CHAPTER I INTRODUCTION

1.1. BACK GROUND Women, who form nearly half of the human capital in the country, number about 586.5 million according to the 2011 census of India. This represents 48.46 per cent of the country’s population of, 1210.2 million. If they can be effectively utilized there will be a great value addition to the economy. Research has proved that women are better managers than men. A woman does double the amount of work and contributes doubly to the economy but she is still considered as a burden. Women are still suppressed, oppressed and violated in many ways. Their development is further complicated by intervening factors like gender discrimination, low level of education and work participation, poor nutritional status, poor health and lack of access to health care. They are bearing the cross from the womb to the tomb. Instances of infanticide and feticide bear testimony to this.

Pandit Jawaharlal Nehru once said, “To awaken the people, it is the woman who should be awakened. Once she is on the move, the family moves, the nation moves.” Nehru further added that the building India as a nation will also be judged by the position of Indian women. The World Bank report and the World Conference on women declare that women are central to the poverty alleviation efforts. Hence women’s empowerment and their full participation on the basis of equality in all spheres of society are fundamental for the achievement of gender equality and development and peace in every nation. So it is clear the social, economic and political empowerment of women is the need of the hour, as it is the only sure way of making them equal partners in development. Empowerment literally 2 means becoming powerful. The Dictionary of Social Work defines empowerment as the theory concerned with how people may gain collective control over their lives so as to achieve their interests as a group. The Global Conference on Women Empowerment, 1988 highlighted empowerment as the surest way of making women partners in development.

The primary challenge faced by women today is to increase their participation and become actively involved in decision making. Active participation in social, economic and political spheres would help in enhancing process of decision making, empowerment and it will also give women the desired self respect and social dignity which are the pre requisites of empowerment. Participation is the point where women are involved in taking decisions along with men. To reach this level, mobilization of women is necessary. By organizing themselves and working collectively, women will be empowered and gained increased representation which would lead to increased empowerment and ultimately greater control.

For realizing this, Government of India from time to time through Five Year Plans, has introduced various women oriented development programmes to make women the equal partners in development with a view to enhance the status of women in general and women labourers in particular. Especially many schemes and plans have been launched and implemented during the last five decades like extension of credit to priority sectors, development of Khadi and Village Industries, and implementation of self employment programmes. But unfortunately these programmes failed to reach the most needy persons. In this situation, poor 3 is forced to depend on money lenders for their financial needs such as marriage in the family, illness, or any other emergency needs.

The formal credit system of banks too by and large is beyond the reach of the poor due to bureaucratic bottleneck and Governmental policy obligation. Particularly women’s access to credit is beset with a number of problems which hinder the development of women. So in the context of poverty alleviation, credit comes as the bridge which enables the poor to cross poverty syndrome. For uplifting the condition of women self- realization and self-initiative are considered as the most powerful weapons. This has now resulted in the genesis of self help groups. Advancement of credit through SHGs has been found to be one of the most appropriate mechanisms to trigger development impulses of the poor. This has enabled a number of non-governmental organizations and government to create a way for organizing the poor into informal groups for mutual help and thrift.

SHG is a small, economically homogeneous and affinity oriented groups of rural / urban poor, voluntarily formed to save and contribute to a common fund to be lent to its members as per group decisions and to work together for social and economic upliftment of their families and community. SHG is a medium for the development of saving habit among the women. These self help groups come to the rescue of women and they enhance the status of women as participants, decision makers and beneficiaries in the democratic, economic, social and cultural spheres of life. They bring out the possibility of women in moulding the community in right perspective and explore the initiatives of women in taking up micro entrepreneurial ventures. These self help groups empower women and make them sensitized, self-made and self disciplined. They try to 4 remove the social limitations of women such as superstition and contribute for their dormant role in decision making. So in short this concept of Self Help Group serves to underline the principle of for the people, by the people and of the people. The basic principles of SHGs are group approach, mutual trust, organization of small and manageable group, group cohensiveness, spirit of thrift, demand based lending, collateral free, women friendly loan, peer group pressure in repayment, skill training, capacity building and empowerment. The Self Help Group approach was adopted by the Government of India to promote and ensure women empowerment. It is completely a different approach adopted by developing economies to make the women work in groups through Micro Finance to initiate micro enterprise and also to sustain the women development interventions. In this context, an attempt has been made in this study to assess the SHGs micro enterprises in the economic empowerment of women.

1.2. NEED FOR THE STUDY The economic status of women is now accepted as an indicator of a society’s stage of development. It is, therefore, in the interest of a society to make full and most effective use of its human resources of which women form an integral part. As per the Human Development Index (HDI) 1977, India ranks 99th on the gender related development Index of 130 nations. The gender empowerment measures the extent of women’s participation in a country’s economic and political activities. India occupies 126th position in respect of Human Development Index (HDI) among the 177 countries ranked by the United Nations Development Programme (UNDP) (2006). Women held only 9.3 per cent of parliamentary seats, and their ratio of income to male was 0.38. (HD Report 2005). In respect of Gender-related Development Index (GDI), 5 India was placed in the 98th position (among 140 countries) with a GDI value of 0.586. Norway (0.960), Australia (0.954) and Iceland (0.953) stood in the first three slots while Niger (0.271), Sierra Leone (0.279) and Burkina Faso (0.311) were placed the last. Females had a higher life expectancy (65.0) than males (61.8) and gross enrollment ratio for primary, secondary and tertiary schools (56 as against 64 for males) (HDR, 2005) (M.P. Boraian).

For a number of countries the Human Development Report presents a greater sensitive Human Development Index, measured on the basis of the indicators of women’s development such as access to education, reproductive health and credit resources. In India, women constitute around 48 per cent of the population. But their participation in economic activities is only 34 per cent. The distribution of women’s work explains that more than 10 per cent is in the unorganized sector.

The economic reform agenda in the global perspective is dominating the socio-economic cultural scenario in recent years. The process of economic reforms, more commonly referred as “globalization”, is affecting practically each country in the world in some way or other, although all the countries have not embraced the process very willingly. With increasing importance on accountability under the process of economic reforms, situation has started changing. Participatory approach is gaining higher acceptance. Their roles in success of development programs are being accepted more widely.

Nature and operations of economic development programs targeting women in particular, are also changing under the overall impacts of economic reforms in India. “Empowerment” has been a catchword 6 now in the world of the economic development analysis for women. Empowering women in the development process has been one of the central concerns of almost all development strategies and programs related to women’s development. Women suffer from different types of powerlessness in social and economic sphere of life. The lack of power or disempowerment reflects in their low education level, less income, less control over their own income, less bargaining power in selling their own produce and labour, less participation in any decision making body and less access to production inputs and resources and employment opportunity than men. This vulnerable situation resulted in an overall dependency of women on their male kin through their life cycle all over the world, particularly in developing countries. The dependency makes them as a burden of a family and lowers their value of life in some of the developing society. Development practitioners are concerned to raise their empowerment level, which make women capable to challenge their dependency or oppressive situation in the family and society.

The empowerment of women is crucial for the development of rural India. From the fifth Five Year Plan (1974-1978) onwards there has been a marked shift in the approach to women’s issues from welfare to development. In the mid 1980s the term empowerment became popular in the field of development especially with reference to women. The ninth Five Year Plan gave special attention to the empowerment of women and one of the objectives of the plan was “empowering women as the agents of social change and development.”

The term empowerment has the most conspicuous feature containing the word ‘power’ which means control over material assets, 7 intellectual resources and ideology. Bhasin (1992) explained the meaning of empowerment in different dimensions:  Enhancing women’s self-respect and self-dignity  Making women economically independent  Helping women to eliminate fears  Women controlling their way of life  Reducing women’s burden of work  Making women understand the importance of human values, rights and privileges  Ability to overcome restrictions imposed by the society.

Empowerment is an active process of enabling women to realize their identity, potentiality and power in all spheres of their lives (Sharma 1992). In recent years, the empowerment of women has been recognized as the central issue in determining the status of women. The National Commission for Women was set up by an act of Parliament in 1990 to safeguard the rights and legal entitlements of women. The 73rd and 74th amendments (1993) to the constitution of India have provided for reservation of seats in the local bodies of panchayats and municipalities for women, laying a strong foundation for their participation in decision making at the local levels. Empowerment programme for women have been found to be successful in improving her status in family and society, while giving her a feeling of self confidence. The Integrated Rural Development Programme (IRDP) is one such attempt towards the alleviation of poverty among the target groups of small and marginal farmers, agricultural labourers and rural artisans. The Development of Women and Children in Rural Areas (DWCRA), the Supply of Improved Tools – kits to Rural Artisans (SITRA), the Training of Rural Youth for Self Employment (TRYSEM), the Ganga Kalyan Yojana (GKY) and the 8 Million Wells Scheme (MWS) into a holistic self employment scheme called Swarnjayanthi Gram Swarozgar Yojana (SGSY) all contribute towards Integrated Rural Development.

In this context, the Tamil Nadu Women Development Project (TNWDP) taken up for implementation under the name of “Mahalir Thittam” is intended to promote economic development and social empowerment of the poorest women through a network of Self Help Group (SHG) formed with active support of N.G.O.s. The empowerment of women through SHGs would lead to benefit not only to the individual women but also for the family and community as a whole through collective action for development.

The economic empowerment approach attributes women’s subordination to lack of economic power. It focuses on improving women’s control over material resources and strengthening women’s economic security. Women empowerment is possible when women have full autonomy to spend their income and resources. The level of income per month has been considered as the indicator of the economic empowerment. A successful economic development programme should lead to a high level of income to the beneficiaries. This is considered to be the primary goal of any economic development program. Economic empowerment is the base of social and political strength of the society. Hence a study of the economic empowerment of women is considered important. This study has been undertaken to examine such economic empowerment of women through SHGs micro enterprises in Thanjavur District.

9 1.3. STATUS OF WOMEN IN INDIA Launching the nation-wide campaign to reverse the alarming decline in the ratio of women in the population in the country, Minister for Women and Child Development, Government of India said: “It is a tragedy that every year, half million girl children are being killed and prevented from being born, ironically with the help of modern tools of science and technology leading to the decline in the ratio of women in the population. It is shocking that the declining sex ratio has already led to a situation where brothers shared a wife and in some cases, even fathers and sons shared a wife in several parts of the country”. The Ministry resolved to, observe the next 10 years as the decade of the Survival of Girl Child (The Hindu, March 9, 2006, p.13).

Contemporary Status The sex ratio of 933, women per 1000 men as revealed by the Census Report 2001 shows the misuse of the prenatal diagnostic technique to do away with female fetus.

Table 1.1. Sex Ratio (1901-2001)

Year Tamil Nadu India 1901 1044 974 1951 1007 946 1961 992 941 1971 978 930 1981 977 934 1991 974 927 2001 986 933 Source: Census of India (1951-2001). 10 Health wise, high rates of infant and maternal deaths and severe anemia in over half of all married women in India are some of the indicators of the low priority accorded to women’s health in the country (Skawatra, 2003). Life expectancy of rural women, which was 32 years in 1947, has gone up to 64 years today. The infant mortality has decreased considerably.

According to the Census of India 2001, the literacy percentage of women was only 54.16, though it has grown considerably since Independence. In 1951, the literacy rate of women was only 8.86 per cent. In 2001, it had raised manifold and went up to 54.16 per cent. The school enrollment has gone up to 99 per cent and every eligible girl child today, has all the freedom and opportunity to get education. Girls now have easy access to Higher Education.

Table 1.2. Literacy in Tamil Nadu

Year Male (%) Female (%) Total (%) 1951 31.73 10.06 20.65 1961 44.54 18.17 31.41 1971 51.78 26.36 39.46 1981 58.26 34.99 46.76 1991 74.88 51.30 63.72 2001 82.33 64.55 73.47 Source: Census of India (1951-2001).

Even though female literacy in Tamil Nadu has shown considerable increase, the gender gap between male and female literacy rates has continued. The need to narrow down the gap is urgent. The inter-district 11 imbalance in literacy levels ranges from 49.10 per cent in Dharmapuri to 85.39 per cent in Kanyakumari.

Ever since India became free from British rule, there have been phenomenal changes in the condition of women. The constitution has given women the much needed status. They are now equal before law. There can be no discrimination by the state on grounds of gender. But, it is reported that in 1991, India had approximately 5,157 dowry deaths, 20,611 molestation cases, 12,300 kidnappings and abductions, 10,283 cases of eve-teasing and 15,949 instances involving cruelty by husband and relatives (Giri, 1998).

In matters related to economic development, women continued to be marginalized both in policy formulation and programme implementation. Low level of skills lead to lower wages and low earning (Agarwal, 2001). In terms of employment, she enjoys the same status as men and has to be given equal pay for equal work. Assurance has been given to promote harmony and to renounce practices derogatory to their dignity. Some of the recently enacted labour laws have facilitated the employment of rural women as unskilled labour in the organized and unorganized sectors.

Politically, the reforms in the Panchayat Raj Act have given greater share for women in rural governance. At present, the concept of Self- Help Groups for women, particularly in rural areas has given them an opportunity to organize themselves to engage in productive activities that could augment their earnings (Vanavarayar, 2003) which leads to their social economic and political empowerment.

12 Life Cycle Approach Women, as an independent target group, account for 495.74 million which is 48.3 per cent of country’s total population, as per the 2001 Census. Empowering women as a process demands a life-cycle approach. Every stage of their life counts as a priority in the planning process. Depending upon the developmental needs at every stage, female population has been categorized into 5 distinct sub-groups (Population as projected for 2001). They include:  Girl children in the age-group of 0-14 years who account for 171.50 million (34.6 per cent), deserve special attention because of the gender bias and discrimination they suffer from at such a tender age;  Adolescent girls in the age group of 15-19 years, who account for 52.14 million (10.5 per cent), are very sensitive from the view point of planning because of the preparatory stage for their future productive and reproductive roles in the society and family respectively;  Women in the reproductive age-group of 15-44 years numbering 233.72 million (47.1 per cent) need special care and attention because of their reproductive needs;  Women in the economically active age group of 15-59 years, who account for 289.40 million (58.4 per cent), have different demands like those of education, training, employment, income generation and participation in the developmental process, decision-making etc.; and  The elderly women in the age-group of 60+ years, numbering 34.87 million (7.0 per cent), have limited needs mainly relating to health, financial and emotional support. 13 We may conclude that women, who enjoyed a better status in historic times slowly, became secondary and subservient to men. However, the recent trend has been better and they are gradually equipping themselves on all fronts. To-day, the talk is about empowerment of women through organizing them into Self-Help Groups and making them dignified human beings.

Economic Status of Women The biological role of child-bearing and breast feeding prescribed by nature forced women to stay back in the caves even in the barbaric age when men went out for hunting. This automatically imposed the responsibility of child-rearing and house-keeping primarily on the women while men were responsible for bread-earning. With the onset of agriculture and later on industrialization, women were involved in these tasks for help as family labour. They shared the work of their partners outside without such sharing in return. This increased their duties two- fold. They toiled hard without any acknowledgement as their work was supplementary and their status was that of helpers. Lack of education and training accompanied with the tedious responsibilities of household chores restricted them to unskilled and therefore unpaid work. This economic nature of their work continues to exist even today.

Women in India generally dominate the informal sector of the economy, while in the formal economic sector; they are mostly disproportionately represented in low-wage positions. Besides women’s contribution to Gross Domestic Product (GDP), too, is generally not acknowledged, quantitatively or qualitatively. Economic statistics and analysis of labour and capital grossly neglect women’s work as producers. Although women form a major part of the wage-labour force, much of 14 their work, however, is unpaid. The visible and genuine decline in work participation rates, too, are related to a number of trends which adversely affect women; decline in the female proportion of the population, declining representation in decision-making bodies, and increasing gap in male and female literacy rates, and unequal access to health and medical services.

Industrialization and urbanization extended to cause economic growth, have traditionally brought radical changes in the lines of women and their families, without their having had anything to say about it, and often they have not shared in the benefits to be derived. On the other hand, the adverse impact of the process of development, specifically of industrialization, on women has specific manifestations. Women working at home in weaving and dyeing, e.g., are displaced by machines in factories operated by men. Introduction of modern firm techniques also tend to operate so as to replace women by men trained in the new techniques. It is not a simple matter of technological displacement, but also of displacement of women by men trained for more complex production and processing. This kind of displacement of women operates in an ever- increasing spiral.

Women, thus, have been displaced economically, particularly in rural areas where their participation is highly traditional. But the contrast between the working conditions of the great majority in unorganized sector and those working in the small visible organized sector is striking. Moreover, women, especially the disadvantaged, have been denied access to business capital. Even where they have access, there is a lack of confidence, training and tools.

15 In addition to their wage-earning activities, women are responsible for a range of household responsibilities that are critical to family survival. If calculation of GDP included household work, they would increase by 25 per cent. Moreover, women, who head households, shoulder an even greater burden, which often results in their opting for lower paying jobs or working fewer hours for pay.

The use of part-time and temporary workers is becoming increasingly common and majority of these workers are women. This has had short-term benefits by increasing the availability of jobs that can be handled along with household responsibilities. While there are long-term disadvantages to this type of employment including diminished job security, retraining opportunities, and fringe benefits. The risk of facing sexual harassment and rapping in the workplace becomes higher in the informal sector and such part-time jobs.

Apart from particular gender disadvantages, women are disproportionately affected by a range of other occupational hazards. They are more likely than men to be employed in unsafe, unregulated industries, and are less able to afford protective clothing and equipment. They may also be disproportionately affected by exposure to toxic chemicals.

The current economic reforms in India too have taken heavy toll on both men and women. In many sectors of the economy, structural adjustment has so eroded earnings that men are migrating in a large numbers to cities and, if they do not find adequately paid work, women are left to fend for themselves and for their families. Women’s dominance of the informal economic sector has been challenged by displaced male 16 workers leading to a sharp decline in their informal sector earnings thereby. Thus, as in other parts of the globe, women in India, too, continue to be the last to benefit from job expansion and the first to suffer from job contraction.

However, with the birth of non-market economies and with current global effort to give content to gender equality, economists have paid increasing attention to gender, family and sex. Gary Becker connects division of labour within marriage to market forces. Collin Clark’s seminal work on the economics of housework is an attempt to estimate the money worth of the housework as a complement to National Income measure. The Women’s Development Decade spurs economists to integrate women and development. Women are taken as both recipients of the fruits of and participants in the development process. Easter Boserup pioneered in the area in which women’s role in economic development is emphasized.

Initiative at U.N. Government & Non Governmental Level to Improve Economic Status of Women The first ever World Conference on Women was held in Mexico in 1975 to address the issue of gender inequality. It was followed by a second World Conference on women at Copenhagen in 1980 and a third in Nairobi in 1985. In the 1990s, after a series of UN Conferences held to set standards and directions that would take policy, planning and practice into the next century, Women emerged as a global force for shaping international debates and providing a gender perspective on all development issues.

