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Research

Information: 
EXECUTIVE SUMMARY OF THE MINOR RESEARCH PROJECT 
 
AWARDED TO DR. R.B.TELI, SHIVRAJ COLLEGE OF ARTS AND COMMERCE AND D. S. KADAM SCIENCE COLLEGE, GADHINGLAJ, DIST.- KOLHAPUR FILE NO. 23-067/12  (WRO), UGC, PUNE.

 

Induction & Objectives: 
ENTREPRENEURSHIP DEVELOPMENT AMOUNG BELOW POVERTY LINE WOMEN THROUGH SELF-HELP GROUPS IN GADHINGLAJ BLOCK, DIST-KOLHAPUR, MAHARASHTRA STATE.
            
Women entrepreneurs play a significant role in economic development of the country. Statistics show that women are poorer than men. About 60% of the world-poorer are women. Entrepreneurship development therefore is a crucial tool for women’s economic empowerment. Around 50% of India’s population is women, yet business spheres such as trade, commerce and industry is still considered a male preserve. About 66% of female population in the rural sector is idle and unutilized. This is mainly due to the existing customs and traditions. Here SHGs have come up to help for the development of entrepreneurship. 
 
In 2012, the Indian government stated 22% of its population is below its official poverty limit. As per recent statistics, only 57% of the population has bank accounts and only 30,000 of the 6 lakhs habitations in India have a commercial bank branch. Presently the accounts under PM Jan Dhan Yojana, has improved the bank accounts but it is observed that still more than 40% population has no bank accounts. As against this, in UK and other advanced countries only 3% of households are unbanked. Even though the government of India has been putting huge efforts to achieve the target of balanced growth but there seems to be lack of the desired results. Women empowerment has been the catch phrase for most politicians and social organizations since decades, several crore of rupees have flown into schemes aimed at upliftment of women folk so far, but no effort has ever flourished as the self-help-group movement or micro-credit to encompass a broader sense. Dr. Mohammad Yunus, a Bangaldeshi Economist and Nobel prize winner (2006) coined the concept of Micro-finance. Nearly 150 countries in the world have adopted the pattern and started self-help-group movement. 
 
Women can be a successful entrepreneur if a congenial environment is created for them. The business expertise of women has already been proved by several studies on rural women. SHG is a voluntary group to improve the socio-economic conditions of group members. SHG is formed to bring the poor families above the poverty line by providing loans, subsidies, training and concentrate on employment and income generation activities (IGA) though combined efforts of the group members, Government efforts especially through NABARD, SHG Bank Linkage Program (SBLP), Swarnjayanti Gram Rojgar Yojana ( SGSY) , presently called as Deen Dayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM), Swarn Jayanti Shahari Rojgar Yojana (SJSRY), presently renamed as  Deen Dayal Antyodaya Urban Mission (DAY-NULM), DRDA, Micro-Finance Institutions (MFIs), Non-Government Organizations NGOs, Self- Help Promoting Agencies (SHPA), banks, Panchayat Raj Institutions (PRIs), Private banks, Co-operative banks , Insurance companies, etc. Indian women started their entrepreneurial activities in late 1970’s.  Micro-Finance (MF) has enormous growth potential as half the world’s population earns less than US $ 02 per day, which is insufficient to meet their basic needs.  Women Entrepreneurs (WEs) are stressed out as an extension of kitchen activities mainly 3Ps- pickle, power and papad. In seventies, GOI has brought a change in its policy for development of women. They were given priority in all sectors. As a result the number of WEs has increased over the years. 
 
For the present study 50 SHGs with project finance working in Gadhinglaj block of Kolhapur district.  (31.05% of total 161 SHGs under BPL with project finance) have been selected under random sampling method. The 100 women members (i.e. 2 members from 50 sample SHGs) were interviewed during the period of study from July, 2014 to March 2015. 
 
It was found that the growth in number of SHGs with savings bank accounts in India i. e. under Self-help-Group –Bank Linkage Programme (SHG-BLP) has shown increasing trend but it was not remarkable and as expected by the GOI, during the period from 2008 to 2016.
 
