International Journal of Management
(IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 3, Issue 2, May-August (2012)
309
“WOMEN EMPOWERMENT THOROUGH SELF HELP GROUPS”
A CASE STUDY OF KANCHEEPURAM DISTRICT IN TAMILNADU
*Dr.Y.Lokeswara Choudary & ** S.Chitra
**Research Supervisor & *Research Scholar, School of Management, SRM University, Chennai.
Contact: lokeswara.c@vdp.srmuniv.ac.in/ chitracommerce05@gmail.com,
1.0 ABSTRACT
The present study is an attempt to analyse the role and performance of SHGs in promoting
women's empowerment in Kancheepuram District of Tamilnadu. The broad objective of the study is
to analyses the operating system of SHGs for mobilization of saving, delivery of credit to the needy,
management of group funds, repayment of loans, in building up leadership, establishing linkage with
banks and examines the social benefits derived by the members. In order to collect and gather primary
data, field observation and structured questionnaire survey methods were employed. In addition,
information was also collected through discussions and interviews with local NGOs and government's
grass roots level workers. There are 281 SHGs working in Kancheepuram district, exclusively under
the monitoring of Magalir thittam. Here the researcher has chosen 10 SHGs from each block of the
district. In total the study covers 50 SHGs with 800 members. The study reveals that SHGs had set a
new agenda for financial intermediation by banks in the form of micro-credit. By the formation of
SHGs, credits are demanded for various purposes (domestic, health, festivals, repayment of old debts,
investment, etc.). Similarly different economic activities (collection, processing and marketing of
minor agricultural and allied products, individual business, goatery, dairy etc.) are undertaken by the
SHG members after joining the group. Habits of savings, economic independence, self confidence,
social cohesion, asset ownership, freedom from debt, additional employment, etc. benefits are derived
by the SHG members. Thus, SHGs have served the cause of women empowerment, social solidarity
and socio-economic betterment of the poor for their consolidation.
Key words: social benefits- savings- delivery of credit- leadership- linkage with banks-social
cohesion.
1.1 INTRODUCTION
The concept of empowerment is defined as the process by which women take control and
ownership of their choices The core elements of empowerment have been defined as agency (the
ability to define one’s goals and act upon them), awareness of gendered power structures, self-esteem,
and self-confidence (Kabeer,2001). Empowerment can take place at a hierarchy of different levels –
individual, household, community and societal – and is facilitated by providing encouraging factors
(e.g. exposure to new activities, which can build capacities) and removing inhibiting factors (e.g. lack
of resources and skills). In this connection Micro-finance with Self Help Groups play an effective role
for promoting women empowerment. It is not only an efficient tool to fight against poverty, but also
as a means of promoting the empowerment of the most marginalized sections of the population,
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especially women. According to Ellie Bosch it is just old wine in a new bottle (Bosch, 2002). It
consists of a group of people of three to eight persons on the condition that each of them would be
assuming responsibility for the development of all.
Micro Finance institution started in India in 1980s through Self Help Groups (SHGs) model.
It is the Grameen replication model of Bangladesh. There is nearly 3, 00,000 SHGs working whole
over India. It is true that the concept of microfinance is yet to spread its wings all over India, but at the
rate in which it is expanding its branches, very soon it would be reaching at the doorsteps of the poor
houses. The most successful region for microfinance is the Southern part of India; Andhra Pradesh
has become the example for the other states in this case. The present study is an attempt in this
direction to analyse the impact of micro-credit on poor women in Kancheepuram district of
Tamilnadu.
1.2 Profile of the Sample Area
Kancheepuram District is one of the Historical Districts of Tamil Nadu. Welcome to the city
of thousand temples. Kancheepuram district is situated on the northern East Coast of Tamil Nadu and
is adjacent by Bay of Bengal and Chennai city and is bounded in the west by Vellore and
Thiruvannamalai district, in the north by Thiruvallur district and Chennai district, in the south by
Villuppuram district in the east by Bay of Bangal. The district has a total geographical area of
4,43,210 hectares and coastline of 57 Kms. Kancheepuram, the temple town is the District head
quarters. For administrative reasons, the District has been divided into 3 Revenue Divisions
comprising of 8 Taluks with 1214 Revenue villages. For development reasons, it is divided into 13
Development Blocks with 648 Village Panchayats.
The Mahalir Thittam Project implemented in Phase III is functioning from 01-11-1999 in
Kancheepuram District . A major project for the development and empowerment of poor and rural
women was put in place in 1989 with the assistance from the International Fund for Agricultural
Development (IFAD). It has been implemented through a network of women Self-Help Groups which
are established with the support of Voluntary Organisations (VOs). The success of the Project
encouraged to extent the project to all the rural areas in the State in a phased manner. Thus the
Mahalir Thittam was extended to all the district of Tamil Nadu. Subsequently the scheme was
extended to urban panchayats. The vision of the project is to reach out and empower women below
the poverty line through Self reliant and sustainable Self Help Groups.
In State Level Kancheepuram is the Number One District in the formation of SHGs. At present 26568
Self Help Groups have been formed as detailed below.
Total
Population
Male Female Total
No. of
SHGs
SC ST Trangender Differentl
y Abled
Others
1573770 794922 778848 26568 7406 490 2 31 18639
Sl. No. Panchayat/Town
Panchayat/Municipalities
Total No. of
SHGs.
(up to 02.06.11)
No. of Women
SHGs
No. of Youth
SHGs.
up to
2010-11
1 SHGs in Panchayats areas 17775 17057 718
2 SHGs in Town Panchayats
areas
8793 8546 247
Total 26568 25603 965
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
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2.1 REVIEW OF LITERATURE
Few studies are available on SHG and micro-finance and women empowerment. The researcher has
tried to review the following:
Osman (2006) in his article remarked that micro-finance schemes alone can not alleviate poverty. The
battle for total eradication of poverty requires combining micro-finance schemes with parallel,
complementary programmes addressing the social and cultural dimensions of want, privation,
impoverishment and dispossession.
Kapur (2007) in her study tried to discuss, analyse and answer the challenging questions as to why
despite all the efforts and progress made, still there continues to be so much of gender discrimination
and what strategies, actions and measures to be undertaken to achieve the expected goal of
empowerment. She opined that women’s empowerment is much more likely to be achieved if women
have total control over their own organisations, which they can sustain both financially and
managerially without direct dependence on others.
Pattanaik (2009) 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 constraints like gender inequality, exploitation, women
torture for which various Self Help Groups are not organised properly and effectively.
