Empowering rural women all the way through self help groups

International Journal of Management (IJM), – 6502(Print), ISSN 0976 – 6510(Online)
International Journal of Management (IJM), ISSN 0976
Volume 1, Number 2, Oct - Nov (2010), © IAEME
ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online) IJM
Volume 1, Number 2, Oct - Nov (2010), pp. 156-163
© IAEME, http://www.iaeme.com/ijm.html ©IAEME

EMPOWERING RURAL WOMEN ALL THE WAY
THROUGH SELF-HELP GROUPS
Dr. J. Venkatesh
Assistant Professor
School of Management Studies
Anna University of Technology Coimbatore.
Coimbatore, E-Mail id: venkijv@gmail.com

Ms. K.Kala
Research scholar
Anna University of Technology Coimbatore.
Coimbatore, E-Mail id: ammuscorps@gmail.com

ABSTRACT
In the mounting countries these days, more and more prominence is laid on the
call for women development and their input in the main torrent of progress process. Apart
from managing household and bearing children, rural women bring income with
productive activities through working in the fields of factories or running small and petty
businesses. The Indian Government and state authorities has realized the consequence of
devoting awareness to the economic betterment of women in India. In reality rural
women have harder lives and are habitually discriminated adjacent to with regard to land
and property rights, and in access to medical facilities and rural finance. Women take on
the more burdensome tasks such as day-to-day administration of households like
collection of fuel wood for cooking, fetching of drinking water. And their literacy rates
are lower than the rates of men. A key instrument for women’s empowerment are self-
help groups, whereby 10-20 rural women from the same village, mostly poor women,
come together to contribute two-weekly or monthly dues as savings and provide group
loans to their members.
Key Words: Empowerment, Income, Women

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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online)

SELF-HELP GROUPS
Certainly, Self-help Groups are fetching more than just financial intermediaries.
They have materialized into a more social unit of society. More prominently, the
diffusion of microfinance to the poorest of the poor is still weak and thus it needs a wider
reach. Normally Self-help groups are assisted by NGOs in a variety of income-generating
activities. In the Project of Tamil Nadu Women’s Development, 50 per cent of women
self-help group members reported that, they had visited new places and travelled longer
distances for the first time in their lives, while 90 per cent had interacted with institutions
such as banks, NGOs and project agencies. The impact study reveals that access to
finance through group savings and had allowed women to become ever more occupied in
economic activities such as the collection and sale on local markets.
A CASE STUDY OF SELF HELP GROUPS IN THE SOUTH TAMIL
NADU
INTRODUCTION
The chief problems of any under developed countries are poverty and joblessness.
In India, at the stop of ninth five year plan 26.1% of the population was living below
poverty line. In the rural area 27.1% of the population was living under poverty. The
overall unemployment rate is estimated to 7.32%. The unemployment rate of female is
8.5%. The growth rate of unemployment of women in the rural area is 9.8%. This is for
the reason that the growth rate was low of new and productive employment.
REVIEW OF LITERATURE
Johnson (1999) in his study “Micro-credit Initiatives for Equitable and
Sustainable Development: Who Pays?” notes that product design rarely addresses gender-
specific aspects of the use of financial services. Indeed, despite the pervasive belief that
microfinance helps women, few programs have developed concrete ways to meet the
distinct demands of poor women for saving services.
(Sabyasachi Das. 2003) The more attractive scheme with less effort is “Self Help
Group”. It is a tool to remove poverty and improve the rural development.
Johnson and Storey (1994) suggest that women entrepreneurs are less likely to be
married or have a professional qualification or to start self-employment under 30.

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Vokins (1994) study of successful women entrepreneurs suggested they had a
different approach: an ability to do several things at once; ability to admit mistakes; keen
to develop the workforce; less concerned with outward trappings. Women also faced
different problems.
Simpson (1991) found that their partners do not help with domestic chores or the
business, whilst the reverse is true for men. Simpson also suggested that women have to
work harder to gain credibility.
Hashemi (1996) in his article “Managing Credit for the Rural Poor: Lessons from
the Grameen Bank” investigated whether women’s access to credit has any impact on
their lives, irrespective of who had the managerial control.
Eapen and Kodoth (2002) in their study “Micro enterprise finance: is there a
conflict between growth and poverty alleviation?” stress the need to examine no
conventional indicators to assess women’s status in this state, such as an alarming rate of
gender-based violence. Furthermore, the ability to influence household decision-making,
and in particular to assume self decisions, remains limited.
FUNCTIONS OF SHGS
• Universal finance will be generated by the members through their habitual
savings.
• Working system will be flexible and pool the resources in a democratic way.
• Periodical meeting is conducted.
• The process of decision making is done through group meeting.
• It is very effortless to repay in time as the loan amount is diminutive and sound.
The prior studies which are related to SHGs have evidently understood that the
SHGs are the means to endorse rural savings and lucrative employment. Therefore
women members are cost-effectively independent and their contribution to household
income is also enlarged. The present study is focusing on the economic improvement of
women after joining the SHGs.
WORKING OF SHGS
SHGs are working in self-governing manner. The member’s upper limit in a
group is constrained to 20. Among them one member is elected as an ‘animator’ and

