHWAY
TOWARDS CREDIT & ECONOMIC
EMPOWERMENT OF WOMEN”
Mrs. Porinita Banerjee, Mr. Vasimraja Sayed and Mrs. Sheena Abraham Assistant Professor,
AKI’s Poona Institute of Management Sciences & Entrepreneurship, Camp, Pune. ABSTRACT:
In the present era SHG has evolved as one of the tool to get credit facilities, savings and economic empowerment and it is also been considered as need-based programme for alleviation of poverty to the so far neglected target groups (women, poor, deprived etc.) The experience across India and other countries has shown a robust potential of Self help groups to integrate with the development issues thereby significantly impacting the lives of poor. This paper focuses to find out the list of beneficiaries who have economically empowered, got access to credit, availed saving facilities after joining Self help groups. Though the literature available is fairly large, the review is limited to the 136 respondents. Studies carried out in Pune , as evident from this paper, indicates that micro finance and Self Help groups, by and large contributed to the development and economic empowerment of core poor women in terms of economic well being, providing credits , increase in savings, alleviating poverty and empowerment leading to overall development of rural poor.
Key words: Self help group, Microfinance, Economic empowerment, Credit and Savings.
Cite this Article: Mrs. Porinita Banerjee, Mr. Vasimraja Sayed, and Mrs. Sheena Abraham. Self Help Group: A Pathway Towards Credit & Economic Empowerment of Women. International Journal of Advanced Research in
Management, 7(1), 2016, pp. 13-19.
http://www.iaeme.com/IJARM/issues.asp?JType=IJARM&VType=7&IType=1
1. INTRODUCTION
Women empowerment has become one of the imperative device for the socio-economic development of a nation. It is the thorniest task before the Government to bring them into the mainstream. Women empowerment has become a meme in the global governance network. In this context Self-Help Group initiative (SHGs) have emerged as the tool to improve the socio economic condition of the women in our
country at a large. This initiative has not only contributed to produce tangible assets and improved living condition of members but also helped in changing much of their outlook, worldview and attitude. Women in India are the victims of multiple socio– economic and cultural factors. Emancipation of women is a pre-requisite for nation’s economic development and social upliftment
Numerous development programmes have been implemented for the development of economy in general ignoring women who constitutes 50 percent of the total population. Role of women in development is an indispensable factor. Development programmes no longer can achieve their target without the participation and contribution of women. The role of women and need to empower them are central to human development programmes including poverty alleviation.
All provisions of the Constitutions and the spate of legislation enacted to empower women in the post independence India have not been adequate to set women free from their traditional bondages, liabilities and India has long taken efforts to expand credit availability to rural areas. Early programs, which often yielded disappointing results, were gradually replaced by efforts to establish self-help groups (SHGs) and link them to banks. In 1992, India’s National Bank for Agricultural and Rural Development (NABARD) piloted the concept with 500 groups. Since then, the SHG movement has witnessed tremendous growth that brought about one of the world’s largest and fastest-growing networks for micro-finance.
2. OBJECTIVE
To identify the motivating factors behind joining Self Help groups in Pune city
To find out the objectives to join the SHG
To find out the benefits derived from the Self Help Group.
3. REVIEW OF LITERATURE & FRAMEWORK
Self Help Groups are voluntarily formed informal groups. These groups usually consist of 10-20 members. The main motive to form these groups is to encourage its members to save on regular basis They use the pooled resources to meet the credit needs of the group members. The groups are democratic in nature and collectively make decisions.
Since the members are neighbours and have common interest, the group is a homogenous one and cohesiveness is one of the characteristic features of the group. Regular savings, periodic meetings, compulsory attendance, proper repayment and systematic training are the salient features of the SHG. In India the first Development agency was established at Mysore and that was the starting of SHG movement. In the year 1980 NABARD permitted the SHG movement & started the SHG project in 1986-1987 with the help of Mysore Re-establishment and Development Agency. In the year 1999 SHG movement got accelerated in Maharashtra. The number of SHG increased from 8446 to 32611 nearly four times within two years from 2002-2003 to 2004-2005.In the year 2005-2006 Pune district has taken the grip in establishing SHGs. During 2005-2006 Pune district developed 20,000 SHGs and were able to save Rs 1 Crore per month.
Up to March 2008 end of Maharashtra has accounted total 1 lakh 20 thousand SHGs among them 81 thousands SHGs were of women. SHG bank linkage programme fasten the growth of SHGs. During March 2014 Maharashtra witnessed
6,92,274 plus SHGs along with a savings of Rs 74,805.53with Commercial , Regional rural & Cooperative Banks.