Malhotra (2010) in her book has examined how women entrepreneurs affect the global economy, why
women start business, how women’s business associations promote entrepreneurs, and to what extent
women contribute to international trade. It explores potential of micro-finance programmes for
empowering and employing women and also discusses the opportunities and challenges of using
micro-finance to tackle the feminisation of poverty. According to her, the micro-finance programmes
are aimed to increase women’s income levels and control over income leading to greater levels of
economic independence. They enable women’s access to networks and markets, access to information
and possibilities for development of other social and political role. They also enhance perceptions of
women’s contribution to household income and family welfare, increasing women’s participation in
household decisions about expenditure and other issues leading to greater expenditure on women’s
welfare.
Narasaiah (2010) in her study mentioned that the change in women’s contribution to society is one of
the striking phenomena of the late twentieth century. According to him micro-credit plays an
important role in empowering women. Giving women the opportunity to realise their potential in all
spheres of society is increasingly important.
Cheston & Kuhn (2011) in their study concluded that micro-finance programmes have been very
successful in reaching women. This gives micro-finance institutions an extraordinary opportunity to
act intentionally to empower poor women and to minimise the potentially negative impacts some
women experiences.
Manimekalai (2011) 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.
Sahu and Tripathy (2011) 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 (SHGs) 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
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 3, Issue 2, May-August (2012)
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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.
Das Gupta (2012) in his article commented that a paradigm shift is required from “financial sector
reform” to “micro-finance reform”. While the priority sector needs to be made lean, mandatory micro
credit must be monitored rigorously. Simultaneously space and scope have to be properly designed for
providing competitive environment to micro-finance services. Extensive database needs to be created
by the RBI for understanding micro-finance.
Sinha (2012) in his study has observed that micro-finance is making a significant contribution to both
the savings and borrowing of the poor in the country. According to him the main use of micro-credit
is for direct investment. There is of course some fungibility, depending on household credit
requirements at the time of loan disbursement. Some studies reveal that micro-finance programmes
have had positive as well as negative impacts on women. Some researchers have questioned how far
micro-finance benefits women (Goetz and Sen Gupta, 2006). Some argue that micro-finance
programmes divert the attention of women from other more effective strategies for empowerment
(Ebdon, 2005), and the attention and the resources of donors from alternative, and possibly more
effective means of alleviating poverty (Rogaly, 2006). In some cases women’s increased autonomy
has been temporary. It only benefits women who are already better off. But in most cases the poorest
women are least able to benefit because of their low initial resources base, lack of skill and market
contact.
3.1 Objectives of the Study
The broad objective of the study is to examine the role and performance of SHGs in promoting
women’s empowerment in the study area. However, the study has some specific objectives. They are:
1. To analyse the economic gains derived by the members after joining the SHGs.
2. To examine the social benefits derived by the members.
3. To analyse the operating system of SHGs for the mobilization of saving, delivery of credit to
the needy, management of group funds, repayment of loans, in building up leadership, and
establishing linkage with banks
4. To suggest appropriate policy intervention for the effective performance of SHGs.
3.2 Methodology
Selection of Study Area and Sample Units: The study was carried out in selective clusters
spread over five blocks of Kancheepuram district in Tamilnadu. It is noteworthy to mention here that
the Self-Help Groups in Kancheepuram district are promoted by NGOs as well as Government
agencies. Due to time constraint the researcher has selected the SHGs promoted by a particular NGO
i.e., Centre for Community Development (CCD). At present CCD is working in 5 community
development blocks namely Kancheepuram, Sriperambadur, Tambaram, Chengalpattu and
Madurantakam. There are 281 Self-Help Groups promoted by CCD in the five blocks. The researcher
has chosen 10 SHGs each from Kancheepuram, Sriperambadur, Chengalpattu and Madurantakam
depending upon location-specific condition. As Tambaram block has only 9 SHGs promoted by CCD,
all these 9 SHGs were taken for study. In total the study covers 49 SHGs with 800 members.
3.3 Data Collection and Analysis:
In order to collect and gather primary data, field observation and structured questionnaire
survey methods were employed. In addition, information was also collected through discussions and
interviews with local NGOs and government’s grass roots level workers. Secondary data gathered
from the records of SHGs and NGOs and government offices were supplemented by the primary data
collected from the group. A wide range of information such as composition of membership, savings
mobilised, loan disbursed, interest rates, recovery procedures, assets created, external assistance
received etc. were ascertained from the SHGs and their members. Besides, different books,
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
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newspapers, articles, journals, magazines and web sites were also referred for the purpose. The data
collected from each block regarding the structure and profile of SHG members, savings and loans of
SHGs, economic and social benefits derived by SHG members, etc. has been processed separately and
averages of each block are being taken. The analyses obtained from different blocks are compiled and
compared to draw the inferences about the performance of the SHGs in the study area.
4.1 Data Analysis and results discussion
4.1.1 Structure of SHGs
The structure and characteristics of Self-Help Groups in the study area is presented in Table
2.1. It is noted that the average membership per SHG was 16.26. The study reveals that in the
Madurantakam block, the average membership of the Self-Help Group is highest (17) and
Kancheepuram block had lowest membership (15). Most of the members agreed that their motives in
joining SHGs were to save. Some said they joined the SHG to get credit to meet the unexpected cash
demand for consumption and other purposes. Few opined that it led to social empowerment. The
average savings per SHG was Rs. 10,693. It varied from Rs. 2097 in Tambaram to Rs. 16125 in
Chengalpattu block. The per member savings was around Rs. 667. The frequency of group meeting by
SHG indicated that fortnightly meetings were the most common followed by monthly and weekly.
Meetings are arranged regularly by NGO and Groups. It is held in the middle of the street. The
absentee member has to pay a fine of Rs. 2. The average amount of loans per SHG was Rs. 12345.
The highest being Rs.19752 in Kancheepuram block and the lowest of Rs. 8758 in Tambaram block.
Table 2.1 Structure of SHGs in the Study Area
Item Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Membershi
p average
(No.)
15.00 16.78 17.00 15.86 16.66 16.26
Savings per
SHG (in
Rs.)
14517 16125 13633 7093 2097 10693
Loan (Avg.)
(in Rs.)
19752 17177 16040 8758 12345
Frequency of group meeting (percentage):
Weekly: 25 15 13 0 0 10.6
Fortnightly 65 68 72 35 28 53.6
Monthly 10 17 15 65 72 35.8
Source: Compiled by the author.