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other two members are elected as the representatives. The animator is usually selected for
the time of two years. The members of group meet every week. They discuss on the
subject of group savings, rotation of sangha funds, bank loan, repayment of loan, social
and community action programmes.
OBJECTIVES
The overall objective of the present study is to make analysis of the economic
empowerment of women through SHGs in the south districts of Tamil Nadu. However
more specifically:
1. To discover the income, expenditure and savings of the members after joining SHGs.
2. To recognize the role of SHGs in providing rural credit.
METHODOLOGY
The present study has covered a few villages from south districts of Tamil Nadu.
These villages were chosen for this study, because the SHGs in these villages are
functioning very productively. This study is accumulated with the help of the primary
data covered only one year period (2009-10). The primary data were collected with the
help of interview schedule. Absolutely 134 respondents were chosen from 20 SHGs (398
total members) of districts by simple random sampling method. The sample size was 1/3
of the total members in the SHGs. This study is merely a descriptive study. Only
percentage and average were used for the analysis.
ANALYSIS AND INTERPRETATION
This study is connected to the economic empowerment of women in the South
Tamil Nadu. Wholly twenty SHGs are functioning in the study area with 398 members.
134 respondents were selected for the study from 398 members.
Table-1 Age Group of Members of SHGs
Sl.No. Age Group No. of respondents Percentage
1. Less than 20 6 4.46
2. 20-30 30 22.39
3. 30-40 32 23.88
4. 40-50 36 26.87
5. 50-60 18 13.43
6. Above 60 12 8.96
Total 134 100.00

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INTERPRETATION
In the South districts of Tamil Nadu, 20-30 and 30-40 age groups are actively
participated in the SHGs activities. The people aged (40-50) are also in the SHGs. They
can only manage and resolve the problems arise in the groups.
Chart-1 Age Group of Members of SHGs

Table – 2 Reasons for Joining SHGs
Sl. No. Reasons No. of respondents Percentage
1. For getting loan 58 43.28
2. For promoting savings 20 14.92
3. For social status 44 32.84
4. For other reasons 12 8.96
Total 134 100.00
INTERPRETATION
In the study area many people (43.28%) the SHGs for receiving financial support,
32.84% of the respondents joins the SHGs for the social status. 14.92% of the
respondents join for civilizing their savings. For social, cultural and political
improvement (other reasons 8.96%) join in the SHGs.
Chart -2 Reasons for Joining SHGs

Table-3 Income Level of the Members

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Monthly Incomes of the Members Before and After Joining SHGs
Before Joining After Joining
SHGs SHGs
Sl. No. Monthly Income No. of Percentage No. of Percentage
Rs. Respondents Respondents
1. Less than 1000 16 11.95 5 3.73
2. 1000-2000 25 18.66 26 19.40
3. 2000-3000 42 31.34 45 33.58
4. 3000-4000 4 2.96 14 10.45
5. 4000-5000 10 7.46 33 24.63
6. 5000-6000 5 3.75 6 4.48
7. Above 6000 2 1.49 3 2.23
8. Non-earning 30 22.39 2 1.49
members
Total 134 100.00 134 100.00
INTERPRETATION
Many housewives (22.39%) did not bring in anything before joining SHGs, but
after a member of the SHGs, they are earning rationally. This increases the readiness to
contribute in the SHGs’ activities.
Chart-3 (i) Showing the Monthly Incomes Before Joining the SHGs

Chart-3(ii) Showing the Monthly Incomes After Joining the SHGs

Note: The rate of interest is 1% to 4%. It varies group o group

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Table – 4 Amount of Loan Availed by the members Through SHGs
Sl.No. Availed Loan Amount Rs. No. of Respondents Percentage
1. Less than 5,000 23 17.16
2. 5,000 to 10,000 28 20.90
3. 10,000 to 15,000 29 21.64
4. 15,000 to 20,000 35 26.12
5. Above 20,000 19 14.18
Total 134 100.00
INTERPRETATION
Many women members independently engage in the financial activities
independently and with other group members after joining SHGs. At the present time
many SHGs are opening small business etc.
Chart -4

Table – 5 Repayment of Loan by SHGs’ Members
Sl.No. Particulars No. of Respondents Percentage
1. Repayment in time 86 64.18
2. Repayment in advance 25 18.66
3. Repayment not in time 23 17.16
Total 134 100.00
INTERPRETATION
Moreover banks coach the members to set aside minimum Rs. 200 per month. So
re-payment is very effortless to SHGs. The loans can be used by individual group
members for their personal needs.

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Chart-5

CONCLUSION
The cram was embarked on the women empowerment of SHGs in the South
Tamil Nadu. It is found after joining the SHGs the income of the women has been
augmented. So that the monthly household outflow also has been lifted considerable
level. The first-class practice of the women SHGs in the study area is repayment of the
loan in time. Almost 64% of the debtor remunerated their monthly due within the time. A
small number of members do not disburse in time but this is not touching the further
credit of SHGs. In view of the fact that the reimbursement of loan is regular and within
the time, we may terminate that the economic activities of SHGs are in quite success. In
this way SHGs in South Tamil Nadu are very victorious to extend women empowerment
in rural areas.
REFERENCES
• Neera Burra, Joy Deshmukh-Ranadive and Ranjani K.Murthy, 2005, ‘Micro-
Credit, Poverty and Empowerment: Linking the triad’ Sage Publications
• NABARD initiatives turn rural women into entrepreneurs’, The Hindu, Feb 20,
• Jean Dreze and Amartya Sen, 2002, ‘India: Development and Participation’,
Oxford University Press
• Dodkey, M.D. (1999), “SHGs and Micro Credit, Sustaining Rural Women”,
Social Welfare, March, 45. 12: 19-20
• K.G.Karmakar, 1999, ‘Rural Credit and Self-Help Groups: Micro-finance needs
and concepts in India’, Sage Publications

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Empowering rural women all the way through self help groups

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