17 At the UN Conference on Environment and Development in Rio (1992), World leaders accepted Women’s vital role in achieving sustainable development. At the World Conference on Human Rights in Vienna (1993), governments acknowledged that women’s rights are human and focused on the evidence of widespread violence against women. At the International Conference on Population and Development in Cairo (1994), women’s empowerment was recognized as a cornerstone for effective population policies. At the World Conference for Social Development in Copenhagen (1995), gender equality was recognized as a prerequisite for the achievement of productive employment, social integration, and poverty eradication. As progress towards women’s equality was assessed during the years following the Nairobi Conference, it became evident that a fourth UN Conference on women was necessary to provide a clear blueprint for action. It was envisioned that this would aim at removing the remaining obstacles to women’s full and equal participation in all spheres of life and mainstreaming women in all aspects of sustainable development. Thus the Fourth World Conference on Women took place in Beijing in September 1995 (UNIFEM, 1999) followed by Beijing +5 held in Geneva in 2000.

Over the years, the UN Agencies, mainly UNIFEM, UNDP, ILO, UNICEF, etc. are involved in supporting governments, NGOs and other organizations, which are running programmes on women’s development. Different U.N. Agencies have been playing an instrumental role in providing common platform to discuss and debate issues related to women’s development and empowerment.

According to the government report, the strategy to integrate women more effectively into the Indian economy, especially after the Beijing summit includes: 18 i) Training women in non-traditional areas, particularly linked to agriculture and non-farm-based skills; ii) Improving in the conditions of women working in the informal, agricultural sector; iii) The provision of direct access to institutional credit; and iv) Affirmative actions to ensure women have access to educational opportunities to increase possibilities of wage employment and support services such as daycare for children (DWCD, 2000, p.40).

Post-Beijing, the Women in Agriculture Scheme has been expanded to cover 12 states Transfer of technology has been identified as key to ensuring that women farmers are able to maximize the productivity of the land. Specialized village based training programmes for farm women including women’s meetings, exposure visits and skill upgradation programmes are run all over the country. By end-1999, 210 viable groups of women farmers were formed and 42000 farmwomen had been trained. In addition, 2122 village-based training camps and 66 camps for link workers have been organized. Women who are part of the programme have an on-going extension worker support system (DWCD, 1999; 41)

Despite government claims, there are several lacunae in the service delivery. In the bureaucratic service delivery mechanism, real target groups and their issues are rarely addressed. Even our policy makers have realized that the government, with its corrupt implementing agencies, is not able to deliver the goods. Thus, the government is collaborating rather taking assistance of NGOs and different organizations in implementing various women development schemes. Even the International 19 Development agencies have started collaborating directly with NGOs and other organizations.

However according to the Government report, several programmes, both women specific and women related had been set up by the Government of India to eradicate poverty. A national network mechanism had been setup to examine the impact of Structural Adjustment Programme on Women’s Employment and formulate short-term and long- term employment policies that would have a positive gender impact. To offset the adverse impact of economic policies on women, the Government had set up the National Creche Fund and the National Credit Fund for Women. There had also been a spread in self-help group formations to access credit. The Government through schemes likes the Development of Women and Children in Rural Areas, National Credit Fund for Women (RMK) and Indira Mahila Yojna is encouraging SHGs. As far as women’s economic empowerment and overall empowerment are concerned, it cannot come about without organizing. There are several reasons for this:

Organizing Women for Economic Empowerment When individuals, who are amongst the poorest, least educated and most disenfranchised members of society, come together as a sector they experience dramatic changes in their lives. First, they gain knowledge. This includes information about their rights and obligations as producers, traders or service providers, about health and education for their families, about the possibility of better terms of credit and the opportunity to save, and about political choices. Second, they gain self-esteem. They realize that they have the ability to improve their families’ standard of living and they gain respect when they do. Third, they gain a sense of community. 20 They find that they are offered support from people with common values. They gain the power of acting as a collective. As a collective, members of the people’s sector can ensure their own economic security by setting up their own benefit schemes; they have a common voice which can be used to influence local economic decision-making; and they begin to have political power.

In order to be effective, people’s organization must have a participative and democratic structure. The poor must be stakeholders in their own organizations. Organizations in which the poor do not feel ownership and accountability usually do not progress fast. The organizations should also be free from political interference so that the interests of members are paramount.

Women living in poverty have very few financial resources or assets. However, when they pool what little resources they have, this can have significant impact. In most cases recorded, women have been able to pool their savings as a means of acquiring credit for productive purposes. In some cases, such as Banaskantha, members of SEWA have pooled their labour to undertake tasks such as starting nurseries, which would have been difficult on an individual basis.

Further, in most of the people’s organizations, the women’s group has acted as the collateral for individual woman’s loan that would otherwise have been denied access to credit because of their lack of ownership of land, property and other assets. The organization makes this happen in two ways: through offering the group as a mutual guarantee and through using the group savings at its disposal to offer collateral.

21 Evolutions of Self Help Groups The SHG is the brainchild of the Grameen Bank of Bangladesh which was founded by Prof. Mohamed Yunus of Chittagong University Bangladesh in the year 1975. It was underlined that the poor need credit essentially for consumption purposes, to meet the basic necessities of life. They have nothing to offer as collateral security. In order to give a new approach to rural finance, NABARD introduced the concept of SHGs in 1992. The following persons are responsible for forming the SHGs viz., NGOs, Social Workers, Health Workers, Village level Workers, Informal Associations of local people, Farmers Clubs under the Vikas Volunteer Vahini (VVV) a programme of the NABARD and other development institutions.

In India, the organization of Self Help Groups, especially for microfinance and microenterprise development programmes constitute a widely accepted development strategy for poverty reduction and women empowerment. This strategy is equally shared by government, commercial banks and civil societies.

The SHG based microfinance in India encourages SHG members to manage group’s financial affairs like savings & loan recovery and funds are deposited in a local commercial bank in the name of the SHG. Members’ savings are initially used to issue small loans to needy members. After gaining some experience of credit handling, SHG is issued bigger amount of loan by a commercial bank and members are free to decide the end use of this loan, its purpose, repayment installment, etc. Without any interference of the promoting NGO or the bank since SHG is responsible to the bank for repayment of the loan. NABARD has offered a 22 basic framework to the nationalized commercial banks for this purpose which prohibits insistence on collateral and any direct subsidy.

Women managed self-help groups have shown remarkable growth during the last decade in India. They have proved to be very versatile and their members have successfully taken up both economic and community related interventions. They provide poor women an opportunity to take decisions involving themselves, their groups and their lives. Savings and credit are normally used as an entry point for formation of SHGs since it gives the members a chance to participate in decision-making and satisfies their short-term credit needs. Realizing that they can be a promising tool in capacity building of rural poor especially women, central and state governments have vigorously supported the SHG-centric models of development In India. Besides Swa-Shakthi Project of Department of Women & Child Development (DWCD) which was launched in 1998, many other agencies have taken up programmes for supporting women’s SHG movement. NABARD has launched a major initiative for accelerating credit linkage to SHGs. Rashtriya Mahila Kosh (RMK, an autonomous organization promoted by DWCD), Swarnjayanthi Gram Swa-rozgar Yojana (SGSY) and Watershed Development Projects of Ministry of Rural Development, Mahila Samakhya of Department of Education, Women in Agriculture, Swayamsiddha of DWCD, Jeevika Project of Government of Gujarat, Stree Shakthi, Mission Shakthi, SHG Missions in some other states are supporting formations and are strengthening of SHGs in a big way.

After the success of the initial pilot project, this strategy was extended to every commercial and Regional Rural Bank. Some second- tier micro-finance institutions (MFIs) like RMK, Friends of Women 23 World Banking (FWWB), Basix, Sanghmitra Rural Financial Services and SIDBI Micro-credit Foundation, etc. have emerged in the last decade. It is estimated that around 2.5 to 3 million borrowers, mostly women, are linked with this mechanism in India.

A shift in the conventional SHG-based approach was made through the Swa-Shakti Project, which started emphasizing the role of these institutions in tackling other forms of poverty which arise due to lack of confidence among the rural poor, illiteracy, poor health, inadequate access to various community institutions and government programmes, non- participation of poor women in decision making processes within the family and community, domestic violence, etc. It was perceived that women managed SHGs could be an effective tool for bringing about women’s empowerment. This approach is now increasingly being recognized in designs of recent programmes like Hariyali, Shakti Samanvaya Yojana, etc.

The SHG model, as of today, has become the preferred one for a variety of development programmes and especially for micro-credit and poverty reduction. They are simultaneously being perceived as powerful vehicles for promotion of women led micro-enterprises and thereby, for reduction of rural poverty and bringing women empowerment.

Making Women Entrepreneurs The Chief Minister of Tamil Nadu in the year 2001 made an announcement of training five lakh women in Entrepreneurship Development Programme in the state. The responsibility of organizing the programme fell on the shoulders of the TNCDW.

24 The Tamil Nadu Corporation for Development of Women views this as an opportunity to strengthen the women’s Self Help Movement by embarking on women’s economic development.

For many years, the women’s Self-Help Movement has concentrated on social mobilization of women giving them awareness of their legal and political rights. This has helped to increase their participation in various levels of local self-governance. It has also inculcated in the Self-Help Movement women, the habit of saving. By these means, they are able to get out of the clutches of the traditional money lenders who invariably charge usurious rates of interest.

The saving habit of women started resulting in small surpluses, which were then internally lent. Over a period of time, women started borrowing from these, for small micro economic activities. They also started getting revolving funds, SGSY assistance, direct credit linkage from NABARD and nationalized banks.

It has all been happening as a slow and steady natural process of evolution. The women are, thus, taking up minor income generating activities not so much by design, but by accident.

The Chief Minister’s new Entrepreneurship Development Programme has come at a time when many of the 13 lakhs women members of the SHGs are ready and waiting to go beyond the state of social mobilization and embark on an economic activity. This is their chance.

25 The Objectives of Entrepreneurship Development Programme (EDP) To promote economic activities among the SHG members through Skill Training; Entrepreneurship Development; Credit linkage; and Market support.

Curricular Development & Trainers Training As a first step, a curriculum was developed with the help of, gender experts, EDI, Banking and micro enterprise specialists, the NABARD, NGOs, the Industries Department, Madras University, SIDBI and many others.

The training was for the duration of 7 days and was to be organized throughout the state. The capable and interested NGO partners were selected. Their representatives were trained in 13 centres and 750 trainers were trained during the year 2001-2002.

The course material consisted of how to identify the talents hidden within the women, how to catalyse resources, and how to manage risks and establish a viable sustained employment generating activity.

Skills Training as Follow up of EDP (2001-2002) While planning EDP Training, it was felt that many young women willing to start a trade or business were not equipped to perform that trade. Normally the women identified the activity during the course of their Entrepreneurship Development Programme and chose the appropriate skill of vocation to be learnt.

26 Those who require new skills were identified and put through the appropriate skill training. This has led to further success of the Entrepreneurship Development Programme and the credit linkage of SHG’s with the banks.

Skills Training as Follow up of EDP (2002-03) and Skill Upgradation Training (2002-03) 1362 women have been imparted Skill Training out of a target of 3000 women. A special resource person from Malaysia was invited and the skill upgradation training was imparted at Chennai, Ooty and Trichy during March 2003 as a first level training.

Skill Training as Follow up of EDP (2003-04) and Skill Upgradation Training (2003-04) Skill training as follow up of EDP (2003-2004) was imparted to 3000 women and skill upgradation Training (2003-2004) to 650 women.

Economic Empowerment of Women In India, economic development has brought about changes in women’s life in many ways, because of advancement in science and technology, medicine, availability and access to birth control devices, modern household appliances etc which helps in reducing the time and drudgery of household work. “With the rising cost of living, the middle class family finds it very difficult today to manage with husbands income along” (Ragunadha Reddy, 1986). At this critical position, self- employment is the safe way to generate income. Economic development is based on the high individual income. In addition, self-employment also changes the position of women from being job-seekers to job givers (Tapuraih, 1988). The word of Pandit Jawaharlal Nehru “When women 27 moves forwards, the family moves, the village moves and the nation moves”, is often repeated because it is an accepted fact.

Entrepreneurship among women is an emerging recent phenomenon. It is the process of creating value by attracting together a unique package of resources to exploit an opportunity. Nowadays governments have identified the emerging features of micro enterprises as a new dimension and its results are more benefit to the economy. Micro credit programme will empower women by strengthening their economic roles, increasing their ability to contribute income to family and giving them experience and self-confidence in the public sphere, exposer to income earning activities. Women need credit for skill upgradation, training and entrepreneurial development. The impact of women empowerment would occur by the use of Participatory Learning Approach (PLA) for integrating women’s own priorities and strategies in the mainstream of development. This study is aimed at stimulating an inquiry into the favorable circumstances for women to venture, influencing factors, economic benefits of the SHGs, women micro enterprises in Thanjavur District of Tamil Nadu.

1.4. STATEMENT OF THE PROBLEM In our country, women have been considered as an inferior member of the family. They have been neglected in all fronts of life due to low education and development. Women development and welfare came under focus with the launch of planned economic development through different Five Year Plans. A good number of such programmes / schemes / projects have also been implemented for the socio-economic development of the women by Government, NGOs, International Agencies etc. Despite all these efforts women development has not been 28 satisfactory. However, the latest programme, Swarnajayanthi Gram Swarozgar Yogna (SGSY) has been realized as the right programme for the women development and empowerment through the organization of women in Self Help Groups (SHGs). Under this, the group enterprises provide an organizational frame work for pooling up capital, technology, market, labour and this facilitates participation of women in self- employment and income generating activities.

For the better understanding of empowerment, it is first necessary to know the meaning of the term. Empowerment in this study means economic empowerment which is the base of social and political strength of the society. Economic independence can be enjoyed only, if the women take the initiative, bear the risk and make investments. An entrepreneur is like the navigator of the ship. With the help of self employment and financial independence she would develop the power to take decisions independently thus gaining confidence, which is the key to social independence as well, which further gives her the strength to raise her voice in the society. She can thus attain a distinct place in the society.

The contributions of women in empowerment can be made by their involvement in the income generation activities. They can choose their field by developing their capabilities and by exploiting the existing facilities available. The best answer to women’s empowerment is Entrepreneurship. If she gets herself employed, she attains economic independence. The development of micro enterprise among women can be a means to empowerment through becoming responsible for their own welfare and being less dependent upon others. Micro enterprise can increase women’s levels of confidence and self esteem whilst increasing family income. An act of business ownership and business creation 29 empowers women economically. Thus this study examines the economic empowerment of women through the Self Help Groups (SHGs) micro enterprises functioning in Thanjavur district. Incidentally it compares SHG members and non-members to assess the impact of SHGs in the economic empowerment of women.

1.5. OBJECTIVES The principal objective of the present dissertation is to evaluate the performance of SGSY assisted women SGHs in the study area with reference to changes in income, expenditure pattern, savings and assets of their members and incidentally compare the performance of the women in SHG units and those who are outside the ambit of SHG units in terms of the said variables. The other objectives are:  To highlight the socio-economic characteristics of women entrepreneurs belonging to SGSY assisted SHGs and women entrepreneurs who are functioning independently in the study area.  To identify the factors which encouraged women entrepreneurs of both the categories.  To compare the relative performance of both the categories in terms of investment, sales turn over, borrowing and employment.  To identify the problems of women entrepreneurs running micro enterprises in the study and offer suggestions to overcome them.

1.6. HYPOTHESIS The following hypotheses have been formulated for the purpose of testing:  There is a significant positive correlation between external borrowings and S.G.S.Y (E.A) of SHG women entrepreneurs. 30  There is a correlation co-efficient between investment and sales turnover is higher for SHGs than Non-SHGs.  There is a significant difference between the average income, savings and borrowing of the SHGs and Non-SHGs.  There is a high positive correlation between SHG women entrepreneurs’ income and the total income of the families.

1.7. LIMITATIONS During the course of conducting a research, one has to constantly guard against bias, subjectivity and inaccuracy. Yet it is difficult to totally avoid them and a minimum of bias and inaccuracy is always present in any research. This study happens to be no exception and it is replete with instances of problematic situation where some errors cannot be possibly avoided.  The owners of micro enterprises do not reveal certain business secrets which also set certain limitation in this study.  Some women micro entrepreneurs are not maintaining any record of their expenses and receipts of micro enterprises. The data provided them from their memory may involve recall bias. The study carefully minimizes such errors by educating the respondents about the scope of the study and with all possible cross checks. The comprehensive enquiry schedule helps this cause.  The present study is a micro level study confined to selected Blocks in Thanjavur District. As such its findings may not be generalized to a macro level.  Further, as regards the performance comparison of SGSY assisted SHG and Non-SHG women micro enterprises, similar types of enterprises could not be covered due to non-availability of certain kinds of activities among Non-SHG women micro enterprises. Due 31 to the differences in the sample size between the two groups, it is quite possible the comparability of results may be rather limited. However, care has been taken to analyse the data available as scientifically as possible so that the validity of the findings and result remain reliable.

1.8. ORGANIZATION OF THESIS The thesis is organized in six chapters as follows: CHAPTER I INTRODUCTION: This chapter deals with the background to the problem, the need for the study, statement of the problem, objectives, hypothesis, and limitations of the study. CHAPTER II CONCEPTS AND REVIEW OF LITERATURE: This chapter is divided into three parts. First part explains basic concepts used in this study such as entrepreneurship, entrepreneur, women enterprise, women entrepreneur, micro enterprise, Self-Help Group (SHG), SHG member, Mahalir Thittam, Non Governmental Organization (NGO), Swarnjayanthi Gram Swarozgar Yojana (SGSY), Credit rating and linkage, subsidy, Revolving Fund, Micro Finance, formal and informal credit, empowerment, women empowerment, economic empowerment of women, poverty, poverty line and poor. Second part of the chapter explains theories of women empowerment. Third part of this chapter reviews the related literature on socio, cultural and economic background of women- entrepreneurs, factor facilitating women 32 entrepreneur in India, Micro finance, education and training of women entrepreneurs, Self Help Groups, role of NGOs, Women empowerment, Swarnjayanthi Gram Swarozgar Yojana and problems of women entrepreneurs. CHAPTER III LINKAGE OF THE COMPONENTS OF ECONOMIC EMPOWERMENT OF WOMEN: This chapter attempts to focus on the linkage of the components of economic empowerment of women, viz., Micro finance, Self Help Groups, Micro enterprises and women economic empowerment. CHAPTER IV DESCRIPTION OF THE STUDY AREA AND METHODOLOGY: It brings out the quantitative and qualitative background, some essential characteristics and its general features of the study area and it also describes the scope of the study, area of the study, sources of the data, sampling, survey tools, statistical tools, period of the study, and classification of units. CHAPTER V ANALYSIS AND DISCUSSION: Data collected for the study are analysed and interpreted. Results of the analysis are presented and discussed to draw specific inferences. CHAPTER VI FINDINGS AND CONCLUSION: A summary of work done and the salient findings are presented. Conclusions are drawn, and their implications for policy are stated.

CHAPTER II CONCEPTS AND REVIEW OF LITERATURE

The concepts used in the present study, theoretical background of women empowerment and review of related previous study are given in this chapter.