4.1.2: Profile of SHG Members
Table 2.2 Profile of SHG Members
Item Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Age (years) 34 32 33 35 37 34.2
Percentage
of STs
13 07 16 17 27 16
Percentage
of SCs
18 39 33 23 27 28
Percentage
of Other
Castes
69 54 48 60 46 55.40
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Literacy
(%)
5.11 11.23 13.26 3.69 3.88 7.43
Occupation
–
Agriculture
(percentage
)
Others
71.89
28.11
36.55
63.45
38.89
61.11
69.89
30.11
62.57
37.43
47.41
53.59
Income
(Average)
7867 9223 10057 6582 5861 7918
Source: Compiled by the author.
The average age of SHG members in the study area is presented in Table 2.2 it is observed
that the average age of SHG members was 34.2 years, lowest being 32 years in Chengalpattu block
and highest being 37 years in Tambaram block. Regarding the caste profile of SHG members, the
table shows that majority of members belong to tribal community. In Sriperambadur block it is 97 per
cent, followed by 90 per cent in Kancheepuram. Educational background of the SHG members shows
that most of them are illiterate. Only 7 per cent of them have studied up to primary level. So far as the
occupation of the members are concerned, majority of them are engaged in agricultural activities. As
regards to average income per SHG, it was around Rs. 7918. It was highest in Madurantakam block
(Rs.10057) followed by Chengalpattu block (Rs. 9223) and lowest in Tambaram block (Rs. 5861).
4.1.3 Purpose of Credit Demanded and Utilized.
Generally, after six months operation of savings account, the saving is pooled and used for
internal lending among the members. The amount of loan and number of loans are decided by the
members themselves depending on their need and urgency.
Table 2.3 Purpose-wise Credit Demanded by SHG Members
Purpose Kancheepura
m
Chengalpat
tu
Madurantaka
m
Sriperambad
ur
Tambara
m
Overa
ll
Domestic
consumpti
on
57.66 12.91 15.57 66.54 47.89 30.53
Health 3.22 6.87 9.50 -- 2.27 4.37
Festivals 6.11 9.78 8.71 2.39 2.18 5.83
Repayment
of old
debts
15.67 10.66 11.52 5.68 10.59 10.82
Investment 10.89 12.57 11.66 14.05 8.67 11.56
Others 6.45 47.21 43.04 11.34 28.4 27.28
Note: Figures in the table indicate percentages.
Source: Compiled by the author.
The purpose-wise credit demanded by the SHG members from the SHGs is given in Table 2.3. It is
observed that most of the members have demanded credit for domestic consumption purposes. It is
highest in Sriperambadur block (67%) followed by Kancheepuram (57.66%). Reasonable proportion
of SHG members have demanded credit for other purposes. This percentage is highest in
Madurantakam (43.04%) and lowest in Kancheepuram block (6.45%). About 11.56 percentage of
credit is demanded for investment purposes. A proportion of credit was demanded by the SHG
members for payment of old debts. A less proportion of loan is demanded for festival and health
purposes. From the table it is clear that a larger share of credit demanded by SHG members is being
utilized for domestic consumption purposes followed by repayment of debts and others.
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4.1.4 Economic Activities Covered by SHG Members
Table 2.4 Economic Activities Covered by the SHG Members
Item Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Collection
and
marketing
of seasonal
Agricultura
l and allied
Products
75 55 40 70 60 60.00
Individual
business
5 10 25 10 5 11.00
Goatery 10 12 10 15 15 12.4
Dairy 10 18 10 5 15 12.6
Others 5 5 15 5 5 7.00
Note: Figures in the table indicate percentages.
Source: Compiled by the author.
Table 2.4 revels that most of the SHG members are engaged in the collection and processing
of minor agricultural and allied products. These products include broom making, cashew, mahul,
turmeric, tamarind, khalli (leaf plates), raw broom, amla, etc. Some of the members are engaged in
individual businesses like preparing pickle, bodi, papad, haldi powder, wax, making bags, vegetable
business, tailoring, pan shop, etc. They are also engaged in poultry, dairy and goatery business. Some
are engaged in other activities. As there is a good demand for milk products, they are preparing sweets
with milk, ghee, etc. and are getting good price. They earn about Rs. 600 to Rs. 1000 per month
through these activities.
4.1.5 Loan Support to SHGs by Banks
Table 2.5Loan Support to SHGs from Repco Bank
Name of the Block Total SHGs Loan availed Loan Repayment
Kancheepuram 10 Rs. 2,96,428 79.80 %
Chengalpattu 10 Rs. 2,66,611 58.91%
Madurantakam 10 Rs. 2,00,000 52.28%
Sriperambadur 10 Rs. 1,30,000 73.50%
Tambaram 10 Rs. 3,35,000 82.67%
Source: Annual Report of monitoring authority, magaleer thittam 2010-2011.
There is a bank linkage programme established to SHGs. The SHG members opened their
accounts in various nationalized banks such as State Bank of India, Indian Bank, Bank of Baroda,
Union Bank of India, Andhra Bank, etc. and also some local banks like Repco Bank, Balaji Grameen
Bank, City union bank and Cooperative Banks. SHG members are getting both internal loans and
external loans under the security of NGOs. They are paying Rs. 2 as interest per Rs. 100. They are
also maintaining cashbook, membership register, loan register, individual passbook register, etc. They
are taking loans for both production and consumption purposes. Repco Bank has advanced loans of
Rs. 2,96,428 to Kancheepuram Block, followed by Rs. 2,66,611 to Chengalpattu block (Table 2.5).
So far as loan repayment is concerned, the SHG members of Kancheepuram Block have
repaid 80 per cent of their loans followed by Sriperambadur block with 74 per cent. But in
Chengalpattu and Madurantakam blocks, though they are urban based, the repayment position is not
encouraging. In these two blocks the members repaid only 50 per cent of their loans.
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4.1.6 Benefits Derived by SHG Members
Variety of benefits is derived by the members of SHGs as presented in Table 2.6.
Table 2.6 Benefits Derived by SHG Members (Multiple Responses)
Benefits Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Habit of
Savings
75.44 79.11 68.22 76.66 80.66 76.00
Economic
independenc
e
70.00 70.00 65.00 66.80 65.00 67.36
Selfconfidence
81.00 85.86 82.88 78.00 80.00 81.54
Social
cohesion
70.00 80.88 71.11 68.88 85.00 75.17
Asset
ownership
48.33 52.34 24.40 54.99 58.22 47.65
Freedom
from debt
49.00 66.00 75.08 67.00 59.76 63.36
Additional
employment
21.11 32.80 41.80 38.40 58.90 38.60
Note: Figures in the table indicate percentages.(Source: Compiled by the author.)