The number of SHGs linked to banks with loans stood at 18.32 lakhs in 2016 as compared only 255 in 1992-93. 91.92% of total project finance has been made for farm activities – Cattle finance and rest of 8.08% the SHGs run non-farm activities.  Groups and Individual Swarojgaries were financed for doing business of non-farm activities like small hotels. The policy environment in India has been extremely supportive for the growth of the micro-finance sector in India. Particularly during the International Year of micro-credit 2005, signifying policy announcements from the GOI and RBI have served as a shot in the arm of for rapid growth. SHGs have spread rapidly due to their ease of replication. SHG-BLP has provided the capacity for SHGs to increase their capital base to fund more members and bigger projects. The total loans disbursed to these groups have been increased continuously. The loan extended/disbursed stood at Rs. 37287 crores in 2015-16. The loan outstanding from SHGs has been increased continuously from Rs. 22,680 crores in 2008-09 to Rs.57119 crores in the year 2015-16, showing an increase of 151.85% and 2.52 times increase during the period from 2009 to 2016. Commercial banks (CBs) accounted for 66% of savings of SHGs under SHG-BLP. On the other hand, RRBs share in savings amount has been declined to 18% compared to the year 2016.  The share of co-op. has been also declined to 16% during 2015-16. The share of CBs in total loans outstanding was 71% in 2012, followed by RRBs (24%) and Co-op Banks (05%). Further it is also revealed that Non Performing Assets (NPAs) of Co-op Banks stood highest. Comparing to last year, 2011, it is also found that NPAs of SHGs in India have been increased from 4.72% to 6.08%. The share of Southern region in No. of SHGs has been declined from almost half (49.75) in 2013-14 to 44.87% in 2015-16. Saturation in the scope of formation of new SHGs and rationalization of data by banks, especially in Kerala, Tamil Nadu and Puducherry, has resulted in decline in number of SHGs in South Region by 4.7% from 37.19 lakh as on 31/3/2015 to Rs. 35.46 lakhs as on 31/3/2016. North Eastern Region has recorded a 29% rise in No. of SHGs during 2015-16 owing to jump in Tripura, Nagaland and Assam. All states in Nothern, North Eastern, Western and Eastern have registered increase in No. of SHGs with savings linkage during the year. 
 
The number of SHGs formed in the Gadhinglaj block has been raised from 07 in the year 1999-2000 to 2605 in the year 2011-12. Out of total 2605 SHGs, 1527, SHGs (58.62%) belongs to general SHGs and 1078 SHGs (41.38%) were SHGs under BPL as on 31/3/2012. The growth of SHGs from 2003-04 was due to efforts taken over by CEO of ZP, BDO, DRDA officers, Development officers, NABARD officers, NGOs etc. Out of the 1078 SHGs under BPL, only 161 were having project finance. NRLM was implemented in Gadhinglaj block from the year 2012-13 onwards. It is found that there were 291 SHGs under BPL with project finance in the year 2015-16 as against 161 in the year 2011-12, showing 80.75% increase during this period of four years. Total group loan of SHG under BPL has become interest-free up to Rs. 03 lakhs which loan is without any security and surety and also without any reason. It can be spent for consumption purpose. The loan above Rs. 03 lakhs generally up to Rs. 05 lakhs is given for project finance.
 
The sample respondents consisted 77% women respondents which were belonging to the age group between 26 to 50 years and the respondents below 25 years were consisted of 13% and 10% were between 51 to 60 years and above.  Out of total respondents 33% were illiterate, 34% were to Non-SSC, whereas 29% were SSC/HSC and only 04% were graduates. Monthly savings of  68% women members of sample SHGs stood between Rs. 21 to Rs. 50/-  and 32% of the respondents have savings per month between Rs. 51 to Rs. 100/-.
It was revealed that the income-group of 62% of the respondents before joining the sample SHGs was between Rs. 500/- to Rs. 1,000/- per month. Whereas 20% respondents were having their income before joining the sample SHG was between Rs. 1001/- to Rs.1500 /- and 18% respondents were having income between Rs. 1501 to Rs.2000/- . Further it was found that, after joining sample SHGs the income of 67% respondents has been increased from Rs. 500/- to Rs.1000/- before joining SHGs to Rs. 2,000/- to Rs. 3,000/- per month. The income of 15% has been raised to Rs. 2.501 to Rs.3,000/- p.m. and the income of 18% respondents has been increased between Rs.3,001 to Rs. 4,000/-, p.m.
 