2.1. CONCEPTS Entrepreneurship The word ‘entrepreneurship’ has been derived from a French root which means to ‘undertake’. According to Higgins, By entrepreneurship is meant the function of seeking investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labour, arranging the supply of raw materials, finding site, introducing a new technique and commodities, discovering new sources of raw materials and selecting top managers of day to day operations of the enterprise.”

At a conference on entrepreneurship in the United States, entrepreneurship was defined as follows: “Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk-taking appropriate to the opportunity and through the communicative and management skills to mobilize human, financial, and material resources necessary to bring a project to fruition.” (John Kao and Howard Stevenson).

In above definitions, entrepreneurship refers to the functions performed by an entrepreneur in establishing an enterprise. Just as 34 management is regarded as what managers do, entrepreneurship may be regarded as what entrepreneurs do. In other words, entrepreneurship is the act of being an entrepreneur. Entrepreneurship is a process involving various actions to be undertaken to establish an enterprise. It is, thus, the process of giving birth to a new enterprise/ new efforts.

Entrepreneur Richard Cantillon, an Irish man living in France, was the first who introduced the term ‘entrepreneur’. He defined entrepreneur as an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future. The term ‘entrepreneur’ is used in various ways and various views. These views are broadly classified into three groups, namely, risk-bearer, organizer and innovator. Thus, entrepreneurs can be defined as persons who try to create something new, organize production and undertake risks and handle economic uncertainty involved in enterprise.

Women Enterprise As per the new definition given in February 1992, Women-owned enterprises are defined as enterprises of a small scale industrial unit / industry related services, or business enterprises named by one or more entrepreneurs in proprietary concerns in which she / they will individually or jointly have given capital of not less than 51 per cent as partners / share holders / directors of private limited company / members of co-operative society. In 1999, women enterprise was defined as those enterprises owned and controlled by women but men also supporting with in the business.

35 Women Entrepreneur Women entrepreneurs may be defined as a woman or group of women who initiate, organize and run a business enterprise. In terms of Schumpeterian concept of innovative entrepreneurs, women who innovate, imitate or adopt a business activity are called “Women Entrepreneur.” The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a women entrepreneur is defined as “an enterprise owned and controlled by a women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women”. However this definition is subject to criticism mainly on the condition of employing more than 50 per cent women workers in the enterprises owned and run by the women. In a nutshell, women entrepreneurs are those women who think of a business enterprise, initiate it, organize and combine the factors of production, operate the enterprise and undertake risks and handle economic uncertainty involved in running a business enterprise.

Micro Enterprise ‘Micro Enterprise’ refers to a small undertaking run by individuals who have taken up the responsibility of managing and running a business venture. The entrepreneurs would be owners and labourers as well, mostly employing family labour along with hired labour. Micro enterprises are usually associated with women who are economically deprived have received little or no education and are forced to generate an income outside of the home. Women’s micro enterprise springs largely from economic necessity. Poor women’s micro enterprises can be found throughout the world and these women are often highly entrepreneurial and enterprising. For women, earning an income must be combined with 36 domestic responsibilities for family welfare, child care, care of the elder, food preparation and other domestic tasks.

Micro enterprise is defined in the present study as an enterprise with an investment ranging from Rs.10,000/- to Rs.1.00,000/- on plant and machinery. The micro entrepreneurs are those women who owned and controlled such enterprises sometimes with the support of men.

Self-Help Group (SHG) It is a small economically homogeneous and affinity group of rural / urban poor, voluntarily formed to save and contribute to a common fund to be lent to its members as per the group’s decision and for working together for social and economic upliftment of their families and community. A group consists of 12 to 20 women, which gives more emphasis on poor, downtrodden, widows and deserted women. The group head is called Animator who is assisted by two representatives. The group should meet regularly at weekly / fortnightly / monthly intervals as per the convenience of all the members. Matters regarding savings, loans, progress etc. are finding a place in the meeting. Accounts are to be maintained as per norms prescribed. The non-governmental organizations are acting as bridges between self help groups and banking sectors in arranging financial assistance. The main objectives of formations of SHGs are economic independence of women, village development, and enhancing savings and to develop entrepreneurship skills in women.

“Small, economically homogeneous and affinity groups of rural / urban poor voluntarily formed to save and contribute to a common fund to be lent to its members as per group decision and for working together for 37 social and economic uplift of their families and community.” (Mahalir Thittam, 1999-2000).

SHG Member In this study they are women members of the Self Help Groups in Thanjavur District.

Mahalir Thittam (MaThi) Mahalir Thittam is a scheme launched by the Government of Tamil Nadu with its own fund to cover the entire state.

Non Governmental Organisations (NGOs) The World Bank’s operational Directive on NGOs defines them as ‘Group and institutes that are entirely or largely independent of government and characterized primarily by humanitarian and co- operative, rather than commercial objectives.In the Bank’s operational directive, the term NGO is used to refer principally to those private organizations that presently act to relieve suffering, promote the interest of the poor, protect the environment or undertake community development.

NGOs have certain advantages and disadvantages. Some of them are small, flexible, close to people with good local roots and contacts. They work at grassroots levels in underdeveloped areas. Their sense of purpose and voluntarism along with high values for the development of people enable them to work with the people with their support and participation. Innovation and creativity along with humanness help the NGOs to achieve their social purpose. Many NGOs work to develop people by helping them to become self reliant using the available resources and developing their own competencies. Team work, high 38 quality leadership and committed people who work in rural areas are some of the strengths of NGOs. In the changing scenario a good number of responsibilities have been handed over to the non-government organizations by the government and by the people to protect the society from the adverse effects that follow the changes to ensure welfare needs and to enable grow and to develop.

Swarnjayanthi Gram Swarozgar Yojana (S G S Y) Under SGSY, the beneficiaries are known as Swarajgaris. The Swarnjayanthi Gram Swarozgar Yojana (SGSY) has been launched with effect from 01.04.1999 as a new self employment programme. With the coming into operation of the SGSY, the earlier programmes of Integrated Rural Development Programme (IRDP), Training of Rural Youth for Self Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA), the Ganga Kalyan Yojana (GKY) as well as the Million Wells Scheme (MWS) are no longer in operation.

The objective of the SGSY is to bring assistance to poor families (Swarajgaris) above the poverty line by providing them income- generating assets through a mix of Bank credit and Governmental subsidy. The SGSY is different from earlier programmes, in terms of the strategy envisaged for its implementation, and has been conceived as a holistic programme of self-employment covering all aspects of self-employment, viz., organization of the rural poor into Self Help Groups and their capacity building, training, planning of activity, clusters, infrastructure build-up and technology and marketing support. Below the poverty line families in rural areas constitute the target group of the SGSY. Within the target group, special safeguards have been provided to vulnerable sections, by way of reserving 50 per cent benefits for SC/STs, 40 per cent 39 for women and 03 per cent for disabled persons. The Swarnjayanthi Gram Swarozgar Yojana (SGSY) is financed on 75:25 cost sharing basis between the centre and the states.

Credit Rating and Linkage The SHGs that complete 6 months become eligible for credit rating. Credit rating is a bench marking exercise to grade the group and ascertain its credit worthiness. The credit rating committee consists of an Assistant Project Officer from Mahalir Thittam, a representative from DRDA, a Banker, and a NGO representative. In an effort to strengthen the Panchayat Level Federation (PLF) of the SHGs, one representative from the PLF has been included in the credit rating committee. Regularity of savings, frequency of meetings, and proper maintenance of registers, internal loaning and repayment are some of the key parameters for rating of groups. The successfully credit rated SHGs, become eligible for credit linkage. They are given revolving fund through schemes like SGSY, TAHDCO or directly provided loans by banks.

The group also undergoes a second credit rating after the lapse of another six months to ascertain their readiness and suitability to undertake an economic activity. The groups which pass the second credit rating are provided financial assistance to start an economic activity through SGSY/THADCO schemes along with bank funding.

Subsidy A grant made by a Government to some individual or business in order to maintain an acceptable standard of living or to stimulate economic growth.Subsidy under the SGSY will be uniform at 30% of the project cost, subject to a maximum of Rs.7,500/-. In respect of SC/STs 40 and disabled persons however, these will be 50% and Rs.10,000/- respectively. For a group of Swarozgaris (SHGs), the subsidy would be 50% of the project cost subject to per capita subsidy of Rs.10,000/- or Rs.1,25,000/- whichever is less. The SGSY beneficiaries (Swarozgaris) either individual or groups are identified from the people among the ‘Below poverty line’ list of families. Poorest of the poor are given preference. DRDA – Mahalir Thittam releases the subsidy and recommends the applications to bank concerned for sanction of loan.

Revolving Fund Revolving Fund is a fund given by Government through the SGSY scheme to the Self Help Groups. Each group is entitled to receive Rs.1,00,000/- with Rs.10,000/- as subsidy and Rs.90,000/- as bank loan with a marginal rate of interest. The Revolving Fund should become part and parcel of the group corpus.

Micro Finance / Micro Credit Micro finance has become a buzz word in almost all the developing countries. Micro finance refers to finances in small amount to poor especially women and supporting them to start their own enterprise. The finance is provided with very reasonable rate of interest and flexible repayment facilities.

In February 1997, a summit was convened in Washington in order to review and issue direction for financing to the poorest people in the under-developed countries. The summit defined “Micro-Finance” as programmes that provide credit for self-employment and other financial and business services to very poor persons. The world Bank president James Wolfenson mentioned that micro-level Financial schemes help 41 people help themselves by starting small income generation projects and business, they are particularly effective way of reaching women, thereby helping incomes and well-being of their children and families.

The success stories of the Gramin Bank of Bangladesh which pioneers large scale micro-lending belied the Banking Wisdom that women and poor people are unworthy of credit. But accommodation of credit to them is the sure way to overcome the problem of poverty. In Bangladesh Micro-finance has proved as a most powerful weapon to fight poverty. The institutions of Self Help Groups have provided strength to micro-credit system. The activities of SHGs have emerged as a sustainable approach to make credit facilities available to the poor at their door steps in a simple and flexible manner. Micro-credit programmes extend small loans to the poor people particularly to women for self- employment projects that generate income and enabling them to take care of themselves and their families. In this connection in India as the formal credit system by and large is beyond the reach of the poor. The Reserve Bank of India and the NABARD have emphasized the role of SHGs and micro-credit, providing new guidelines for the uplift of the poorer women.

Formal and Informal Credit There are two sources of credit available in a less developed economy such as India. They are Institutional and non-institutional. Non institutional or informal sources include money lenders, land lords, traders, friends and relatives; institutional or formal sources consist of co- operatives, commercial banks, regional rural banks promotional agencies under various schemes, etc. In the presence of formal credit, a market for informal credit exists either because the supply of formal credit is inadequate or because formal credit is not available at the time of requirements. 42 Empowerment According to Sahay (1998), the actual definitions offered for “empower” are (i) to give power or authority to; (ii) give ability to; enable; permit, (for example, court of law is empowered to judge a person to be punished or not).

‘Power’ is the key word of the term ‘empowerment’, which means having control over material assets like land and finance, intellectual resources like knowledge; information and ideas, and to generate, sustain and propagate an ideology (Apte, 1995). Empowerment emphasizes not only increasing the power of the individual but also the quality of life for the individual, the efficiency and autonomy of the individual (Lowe, 1996).

Empowerment has several other dimensions such as social, economic, psychological and political. Social empowerment connotes formation of social capacities such as health, education, freedom and opportunities for realizing one’s potentialities. Economic empowerment implies entitlement to employment, income, property, productive resources and benefits regardless of gender differences. Psychological empowerment signifies confidence building, acquisition of a sense of efficacy and ability to overcome feeling of helplessness. Political empowerment implies equal say in the decision-making process in the power structure at all levels from local to global.

Among the various approaches, the empowerment approach in development programmes is considered best. This approach is modeled to “power” itself and gain control over the self, the resources and freedom to 43 decide. This process of gaining control over the self, the resources and the decision-making power may be termed as empowerment.

Women Empowerment According to the United Nations Development Fund for Women (UNIFEM), the term women’s empowerment means:  Acquiring knowledge and understanding of gender relations and way in which these relations may be changed.  Developing a sense of self-worth, a belief in one’s ability to secure desired changes and the right to control one’s life.  Gaining the ability to generate choices and exercise bargaining power.  Developing the ability to organize and influence the direction of social change, to create more just social and economic order, nationally and internationally.

“Empowerment of women” is a topic that has been debated and deliberated world over. Deliberations and action plans have been prepared for the last 30 years in the four world conferences on women held at Mexico city (1975), Copenhagen (1980), Nairobi (1985) and Beijing (1995). These conferences have helped to strengthen the socio- economic, political and legal dimensions of the role of women. In the Mexico Conference, it was decided that the decade (1975-1985) be celebrated as the decade for women. During the decade, in 1979, the UN adopted CEDAW (Convention on Elimination of Discrimination against Women) which, in 1993, was adopted by India.

According to Kapoor (2002), “Women’s empowerment could cover resource material, human and intellectual like knowledge, 44 information, ideas and financial resources like money and access to money and control over decision mankind in home, community, society and nation and to gain “power”.

According to the country report of Government of India presented at Fourth World conference on women at Beijing, “Empowerment means working from a portion of enhanced powerless to one of power. It would promote women’s inherent strength and positive self image”. The Tenth Plan (2002-2007) came with a strategy of “empowering women” as an agent of social changes and development.

Economic Empowerment of Women Economic empowerment has been described as the ability to engage freely in any economic activity. When the right to earning and savings, entrepreneurship skill, marketing ability, managerial capacity and ownership of assets were experienced by women, it could be approved that they are on the process of economic empowerment (Sharma, 2000). Economic empowerment endorses women’s sense of work, the right to determine choices, the power to control their own lives within and outside home and their ability to influence the direction of social change and to create a just social and economic order nationally and internationally (Noyleen, UNIFEM).

Economic empowerment in the present study means only the uplift or growth or development or advancement noticed among the SHGs micro enterprises in select indicators - assets holding, income, saving, expenditure, contribution of income to member’s family, role in decisions relating to the household and business etc.

45 Poverty Poverty refers to the condition of not having the means to afford basic human needs such as clean water, nutrition, health care, clothing and shelter. This is also referred to as absolute poverty or destitution.

Relative poverty is the condition of having fewer resources or less income than others within a society or country or compared to worldwide averages. Hence relative poverty is a measure of income inequality.

Economic aspects of poverty focus on material needs, typically including the necessities of daily living, such as food, clothing, shelter, or safe drinking water. Poverty in this sense may be understood as a condition in which a person or community is lacking in the basic needs for a minimum standard of well-being and life, particularly as a result of a persistent lack of income.

Poverty Line Poverty line refers to the minimum income level needed to secure the necessaries of life.

Lord Boyd-orr, the first Director General of FAO, was the person to propound the notion of starvation line in 1945. According to him, a consumption of less than 2,300 calories per person per day was considered as the line of starvation and this idea has been transformed into ‘poverty line’. The Indian Planning Commission has defined the poverty line on the basis of recommended nutritional requirement of 2,400 calories per person per day for rural areas.

46 The poverty line income limit in the Tenth Plan period varies in different states and ranges from Rs.22,000/- to Rs.24,000/- per annum (SGSY Guidelines – 2004).

Poor In the materialistic sense, a poor person is one who lacks means to procure necessaries of life.

2.2. THEORIES OF WOMEN EMPOWERMENT Various theories of empowerment have been enunciated by theorists like Zimmerman (2001) and Hall (1990), among others. These theories enable us to understand the basics and the process of empowerment. According to Zimmerman, as quoted by Fetterman (2001), empowerment processes are those in which attempts to gain control, obtain the needed resources, and critically understand one’s social environment are fundamental. The process is empowering if it helps people develop their skills, so that they become independent problem solvers and decision-makers. Empowering processes vary across levels of analysis, according to Zimmerman. For example, empowering processes for individuals may include organizational or community involvement; empowering processes at the organizational level may include shared leadership and decision-making; and empowering processes at the community level may include accessibility to Government, the media and other community resources. This theory adds that the outcomes of the empowering processes also differ across levels of analysis. At the individual level outcomes might include situation-specific perceived control, skills and proactive behaviours; at the organizational level outcomes might include organizational networks, effective resource acquisition, and policy leverage; and at the community level outcomes 47 might include evidence of pluralism, the existence of organizational coalitions, and accessible community resources.

Hall (1992) has presented an identity empowerment theory which is a clinical sociological one that has been built on documented patterns and predictabilities in interpersonal, family and group behaviour. It is use as an integrated frame of reference regarding women and empowerment (Sahay, 1998). The theory assumes that empowered women make meaningful commitments and undertake effective, goal-oriented activities that they choose for themselves, can understand the strengths and weaknesses of their personal and collective past and present and can cope with conflict in their relationships. The Theory of Oakely and Marsden (1984) has delineated the levels of participation leading to empowerment. The first level is the ‘manipulatory’ or ‘therapeutic’ level which places importance on mass mobilization campaigns like the literacy campaign. At the second level is the ‘token’ form of participation with the extension of information, consultation and collaboration of some sort like the beneficiary-oriented income-generating rural development programmes. At the upper levels are ‘partnerships’, ‘delegated power’ and ‘citizen control’. This form of participation is encouraged by Non-Governmental Organizations (NGOs) like Self Employed Women’s Association (SEWA) (Prasad, 2002).

The Harvard framework for women’s empowerment based on Sara Longwe’s formulation talks of five levels of gender equality (Sharma, 2000). These five levels include welfare, access, conscientization, participation and control. At the welfare level, it is pointed out that women should not only be the recipients of material benefits but should also be partners in development. At the access level, women should have 48 access to resources like educational opportunities, land, credit, wage employment and services. The conscientization level involves promotion of critical awareness about the structure of discrimination, exploitation and oppression of women. The participation level indicates women’s participation along with men in decision-making within the family and public organizations including the legislative assembly, parliament, etc. The control level is the ultimate level of equality and empowerment when women have control over their lives and their children and have a proactive role in development.

Stromquist (1993) has included four components of empowerment, namely, cognitive, psychological, economic and political. The cognitive components refer to women’s understanding of their conditions of subordination and the causes of such conditions. The psychological component includes the development of feelings that will help women at the personal and societal levels to improve their condition as well as the formation of the belief that they can succeed in their change efforts. The economic component of empowerment requires that women be able to engage in productive activities that will allow them some degree of financial autonomy. The political component of empowerment entails the ability to analyse the surrounding environment in political and social terms.

These theories of empowerment enable us to understand the meaning of women empowerment and what aspects are to be kept in mind in empowering women.

49 2.3. REVIEW OF LITERATURE In recent years there has been a growing concern on empowerment of women in general and their economic empowerment in particular. There is a plethora of literature in the form of research studies, macro and micro level surveys and special articles on empowerment of women and their economic empowerment through SHGs micro enterprises. A survey of such literature which has a bearing on the subject of the present study will apart from providing the backdrop to the present study may serve to highlight its special features.