One of the outstanding benefits reported by all the members is the development of self-confidence
(81.54%) ranked first, followed by savings habit (76%), economic independence (67.36%), social
cohesion (75.17%), freedom from debt (63.36%), asset ownership (47.65%), additional employment
(38.60%).
5.1 Findings of the Study
Based on the interviews and discussions with the group members, field workers of the local
NGO and group questionnaire survey results, the following findings emerged.
1. The social profile of SHG members indicates that majority of members are tribal, i.e., their
overall average is 66.2 per cent. The overall literacy rate is only 7.43 per cent as against the
district tribal female literacy rate of 15.88 per cent.
2. It is found that the operational efficiency and group dynamics of the SHG is not same in all
blocks. This could be attributed to several factors like background of SHG formation, internal
problem, support provided by the promoters, effective leadership, etc.
3. It is observed that the average membership in SHG was around 16.26. Membership is highest
in Madurantakam block and lowest in Kancheepuram block. This may be due to the urbanbase
of Madurantakam in contrast to Kancheepuram, where 90 per cent of members are
tribals.
4. The members had joined the group in order to earn more income, promote savings habits and
to develop collective economic and social activities. So far as the frequency of group
meetings are concerned, it is observed that fortnightly meetings were the most common. In
Kancheepuram, Chengalpattu and Madurantakam block the SHG members arrange their
meetings twice in a month. But in Sriperambadur and Tambaram, the meetings are held once
in a month.
5. The Groups maintain cashbooks, passbooks and attendance registers. The members in-charge
of accounts are being given training in bookkeeping by the CCD. But the member who looks
after all these secretarial work is not paid any financial incentive.
6. From the study, it is found that individual members contribute Rs. 10 to Rs. 50 per month. 70
per cent of SHG circulated thrift and their period of circulation was monthly. Accumulated
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
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savings by members to group funds per SHG were to the tune of Rs. 10,693, against this loan
disbursed amounted to Rs. 12,345.
7. The SHG disbursed loans both for consumption and production purposes. Purpose-wise
disbursement of credit by SHG indicates that, domestic consumption received maximum
share of 30.33 per cent, followed by others (27.28%). It is found that credit demanded for
investment purpose is very low.
8. As far as external loan is concerned, the Repco Bank has advanced loans to the tune of Rs.
2.96 lakh to Kancheepuram block followed by Rs. 2.66 lakh to Chengalpattu block. The
members have invested the loan in different economic activities like broom making, khalli
stitching (leaf-plates), preparing eatables like bodi, papad, etc. They are also engaged in
poultry, dairy and goatery business. In Chengalpattu block, the members are preparing milk
products like sweets, ghee, khoa, etc. and getting good price. They earn about Rs. 600 to Rs.
1000 per month through these activities. The study reveals that the members are not skilled
enough to run various units.
9. Members perceived several benefits through their membership in SHGs such as economic
independence and self-confidence (81.54%), promotion of savings habits (76%), social
cohesion (75.17%) and freedom from debt (63.36%).
10. The study also reveals that SHGs had set a new agenda for financial intermediation by banks
in the form of micro-credit. It has infused dynamism among its members to climb up socioeconomic
ladder in the development process. Thus, SHGs have served the cause of women
empowerment, social solidarity and socio-economic betterment of the poor for their
consolidation.
6.1 Suggestions and Conclusion
Considering the findings of the study, the following suggestions were prescribed.
1. Literacy and numeric training is needed for the poor women to benefit from the micro-credit
schemes.
2. Training in legal literacy, rights and gender awareness are important complements to microcredit
for the empowerment of women. The members should be given necessary training and
guidance for the successful operation of the group.
3. The members of the SHG should be more active, enthusiastic and dynamic to mobilise their
savings by group actions. In this process NGOs should act as a facilitator and motivator. The
office bearers managing the group should be given nominal financial benefits, which will
enable them to be more involved in the activities of the Group.
4. The bank should advance adequate credit to the SHG according to their needs. Uniformity
should be maintained in formation and extension of financial assistance to them by banks in
all blocks. The procedure of the banks in sanctioning credit to SHG should be simple and
quick.
5. Marketing facilities for the sale of products of SHG may be created. Periodical exhibitions at
block-level may be organised where the products of SHG can be displayed. Meetings and
Seminars may be organised where the members will get a chance to exchange their views and
be able to develop their group strength by interactions.
6. Active intervention by district administration, professional bodies and voluntary organisations
is precondition for the successful conception of micro enterprises in terms of skill training,
designing products, providing new technology and access to market.
7.1 POLICY IMPLICATIONS
In this twenty-first century, we must take along an active people-centred and growth-oriented
poverty alleviation strategy – a strategy which seems to incorporate women’s aspirations, dynamism
and involvement. It is envisaged that self-help groups will play a vital role in such strategy. But there
is a need for structural orientation of the groups to suit the requirements of new business. Micro credit
movement has to be viewed from a long-term perspective under SHG framework, which underlines
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
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the need for deliberate policy implications in favour of assurance in terms of technology back-up,
product market and human resource development. Hence, there is a need for the development of an
innovative and diversified micro-finance sector, which will make a real contribution to women
empowerment.
REFERENCES
1. Bosch, Ellie (2010), Micro-finance: New Wine in a New Bottle, A Supplementing Role for
Cordaid and IICO,
2. Cheston, Susy and Lisa Kuhn (2002), “Empowering Women Through Microfinance”,
Unpublished Background Paper for the Micro-credit Summit 15, New York, 10-13 November
(www.microcreditsummit.org).
3. Dasgupta, Rajaram (2005). “Microfinance in India: Empirical Evidence, Alternative Models
and Policy Imperatives”, Economic and Political Weekly, 19 March.
4. Kabeer, N. (2010), “Resources Agency Achievements: Reflections on the Measurement of
Women’s Empowerment – Theory and Practice”, SIDA Studies, No. 3.
5. Kapoor, Pramilla (2001), Empowering the Indian Women, Publications Division, Ministry of
Information and Broadcasting, Government of India.
6. Malhotra, Meenakshi (2004), Empowerment of Women, Isha Books, Delhi.
7. Manimekalai, K. (2004), “Economic Empowerment of Women Through Self-Help Groups”,
Third Concept, February.
8. Narasiah, M.L. (2004), Women and Microcredit, Sonali Publications, New Delhi.
9. Osman, Khalil, “Microfinance Institutions: Effective Weapon in the War against Rural
Poverty”, www.muslimedia.com.