4. RESEARCH METHODOLOGY
4.1. Scope of the Study:
The scope of the study was defined at two levels i.e Service level and Geographic level.
Service scope: The study was carried out for the services provided by the SHGs to its members.
Geographic scope: The geographic scope of the study was restricted to Pune city located in Maharashtra state.
4.2. Research Design:
The present study is an empirical study based on survey method. First hand data were collected from the field through interview schedule and observation method.
4.3. Sources of Data:
A number of discussions were held with the various members of self Help groups and information was collected through interview schedule. The schedule structured was extensively pre-tested. The secondary data was collected from standard books, leading magazines, journals public documents, municipal corporation records, & reports. 4.4. Sample size:
The information was collected through structured questionnaire consisting of 25 questions from the SHG members of Pune region. The questionnaire was distributed amongst 150 SHG members, from 23 Self Help Group where in 136 respondents have filled the questionnaire completely & properly and the same has been selected randomly for the analysis.
5. DATA ANALYSIS AND INTERPRETATION
Table 1 Expected motivational factors behind joining Self Help Group
Sr. No Motivational Factors Responses
Yes No Total %
1 Increase in social status 6 2 8 5.88
2 Economic Empowerment 14 2 16 11.76
3 Access to Banking services 12 1 13 9.56
4 Access to Credit Facility 86 1 87 63.97
5 Improvement in skills 4 3 7 5.15
6 Increase in self confidence 3 2 5 3.68
(Source: Field Survey))
5.1. Graphical Representation
(Source: Field Survey, 2015-2016)
5.2. Interpretation
From the above analysis, we found that access to credit facilities motivated 64 % respondents to join Self Help Group. 12% of the women agreed that economic empowerment is the another motivating factor to join Self help group, where in other factors are very close to each other and does not play significant role in motivating the respondents. 2 2 1 1 3 2 0 10 20 30 40 50 60 70 80 90 100 Series1 Series2 6% 12% 9% 64% 5% 4%
Increase in social status Economic Empowerment Access to Banking services Access to Credit Facility Improvement in skills Increase in self confidence
5.3. Graphical Representation
(Source: Field Survey, 2015-2016)
5.4. Interpretation
As per the above analysis 39.71% women have joined Self help group to avail credit facility as SHG help them to provide collateral free loan. 20.59% of the respondent joined respective SHG to increase their savings which will enable them to meet future
Table 2 Objectives to join Self Help Group
Sr. No Objectives of respondents SHG
members Percentage 1 To avail credit facility 54 39.71 2 For thrift facility (To have
Savings) 28 20.59
3 To participate in decision making
process 8 5.88
4 To be self dependent 6 4.41
5 To repay loan 26 19.12
6 To startup new venture 14 10.29
TOTAL 136 0 10 20 30 40 50 60 To avail credit facility For thrift facility (To have Savings) To participate in decision making process To be self dependent
To repay loan To startup new venture
SHG members Percentage %
contingencies. 19.12% respondents joined the group to with an objective to repay the loan which is due for several years.5.88% respondent feels that joining self help group would allow them to participate in decision making process followed by self dependency 4.21%.
Table 3 Benefits derived from the Self Help Group
Sr. No Objectives of respondents SHG members Percentage
1 Increase in savings 59 43.38
2 Economic Empowerment 26 19.12
3 Self Confidence 7 5.15
4 Social Solidarity 6 4.41
5 Free from debts 33 24.26
6 Owning Assets 3 2.21
7 Others 2 1.47
TOTAL 136
5.5. Graphical Representation
(Source: Field Survey, 2015-2016)
6. CONCLUSION
The above study shows that access to credit facility is the major motivating factor to join SHGs and after joining the SHGs the members have really been benefited in innumerable ways. The motives have been well achieved by the respondents through SHG membership. As a result the members have got access to financial services which enable them to improve their well being both at the individual and household level, much more to those who did not have access to financial services. So, it is very apparent that these groups enable the poor women to be Self reliant, social solidarity, debt free, economically empowered, startup up venture and many more. Thus the survey proves that SHGs is one of the yardsticks to get credit facilities and also empowers women economically. Therefore, there is a need for government and non
0 10 20 30 40 50 60 70 SHG members Percentage %
government entities to work together, then only these Programmes can grow and contribute efficiently towards the larger objective of poverty alleviation.
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