Empowerment of women is a multi-faceted problem with political, social and economic implications. There is a growing realization in recent years that political and social emancipation of women will sound hollow without ensuring their economic independence. An attempt has been made by our planners and administrators to ensure the economic empowerment of women by providing them an opportunity to put to use their entrepreneurial skills. For this purpose Self-Help Groups (SHGs) have been formed throughout the length and breadth of the country. These SHGs have given rise to a new generation of women entrepreneurs who are characterized by different types of social, demographic, cultural and economic background.

Socio, Cultural and Economic Background of Women Entrepreneurs Several indepth studies have been made into the background of the new generation of women entrepreneurs.

In her study of the social and demographic features of such women entrepreneurs in Amudha Rani (2007) has found that nearly 78 per cent of them hail from nuclear families, that more than 80 per cent are married 50 and that a significant proportion belongs to the age group 30 to 40 years. She has also found out that women respondents coming from large-sized families prefer animal husbandry based activities while those from small families prefer to engage themselves in activities outside the farm sector.

Muralikrishna (2006) has found that majority of the respondent women entrepreneurs have started their ventures at an early age and that a significant percentage of them belong to the age group 25-30 years. On the other hand, the study of the economic background of women entrepreneurs running small enterprises in Cuddalore District of Tamil Nadu by Tamilvannan et al (2000) has revealed that most of them were in the age group 30-60 years.

Robert Hisrich and Candida Brush (1997) in their study of the socio-economic status of women entrepreneurs found that there was not much difference between entrepreneurs of either sex in respect of age, education and marital status. Their study has further shown that the motivating factors were also similar for both. However, women gave greater weight than men to economic independence and social recognition.

There are several studies of the family background of women entrepreneurs, the support they got from their family, sources of finance available to them and training if any imparted to them. Padmavathi (2002) found that majority of the women entrepreneurs belonged to nuclear family and are married. This finding has been confirmed by the studies of Yadhav (1999) and Savitha Singal and Kamala Srinivasan (1989). The latter study further revealed that majority of women entrepreneurs covered 51 by them could excel in their trade with their traditional skills and without any training.

Ajit Kanitkar (1994) who made a random study of rural micro enterprises managed by women in selected villages in Bihar, West Bengal, Utter Pradesh and Madhya Pradesh found that 88 per cent of his respondents had no business background and that 48 per cent hailed from agricultural families.

In her study of the socio-economic, cultural, political and psychological factors governing women entrepreneurship Kamala Singh (1992) found that most of her respondent women entrepreneurs were graduates coming from nuclear families.

Thangamuthu and Iyyampillai (1991) who made a case study of women in two backward districts of Tamil Nadu found that majority of the respondents belonged to backward classes and a few to forward communities while there was no one to represent Scheduled Castes and Scheduled Tribes.

Manimekalai (1989) Mohamed Abdullah (2003) and Manivel (2005) in their studies relating to different regional groups have observed that majority of women entrepreneurs in their groups were Hindus belonging to backward classes while there was only a token representation from Christians and Muslims. A similar conclusion has been arrived at by Thangamuthu C and Manimekalai (1989) who made a case study of women entrepreneurs in Tiruchirappalli District. However Gangadhara Rao (1986) found that a significant number of women entrepreneurs 52 hailed from socially forward communities such as Vaisyas, Kammas and Brahmins.

Factors Facilitating Women Entrepreneurs’ in India From time immemorial women in India remained at home birds and family keepers confined as they were within the four walls of their houses. They were denied access to education, job, business and contact with outside world. Archaic social structures and unreasonable social taboos imposed undue restrictions on them and they became the victims of harassment in a male dominated society. Since Independence there has been a phenomenal improvement in their social, economic and cultural status. Today they are demanding equal treatment with men. In the last quarter of the last century women began to organise and run several micro enterprises that too successfully. Many factors facilitated the evolution of women entrepreneurs.

In their study of women entrepreneurs Amudha Rani and Devi (2007) point out that factors such as availability of bank credit with subsidy and resources and the encouragement and support given by NGOs facilitated women to start business. They hold that the desire to earn and achieve economic independence were the main motivating factors to start business as far as their respondents were concerned. These findings have been corroborated by the study made by Padmavathi D (2002).

Anitha and Laxmisha (1999) hold the view that entrepreneurs are no longer born but are made by several ‘pull’ and ‘push factors’. They opined that government and NGOs have a vital role to play in promoting women enterprises. The findings of Mallika Das (1999) tally with these. 53 She found that one fifth of her respondents were drawn by ‘pull’ factors and that a significant proportion of them started business as a hobby.

Candida Brush and Barbara Bird (1996) are of the opinion that flexibility, innovation and action-oriented integration are the major factors which have facilitated women to enter business. Anju Deepak (1993) found that there was no specific difference between men and women as far as their entry to business is concerned. The profile of male and female is more or less the same. Both of them would like to take up challenging roles and achieve economic independence. The desire of women to be independent is also stressed by Singh K.P. (1993). He has recommended that whatever concession is extended to any disadvantaged group may be given to women who aspire for such economic independence.

Kamala Singh (1992) in her study concludes that only when constraints relating to self-sphere system in the case of women such as lack of proper motivation and value-orientation and lack of support system including encouragement from the family and assistance from institutions are removed women can become successful entrepreneurs.

Sunanda Easwarn (1992) in her pilot study conducted in Mumbai found that the prime motive of women taking to business was to make money and thereby supplement the family’s income. Hina Singh (1989) adds to this motive other considerations such as satisfying personal ego, utilizing their education and experience and the encouragement and support given by parents / husband to start an enterprise.

The study conducted by ILO (International Labour Organization) (1988) brought to light the fact that factors like unemployment and the 54 hardship experienced thereby a family as one of the compelling factors which have given rise to the evolution of women entrepreneurs. The other facilitating factors are encouragement by the family, success stories of other women entrepreneurs, the desire to earn money and above all economic independence (Pillai N.C and Anna 1990). The fact that economic independence is the chief motivating factor of women entrepreneurs is confirmed by a study of Mies Maria (1987) of Women’s Sangham, CROSS (Comprehensive Rural Operation Service Society) in Bhongir in Andhra Pradesh. Nagender P Singh and Rita Sen Gupta (1985) in their study of the motivational pattern of women entrepreneurs have concluded that desire for independence, pursuing one’s own interest and the pleasure in giving employment to others are the motivating factors for women entrepreneurs.

Micro Finance Among the various measures targeted towards the empowerment of women extension of micro finance or small credit is of crucial importance. In fact the success of this programme became possible only after micro finance facility was made available to the poor and needy women. The origin of micro finance can be traced to the Grameen Bank model in Bangladesh. The tremendous success of the programme attracted the attention of the developing world. In India the concept of micro finance has come to occupy a strategic place in the programmes intended to bring about women empowerment. Several studies have been made to assess and evaluate the performance of micro credits.

In her study of the credit facilities availed by small enterprises during the pre- and post- SHG periods Manimekalai N (2007) found that there was a considerable decline in borrowing from non-institutional 55 sources with the launching micro finance. Especially there was a steep decline in availing chit fund resources.

Khandker (2003) in his study of the role of institutional credit found that the credit extended to women had a better impact on the health and nutrition of children in the family than that extended to men. Rahul Battacharia (2002) in his study has observed that micro finance has been responsible to a large extent to the improvement in the socio-economic status of women.

Anjugam and Alagumani (2001) in their study of the impact of micro finance on the socio-economic status of women in Madurai District have observed that it enabled households to repay old loans, to fulfill social obligations, to meet medical expenses, to purchase livestock and to avail on lease cultivable land. The repayment was cent per cent.

Dasgupta et al. (2001) have observed that micro finance apart from reducing drastically informal credit such as loans availed from money lenders has enabled mute members to take up the socio-economic issues of the villages like alchoholism and to problems like non-functioning of the schools in the locality, supply of potable water and mending of roads. Rao (2001) in his study of the impact of institutional credit on the socio- economic conditions of rural women in Bidar District of Karnataka found that the loans disbursed by banks and other institutions had increased the awareness of women of credit linked programmes of banks. Singh et al (2001) opine that as a result of the micro finance system, members of the SHGs have finally a sense of relief in that they have freed from clutches of money-lenders. This confirms the observation of Puhazhendhi (2000) in his study of 70 SHGs promoted by four major N.G.Os in Tamil Nadu. 56 Manimekalai and Rajeswari (2000) in a study conducted by them in Tiruchirappalli District have come to the conclusion that the provision of micro credits by the NGOs to women SHGs has helped the groups to achieve a measure of economic and social empowerment and has developed in women a sense of leadership, organizational skill and the capacity to manage various activities of business, right from acquiring finance to identifying raw material, marketing and suitable diversification and modernisation.

The fact that micro financing has helped the women members of SHGs to become economically strong and sustainable has been very well brought out by Ramakrishna (2000), Xavier (1999) and Sarkar (1999), they all feel that it has been productive in terms of mobilizing savings and disbursement of credit. Kumaran (1997) in his study entitled ‘An Alternative to Institutional credit’ states that the SHGs have empowered the rural women effectively in Andhra Pradesh by providing micro credit.

Education and Training of Women Entrepreneurs The rationale behind the SHGs of women is that all economically assisted groups must undergo an Entrepreneur Training Programme (ETP) so that their members gain sufficient knowledge to manage micro enterprises. It is generally felt that training in micro enterprises needs to be intensive, field-based and product specific. Need based skill development training can enhance the production capacity of women. Exposure visits to successful micro enterprises during the training period could serve to motivate them.

Sujit Kumar Dutta and Dilip Kumar Ghosh (2002) made a study of women empowerment through literacy in Birbhum District of West 57 Bengal. The study showed that literacy is indispensable for reaping the benefits of the programme which is intended to meet the needs of the poor.

Dumas (2001) made a study of the Community Entrepreneurship Programme which is an education cum training programme designed to help women start enterprises with employment potential. He feels that micro enterprise training and education programme could help particularly low income women to start their own business and thereby develop business and life management skills in them.

Sharon Alovarez and Dale Meyer (1998) also recommend training programme for women with high level of education. Vijayalakshmi (1992) holds that there should be no age limit for training women to become entrepreneurs.

Self Help Groups (SHGs) In the socio-economic empowerment of women in India the Self Help Groups (SHGs) have been playing a dynamic role. They have demonstrated that what an individual woman cannot achieve can very well be achieved when women of similar background join together. They provide a great opportunity for the convergence of various activities and organisations intended to promote the empowerment of women. The groups while aiming at promotion of savings and credit also act as pressure groups to address social and economic issues such as education, health and lack of access to natural resources.

Malathi (2003) in her study of the impact of women Self Help Groups (SHGs) in the rural, the urban and the tribal areas in 58 Tiruchirappalli District found some attitudinal changes in women. Women realised their strength as well as weakness. They realised the value of private savings as well as the significance of credit in income generating activities. They could now have the pleasure of participating in decision-making, planning and implementation of programmes intended for their development. They began to act as facilitators or catalysts of much needed socio economic changes.

Rajmohan (2003) in his study of the working of the SHGs in Virudhunagar District of Tamil Nadu highlighted their role in enabling women an income and free their households from clutches of money lenders. The study revealed that collective action and solidarity are important empowering mechanisms in SHGs. Pugazhendhi, Badatya and some of the officers of NABARD (2002) found in their study of 60 SHGs that SHG – Bank linkage programme had made significant contribution towards the economic empowerment of women. A change in the attitude of women was observed also by Soundari (2002).

Lalitha (2002) in her study of the factors which contributed to the successful working of SHGs observed that the constructive role played by NGOs, effective leadership, group cohensiveness, buoyant savings, high percentage of attendance in the group meetings, pressure exercised by the peer group leading to high repayment rate and changing attitude of men, linkage with other institutions, formation of cluster committees are some of the factors that contributed to the success of SHGs.

Rayavarupa Ramakrishna (2001) who conducted a comparative analysis of the benefits of SHG and IRDP found that the former was more effective in promoting economic and social empowerment of women. 59 Satish P (2001) however felt that many of the SHGs have failed to ensure the homogeneity of the socio-economic status of their members.

Role of NGOs NGOs in general have acted as king pin in the movement to promote women empowerment. Their role as facilitators of women’s SHGs has won international acclaim.

Manimekalai (2003) made an evaluation of the performance of NGO facilitated, NGO intermediated and directly bank linked SHGs found that NGO facilitated groups were able to perform better in terms of access to credit, initiating enterprises and counselling. She feels that this may be due to the fact that the NGO facilitated groups have been in existence even before the system of micro financing was initiated.

Kallur (2001) in his study of the performance of SHGs supported by NGOs in Karnataka found that NGOs like MYRADA (Mysore Resettlement and Development Agency) were doing a signal service to women empowerment by organising the groups, providing them guidance and arranging for training and linkage with banks.

Gurulingaiah (2000) who made a survey of the role of NGOs in the empowerment of the tribal women in Gubbi Taluk of Tumkur District In Karnataka had a different story to tell. He felt that the NGOs could have been more sincere in guiding and supporting the SHGs.

Women Empowerment The ultimate goal of SHGs is to promote of women empowerment with the support of NGOs and help of micro credit. Women, who 60 constitute nearly half of the population in India, must be faced from the bondage imposed on them by a society which has promoted male chauvinism at their cost. Several studies have been made of the various aspects of women empowerment in recent times.

Rosa (2005) in her study of women empowerment observed that employment, especially, self employment was one of the main contributory factors. Karl Marilee (1995) holds that women empowerment involved an inter play of four inter-related and mutually reinforcing components, namely, collective awareness building, capacity building including skills development, participation with greater control and decision making power and action for greater gender equality.

Amudha Rani (2007) made a study of the role of SHGs in women empowerment. The study has revealed that there has been an improvement in indices such as financial position, access to savings and credit and skill levels. Women are gaining ground in the household as well as society. Lalitha and Nagarajan (2002) in their study of the performance of SHGs on women empowerment in three districts of Tamil Nadu, namely, Dindigul, Madurai and Theni have come to the conclusion that women SHGs have laid the seeds for economic and social empowerment of women.

Mahendran (2002) opines that membership in a group gives women a feeling of protection by which they gain the benefit of collective perception, collective decision making and collective implementation of programmes for common benefits. Economic independence becomes a route for an improved power base.

61 Shanmugham (2002) conducted a study on NABARD’s role in women development. In his study various aspects of NABARD’s role in women development and its exclusive scheme for women, he concludes by saying that empowerment of women will be meaningful if their economic upliftment is also ensured side by side to enable poor women to lead a decent and respectful life.

Studies on SGSY Ramana Rao et al. (2002) studied the performance of SHGs assisted by the SGSY in the Tiruvannamalai district of Tamil Nadu. The study showed that the SGSY has helped generation of additional employment, income and improvement in housing conditions of SHG members. Regarding consumption of food items, the use of vegetables and fruits increased significantly. The quantity and quality of clothing used had also shown improvement. The change in life styles has been attributed to the level of services extended by the SGSY.

Rakesh Malhotra (2005) in his study on the SGSY recommended that senior Government officials are allocated specific targets for evaluation of at least three SHGs per month. It should be mandatory for the bankers to participate in at least one group meeting of the SHG before the grading is done. He also suggested that there is a need to continuously impart training to Swarozgaries field functionaries of Government, NGOs and bankers’ Exposure to successful SHGs will also be an educative influence.

Rajaram Dasgupta (2005) observed that in 2004 sixty per cent of the SGSY credit had been dispersed in the Eastern and Central region which accounted for 64 per cent of the poor in India. He also found that 62 the proportions of poor people to SGSY credit in the states have been highly correlated (0.91) and correlation coefficient between SGSY credit, credit per poor and recovery rate is only 0.21. He pointed out that SGSY credit is distributed in proportion to the poor and not as per the recovery rate because of the directives of Central and State Government.

Problems of Women Entrepreneurs It is not as if women entrepreneurs are rid of problems in their trade. They face several problems in organising micro enterprises. Several studies have dealt with the problems faced by women entrepreneurs.

Devi (2007) has made a detailed study of the problems of women entrepreneurs. She points out that in many cases due to lack of support and cooperation from family members, child care has become a major problem for women who want to start and run an enterprise.

Joseph Lalrinliana and Eswaran Kanagaraj (2006) conducted a study of women entrepreneurs in the Fizawi district of Mizoram. They observed a lack of cooperation and coordination between banks, NGOs, Government Agencies and marketing agencies. Padmavathi (2002) in her study observed that lack of experience and difficulties in mobilising resources were the major problems of the women entrepreneurs whom she surveyed. Manimekalai N (1998) and Valsamma Antony, Jayabal G, Prabakaran (2007) found that rural women entrepreneurs found many problems such as lack of training, lack of finance, difficulties in procuring raw materials and lack of institutional support. Reddy (1998) is of the opinion that lack of demand for the products of micro enterprises is the major problem facing women entrepreneurs. 63 Gerry Finnegan of ILO (1996) the principal challenges facing women entrepreneurs are: fear of not being accepted, lack of credit, lack of marketing facilities, social and cultural constraints, lack of education and training and legal constraints.

The various studies and contributions reviewed in this chapter are expected to provide the back drop to the present study. They have helped the researcher to design her research tools and techniques of analysis. Before proceeding to analyse the data it is essential to define and elaborate the various concepts used in this study.

The foregoing analysis has attempted to throw light on the studies relating to economic empowerment of women in general and the women of India in particular. The ensuing chapter is intended to highlight the linkages of the various components of the programme of Economic Empowerment of Women in India.

CHAPTER III

LINKAGE OF THE COMPONENTS OF ECONOMIC EMPOWERMENT OF WOMEN

This chapter attempts to focus on the linkage of the components of economic empowerment of women viz., Micro Finance, Self Help Groups, Micro Enterprises and Women Economic Empowerment.

3.1. MICRO FINANCE Micro financing is the buzz word among both Government and Non-Government Organizations in promoting micro entrepreneurial activities through Self-Help Groups in both rural and urban areas. There are various forms of micro financing. The previously state implemented schemes such as IRDP, DWACRA, and TRYSEM etc were all such schemes. However, since 1990s a shift really occurred in almost all the developing countries of the world, particularly after the success of Grameen Bank model of micro credit in Bangladesh and these approaches were followed for women empowerment in general and women entrepreneurship in particular.

Khandkar (2000) and Lathif (2001) in their studies have revealed that increased availability of micro-credit to the rural poor through SHGs will enable rural households to take up larger productive activities that empowered the poor women, and reduced the dependence on exploitative local money lenders and increase savings. Khandhar (2000) while estimating the impact of micro finance on savings and borrowings. It was found that micro-credit not only increases involuntary savings, but also induces voluntary savings.

65 Micro-credit programmes have proved successful in lifting people out of poverty and also bringing empowerment among various stakeholders particularly women. Accumulated evidence from different studies on the higher repayment performance has led to the introduction of many programmes targeting women. It was underlined by Linda Mayoux (1991) that increasing women’s access to microfinance will initiate a series of ‘virtuous spirals’ of economic empowerment, increase the well being of women and their families. Thus it pave the way for wider social and political empowerment of women.