10. Pattanaik, Bijoy Kumar, “Smaranika, 2003”, Kancheepuram at a Glance.
11. Pattanaik, Sunanda, “Smaranika, 2003”, Empowerment through SHG: A Case Study of
Kancheepuram District.
12. Sahu and Tripathy (2005), Self-Help Groups and Women Empowerment, Anmol Publications
Pvt. Ltd., New Delhi.
13. Sinha, Frances (2005), “Access, Use and Contribution of Micro-Finance in India: Findings
from a National Study”, Economic and Political Weekly, April 23.
(IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
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“WOMEN EMPOWERMENT THOROUGH SELF HELP GROUPS”
A CASE STUDY OF KANCHEEPURAM DISTRICT IN TAMILNADU
*Dr.Y.Lokeswara Choudary & ** S.Chitra
**Research Supervisor & *Research Scholar, School of Management, SRM University, Chennai.
Contact: lokeswara.c@vdp.srmuniv.ac.in/ chitracommerce05@gmail.com,
1.0 ABSTRACT
The present study is an attempt to analyse the role and performance of SHGs in promoting
women's empowerment in Kancheepuram District of Tamilnadu. The broad objective of the study is
to analyses the operating system of SHGs for mobilization of saving, delivery of credit to the needy,
management of group funds, repayment of loans, in building up leadership, establishing linkage with
banks and examines the social benefits derived by the members. In order to collect and gather primary
data, field observation and structured questionnaire survey methods were employed. In addition,
information was also collected through discussions and interviews with local NGOs and government's
grass roots level workers. There are 281 SHGs working in Kancheepuram district, exclusively under
the monitoring of Magalir thittam. Here the researcher has chosen 10 SHGs from each block of the
district. In total the study covers 50 SHGs with 800 members. The study reveals that SHGs had set a
new agenda for financial intermediation by banks in the form of micro-credit. By the formation of
SHGs, credits are demanded for various purposes (domestic, health, festivals, repayment of old debts,
investment, etc.). Similarly different economic activities (collection, processing and marketing of
minor agricultural and allied products, individual business, goatery, dairy etc.) are undertaken by the
SHG members after joining the group. Habits of savings, economic independence, self confidence,
social cohesion, asset ownership, freedom from debt, additional employment, etc. benefits are derived
by the SHG members. Thus, SHGs have served the cause of women empowerment, social solidarity
and socio-economic betterment of the poor for their consolidation.
Key words: social benefits- savings- delivery of credit- leadership- linkage with banks-social
cohesion.
1.1 INTRODUCTION
The concept of empowerment is defined as the process by which women take control and
ownership of their choices The core elements of empowerment have been defined as agency (the
ability to define one’s goals and act upon them), awareness of gendered power structures, self-esteem,
and self-confidence (Kabeer,2001). Empowerment can take place at a hierarchy of different levels –
individual, household, community and societal – and is facilitated by providing encouraging factors
(e.g. exposure to new activities, which can build capacities) and removing inhibiting factors (e.g. lack
of resources and skills). In this connection Micro-finance with Self Help Groups play an effective role
for promoting women empowerment. It is not only an efficient tool to fight against poverty, but also
as a means of promoting the empowerment of the most marginalized sections of the population,
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especially women. According to Ellie Bosch it is just old wine in a new bottle (Bosch, 2002). It
consists of a group of people of three to eight persons on the condition that each of them would be
assuming responsibility for the development of all.
Micro Finance institution started in India in 1980s through Self Help Groups (SHGs) model.
It is the Grameen replication model of Bangladesh. There is nearly 3, 00,000 SHGs working whole
over India. It is true that the concept of microfinance is yet to spread its wings all over India, but at the
rate in which it is expanding its branches, very soon it would be reaching at the doorsteps of the poor
houses. The most successful region for microfinance is the Southern part of India; Andhra Pradesh
has become the example for the other states in this case. The present study is an attempt in this
direction to analyse the impact of micro-credit on poor women in Kancheepuram district of
Tamilnadu.
1.2 Profile of the Sample Area
Kancheepuram District is one of the Historical Districts of Tamil Nadu. Welcome to the city
of thousand temples. Kancheepuram district is situated on the northern East Coast of Tamil Nadu and
is adjacent by Bay of Bengal and Chennai city and is bounded in the west by Vellore and
Thiruvannamalai district, in the north by Thiruvallur district and Chennai district, in the south by
Villuppuram district in the east by Bay of Bangal. The district has a total geographical area of
4,43,210 hectares and coastline of 57 Kms. Kancheepuram, the temple town is the District head
quarters. For administrative reasons, the District has been divided into 3 Revenue Divisions
comprising of 8 Taluks with 1214 Revenue villages. For development reasons, it is divided into 13
Development Blocks with 648 Village Panchayats.
The Mahalir Thittam Project implemented in Phase III is functioning from 01-11-1999 in
Kancheepuram District . A major project for the development and empowerment of poor and rural
women was put in place in 1989 with the assistance from the International Fund for Agricultural
Development (IFAD). It has been implemented through a network of women Self-Help Groups which
are established with the support of Voluntary Organisations (VOs). The success of the Project
encouraged to extent the project to all the rural areas in the State in a phased manner. Thus the
Mahalir Thittam was extended to all the district of Tamil Nadu. Subsequently the scheme was
extended to urban panchayats. The vision of the project is to reach out and empower women below
the poverty line through Self reliant and sustainable Self Help Groups.
In State Level Kancheepuram is the Number One District in the formation of SHGs. At present 26568
Self Help Groups have been formed as detailed below.
Total
Population
Male Female Total
No. of
SHGs
SC ST Trangender Differentl
y Abled
Others
1573770 794922 778848 26568 7406 490 2 31 18639
Sl. No. Panchayat/Town
Panchayat/Municipalities
Total No. of
SHGs.
(up to 02.06.11)
No. of Women
SHGs
No. of Youth
SHGs.
up to
2010-11
1 SHGs in Panchayats areas 17775 17057 718
2 SHGs in Town Panchayats
areas
8793 8546 247
Total 26568 25603 965
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2.1 REVIEW OF LITERATURE
Few studies are available on SHG and micro-finance and women empowerment. The researcher has
tried to review the following:
Osman (2006) in his article remarked that micro-finance schemes alone can not alleviate poverty. The
battle for total eradication of poverty requires combining micro-finance schemes with parallel,
complementary programmes addressing the social and cultural dimensions of want, privation,
impoverishment and dispossession.