Out of sample SHGs, 71% SHGs were formed with the help of officers of the Panchayat Samiti, Gadhinglaj under the guidance of BDO and DRDA/ZP, Kolhapur.  It is also seen that Sarpanch and Gramsevak have helped to form 11% of the sample SHGs under study, whereas 18% sample SHGs were established with the help of local leaders and NGOs with the help of Panchayat Samiti, Gadhinglaj in the block. Out of sample members, 56% respondents have received the benefit of making easy banking transactions and 21% respondents have got an opportunity to make leadership while participating in the working of their respective SHGs. Further 10% of them opined that they have got an advantage of good human relationship and 07% of them told that they have benefited in the form of better communication and participative decision-making. It was found that 06% of the members of sample SHGs have got an opportunity to do social work. Women were found bold in going to offices and approaching officers to get information.
 
Out of total sample SHG members, 75% women members have faced the problems of  getting market information and marketing of their products and 62% did not had a knowledge of management of business. 68% of the respondent women had to make dual role and they get tired due to family responsibility with group activity. They could not get the work-life balance properly maintained. Further, it is seen from the table that 43% women members had no accounting knowledge and 15% sample women were unknown about banking transactions. It is observed that 35% respondents have faced with the problem of inadequate working capital and 09% said that they faced the problem of competition. The researcher has observed that the women members of sample SHGs were having the problems regarding geographical barriers, lack of access to proper information, no timely service of the government machinery and banking facility, language barriers, lack other bargaining power, few of the sample SHGs have made labeling and but not made  any advertisement of their products and services., lack of skills and management training, illiteracy and low education, no reading and writing  habits, they had lack of knowledge of technology, etc.
 
Out of sample women members 69% were satisfied with training and development programmes held by ZP/DRDA/Panchayat Samiti, Gadhinglaj. Only 5% were strongly satisfied but 23% were dissatisfied and 3% were strongly dis-satisfied with the training and development programmes.  It was found that 60% respondents were having medium level relations with Sabhapati of Panchayat samiti, Gadhinglaj and 55% were also having medium remations with upsabhapati, most of sample women members told that they had good relations with panchayat members. Out of 100 respondents, 95%, and 97% members told that they had good relations with BDO and Officers of panchayat samiti respectively. 88% of the respondents had medium relations with bankers and 75% of respondents had medium relations with their family members.
 
It was also hypothecated that there was a growth in SHGs in Gadhinglaj block. From the data and analysis of data it has to be accepted that SHGs in the Gadhinglaj block have been increased during the study period. SHG-BANK Linkage Programme has been succeeded as an effective tool for inclusive growth. It was hypothecated that micro-finance through SHGs in India has been increased.  It was hypothecated that, Members of women SHGs under BPL give importance to entrepreneurship and are able to achieve entrepreneurial skills. It is found that the   number of SHGs with project finance has been increased. This hypothesis can be partially accepted as 69% of sample women members opined that they were satisfied with the training and development programmes.  But 23% sample women were dissatisfied and 3% were strongly dissatisfied.  The Hypothesis was that, sample SHGs has been successful in women entrepreneurship. This hypothesis has to be accepted, from the collected data. The number of project financed SHGs were increased from 161 to 291 SHGs with project finance, showing, 81% growth from 2012 to 2016.
 
It is suggested that SHGs should be aware of political abuse of their team and do productive activities. More training and awareness programmes are needed to build competency, develop skill and qualities of leadership and entrepreneurship among women entrepreneurs. Women are needed to give more time for self-learning and increase participation in group activities. More visits and exposures are necessary at the viable units of SHGs in the country as benchmarking activity to encourage women entrepreneurship. Each SHG, MFI and PRI should observe transparency in their working and create trust among all members. Women entrepreneurs in India should be provided with right environment for success in entrepreneurship like ease of starting business, skill development, easy finance, sharing experiences and support from people involved in all concerned activities.
 
It has been observed that there is much delay in loan sanctioning to SHGs by banks. Therefore, the banks should take necessary steps to sanction loans quickly and adequate also. Though the state government has sanctioned premises for marketing of SHG products at panchayat samiti’s place, the work is very slow. The state govt. should take urgent steps to provide place of marketing of SHG products. SHGs in India should also adopt accounting packages and use IT for their business, as there are different software like ‘Munshi’ have been developed for working of SHGs and MFIs in India. E-Banking, M-Banking should be adopted to render more qualitative services. Family members, and all concerned should help SHG members to do their productive activities successfully.
 

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