A Brief History of Microfinance in India The post-nationalization period in the banking sector, (Circa 1969), witnessed a substantial amount of resources being earmarked towards meeting the credit needs of the poor. There were several objectives behind the bank nationalization strategy including expanding the outreach of financial services to neglected sectors (Singh, 2005). As a result of this strategy, the banking network underwent an expansion phase without comparables in the world. Credit came to be recognized as a remedy for many of the ills of the poverty. There spawned several pro-poor financial services, supported by both the State and Central Governments, which included credit packages and programs customized to the perceived needs of the poor.

While the objectives were laudable and substantial progress was achieved through credit flow to the poor and especially to poor women, remained at low. This led to initiatives that were institution driven that attempted to converge the existing strengths of rural banking infrastructure and leverage this to better serve the poor. The pioneering efforts at this were made by National Bank for Agriculture and Rural 66 Development (NABARD), which was given the tasks of framing appropriate policy for rural credit, provision of technical assistance backed liquidity support to banks, supervision of rural credit institutions and other development initiatives.

In the early 1980s, the Government of India launched the Integrated Rural Development Programme (IRDP), a large poverty alleviation credit program, which provided government subsidized credit through banks to the poor. It was aimed that the poor would be able to use the inexpensive credit to finance themselves over the poverty line.

Also during this time, NABARD conducted a series of research studies independently and in association with MYRADA, a leading Non- Governmental Organization (NGO) from Southern India, which showed that despite having a wide network of rural bank branches servicing the rural poor, a very large number of the poorest of the poor continued to remain outside the fold of the formal banking system. These studies also showed that the existing banking policies, systems and procedures, and deposit and loan products were perhaps not well suited to meet the most immediate needs of the poor. It also appeared that what the poor really needed was better access to these services and products, rather than cheap subsidized credit. Against this background, a need was felt for alternative policies, systems and procedures, savings and loan products, other complementary services, and new delivery mechanisms, which would fulfill the requirements of the poorest, especially of the women members of such households. The emphasis therefore was on improving the access of the poor to microfinance rather than just micro-credit.

67 In answer to the need for microfinance from the poor, the past 25 years has seen a variety of microfinance programs promoted by the government and NGOs. Some of these programs have failed and the experiences learnt from them have been used to develop more effective ways of providing financial services. These programs vary from regional rural banks with a social mandate to MFIs. In 1999, the Government of India merged various credit programs together, refined them and launched a new programme called Swaranjayanti Gram Swarozgar Yojana (SGSY). The mandate of SGSY is to continue to provide subsidized credit to the poor through the banking sector to generate self-employment through a Self-Help Group approach and the program has grown to an enormous size.

MFIs have also become popular throughout India as one form of financial intermediary to the poor. MFIs exist in many forms including co-operatives, Grameen-like initiatives and private sector MFIs. Thrift co-operatives have formed organically and have also been promoted by regional state organizations like the Co-operative Development Foundation (CDF) in Andhra Pradesh. The Grameen-like initiatives following a business model like the Grameen Bank. Private Sector MFIs include NGOs that act as financial services providers for the poor and include other support services but are not technically a bank as they do not take deposits.

Recently, microfinance has garnered significant worldwide attention as being a successful tool in poverty reduction. In 2005, the Government of India introduced significant measures in the annual budget affecting MFIs. Specifically, it mentioned that MFIs would be eligible for external commercial borrowings which would allow MFIs and private 68 banks to do business thereby increasing the capacity of MFIs. Also, the budget talked about plans to introduce a microfinance act that would provide some regulations on the sector.

It is clear from the previous that the objectives of the bank sector nationalization strategy have resulted into several offshoots, some of which have succeeded and some have failed. Today, Self-Help Groups and MFIs are the two dominant form of microfinance in India.

Progress of Microfinance in India Microfinance sector has covered a long journey from micro savings to micro credit and then to micro enterprises and now entered the field of micro insurance, micro remittance, micro pension and micro livelihood. This gradual and evolutionary growth process has given a great boost to the rural poor in India to reach reasonable economic, social and cultural empowerment, leading to better life of participating households. Financial institutions in the country have been playing a leading role in the microfinance programme for nearly two decades now. They have joined hands proactively with informal delivery channels to give microfinance sector the necessary momentum. During the current year too, microfinance has registered an impressive expansion at the grass root level.

The banks operating, presently, in the formal financial system comprise of Public Sector Commercial Banks (27), Private Sector Commercial Banks (28), Regional Rural Banks (86), State Co-operative Banks (31) and District Central Co-operative Banks (371).

69 Different Models of Microfinance For the year 2008-2009, the data have been presented under two models of microfinance involving credit linkage with banks: i) SHG – Bank Linkage Model: This model involves the SHGs financed directly by the Banks, viz., Commercial Banks (Public Sector and Private Sector), Regional Rural Banks (RRBs) and Cooperative Banks. ii) MFI – Bank Linkage Model: This model covers financing of Micro Finance Institutions (MFIs) by banking agencies for on- lending to SHGs and other small borrowers covered under micro finance sector. The overall progress under these two models is given in Table 3.1 as under: Table 3.1. Overall progress Under Microfinance During 2006-07, 2007-08 and 2008-09 (Rs. in crores)

% of Growth % of growth 2006-07 2007-08 2008-09 (2007-08) (2008-09) Particulars No. of No. of No. of No. of No. of Amount Amount Amt Amount Amount SHGs SHGs SHGs SHGs SHG

A SHG – Bank Linkage Model

Savings of SHGs with Total SHGs 4160584 3512.71 5009794 3785.39 20.4 7.8 6121147 5545.62 22.2 46.5 Banks as on 31st March Out of which 956317 757.50 1203070 809.51 25.8 6.9 1505581 1563.38 25.1 93.1 SGSY

Bank loans disbursed Total SHGs 1105749 6570.39 1227770 8849.26 11.0 34.7 1609586 12253.51 31.1 38.5 to SHGs during the year Out of which 188962 1411.02 246649 1857.74 30.5 31.7 264653 2015.22 7.3 8.5 SGSY

Bank loans Total SHG 2894505 12366.49 3625941 16999.91 25.3 37.5 4224338 22679.84 16.5 33.4 outstanding with SHGs as on 31 March Out of which 687212 3273.03 916978 4816.87 33.4 47.2 976887 5861.72 6.5 21.7 SGSY

B MFI – Bank Linkage Model

Bank Loans disbursed to MFIs during the 334 1151.56 518 1970.15 55.1 71.1 581 3732.33 12.2 89.4 year

Bank Loans outstanding with MFIs as on 550 1584.48 1109 2748.84 101.6 73.5 1915 5009.09 72.7 82.2 31st March

Note: Actual number of MFI s provided with Bank loans would be less as several MFIs have availed loans from more than one Bank. Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org) 70 71 Coverage of Women SHGs The details of total number of women SHGs saving linked, credit linked and loans outstanding for the two years are given in table as under:

Table 3.2. Position of Women SHGs (Rupees in crores)

%age of women Exclusive Women Total SHGs SHGs to total SHGs Particulars Year SHGs

No. Amount No. Amount No. Amount

Saving 2007-08 5009794 3785.39 3986093 3108.65 79.57 82.12 linked SHGs 2008-09 6121147 5545.62 4863921 4434.03 79.46 79.96

Loans 2007-08 1227770 8849.26 1040996 7474.26 84.79 84.46 disbursed 2008-09 1609586 12253.51 1374579 10527.38 85.39 85.91

Loans 31.03.2008 3625941 16999.91 2917259 13335.61 80.46 78.45 outstanding 31.03.2009 4224338 22679.84 3277355 18583.54 77.58 81.93 Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org)

It may be seen that the total saving linked and credit linked SHGs, exclusive women SHGs saving linked and credit linked with banks were 79.5% and 85.4%, respectively. Further, the percentage of loans outstanding of exclusive women SHGs to total SHGs which was 78.45% as on 31st March 2008 had increased to 81.93% as on 31st March 2009.

3.2. SELF HELP GROUPS One of the powerful approaches to women empowerment and rural entrepreneurship is the formation of Self Help Groups (SHGs) especially among women. This strategy had fetched noticeable results not only in India and Bangladesh but world over. Women Self-Help Groups are increasingly being used as tool for various developmental interventions. 72 Credit and its delivery through Self-Help Groups have also been taken as a means for empowerment of rural women.

A Self Help Group (SHG) is a small body formed by the people for meeting their specific objectives particularly credit. Self Help Groups which are otherwise known as thrift & credit groups are most informal- groups constituted mainly for economic and social development of the rural poor in general and women in particular. In a Self Help Group, members joint voluntarily. They have a common perception or need and impulse towards collective action for a common cause. The most common need of these groups relate to meeting their emergent economic needs without depending on any help from outside. The Members of the SHGs collect savings and relend among the members of the group on rotational or need basis. In other words the prime objective of the SHGs is to inculcate the habit of thrift, savings and banking culture i.e., borrowing and repaying the loan over a given period of time and in due course availing the economic prosperity through credit. Those groups generate a common fund out of small savings ranging from Rs.20/- to Rs.150/- regularly by curtailing all unproductive expenditure. Recently the internal savings generated by these groups got supplemented by the other financial Institutions. Thus a Women Self Help Group has been observed as an effective means of ensuring easy access of credit to the poor vulnerable and unprivileged women folk of the state. The SHG provide loan on the basis of combined wisdom and mutual trust and their lending procedure is very simple & flexible. The interest rates charged vary from purpose to purpose and also depend upon the collective decision of the Group. The underlying principles of the SHGs relate to financing poorest of the poor, ensuring excellent recovery and empowering women by meeting their consumption and production credit 73 needs. The consumption loans cover subsistence needs, health care, social and religious ceremonies etc. The production loans are usually given for the purchase of agricultural inputs, small investments on poultry, sheep, petty shops, purchase of milk animals, rearing of silk worm etc. The credit needs of the members are generally discussed and properly assessed on periodic monthly meetings. Further, the SHGs are also helping in Inculcating good habits and ethics among the members.

Self-Help Groups broadly go through three stages of evolution comprising of 1) Group formation (formation, development and strengthening of groups to evolve into self-managed people’s organizations at grassroots level), 2) Capital formation through the revolving fund , skill development (managerial skills for management of their organizations as well as the activity) 3) Taking up economic activity for income generation.

According to a survey conducted by Centre for Bharatiya Marketing Development (CBMD), the highest numbers of SHGs are found in the southern states. On an average southern state constitutes 65% SHGs, eastern 13%, central 11%, northern 5% and western 6% at the national scene. Andhra Pradesh, followed by Tamil Nadu, has the highest number of women SHGs working independently and setting up a micro enterprise, which helps in income generation.

Working Pattern of the SHGs The Self Help Groups usually meet the credit requirements of the needy members by pooling deposits among themselves. Apart from this 74 the internal fund of the SHGs is supplemented by the commercial banks, Regional Rural Banks, Co-operatives and NGOs, due to the NABARD’s sub line efforts. The SHGs not only provide credit for consumption and production purpose but also for subsistence needs. They also assess the individual credit needs of their members and submit to the Banks for sanction of collective loans in its name. The repayment of Bank Loans is collectively ensured by the SHGs. Further the entire loan amount disbursed to SHGs is refinanced by NABARD to the financing Bank. Further the NGOs also help the SHGs in procuring raw-materials and also marketing the product.

Objectives of Self-Help Groups The SHG comprise very poor people who do not have access to formal financial institutions. They act as the forum for the members to provide space and support to each other. It also enables the members to learn how to incorporate and work in a group environment. The SHGs provide savings mechanism, which suit the needs of the members. It also provides a cost effective delivery mechanism for small credit to its members. The SHGs significantly contribute to empowerment of poor women. They are  To focus on empowerment of women  To build capacity of women and enable them to participate in the main stream of activities  To promote entrepreneurship among women.  To identify trades and industries, which can be taken up by women, and giving them training in the chosen fields.  To undertake marketing activities for products manufactured by women and women organizations. 75  To develop skills and facilitate credit linkages for eventual economic empowerment.

Focus on Women Empowerment Today, women SHGs in India have been recognized as an effective strategy for the empowerment of women specifically in rural area, bringing women together from all spheres of life to fight for their rights or a cause. Since the overall empowerment of women is crucially dependent on economic empowerment, women through these SHGs work on a range of issues such as health, nutrition, education, agriculture, forestry etc. besides income generation activities and seeking micro credit.

In addition to economic empowerment, SHGs are extending the basic literacy skill, rights of women, group dynamics, leadership training, health training, legal training with special emphasis on legal rights, accounts training and vocational skill.

Of late, particularly in the decade of the 1990s it has become the official policy of the Central Government to promote SHGs by the provision of funds under various central schemes for skill training, technology transfer, provision of inputs, training in entrepreneurship and enterprise management, and micro credit. The Swarna Jayanti Rojgar Yojana scheme for instance provides funds to the state governments for the SHGs.

The NABARD, which initiated this policy, has now over 16 lakhs such groups all over the country. Many of these SHGs have also helped women by giving opportunities to raise resources, credit and savings and get relief from the money lenders. 76 Celebrations for Women  Women’s Day March 8  Women’s Week March 1  Women’ s Year 1975  Women’s Decade 1975-1985  National Policy on Women Empowerment 2001

Constitutional Rights of Women The Legislative measures include:  The Hindu Marriage Act 1955  The Hindu Succession Act 1956  Dowry Prohibition Act 1961  Medical Termination of Pregnancy Act 1971  Equal remuneration Act 1976  Child Marriage Restraint Act 1976  Immoral Trafficking (Prevention) Act 1986  Pre-natal Diagnostic Technique (Regulation and Prevention of Measure) Act 1994 Government has introduced many welfare measures to empower women against the violence and abuse.  Training for Employment Programme 1987  Mahila Samridhi Yojana 1993  Rashtria Mahila Kosh 1993  Indira Mahila Yojana 1995  DWACRA Plan 1997  Balika Samridhi Yojana 1997  Mahila Samridhi Yojana 2001  Swyam Siddha – Self Help Group 2001 77  Mahila Indira Yojana Merged  A separate department of women, children at the centre 1985  National Commission on Women 1992  Convention of elimination of all forms of discrimination Against women (CEDAW) 1993

Policies for Economic Empowerment of Women 1. Support to Training and Employment Programme (STEP) 2. Training cum production Centers (NoRAD) 3. Rashtriya Mahila Kask (RMK) 4. India Mahila Yojana (IMY) 5. National Commission for Women (NCW) 6. National Policy for Empowerment of Women 7. Parliamentary Committee for Empowerment of Women 8. Rural Women’s Development and Empowerment Project (RWDEP) 9. Swarnjayanthi Grams Swarozgar Yojana (SGSY).

Features of Self Help Groups  Self-Help builds on the participant’s own innate resources  The starting point for self-help is the participants who acknowledged common problems.  The size of the SHG can vary from group to group depending on the context. Though homogenous, democratic and accountable groups are better sustained.  The goals of the SHG need to be clear and arise out of the aspirations of its members and should be known to all members.  An external facilitator may facilitate the formation and activation of the group, but its members control the group. 78  Intra-group conflicts may reduce the cohesion of the group, resulting in its dissolution.  The groups usually create a common fund by contributing their small savings on a regular basis.  Most of the groups by themselves, or with the help NGOs, evolve flexible systems of working and managing their pooled resources in a democratic way, with participation for every member in decision-making.  The group considers request for loans in their periodic meetings and competing claims on limited resources are settled by the consensus.

Swarnjayanthi Gram Swarojzar Yojana (SGSY) and Self Help Groups (SHGs) Swarnjayanthi Gram Swarojgar Yojana scheme is a holistic approach towards poverty eradication in rural India through creation of self-employment opportunities to the rural Swarozgaries. This scheme is implemented in the country through District Rural Development Agencies. The Centre and State fund this program in the ratio of 75:25. It is designed to help poor rural families cross the poverty line. This is achieved through providing income generating assets and inputs to the target groups through a package of assistance consisting of subsidy and bank loan.

Objectives of SGSY SGSY came into existence in 1999-2000 duly merging the schemes of Integrated Rural Development Program (IRDP), Training for Rural Youth under Self Employment (TRYSEM), Development of Women & Children in Rural Areas (DWCRA), supply of Improved Toolkits to Rural 79 Artisans (SITRA), Ganga Kalyan Yojana (GKY) and Million Well Schemes (MWS).

The scheme aims to bring every assisted poor family above the poverty line by ensuring appreciably sustainable level of income over a period of time. This objective is to be achieved by organizing the rural poor into Self Help Groups (SHGs) through the process of social mobilization, their training and capacity building and provision of income generating assets. 1. Training 2. Infrastructure 3. Revolving fund to SHGs 4. Subsidy for Economic Activity. However, based on the local requirement, the expenditure on different components of Training and Capacity Building, Revolving fund and subsidy for Economic Activity may have to be prioritized.

Training 10% of the total SGSY outlay will be earmarked for trainings. Common strategy for institutional building, livelihood support and marketing support for strengthening of the SHGs will be followed in all the Mandals.

Infrastructure 20% of the total annual allocation may be utilized for providing infrastructure facilities. The District SGSY committee reviews the infrastructure gaps and identifies the areas of intervention for financing projects in activity clusters. This fund is to be utilized primarily to bridge small gaps in infrastructure which can make the program implementation 80 more effective and not for creation of non-existing infrastructure. Additionally, the following items of expenditure can be met from infrastructure fund: 1. Premium for insurance and risk fund to cooperatives could also be met from this head. 2. Commissioning studies for the purpose of local resources and skill based integrated projects, for the SGSY subject to a maximum of Rs.50,000/- per annum per District. 3. Organizing Fairs, Exhibitions and participation of Swarozgaries in fairs and exhibitions may be met from the funds available under the SGSY infrastructure component.

Revolving Fund to SHGs Subsidy equal to the group corpus within the range of Rs.5,000/- to Rs.10,000/- may be released towards “Revolving Fund” to SHG after it passes successfully the first grading. The banks are to extend credit in multiples of group corpus, which can go up to 4 times. However, if it is found that the group is utilizing the revolving fund successfully and is not ready for a big loan yet, then the group could be considered for sanction of further doses of subsidy fund up to a maximum of Rs.20,000/- (inclusive of previous doses.)

If a group is having a corpus of less than Rs.5,000/- and has successfully passed 1st grading it may be considered for sanctioning a minimum of Rs.5,000/- linked with bank credit towards revolving fund assistance without waiting till such time that the group collects a corpus of Rs.5,000/-.

81 Subsidy for Economic Activity and Selection Criteria The SGSY beneficiaries (Swarozgaries) either individual or groups are identified from the people among the “Below Poverty Line” list of families. Poorest of the Poor are given preference. DRDA releases the subsidy as per the rates given below for the eligible individuals and SHG groups and recommends the applications to banks concerned for sanction of loan. 50% of the project cost subject to Uniform to all maximum of Rs.7500/- 50% of the project cost maximum SC/ST and Disabled persons Rs.10,000/- 50% of the project cost subject a Group of Swarojgaries (SHGs) per capita subsidy of Rs.10,000/- or Rs.1,25,000/- whichever is less

Mandal SGSY committee identifies the villages for implementation of the program. The selected villages are intimated to the sarpanches concerned. According to the identified key activities, the beneficiaries are selected from among the BPL list in Grama Sabha in which Mandal Parishad Development Officer, Banker and Sarpanch participate. The applications of these beneficiaries are sent by the MPDO duly signed by Banker to the DRDA. The DRDA Mahalir Thittam after verification sanctions eligible subsidy and recommends the applications to the banks for sanction of loan for the economic activity.