Kapur (2007) in her study tried to discuss, analyse and answer the challenging questions as to why
despite all the efforts and progress made, still there continues to be so much of gender discrimination
and what strategies, actions and measures to be undertaken to achieve the expected goal of
empowerment. She opined that women’s empowerment is much more likely to be achieved if women
have total control over their own organisations, which they can sustain both financially and
managerially without direct dependence on others.
Pattanaik (2009) 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 constraints like gender inequality, exploitation, women
torture for which various Self Help Groups are not organised properly and effectively.
Malhotra (2010) in her book has examined how women entrepreneurs affect the global economy, why
women start business, how women’s business associations promote entrepreneurs, and to what extent
women contribute to international trade. It explores potential of micro-finance programmes for
empowering and employing women and also discusses the opportunities and challenges of using
micro-finance to tackle the feminisation of poverty. According to her, the micro-finance programmes
are aimed to increase women’s income levels and control over income leading to greater levels of
economic independence. They enable women’s access to networks and markets, access to information
and possibilities for development of other social and political role. They also enhance perceptions of
women’s contribution to household income and family welfare, increasing women’s participation in
household decisions about expenditure and other issues leading to greater expenditure on women’s
welfare.
Narasaiah (2010) in her study mentioned that the change in women’s contribution to society is one of
the striking phenomena of the late twentieth century. According to him micro-credit plays an
important role in empowering women. Giving women the opportunity to realise their potential in all
spheres of society is increasingly important.
Cheston & Kuhn (2011) in their study concluded that micro-finance programmes have been very
successful in reaching women. This gives micro-finance institutions an extraordinary opportunity to
act intentionally to empower poor women and to minimise the potentially negative impacts some
women experiences.
Manimekalai (2011) 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.
Sahu and Tripathy (2011) 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 (SHGs) 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
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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.
Das Gupta (2012) in his article commented that a paradigm shift is required from “financial sector
reform” to “micro-finance reform”. While the priority sector needs to be made lean, mandatory micro
credit must be monitored rigorously. Simultaneously space and scope have to be properly designed for
providing competitive environment to micro-finance services. Extensive database needs to be created
by the RBI for understanding micro-finance.
Sinha (2012) in his study has observed that micro-finance is making a significant contribution to both
the savings and borrowing of the poor in the country. According to him the main use of micro-credit
is for direct investment. There is of course some fungibility, depending on household credit
requirements at the time of loan disbursement. Some studies reveal that micro-finance programmes
have had positive as well as negative impacts on women. Some researchers have questioned how far
micro-finance benefits women (Goetz and Sen Gupta, 2006). Some argue that micro-finance
programmes divert the attention of women from other more effective strategies for empowerment
(Ebdon, 2005), and the attention and the resources of donors from alternative, and possibly more
effective means of alleviating poverty (Rogaly, 2006). In some cases women’s increased autonomy
has been temporary. It only benefits women who are already better off. But in most cases the poorest
women are least able to benefit because of their low initial resources base, lack of skill and market
contact.
3.1 Objectives of the Study
The broad objective of the study is to examine the role and performance of SHGs in promoting
women’s empowerment in the study area. However, the study has some specific objectives. They are:
1. To analyse the economic gains derived by the members after joining the SHGs.
2. To examine the social benefits derived by the members.
3. To analyse the operating system of SHGs for the mobilization of saving, delivery of credit to
the needy, management of group funds, repayment of loans, in building up leadership, and
establishing linkage with banks
4. To suggest appropriate policy intervention for the effective performance of SHGs.
3.2 Methodology
Selection of Study Area and Sample Units: The study was carried out in selective clusters
spread over five blocks of Kancheepuram district in Tamilnadu. It is noteworthy to mention here that
the Self-Help Groups in Kancheepuram district are promoted by NGOs as well as Government
agencies. Due to time constraint the researcher has selected the SHGs promoted by a particular NGO
i.e., Centre for Community Development (CCD). At present CCD is working in 5 community
development blocks namely Kancheepuram, Sriperambadur, Tambaram, Chengalpattu and
Madurantakam. There are 281 Self-Help Groups promoted by CCD in the five blocks. The researcher
has chosen 10 SHGs each from Kancheepuram, Sriperambadur, Chengalpattu and Madurantakam
depending upon location-specific condition. As Tambaram block has only 9 SHGs promoted by CCD,
all these 9 SHGs were taken for study. In total the study covers 49 SHGs with 800 members.
3.3 Data Collection and Analysis:
In order to collect and gather primary data, field observation and structured questionnaire
survey methods were employed. In addition, information was also collected through discussions and
interviews with local NGOs and government’s grass roots level workers. Secondary data gathered
from the records of SHGs and NGOs and government offices were supplemented by the primary data
collected from the group. A wide range of information such as composition of membership, savings
mobilised, loan disbursed, interest rates, recovery procedures, assets created, external assistance
received etc. were ascertained from the SHGs and their members. Besides, different books,
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newspapers, articles, journals, magazines and web sites were also referred for the purpose. The data
collected from each block regarding the structure and profile of SHG members, savings and loans of
SHGs, economic and social benefits derived by SHG members, etc. has been processed separately and
averages of each block are being taken. The analyses obtained from different blocks are compiled and
compared to draw the inferences about the performance of the SHGs in the study area.
4.1 Data Analysis and results discussion
4.1.1 Structure of SHGs
The structure and characteristics of Self-Help Groups in the study area is presented in Table
2.1. It is noted that the average membership per SHG was 16.26. The study reveals that in the
Madurantakam block, the average membership of the Self-Help Group is highest (17) and
Kancheepuram block had lowest membership (15). Most of the members agreed that their motives in
joining SHGs were to save. Some said they joined the SHG to get credit to meet the unexpected cash
demand for consumption and other purposes. Few opined that it led to social empowerment. The
average savings per SHG was Rs. 10,693. It varied from Rs. 2097 in Tambaram to Rs. 16125 in
Chengalpattu block. The per member savings was around Rs. 667. The frequency of group meeting by
SHG indicated that fortnightly meetings were the most common followed by monthly and weekly.
Meetings are arranged regularly by NGO and Groups. It is held in the middle of the street. The
absentee member has to pay a fine of Rs. 2. The average amount of loans per SHG was Rs. 12345.
The highest being Rs.19752 in Kancheepuram block and the lowest of Rs. 8758 in Tambaram block.
Table 2.1 Structure of SHGs in the Study Area
Item Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Membershi
p average
(No.)
15.00 16.78 17.00 15.86 16.66 16.26
Savings per
SHG (in
Rs.)
14517 16125 13633 7093 2097 10693
Loan (Avg.)