Safe Guards SC/STs 50% coverage Disabled 3% coverage Women 40% coverage 82 Formation of Self-Help Groups SHG is a group of rural poor who have volunteered to organize themselves into a group for eradication of poverty of the members. They agree to save regularly and convert their savings into a common fund. The members of the group agree to use this common fund and such other funds that they may receive as a group through a common management.

The group formation will keep in view the following broad guidelines while SHGs formed under SGSY: (i) A SHG may consist of 10 to 20 persons except in case of minor irrigation, and in case of disabled persons, this number may be a minimum of five (5). (ii) All members of the group should belong to families below poverty line. The group shall not consist of more than one member from the same family. A person should not be a member of more than one group. (iii) The group should devise a code of conduct to bind itself. This should be in the form of regular meetings (weekly or fortnightly), functioning in a democratic manner allowing free exchange of view, participation by the members in the decision making process. (iv) The group should be able to draw up an agenda for each meeting and take up discussions as per agenda. (v) The members should build their corpus fund through regular savings. The members themselves should decide the quantum of savings. The group able to collect the minimum voluntary saving amount from all the members regularly. The savings so collected will be the group corpus fund. 83 (vi) The group corpus fund should be used to advance loans to the members. The members in the group should develop financial management norms covering the loans sanction procedure, repayment schedule and interest rates, through participatory approach. (vii) The group should be able to prioritize the loan applications, fix repayment schedules, fix appropriate rate of interest for the loan advance and closely monitor the repayment of the loan installments from the borrowers. (viii) The group should operate a group account so as to deposit the balance amounts left with the groups after disbursing loans to its members. (ix) The group should maintain simple basic records, such as Minute Book, Attendance Register, Loan Ledger, General Ledger, Cash Book, Bank Pass Book and Individual Pass Book.

As per the guidelines 50% of the SHGs formed in each block should be exclusively for women. Such groups, by and large, are informal but they can register themselves under the Societies Registration Act, State Cooperative Act or as a partnership firm. Social mobilization and community organization is a process oriented approach as different from target oriented approach. The members of the SHGs should fully internalize the concept of self-help. There are a number of SHGs formed by NABARD, other banks, by the Rastriya Mahila Kosh etc., in the first year of implementation of SGSY, where such groups exist, the DRDAs should put in concerted efforts to strengthen these groups and then take steps to form new groups. The experience across the country has shown that group formation and development is not a spontaneous process, so an 84 external facilitator working closely with the communities at grassroots level can play a critical role in the formation of group and its development process. The facilitator may be an official or a NGO (Non-Governmental Organization). The provision for such facilitator is good step forward to make the scheme successful. (R.K. Sahoo, S.N. Tripathy, 2006)

Grading of the SHGs: First Stage The formation stage generally lasts six months. It is necessary to subject each SHG to test whether it has evolved into a good group and is ready to go into the next stage evolution. This is done through a grading exercise. This is a test to know the weaknesses of the group and how to overcome such deficiencies. A suitable agency to be identified for grading of groups based on criteria to assess SHG-Wise ‘weak’ and ‘strength’ and strategies to overcome its deficiencies. The mode of grading process provides an opportunity for the members to assess their own performance through a participatory approach and the investigator assumes the role of a facilitator to the process. The objective of the SHG in the first six months is to evolve as a viable group. Grading exercise should be undertaken until the group pursue with bankers for securing linkage with such SHGs that are rated as “GOOD”.

85 Table 3.3. Credit Rating and Linkage Progress from All Sources – upto 30.09.2008 (Rupees in lakhs) No. of No. of Total No. of Total SHG SHGs No. of Sl. No. of Groups amount of Districts more sent for SHGs No. SHG credit loan than 6 credit credit rated disbursed months rating linked 01 Chennai 16327 15893 14496 13743 12068 4535.44 02 Coimbatore 19306 17967 16961 16610 16546 6577.84 03 Cuddalore 14337 13713 13032 12897 12189 7645.07 04 Dharmapuri 5732 5300 5208 5190 5108 15533.48 05 Dindigul 10882 10599 9732 9191 9087 4348.76 06 Erode 15958 15608 15312 15234 13613 8113.177 07 Kancheepuram 20551 19794 19682 19553 18916 8146.04 08 Kanyakumari 13093 12802 12724 12724 12681 21185.14 09 Karur 8039 7809 7652 7611 5905 5432.67 10 Krishnagiri 6668 6251 6221 6215 5380 12855.1 11 Madurai 10481 9950 9736 9677 8121 5492.54 12 Nagapattinam 11390 11285 11262 10962 10567 6482.26 13 Namakkal 9258 8835 8772 8760 8746 9606.77 14 Nilgiris 6481 6344 6320 6239 6042 2964.08 15 Perambalur 8436 8208 8174 8082 8020 6021.49 16 Pudukkottai 9199 8970 8810 8743 8419 7082.87 17 Ramnad 8156 7754 7754 7724 7724 12599.73 18 Salem 15592 14960 14938 14918 9647 8711.00 19 Sivagangai 8760 8604 8555 8506 8496 8304.66 20 Thanjavur 14866 14295 14259 14069 13834 9666.85 21 Theni 9163 8726 8284 8079 8001 4218.31 22 Thirunelveli 15678 14829 14258 14258 14206 13042.84 23 Thiruvallur 13209 11978 11689 11595 8698 4174.64 24 Thiruvannamalai 13434 13041 12499 12235 11128 9018.54 25 Tiruvarur 8817 8396 8240 8236 7792 5993.29 26 Thoothukudi 11677 10233 10147 9636 9601 12347.14 27 Trichirappalli 11855 11493 11430 11376 11099 5406.90 28 Vellore 12503 10976 10462 10271 10058 5037.82 29 Villupuram 15248 14454 13395 13183 10747 12730.09 30 Virudunagar 9687 9142 9142 9106 9057 8780.45 Total 364783 338209 329146 324623 301496 252054.987 Source: SHG Report, National Bank for Agriculture and Rural Development, 2008.

86 Capacity Building of the SHGs: Second Stage Every SHG that is in existence at least for a period of six months and has demonstrated the potential of a viable group enters the second stage. It is a crucial phase in achieving the goal of enhancing the capacity of the group that receives the revolving fund. It is meeting their share from out of 10% of SGSY Fund. The revolving fund is part and parcel of the group corpus, which is utilized by the group in the manner, and for the purposes it deems fit. The Fund received from outside enhances group capacity to extend loan to its members as well as impart credit discipline with financial management skills along with capacity to build infrastructure for generating income activities of the group participants.

At the end of six months from the date of receipt of the fund, the group will face another test to prove its capability and effectiveness in taking up an economic activity through higher levels of investment. During the second phase the members of the group are expected to achieve  gradual improvement the groups are expected to achieve,  shift from consumption to production loans,  understanding their training requirements and its value,  assessing and ascertaining the reasons of poverty,  meeting credit need of the members,  undertaking participatory monitoring of assets created through loans extended to its members,  capable of undertaking community action programmes and continuing to do so independently and  reducing dependency on outside facilitating agency in order to emerge as self-managed group in the field of financial management. 87 Taking up of Economic Activities: Final Stage After a group successfully passed through the second stage, it is eligible to receive the assistance for economic activities in the form of loan or subsidy extended to (1) the members of the group or (2) for the Group Activity.

Loan-cum-subsidy to the members of the group provided where few of members identified as beneficiary backed by the group assured prompt repayment to the bank as a guarantor. The group also undertakes responsibility to closely monitor the asset management and income generation. The beneficiary swarozgaries are expected to repay all loan installments to the bank through the SHG and the group may keep to itself part of subsidy component, if the group decide so.

Loan-cum-subsidy for group activity stands a better chance of success because it is easier to provide back-up support and marketing linkages for group activities. SGSY will primarily follow the group approach. The group loans are entitled to 50% subsidy subject to limit of Rs.1.25 lacs. The guidelines states that DRDAs should conduct training programmes to the members and representatives of the groups, so that the groups become fully self managed and evolve into strong groups and he cost of group formation and development should be met from the SGSY revolving fund (10% of SGSY).

Self Help Group (SHG) – Bank Linkage SHG – Banking is a programme that helps to promote financial transactions between the formal rural banking system in India comprising of public and private sector commercial banks, regional rural banks and cooperative banks with the informal Self Help Groups (SHGs) as clients. 88 (SHGs are financial intermediaries owned by the poor). They usually start by making voluntary thrift on a regular – mostly fortnightly or monthly – basis (contractual savings). They use this pooled resource (as quasi- equity) together with the external bank loan to provide interest –bearing loans to their members. Such loan provides additional liquidity or purchasing power for use in any of the borrower’s production, investment, or consumption activities. SHG-Banking through SHGs and the existing decentralized formal banking network including several organizations in the formal and non-formal sectors as banking partners allow for large- scale outreach of microfinance services to the poor in India. These banking services (depositing savings, taking loans) are made available at low cost, are easily accessible and flexible enough to meet poor people’ s needs.

The involvement of SHGs with banks could help in overcoming the problem of high transaction costs in providing credit to the poor by passing on some banking responsibilities like loan appraisal, follow up, recovery etc., to the poor themselves. In addition, the character of SHGs and the relationship between members, offers a way to overcome the problem of collateral, excessive documentation and physical access. By this banks gain a potential surplus sector in the new risk-free credit market. SHGs enjoy the advantage of larger and cheaper resources (Dasgupta, 2001)

SHGs are considered viable organizations of the rural poor particularly women for delivering micro-credit for entrepreneurial activities. Some of the studies on SHGs of the rural poor particularly those managed by women, successfully demonstrated how to mobilize and manage thrift activities, appraise credit needs, enforce financial discipline, 89 maintain credit linkages with banks and effectively undertake income generating activities. These studies also showed that the poor as s group are quire credit worthy and repayment of loan is quite satisfactory (Manimekalai and Rajeswari, 2000; MYRADA, 1995; NABARD, 1989; and Dinakar Rao, 2003).

Financial Institutions comprising Commercial Banks, Regional Rural Banks and Co-operative Societies which had only a very limited success in terms of lending to weaker sections in the past (Shylendra 2004) are now being targeted to participate in the SHG-Bank linkage programme in a major way.

Savings of SHGs with Banks As on 31st March 2009, total 61,21,147 SHGs were having Saving Bank accounts with the banking sector with outstanding savings of Rs.5,545.62 crores as against 50,09,794 SHGs having savings of Rs.3785.39 crores as on 31st March 2008, thereby having growth rate of 22.2% and 46.5% respectively. Thus, more than 8.6 crores poor households were associated with banking agencies under SHG-Bank linkage programme. As on 31st March 2009, the Commercial Banks had the maximum share of SHGs savings of 35,49,509 SHGs (58%) with savings amount of Rs.2,772,.99 crores (50%) followed by Regional Rural Banks having savings bank accounts of 16,28,588 SHGs (26.6%) with savings amount of Rs.1,989.75 crores (35.9%) and Cooperative Banks having savings bank accounts of 9,43,050 SHGs (15.4%) with savings amount of Rs.782.88 crores (14.1%).

The share under SGSY in the total savings was 15,05,581 SHGs with savings of Rs.1,563.39 crores forming 24.6% of the total SHGs 90 having savings accounts with the banks and 28.1% of total savings amount.

The position of agency-wise savings of SHGs with banks as on 31st March 2008 and 31st March 2009 is given in Table 3.4.

Table 3.4. Position of Agency-wise Savings of SHGs with the Banks (Rupees in crores) Per SHG Out of Total: SHGs’ Total SHGs Savings with the banks as savings savings with banks Position on 31st March 2008/2009 Agency (Rupees) under SGSY as on No. of % % No. of Amount Amount SHGs share share SHGs Commercial 31.03.08 2810750 56.1 2077.73 54.9 7392 765775 527.02 Banks (Public & Private 31.03.09 3549509 58.0 2772.99 50.0 7812 931422 681.60 Sector) %Growth 26.3 33.5 5.7 21.6 29.3

Regional 31.03.08 1386838 27.7 1166.49 30.8 8411 357004 210.83 Rural Banks 31.03.09 1628588 26.6 1989.75 35.9 12218 433912 774.55

%Growth 17.4 70.6 45.3 21.5 267.4

Co-operative 31.03.08 812206 16.2 541.17 14.3 6663 80291 71.66 Banks 31.03.09 943050 15.4 782.88 14.1 8302 140247 107.24

%Growth 16.1 44.7 24.6 74.7 49.7

Total 31.03.08 5009794 100.0 3785.39 100.0 7556 1203070 809.51

31.03.09 6121147 100.0 5545.62 100.0 9060 1505581 1,563.39

%Growth 22.2 46.5 19.9 25.1 93.1 Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org)

91 During the year under review, the average savings per SHG with all banks had increased from Rs.7,556 as on 31st March 2008 to Rs.9,060 as on 31st March 2009. It varied from as high of Rs.12,218 per SHG with RRBs to as low of Rs.7,812 per SHG with Commercial Banks.

As on 31st March 2009, the share of women SHGs in the total SHGs with saving bank accounts was 48,63,921 SHGs forming 79.46% as compared to the last year’s share of 79.56%.

Bank Loans Disbursed to SHGs During the year 2008-09, the banks financed 16,09,586 SHGs, including repeat loan to the existing SHGs, with bank loan of Rs.12,253.51 crores as against 12,27,770 SHGs with bank loan of Rs.8,849.26 crores during 2007-08 registering a growth rate of 31.1% (No. of SHGs) and 38.5% (Bank loan disbursed). Out of the total loans disbursed during 2008-09, SHGs financed under SGSY were 2,64,653 (24.6%) with bank loan of Rs.2,015.22 crores (28.2%) as against 2,46,649 SHGs (20%) with bank loan of Rs.1,857.74 crores (21%) during 2007-08.

The details of agency-wise loans disbursed by Banks to SHGs during the years 2007-08 and 2008-09 are given in table 3.5.

92 Table 3.5. Bank Loans Disbursed to SHGs – Agency-wise Position (Rs. in crores)

Out of Total: Bank Total loans disbursed by Banks to Per SHG loan disbursed of During SHGs during the year loan Agency SHGs under SGSY the year disbursed No. of % % No. of Amount (Rupees) Amount SHGS share share SHGs Commercial 2007-08 735119 59.9 540.90 61.1 73511 160674 1103.70 Banks (Public & Private 2008-09 1004587 62.4 8060.53 65.8 80237 133117 1105.38 Sector) %growth 36.7 49.2 9.2 -17.2 -0.1 Regional 2007-08 327650 26.7 2651.84 30.0 80935 64678 597.71 Rural Banks (RRBs) 2008-09 405569 25.2 3193.49 26.1 78741 81662 655.27 %growth 23.8 20.4 -2.7 26.3 9.6 Co-operative 2007-08 165001 13.4 793.52 9.0 48092 21297 156.33 Banks 2008-09 199430 12.4 999.49 8.2 50117 49874 257.57 %growth 20.9 26.0 4.2 134.2 64.8 TOTAL 2007-08 1227770 100.0 8849.26 100.0 72076 246649 1857.74 2008-09 1609586 100.0 12253.51 100.0 76128 264653 2015.22 %growth 31.1 38.5 5.6 7.3 8.5 Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org)

From Table 3.5, it may be observed that Commercial Banks had lead in disbursement of loans to SHGs during 2008-09 with 62.4% share followed by Regional Rural Banks with a share of 25.2% and Co- operative Banks with a share of 12.4%.

During 2008-09, average bank loan disbursed per SHG was Rs.76,128 as against Rs.72,060 during 2007-08. The average loan per SHG ranged from s high of Rs.80,237 per SHG by Commercial Banks to as low of Rs.50,117 per SHG by Co-operative Banks.

SHGs – Micro Finance Institutions (MFI) – Bank Linkage Micro Finance Institutions (MFIs) are playing the important role of financial intermediaries in microfinance sector. 93

Following the RBI guidelines issued vide its circular dated 18 February 2000, to all Scheduled Commercial Banks including RRBs, MFIs are availing bulk loans from banks for on-lending to SHGs and other small borrowers. On the basis of returns received from banks for the year 2008-09, 10 public sector commercial banks, 10 private sector commercial banks, 04 foreign commercial banks, 09 Regional Rural Banks (RRBs) has reportedly financed to MFI, for on-lending for microfinance activities.

During the year 2008-09, the banks financed 581 MFIs with bank loans of Rs.3,732.33 crores as against 518 MFIs with bank loans of Rs.1,970.15 crores during 2007-08, thus achieving a growth rate of 12.2% (No. of MFIs) and 89.4% (Bank Loans disbursed to MFIs). As on 31 March 2009, the outstanding bank loans to 1915 MFIs was Rs.5009.09 crore as against Rs.2748.84 crore to 1109 MFIs as on 31 March 2008.

The progress under SHG-MFI – Bank Linkage Programme for the years 2007-08 and 2008-09 is given in Table 3.6.

94 Table 3.6. Bank Loan Provided to MFIs (Amount in crores) Amount of loan Loan outstanding disbursed to NGOs / against NGOs/MFIs as % recovery Agency Years MFIs on 31 March of loans No. of No. of range Amount Amount MFIs MFIs 2007-08 497 1968.60 1072 2745.24 82-100 Commercial Banks (Public 2008-09 522 3718.93 1762 4977.89 70-100 and Private) %growth 5.0 88.9 64.4 81.3

2007-08 8 1.51 24 3.58 90-100 Regional Rural 2008-09 59 13.40 153 31.20 87-100 Banks %growth 637.5 787.4 537.5 771.5

2007-08 13 0.04 13 0.02 100 Co operative 2008-09 0 0 0 0 NA Banks %growth NA NA NA NA NA

2007-08 518 1970.15 1109 2748.84

2008-09 581 3732.33 1915 5009.09 TOTAL % 12.2 89.4 72.7 82.2 growth NOTE: Actual No. of MFIs provided with bank loans would be less as several MFIs had availed loans from more than one bank. {NA – Not Applicable} Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org)

Impact of SHG – Bank Linkage Programme (SBLP) The SHG- Bank Linkage Programme has far reaching impact on the lives of the poor people. In order to assess in detail the socio- economic-political impact as well as the challenge, issues and bottlenecks facing the programme in enhancing credit flow to the poor, many state level and national level studies were conducted during 2008-09. A major national level study on ‘Impact and Sustainability of SHG- Bank Linkage Programme was got conducted by the National Council of Applied Economic Research (NCAER). The study conducted was aimed to assess 95 the impact and sustainability of SHG - Bank linkage on the socio- economic conditions of the individual members and their households in the pre-SHG and post-SHG scenarios. The study was conducted for India in six states (Andhra Pradesh, Karnataka, Maharashtra, Orissa, Uttar Pradesh and Assam) from five regions viz., the south, west, east, central and north-east. The overall findings of the study suggest that SBLP had significantly improved the access to financial services by the rural poor. The major findings of the study were as under:  Net household income between pre-SHG and post-SHG registered a significant growth per year at 6.1 per cent.  The annual growth rate in per household consumption expenditure on food and non-food items recorded 5.1 per cent and 5.4 per cent, respectively.  Per household annual expenditure on education and health recorded 5.6 per cent and 5.5 per cent respectively.  Net increase in the value of consumer durable assets per household was Rs.4,329 between pre-SHG and Post-SHG periods and the annual growth of assets recorded a high growth between the two periods at 9.9 per cent.  The average loan amount per household grew at an annual rate of 20.5 per cent between the pre-SHG and the post-SHG periods.  About 93 per cent of households reported that loans had been taken in the post-SHG situation as compared to that of 46.5 per cent during pre-SHG.  On the issue of repayment of loan by SHG members, the findings showed that 96.4 per cent of households had reported regularity in repayments of loans. 96  The share of households living below the poverty line reduced from 58.3 per cent in the pre-SHG period to 33 per cent in the post-SHG situation. The average annual poverty reduction rate was 10 per cent.  About 92 per cent of households reported that the social empowerment of women had increased after joining membership in SHGs over a period of time.  More than 60 per cent of the households indicated that there had been an increase in the ownership of productive assets in post- SHG situation as compared pre-SHGs situation.  The findings showed that 22.5 per cent of women SHG members in the households had taken decision in the post-SHG period as compared to 9.1 per cent in the pre-SHG period with respect to children’s education.

Achievements of SHGs Studies by different experts in the field of rural development have identified the major achievements stemming from the functioning of SHGs, some of which are:  Augmentation in skills and abilities of women in various productive activities  Increase in participant’s income, savings, consumption and expenditure.  Increased self-reliance and self-confidence have improved the ability of women to mobilize various public services for their benefit.  Widening of the social horizons of the members.  Sense of satisfaction and fulfilment as productivity and improvement of members of the family. 97  Development of high self-esteem.  Significant decline in gender based problems such as domestic violence, dowry, polygamy etc.  Promotion of women entrepreneurship.  Extension of the reach of the government’s welfare schemes among target groups. Women are emboldened to question the elected representatives and officials about developmental works, as a result of which rural areas are now developing at a faster pace.  The high visibility of these benefits often and strongly motivates other women to form self-help groups by themselves.

The main motto of the self help group is For the women, By the women and Of the women. We should support these organizations in all aspects. “In future we hope that the economic status will be satisfactory and the empowerment of women at its zenith”.

Challenges Faced by SHGs Inspite of the obvious developments taking place, the working model needs attention on certain issues, which are challenging the fundamental objectives for which SHGs were identified. It is generally accepted that SHGs often do not include the poorest of the poor because the existing caste system in rural area restricts the collective action of the people.

The poorest often do not have the financial resources to contribute to the savings and pay membership fees. They are often the ones who migrate during the lean season, thus making group membership difficult. Efforts are being made to overcome the bias, e.g., through participatory 98 wealth ranking at the community level, or by using indices to identify the poorest. Programs need to be designed in such a way as to promote overall rural empowerment of the country.

Many political parties and women’s organizations have failed to recognize the potential of this power. While the multinational companies have more money power, these groups have within them, the extensive market potential of their own families and communities. When organized effectively, this could prove to be a true challenge to counter the influx and influence of multinational companies in India (V.S. Ganesamurthy, 2007).

Non Government Organization (N G O) The women’s Self-Help Movement has been gaining great momentum in Tamil Nadu. One of the major reasons for its unprecedented success has been the NGO-Government partnership. This partnership started way back at the beginning of the International Fund for Agricultural Development (IFAD) project in Tamil Nadu in 1989. When the project started working in the Dharmapuri District in remote rural and forest areas, where no government machinery existed, it was felt that the route to reach the women at the grass root level could be through NGOs. Eventually it was a pattern uniformly adopted even as the project expanded to other districts. At the end of 1996, there were 32 NGOs working in the women’s empowerment programme.

A good lesson learnt from the IFAD experience has been the positive impact of the NGO-Government partnership. When the State decided to continue the work of empowering the women after the expiry of the IFAD project, it opted to continue the strategy of implementing the 99 programme through the NGOs. Today Mahalir Thittam Programme is being carried out in all the thirty districts of the state in partnership with nearly 426 NGOs. This is probably the single largest government programme anywhere in the world, wholly implemented through NGOs. Even though there are many critics of NGOs in our country, fortunately, this partnership in Tamil Nadu has managed to survive (G.K. Gariyali & S.K.Vettivel, 2004).

Impact of MaThi on NGOs Before the onset of the MaThi Programme, the number of NGOs involved actively in women’s issues, especially in the rural areas in Tamil Nadu, was quite meager. One of the positive impacts of Ma Thi was that a lot of grass root level NGOs brought women’s issues on their agenda so that they could participate in the women’s empowerment programme. Another impact was that in remote and backward areas, where no NGOs were functioning, many small yet efficient NGOs emerged, mostly, out of local initiative using local talents and resources. Ultimately this rapid growth at the grass root level NGOs has been responsible for creating the much-needed manpower and human resources and material infrastructure needed for such a massive empowerment programme. In this environment, many large NGOs have taken the initiative to increase their area of operation to other districts. They have also helped in the upgradation of small grass root level organizations. Hence we can confidently say that networking of NGOs around the cause of “Ma Thi” has finally led to the success of the programme.

Challenge of Working with NGOs Working with such a large network of NGOs is very challenging, especially when each NGO possesses different levels of capacity and 100 resources. In these circumstances it has been felt that many small yet sincere organizations, who are involved in Ma Thi need a lot of support, encouragement and training to be able to perform the tasks assigned to them. The capacity building and support to NGOs has always been an important part of the agenda of Ma Thi. A lot of time and resources are being spent on the capacity building of grass root level NGOs to make them equal to their tasks. In these programmes, large and well-established NGOs, have also been contributing by acting as the resource persons and programme coordinators.

However, increasingly, a need has been felt to set up an independent and full-fledged NGO Resource Centre, at the Tamil Nadu Corporation for Development of Women (TNCDW), to take up the activities for supporting and guiding the NGOs on an ongoing basis. It is also necessary to keep them in touch with the changing needs and requirements in the empowerment scenario. It is also a fact that many small agencies do not know how to access funding from various governments and other funding agencies and need to be oriented to schemes and grant application formalities and procedures. Keeping all this in view, a resource center, the Non-Governmental Organizations and Volunteer Resource Centre (NVRC) was established by the TNCDW in 2002 and has been registered as an independent society under the Societies Registration Act.

The center has created a corpus and also received an annual grant from the Government of Tamil Nadu. In addition, it is free to apply for grants and funding from various funding agencies. It is also authorized to raise its own resources by conducting studies and undertaking consultancy with an idea to eventually become financially independent. Recently it 101 has received a Small Grants Projects from the World Bank to conduct the policy analysis workshop for NGOs to enable them to build public awareness on government policy and obtain feedback on existing policies from them.

Institutional Initiatives – Global Institutions UNIFEM is the women’s fund at the United Nations. It provides financial and technical assistance to innovative programmes and strategies to faster women’s empowerment and gender equality. Placing the advancement of women’s human rights at the centre of all of its efforts, UNIFEM focuses its activities on four strategic areas:  reducing feminized poverty,  ending violence against women,  reversing the spread of HIV/AIDS among women and girls, and  achieving gender equality in democratic governance in times of peace as well as war.

UNIFEM works to enhance women’s economic security by strengthening their rights to land and inheritance, increasing their access to decent work, and empowering women migrant workers in both sending and receiving countries. UNIFEM has worked with the Government to formulate a minimum standard contract for migrant women that is being used to monitor working conditions. In over 30 countries, UNIFEM supports national and local initiatives to include gender perspectives in budgeting processes, and to collect and use sex-disaggregated data in public policy formulation (Boraian, 2007)

102 CEDAW On December 18, 1979, the United Nations adopted the convention on the Elimination of All Forms of Discrimination Against Women, also known as “The Treaty for the Rights of Women” or “CEDAW”. Because of CEDAW, millions of girls who were previously denied access are now receiving basic education; measures have been taken against sex slavery, domestic violence and trafficking of women; women’s health care services have improved, saving lives during pregnancy and childbirth; and millions of women have secured loans and obtained the right to own or inherit property. As of March 2004, 175 countries have ratified CEDAW.

Over the past few decades several informal and innovative approaches in financing the poor in a sustainable manner have been tried out in many developing countries. To bridge the gap between the formal and informal systems, Mohammed Yunus, popularly known as the father of the micro credit system, started a research project in Bangladesh in 1976 and came out with ideas of micro-credit that resulted in the establishment of the Grameen Bank in 1983 (Khandkar et.al., 1995). The lending programme of the Grameen Bank depended basically on external fund although the members’ savings fund has also increased substantially over time. All the facilities are virtually provided at the doorsteps of the borrower. The philosophy is best summed up in the following words of Prof Yunus the founder of the Grameen Bank “The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people” (Yunus 1998). Efforts of Bank Rakyat Indonesia (BRI) in Indonesia, Bank of Agriculture and Agriculture Co- operatives (BAAC) in Thailand, Grameen Bank and Bangladesh Rural Advancement Committee (BRAC) of Bangladesh, Amanah Ikhtiar Malaysia (AIM) of Malaysia and Agricultural Development Bank 103 (ADBN) of Nepal are some of the examples which have yielded encouraging results in empowering the poor through credit in South East and South Asia.

The Association for Social Advancement, better known as ASA was established in Bangladesh (1978). Initially involved in the areas of legal and human rights, it later changed its focus to economic empowerment of the poor through a micro-credit delivery system. Its micro credit programme started in 1991 and had a membership of 15.79 lakh in December 2001. (ASA: 2002). It is now reported to be the most cost-effective MFI in the world.

In 1984, the participants of the Third International Symposium on Mobilization of Personal Savings in Developing Countries organized by the United Nations, agreed on the final resolution that  internal savings must provide the basis for all credit programmes,  state control of interest rates must be relaxed in favour of market or near-market rates  for effective service, financial services need to be more decentralized,  both formal and informal financial institutions are necessary for the financing of development and  linkages between formal and informal financial institutions seem to be more promising than separate development (Dasgupta, 2001).

In 1984, the Federal Ministry of Economic Co-operation and the Agency for Technical Co-operation of the Federal Republic Germany 104 undertook a series of studies and workshops on rural finance in developing countries resulting in the formulation of a new policy for promoting Self Help Groups (SHGs), different from the Grameen Bank Model and Self Help Promotional Institutions (SHPI) came to be recognized as a financial intermediation between the rural poor and the micro enterprises in the informal sector, on the one hand and formal financial Institutions on the other (Kropp. et. al 1989).

In 1986, the participation of Asia and Pacific Regional Agricultural Credit Association (APRACA) decided on a co-ordinated programme for the promotion of linkage between banks and SHGs for rural savings mobilization and credit delivery to the rural poor. The project “Linking Banks and SHGs” in Indonesia started in 1988 as a pilot project of the Central Bank of Indonesia through the involvement of SHPI which would provide training and consultancy services to the SHGs and in some cases additionally act as financial intermediaries (Koch and Soetjipto, 1993).

National Initiatives for Women Empowerment In order to empower the weaker and socially and economically deprived sections of the society, the Ministry of Welfare which was constituted on 25th September 1985, was renamed as the Ministry of Social Justice and Empowerment on 25th May 1998 during the IX plan period. The responsibility for implementation of the schemes is shared between the Central and State Governments. The Department of Women and Child Development, since its inception, has been implementing special programmes for holistic development and empowerment of women with major focus on improving the socio-economic status of women. Some of the recent programmes and initiatives of women and development implemented by the Departments of Women and 105 Development and Rural Development in the area of women’s empowerment are as follows:

Women Development In the Women and Child Development sector, the nodal Department of Women and Child Development also implements a few innovative schemes besides formulating policies and programmes; enacts / amends legislations affecting women and co-ordinates the efforts of both Governmental and Non-Governmental Organizations (NGOs) to raise the overall status of women on par with that of men. The programmes of the Department include:  empowering strategies;  employment and income generation;  welfare and support services;  awareness generation and gender sensitization and  other enabling measures. These programmes play the role of being both supplementary and complementary to the other general development programmes in the sectors of health, education, labour and employment, rural and urban developments, etc.

Empowering Strategies The erstwhile programme of Indira Mahila Yojana launched in 1995, was recast as Swayamsidha in 2001 to empower women by providing awareness and helping them to achieve economic strength through micro-level income-generation activities and facilitate easy convergence of various services such as literacy, health, non-formal education, rural development, water supply, entrepreneurship, etc.

106 Another empowering intervention refers to ‘Swa-shakti Project’, sanctioned in 1998 for a five-year period till 2003 with assistance from the International Development Association and International Fund for Agricultural Development. Its major objective is to create an enabling environment for empowerment of women through setting up of self- reliant women’s SHGs and developing linkages between SHGs and lending institutions in order to ensure women’s continued access to credit facilities for income generation activities.

Employment and Income generation The support for Training and Employment Programme (STEP), launched in 1987, provides a comprehensive package of upgradation of skills through training, extension inputs and market linkages to poor and assetless women in the traditional sectors of agriculture, dairy farming, handicrafts, handlooms, animal husbandry, sericulture and fisheries. Another programme called Training-cum-Production Centres for Women (popularly known as NORAD) was launched in 1982-83 with the assistance from the Norwegian Agency for Development and Co- operation (NORAD). The scheme attempts to improve the lives of young women / girls especially school drop-outs and semi-literates, by extending training to non-traditional trades like electronics, watch assembling, computer programming, garment making, secretarial work, community health work, embroidery, weaving, etc.

Yet, another major programme of employment and training for poor and needy women, being implemented by Central Social Welfare Board (CSWB), is the Socio-Economic Programme (SEP). The scheme of Condensed Courses of Education & Vocational Training for Adult Women (CCE & VT), being run by CSWB since 1958, aims to provide 107 new avenues of employment through continuing education and vocational training for women and girls who are school drop-outs.

Welfare and Support Services Launched in 1972-73, the programme of Hostels for Working Women (HWW) aims to promote greater mobility for women in the employment market by providing safe and cheap accommodation to working women belonging to the lower income strata living away from home.

The programme of Short Stay Homes (SSH) for Women and Girls was launched in 1969 to protect and rehabilitate those women and girls who are in social and moral danger due to break up of families, mental strain / stress, social ostracism, exploitation etc.

The scheme of Assistance to Voluntary Organizations for Education Work for Prevention of Atrocities against Women was started in 1982. Under this scheme, Women Study Centres and institutions of higher learning and voluntary organizations are given financial assistance for undertaking various activities relating to education. The General Grants-in-Aid to Voluntary Organizations through CSWB (Central Social Welfare Board) and for strengthening its field organizations is a multifaceted scheme providing financial assistance to voluntary organizations for rendering welfare services to women, children, aged and inform, handicapped and other special groups through various programmes.

Awareness Generation and Gender Sensitization A countrywide gender sensitization programme was launched in 1991 in collaboration with United Nations Development Fund for 108 Women, New Delhi. Special campaigns to combat atrocities against women were also launched throughout the country in collaboration with the State Home Departments and NGOs.

A set of 10 legal literacy manuals written in a simple and illustrated format was also published in 1992 with the aim of educating women about the laws concerning their basic rights. The Awareness Generation Project for Rural Poor Women (AGPRP) aims to identify the needs of these women and generate awareness amongst them about their rights and handling of social issues. Since 1986-87, the scheme has placed special emphasis on encouraging the participation of women in Panchayati Raj Institutions and learning about their role in national integration and communal harmony. The programme for Information and Mass Education creates public awareness through the multi-media strategy on issues relating to women.

Other Enabling Measures The year 2001 was celebrated as ‘Women’s Empowerment Year’. During the year, various activities and programmes were taken up on different themes pertaining to women’s social, political and economic empowerment. The scheme for Women in Difficult Circumstances – ‘Swadhar’ has been designed with a flexible and innovative approach to cater to the requirements of various categories of women in distress, in diverse situations under different conditions. The Scheme aims to provide basic needs of shelters, food, clothing and care to the marginalized women / girls living in difficult circumstances who are without any social and economic support. It also attempts to provide emotional support and counseling to such women and ensure their social and economic 109 rehabilitation through education, awareness, skill upgradation and personality development through behavioural training etc.

Rural Development In the field of Rural Development, anti-poverty programmes have been a dominant feature of Government initiatives in rural areas. The Swarnajayanti Gram Swarozgar Yojana (SGSY) was launched in 1999 with the objective of bringing the beneficiary families (swarozgaris) above the poverty line by providing them income-generating assets through a mix of bank credit and Government subsidy. It is envisaged that 50 per cent of SHGs in each block should be exclusively of women, who will account for at least 40 per cent of the swarozgaris.

The Jawahar Gram Samriddhi Yojana (JGSY) reserves 30 per cent of employment opportunities for women. Indira Awas Yojana (IAY) stipulates that houses under the scheme are to be allotted in the name of the female member of the beneficiary household or in the joint names of husband and wife. Priority is given to widows and unmarried women.

The National Maternity Benefit Scheme (now transferred to the Department of Family Welfare with effect from the year 2001-02) aims at assisting expectant mothers by providing them Rs.500 each for the first two live births. Under the National Old Age Pension Scheme, central assistance is provided to women and men above the age of 65 years who have little or no regular means of subsistence. The Restructured Centrally Sponsored Rural Sanitation Programme, launched in 1999, ensures construction of village sanitary complexes exclusively for women, wherever the constructions of individual household latrines are not feasible.

110 NATIONAL INSTITUTIONS National Commission for Women NCW, a statutory body set up in 1992, safeguards the rights and interests of women. The commission requested the State Governments to reserve a certain percentage of resources for women even at the village level for programmes such as water supply, health services, nutrition, sanitation, etc. and reviewed the functioning of women’s cells in governmental organizations and issued fresh guidelines to reactivate the cells. It has also organized many seminars/ workshops on important emerging problems of women, viz., impact of globalization on women, prevention of atrocities against women, economic empowerment of tribal women, girl child abuse, child marriages, empowerment of Dalit women, women in prostitution, images of women in the electronic media, rehabilitation of devadasis, besides conducting legal awareness camps in those states like Haryana, Punjab, Rajasthan, Bihar, Uttar Pradesh, etc where the status of women is comparatively lower. The Commission has also been very successfully documenting information on many important social problems like that of rape, abortion, devadasis, sexual harassment, etc. besides sponsoring studies on various subjects related to women.

Central Social Welfare Board The Central Social Welfare Board (CSWB) was set up in 1953 with the objective of promoting social welfare activities and implementing welfare programmes for women, children and handicapped through voluntary organizations. In 1954, the State Social Welfare Boards were set up in the states. The programmes implemented by the Board include socio-economic programme for needy / destitute women, condensed courses of education and vocational training courses for women and girls, awareness generation projects for rural and poor women, family 111 counseling centres / voluntary action bureau, holiday camps for children, welfare extension projects in border areas and balwadis, Creches and hostels for working women, etc.