(in Rs.)
19752 17177 16040 8758 12345
Frequency of group meeting (percentage):
Weekly: 25 15 13 0 0 10.6
Fortnightly 65 68 72 35 28 53.6
Monthly 10 17 15 65 72 35.8
Source: Compiled by the author.
4.1.2: Profile of SHG Members
Table 2.2 Profile of SHG Members
Item Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Age (years) 34 32 33 35 37 34.2
Percentage
of STs
13 07 16 17 27 16
Percentage
of SCs
18 39 33 23 27 28
Percentage
of Other
Castes
69 54 48 60 46 55.40
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Literacy
(%)
5.11 11.23 13.26 3.69 3.88 7.43
Occupation
–
Agriculture
(percentage
)
Others
71.89
28.11
36.55
63.45
38.89
61.11
69.89
30.11
62.57
37.43
47.41
53.59
Income
(Average)
7867 9223 10057 6582 5861 7918
Source: Compiled by the author.
The average age of SHG members in the study area is presented in Table 2.2 it is observed
that the average age of SHG members was 34.2 years, lowest being 32 years in Chengalpattu block
and highest being 37 years in Tambaram block. Regarding the caste profile of SHG members, the
table shows that majority of members belong to tribal community. In Sriperambadur block it is 97 per
cent, followed by 90 per cent in Kancheepuram. Educational background of the SHG members shows
that most of them are illiterate. Only 7 per cent of them have studied up to primary level. So far as the
occupation of the members are concerned, majority of them are engaged in agricultural activities. As
regards to average income per SHG, it was around Rs. 7918. It was highest in Madurantakam block
(Rs.10057) followed by Chengalpattu block (Rs. 9223) and lowest in Tambaram block (Rs. 5861).
4.1.3 Purpose of Credit Demanded and Utilized.
Generally, after six months operation of savings account, the saving is pooled and used for
internal lending among the members. The amount of loan and number of loans are decided by the
members themselves depending on their need and urgency.
Table 2.3 Purpose-wise Credit Demanded by SHG Members
Purpose Kancheepura
m
Chengalpat
tu
Madurantaka
m
Sriperambad
ur
Tambara
m
Overa
ll
Domestic
consumpti
on
57.66 12.91 15.57 66.54 47.89 30.53
Health 3.22 6.87 9.50 -- 2.27 4.37
Festivals 6.11 9.78 8.71 2.39 2.18 5.83
Repayment
of old
debts
15.67 10.66 11.52 5.68 10.59 10.82
Investment 10.89 12.57 11.66 14.05 8.67 11.56
Others 6.45 47.21 43.04 11.34 28.4 27.28
Note: Figures in the table indicate percentages.
Source: Compiled by the author.
The purpose-wise credit demanded by the SHG members from the SHGs is given in Table 2.3. It is
observed that most of the members have demanded credit for domestic consumption purposes. It is
highest in Sriperambadur block (67%) followed by Kancheepuram (57.66%). Reasonable proportion
of SHG members have demanded credit for other purposes. This percentage is highest in
Madurantakam (43.04%) and lowest in Kancheepuram block (6.45%). About 11.56 percentage of
credit is demanded for investment purposes. A proportion of credit was demanded by the SHG
members for payment of old debts. A less proportion of loan is demanded for festival and health
purposes. From the table it is clear that a larger share of credit demanded by SHG members is being
utilized for domestic consumption purposes followed by repayment of debts and others.
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4.1.4 Economic Activities Covered by SHG Members
Table 2.4 Economic Activities Covered by the SHG Members
Item Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Collection
and
marketing
of seasonal
Agricultura
l and allied
Products
75 55 40 70 60 60.00
Individual
business
5 10 25 10 5 11.00
Goatery 10 12 10 15 15 12.4
Dairy 10 18 10 5 15 12.6
Others 5 5 15 5 5 7.00
Note: Figures in the table indicate percentages.
Source: Compiled by the author.
Table 2.4 revels that most of the SHG members are engaged in the collection and processing
of minor agricultural and allied products. These products include broom making, cashew, mahul,
turmeric, tamarind, khalli (leaf plates), raw broom, amla, etc. Some of the members are engaged in
individual businesses like preparing pickle, bodi, papad, haldi powder, wax, making bags, vegetable
business, tailoring, pan shop, etc. They are also engaged in poultry, dairy and goatery business. Some
are engaged in other activities. As there is a good demand for milk products, they are preparing sweets
with milk, ghee, etc. and are getting good price. They earn about Rs. 600 to Rs. 1000 per month
through these activities.
4.1.5 Loan Support to SHGs by Banks
Table 2.5Loan Support to SHGs from Repco Bank
Name of the Block Total SHGs Loan availed Loan Repayment
Kancheepuram 10 Rs. 2,96,428 79.80 %
Chengalpattu 10 Rs. 2,66,611 58.91%
Madurantakam 10 Rs. 2,00,000 52.28%
Sriperambadur 10 Rs. 1,30,000 73.50%
Tambaram 10 Rs. 3,35,000 82.67%
Source: Annual Report of monitoring authority, magaleer thittam 2010-2011.
There is a bank linkage programme established to SHGs. The SHG members opened their
accounts in various nationalized banks such as State Bank of India, Indian Bank, Bank of Baroda,
Union Bank of India, Andhra Bank, etc. and also some local banks like Repco Bank, Balaji Grameen
Bank, City union bank and Cooperative Banks. SHG members are getting both internal loans and
external loans under the security of NGOs. They are paying Rs. 2 as interest per Rs. 100. They are
also maintaining cashbook, membership register, loan register, individual passbook register, etc. They
are taking loans for both production and consumption purposes. Repco Bank has advanced loans of
Rs. 2,96,428 to Kancheepuram Block, followed by Rs. 2,66,611 to Chengalpattu block (Table 2.5).
So far as loan repayment is concerned, the SHG members of Kancheepuram Block have
repaid 80 per cent of their loans followed by Sriperambadur block with 74 per cent. But in
Chengalpattu and Madurantakam blocks, though they are urban based, the repayment position is not
encouraging. In these two blocks the members repaid only 50 per cent of their loans.
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4.1.6 Benefits Derived by SHG Members
Variety of benefits is derived by the members of SHGs as presented in Table 2.6.
Table 2.6 Benefits Derived by SHG Members (Multiple Responses)
Benefits Kancheepura
m
Chengalpatt
u
Madurantaka
m
Sriperambadu
r
Tambara
m
Overal
l
Habit of
Savings
75.44 79.11 68.22 76.66 80.66 76.00
Economic
independenc
e
70.00 70.00 65.00 66.80 65.00 67.36
Selfconfidence
81.00 85.86 82.88 78.00 80.00 81.54
Social
cohesion
70.00 80.88 71.11 68.88 85.00 75.17
Asset
ownership
48.33 52.34 24.40 54.99 58.22 47.65
Freedom
from debt
49.00 66.00 75.08 67.00 59.76 63.36
Additional
employment
21.11 32.80 41.80 38.40 58.90 38.60
Note: Figures in the table indicate percentages.(Source: Compiled by the author.)
One of the outstanding benefits reported by all the members is the development of self-confidence
(81.54%) ranked first, followed by savings habit (76%), economic independence (67.36%), social
cohesion (75.17%), freedom from debt (63.36%), asset ownership (47.65%), additional employment
(38.60%).
5.1 Findings of the Study
Based on the interviews and discussions with the group members, field workers of the local
NGO and group questionnaire survey results, the following findings emerged.
1. The social profile of SHG members indicates that majority of members are tribal, i.e., their
overall average is 66.2 per cent. The overall literacy rate is only 7.43 per cent as against the
district tribal female literacy rate of 15.88 per cent.
2. It is found that the operational efficiency and group dynamics of the SHG is not same in all
blocks. This could be attributed to several factors like background of SHG formation, internal
problem, support provided by the promoters, effective leadership, etc.
3. It is observed that the average membership in SHG was around 16.26. Membership is highest
in Madurantakam block and lowest in Kancheepuram block. This may be due to the urbanbase
of Madurantakam in contrast to Kancheepuram, where 90 per cent of members are
tribals.
4. The members had joined the group in order to earn more income, promote savings habits and
to develop collective economic and social activities. So far as the frequency of group
meetings are concerned, it is observed that fortnightly meetings were the most common. In
Kancheepuram, Chengalpattu and Madurantakam block the SHG members arrange their
meetings twice in a month. But in Sriperambadur and Tambaram, the meetings are held once
in a month.
5. The Groups maintain cashbooks, passbooks and attendance registers. The members in-charge
of accounts are being given training in bookkeeping by the CCD. But the member who looks
after all these secretarial work is not paid any financial incentive.
6. From the study, it is found that individual members contribute Rs. 10 to Rs. 50 per month. 70
per cent of SHG circulated thrift and their period of circulation was monthly. Accumulated
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savings by members to group funds per SHG were to the tune of Rs. 10,693, against this loan
disbursed amounted to Rs. 12,345.
7. The SHG disbursed loans both for consumption and production purposes. Purpose-wise
disbursement of credit by SHG indicates that, domestic consumption received maximum
share of 30.33 per cent, followed by others (27.28%). It is found that credit demanded for
investment purpose is very low.
8. As far as external loan is concerned, the Repco Bank has advanced loans to the tune of Rs.
2.96 lakh to Kancheepuram block followed by Rs. 2.66 lakh to Chengalpattu block. The
members have invested the loan in different economic activities like broom making, khalli
stitching (leaf-plates), preparing eatables like bodi, papad, etc. They are also engaged in
poultry, dairy and goatery business. In Chengalpattu block, the members are preparing milk
products like sweets, ghee, khoa, etc. and getting good price. They earn about Rs. 600 to Rs.
1000 per month through these activities. The study reveals that the members are not skilled
enough to run various units.
9. Members perceived several benefits through their membership in SHGs such as economic
independence and self-confidence (81.54%), promotion of savings habits (76%), social
cohesion (75.17%) and freedom from debt (63.36%).
10. The study also reveals that SHGs had set a new agenda for financial intermediation by banks
in the form of micro-credit. It has infused dynamism among its members to climb up socioeconomic
ladder in the development process. Thus, SHGs have served the cause of women
empowerment, social solidarity and socio-economic betterment of the poor for their
consolidation.
6.1 Suggestions and Conclusion
Considering the findings of the study, the following suggestions were prescribed.
1. Literacy and numeric training is needed for the poor women to benefit from the micro-credit
schemes.
2. Training in legal literacy, rights and gender awareness are important complements to microcredit
for the empowerment of women. The members should be given necessary training and
guidance for the successful operation of the group.
3. The members of the SHG should be more active, enthusiastic and dynamic to mobilise their
savings by group actions. In this process NGOs should act as a facilitator and motivator. The
office bearers managing the group should be given nominal financial benefits, which will
enable them to be more involved in the activities of the Group.
4. The bank should advance adequate credit to the SHG according to their needs. Uniformity
should be maintained in formation and extension of financial assistance to them by banks in
all blocks. The procedure of the banks in sanctioning credit to SHG should be simple and
quick.
5. Marketing facilities for the sale of products of SHG may be created. Periodical exhibitions at
block-level may be organised where the products of SHG can be displayed. Meetings and
Seminars may be organised where the members will get a chance to exchange their views and
be able to develop their group strength by interactions.
6. Active intervention by district administration, professional bodies and voluntary organisations
is precondition for the successful conception of micro enterprises in terms of skill training,
designing products, providing new technology and access to market.
7.1 POLICY IMPLICATIONS
In this twenty-first century, we must take along an active people-centred and growth-oriented
poverty alleviation strategy – a strategy which seems to incorporate women’s aspirations, dynamism
and involvement. It is envisaged that self-help groups will play a vital role in such strategy. But there
is a need for structural orientation of the groups to suit the requirements of new business. Micro credit
movement has to be viewed from a long-term perspective under SHG framework, which underlines
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –
6510(Online), Volume 3, Issue 2, May-August (2012)
318
the need for deliberate policy implications in favour of assurance in terms of technology back-up,
product market and human resource development. Hence, there is a need for the development of an
innovative and diversified micro-finance sector, which will make a real contribution to women
empowerment.
REFERENCES
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and Policy Imperatives”, Economic and Political Weekly, 19 March.
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6. Malhotra, Meenakshi (2004), Empowerment of Women, Isha Books, Delhi.
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8. Narasiah, M.L. (2004), Women and Microcredit, Sonali Publications, New Delhi.
9. Osman, Khalil, “Microfinance Institutions: Effective Weapon in the War against Rural
Poverty”, www.muslimedia.com.
10. Pattanaik, Bijoy Kumar, “Smaranika, 2003”, Kancheepuram at a Glance.
11. Pattanaik, Sunanda, “Smaranika, 2003”, Empowerment through SHG: A Case Study of
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12. Sahu and Tripathy (2005), Self-Help Groups and Women Empowerment, Anmol Publications
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