Rashtriya Mahila Kosh The National Credit Fund for Women (Rashtriya Mahila Kosh) was set up on 30 March 1993, with a corpus fund of Rs.31 crore with the major objective of meeting the credit needs of poor women, particularly in the informal sector. The RMK is managed by a Governing Board comprising 16 members. The Minister of State for Women and Child Development is the Chairperson of the Kosh. The Kosh has sanctioned up to 30 April 2002, loans amounting to Rs.11,093 lakh to benefit 4,23,125 women through 1,016 NGOs.

Organizations for the Women and by the Women There are many successful women forums and organizations that are trying to bring the rural women together for developmental works. Working Women’s Forum (WWF), SEWA, Shri Mahila Griha Udyog Lijat Papad, or Lijjat, and Mann Deshi Mahila Sah Bank Ltd., Mhaswad, Maharashtra are the chief among them.

The Working Women’s Forum (WWF), established in Madras in 1978, has brought together over 13,000 poor urban women around the issue of credit. Most women who live in the slums of Madras work as small-scale traders and vendors, their earnings often providing over half the family income. Interviews with these women revealed that their primary concern was increasing their earning capacity. The WWF was set up to enable these women to obtain low interest loans to expand their businesses. The key element in the WWF structure is the neighborhood 112 loan group, comprised of 10-20 women from the same area who act as mutual guarantors for the loans of all group members. Over 7000 women have received loans and the repayment rate has been over 90%. About 2800 new jobs or businesses have been created, and earnings have increased an average of 50% in existing enterprises. Women report that they are eating better quality and more varied foods as a result of their increased income. The WWF is expanding its activities to address the political and social problems of working women as well. The Forum operates day care centers, skills training centers, and remedial classes for schoolchildren. In 1980 the WWF launched a family planning program in which field workers (who are drawn from the WWF membership and paid $18 per month) disseminate information on health, nutrition, and family planning to families in their communities. According to a staff member, this program was an outcome of the realization that “income generation and large families do not go together.” The WWF also promotes inter caste, no dowry marriages and lobbies for public services. Women have become more confident of the possibility of gaining control over their lives, including their fertility. The WWF experience demonstrates that an organization does not need a lot of money, educated staff, or technical expertise to reach poor women. The Forum’s success is attributed to its selection of one critical issue, utilization of local leadership, organization of women around existing neighborhood ties, and decentralized management.

The Self-Employed Women’s Association (SEWA) is an Ahmedabad-based union of women workers established in 1972. Backed by more than 220,000 association members and it has set up 16 organizations, including the SEWA bank has organized to fight poverty through full employment and self-reliance, SEWA workers demand the 113 right to work for food, income, and social security. Since its creation, SEWA has fought to gain the recognition of home-based and outside workers’ legitimate rights. However, it was realized during the course of such struggle that struggle alone could not fulfill the demands, needs, and priorities of workers. There was also a need to create alternative economic organizations of workers in terms of access to capital, markets, raw materials, and knowledge and skills; building organizational and managerial capacities; upgrading skills through training; social security; and enabling policies. The joint action of union and cooperatives has therefore been SEWA’s organizing strategy for all these decades.

Shri Mahila Griha Udyog Lijjat Papad, or Lijjat, ‘is an organization that has acted as a catalyst in empowering poor urban women across India during the last four decades. Starting as a small group of seven women in 1959, today Lijjat has more than 40,000 members in 62 branches across 17 Indian states. Only women can become members of Lijjat, and all of its members, addressed as “sisters,” own the organization. Lijjat’s main product is a thin, round, savory snack called papad, and papad rolling is the major activity of the “member sisters.” Remuneration is the same for everyone, and profits and losses are shared equally among the member sisters, so there is no possibility of concentration of assets and wealth. Lijjat refuses to accept donations, but instead provides donations to the needy. Besides papad, Lijjat has also introduced other products, such as Sasa detergent and soap. However, papad has remained as its core identity product.

Mann Deshi Mahila Sah Bank Ltd., Mhaswad, Maharashtra, founded in 1997 is the first rural women financial institution which received a banking license from RBI where 100% of its clients were 114 women having annual incomes averaging US$400. It is also the first bank in the country to have more than 2000 members from backward castes. The bank is having more than 47000 clients (2005 figure) ranging from street vendors to shepherds to wage earners to small entrepreneur women. The bank estimated that by 2008, it will reach 270000 clients. It has its integrated approach which distinguishes it from other micro credit efforts. Its credit though very important is not adequate for sustained and substantial employment. It is becoming increasingly clear that access to financial services alone is not enough for poor people to transfer their economic activities into profitable economic enterprises. Access to market, information, and technical knowhow and social support services are as important as money if the poor are to share in economic growth. If poor people are going to build incomes, assets and livelihood in substantial ways, they need access to:  Market information and commercial linkages  Health and social security services, such as insurance and pension  Technology and method to improve productivity  Representation at Gram-Panchayat level governing bodies  Equipment and supply know-how, linkages and bargaining power

Women are not bankable because of the lack of assets in their name, and that perpetuates the cycle of poverty for them. And when a family acquires an asset, it is rarely put in the woman’s name. Thus, asset ownership is a priority for MDMSB. An asset right is fundamental in women’s financial and social security. Each MDMSB loan program is designed to help women transfer family assets into her name. This includes making transfers in the woman’s name for agricultural land and 115 houses, and the acquisition of tools, shops and livestock, bank accounts, shares and savings certificates.

Other Major Initiatives for Women Empowerment Women in the rural areas are the catalyst of change and that is why its whole programme keeps women in progress.

In the women’s savings movement, rural women organized themselves into ‘thrift and credit’ groups with one rupee saving a day and this mass movement, in which 58 lakh members saved more than Rs.800 crore is rotated internally and lent amongst members twice in a year as per the interest rates fixed by the groups. While the savings was there among the SHGs, there was no channel of investment. Now HLL has provided a window of opportunity to invest and earn.

HLL’s Project Shakti – Through a combination of micro-credit and training In enterprise management, these women from SHGs have turned direct-to-home distributors or a range of HLL products and helping the company plump hitherto unexplored rural hinterlands. Project Shakti was piloted in Nalgonda district in 2001. The ambitious vision of this project is to create by 2010 about 11000 shakti entrepreneurs covering one lakh villages and touching the lives of 100 million rural consumers. On an average the Shakti entrepreneur is earning a return of 8%. To get started the Shakti women borrows from her SHG and the company itself chooses only one person. With training and hand-holding by the company for the first three months, she begins her door-to-door journey selling her wares. One of the plans of HLL is to allow other companies which do not compete with HLL to get onto the shakti network to sell their products. Talks are on with companies like Nippo, TVS Motors, and Insurance 116 companies. HLL also operates I-Shakti and IT – based rural information service that will provide solutions to key rural needs in the areas of agriculture, education, vocational training, health and hygiene.

Gangai Vattara Kalanjia Mutuals’ – a mutual trust, aims at providing social security services to the poor in rural areas. It draws inspiration from the Mutual Insurance Association of Netherlands (MIAN). A unique feature of the insurance cover is that all claims are settled within hours, sans much of the paper work.

As a new venture, SHG members are entering the arena of health, especially in identifying hearing impaired persons by joining hands with project shakti of HLL and affordable hearing aid project centre.

SHGs took an important step towards financial independence by attending 12 day training programme on setting up information kiosks. After training the women on basic computing skills besides operating photocopiers and fax machines, Tamil Nadu Corporation for Development of Women Limited (TNCDW) will offer financial assistance to the women.

The special schemes from government and financial institutions to assist women in creating enterprises and the conducive platform provided by the X plan by virtue of its thrust on women’s social and economic empowerment and gender justice.

Financial Support and Promotional Efforts by NABARD NABARD Refinance Support to Banks NABARD has been instrumental in facilitating various activities under micro finance sector, involving all possible partners in the area. It 117 has been encouraging the voluntary agencies, bankers, socially spirited individuals, other formal and informal entities and also governmental functionaries to promote SHGs. The focus in this direction has been on training and capacity building of partners, promotional grant assistance to Self Help Promoting Institutions (SHPIs), Revolving Fund Assistance (RFA) to MFIs, equity / capital support to MFIs to supplement their financial resources and provision of 100% refinance against bank loans provided by various banks for microfinance activities.

NABARD provides refinance support to banks to the extent of 100% of the bank loans disbursed to SHGs. The total refinance disbursed to banks against banks’ loans to SHGs during the year 2008-09 was Rs.2620.03 crore as against Rs.1615.50 crore during the year 2007-08 registering a growth rate of 62.2%. Further, the cumulative refinance disbursed under SHGs bank linkage programme by NABARD to Banks upto 31 March 2009 stood at Rs.9688.09 crores.

Promotional Support – SHG – Bank Linkage Micro Finance Development and Equity Fund (MFDEF) Recognizing the need for upscaling the micro-finance interventions in the country, the Hon’ble Union Finance Minister, while presenting the budget for the year 2000-01, announced the creation of a Micro Finance Development Fund (MFDF) with initial contribution of Rs.100 crore, to be funded by Reserve Bank of India and NABARD (Rs.40 crore each) and the balance Rs.20 crore to be contributed by commercial banks. In the Union Budget for 2005-06, the Government of India had decided to re-designate the existing MFDF as Micro Finance Development and Equity Fund (MFDEF) and raised its corpus from Rs.100 crore to Rs.200 crore with the similar ratio of contributions. The MFDEF is managed and 118 administered by NABARD. The objective of MFDEF is to facilitate and support the orderly growth of the microfinance sector through diverse modalities for enlarging the flow of financial services to the poor, particularly for women and vulnerable sections of society consistent with sustainability.

The fund is utilized to support interventions to eligible institutions and stakeholders. The major components of the assistance include promotional grant assistance to Self-Help Promoting Agencies, training and capacity building for microfinance clients and stakeholders of SHG- Bank Linkage Programme, funding support to MFIs, Management Information System (MIS) for microfinance, research, studies and publications.

Training and Capacity Building NABARD continued to organize / sponsor training programmes and exposure visits for the benefit of officials of banks, NGOs, SHGs and government agencies to enhance their effectiveness in the field of microfinance. Training supplements and materials were supplied to banks and other agencies. Best practices and innovations of partner agencies were widely circulated among government agencies, banks and NGOs. During the year 2008-09, fund support of Rs.6.10 crore was provided for capacity building, exposure and awareness-building as against Rs.6.24 crore during 2007-08. The cumulative fund support for the purpose as on 31 March 2009 stood at Rs.35.09 crore. During the year, 6,278 training / capacity building programme were conducted covering 2,83,998 participants. The progress under training and capacity building during the year 2008-09 is given in Table 3.7

119 Table 3.7. Training and Capacity Building Programme During 2008-09 Number of Programme Particulars / Number of Sl.No. programmes Categories Participants conducted 01 Awareness creation and capacity 3122 141984 building programmes organized for SHGs members in association with identified resource NGOs, covering participants to inculcate skills for managing thrift and credit. 02 Awareness-cum-refresher 324 18594 programmes conducted for NGOs, including CEOs. 03 Training programmes conducted 585 23848 for bankers covering officials of Commercial Banks, RRBs and Co-operative Banks 04 Exposure visits for bank officials 25 630 / NGOs to agencies pioneering in Microfinance (MF) initiatives 05 Field visits of Block Level 193 4507 Bankers’ Committee (BLBC) members to nearby SHGs 06 Programmes for the elected 54 2014 members of Panchayati Raj institutions (PRIs)to create awareness among them about the MF initiatives 07 Training & exposure programmes 55 1870 for government officials 08 Other training programmes for 866 42282 microfinance sector 09 Micro Enterprises Development 879 41479 Programme (MEDP) 10 Meetings and Seminars (Bankers, 175 6790 NGO officials, etc) TOTAL 6278 283998 Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org)

120 Micro Enterprise Development Programme (MEDP) for Skill Development The programme was launched in March 2006 with the basic objective to enhance the capacities of the members of matured SHGs to take up micro enterprises through appropriate skill up gradation / development in the existing or new livelihood activities both in farm and non-farm sectors by way of enriching knowledge of participants on enterprise management, business dynamics and rural markets. It is tailor- made and focused on skill building training programme. The duration of training programme ranged between 3 to 13 days, depending upon the objective and nature of training. A training budget of Rs.30,000/- per programme is earmarked for imparting training to 30 participants up to 13 days.

During 2008-09, a total 879 Micro Enterprise Development Programme (MEDPs), both under Farm and Non-farm activities, were conducted across the country covering 41479 members of the matured SHGs. Cumulatively, total 1307 MEDPs have been conducted so far covering 55464 participants. The dominant activities in agriculture and allied sector covered under MEDPs were bee-keeping, mushroom cultivation, vermin-compost / organic manure, animal husbandry, horticulture, floriculture etc whereas predominant non-farm activities taken up under MEDPs were Agarbathi-making, embroidery, bamboo- craft, beauty parlours, readymade garments, etc.

Grant Support to Partner Agencies for Promotion and Nurturing of SHGs NABARD has been instrumental in the formation and nurturing of quality SHGs by means of promotional grant support to NGOs, RRBs, 121 DCCBs, Farmers’ Clubs and individual Rural Volunteers and by facilitating capacity building of various partners, which has brought excellent results in the promotion and credit linkage of SHGs. Further, the number of partner institutions functioning as Self-Help Promoting Institutions (SHPIs) over the years has increased to 2592 which has resulted in the expansion of the programme throughout the country. During the year 2008-09, the financial support provided by NABARD to its partner institutions and their progress in SHGs promotion / linkage is indicated in Table 3.8.

Grant of Support to Partner Agencies – 2008-09 Table 3.8. Grant Assistance Extended to Various Partners Under SHG-Bank Linkage Programme (Amount in lakhs)

Sanctions during the year Cumulative sanctions Cumulative progress

Agency No. of No. of Amount SHG SHGs No. Amount No. Amount SHGs SHGs released formed linked

NGOs 311 1564.29 46504 2318 6405.71 291780 2773.93 214927 134861

RRBs 2 20.70 800 113 389.30 44590 181.16 53595 35942

Cooperatives 12 136.92 9465 85 563.13 53875 207.15 40327 22835

IRVs (2023) 6 46.62 2590 66 529.76 31233 52.32 8607 4566

Farmers’ ------61.06 14544 7836 clubs

TOTAL 331 1768.53 59359 2592 7887.90 421478 3275.62 332000 206040 Source: Status of Micro finance in India - 2008-09 published by NABARD (Website: www.nabard.org)

122 Pilot Project on SHG – Post Office Linkage Programme The Pilot Project for SHG-Post Office Linkage Programme was initially launched in 5 select districts of Tamil Nadu. Viz., Sivaganga, Pudukkottai, Tiruvannamalai, Thanjavur & Tiruvarur with the objective of examining the feasibility of utilizing the vast network of Post Offices in rural areas in disbursement of credit to rural poor, through SHGs, on agency basis.

The progress under the project has been encouraging. As on 31 March 2009, 2,835 SHGs have opened zero interest savings accounts with select Post Offices in Tamil Nadu and 889 SHGs have been credit linked with loan amounting to Rs.213.11 lakh. In addition to Revolving Fund Assistance (RFA) of Rs.3 crore sanctioned to Department of Posts, Tamil Nadu. NABARD has sanctioned RFA of Rs.5 lakh to Post Offices in Megalaya for on-lending to 50 SHGs in East Khasi Hills.

Support to Activity – Based Groups (ABG) During the year under study, NABARD introduced a scheme for supporting small-scale activity-based groups wherein capacity building, production and investment credit and market-related support would be extended. The scheme focuses on forming and nurturing groups engaged in similar economic activities, such as farmers, handloom weavers, craftsmen, fishermen, etc. to improve efficiency of their production and realize better terms from the market through economies of aggregation and scale. The scheme draws upon NABARD’s existing modes of support and has both grant and loan components. While grant support would cover expenditure on SHGs formation training, extension services, establishing market linkages etc., bank loan/s would cover investment activities and working capital needs of the SHGs. Banks would be 123 eligible to draw refinance for the loans provided to Activity-Based Groups on the same terms as applicable for SHG’s financing. In select cases, NABARD may also provide loans directly to registered SHGs or through the agencies promoting SHGs to establish few initial projects where none exists.

Support to SHGs’ Federations Recognizing the emerging role of the SHGs’ Federation in nurturing of SHGs, enhancing the bargaining powers of group members and livelihood promotion, NABARD introduced during 2007-08, a flexible scheme to support such Federations, on a model neutral basis. The broad norms prescribed for supporting SHG Federations stipulate that the federations should be need-based, member-owned / driven, democratically managed with members at liberty to join, become self- managed over three years, etc. Support to the Federation is extended by way of grant for training, capacity building, and exposure visits of SHG members, etc, as also under all of NABARD’s existing promotional schemes.

Special Initiative for Scaling Up SHGs / SHG Federations NABARD has associated with Rajiv Gandhi Charitable Trust (RGCT) for promotion, credit linkage and formation of SHG Federations in select districts of Uttar Pradesh. The project envisages promotion and credit linkage of 22,000 SHGs. 1,100 cluster-level associations and 44 block-level associations in collaboration with participating banks and implementing NGOs. The project would cover 15 and 29 blocks under phase I and II respectively in 12 districts of Utter Pradesh. NABARD and RGCT have designed the project with technical assistance from Society for Elimination of Rural Poverty (SERP), Government of Andhra Pradesh. 124 As at the end of 31 March 2009, 7,808 SHGs had been promoted, of which 3,972 SHGs had been credit linked. In addition, 273 Village Level and 14 Block Level SHG Federations were formed. Phase II of the project was launched on 01 January 2009 and 8,467 SHGs were promoted, of which 3,378 SHGs were credit-linked.

State – Specific Support in North Eastern Region (NER) Arunachal Pradesh: During 2008-09, an amount of Rs.39.15 lakh was sanctioned by NABARD for implementing the project ‘Micro Finance Vision 2011’ by the Government of Arunachal Pradesh. Further, an amount of Rs.33.66 lakh was sanctioned to the Essom Foundation Trust for setting up a Resource Centre at Itanagar for providing operational inputs, capacity building support and marketing linkages among the groups.

Tripura: The state support project on SHGs designed by the Government of Tripura was launched in December, 2008. The project aims to credit link 11,500 existing SHGs, forming and credit linking 35,000 new SHGs and promoting livelihood activities among the 3 lakh members up to 2012.

3.3. MICRO ENTERPRISES Micro-enterprise and micro-finance development have emerged as major strategies to combat the twin issues of poverty and unemployment that continue to pose a major threat to the polity and economy of both the developed and developing countries. In India about 89 per cent of the total employment is in the unorganized sector. At the same time 97 per cent of women workers are in the unorganized sector.

125 Women who constitute more than 50 per cent of the population are not aware of their rights. India has become home to one of the largest micro credit programmes in the world India’s share in the global micro credit market in 2003 was 13 per cent of all clients and 16 per cent of the poorest clients.

The Government of India has accepted various challenges to fight against poverty on all fronts to improve the lot of the weaker sections of the society. By way of decentralizing the economic and the industrial concentration, in order to ensure the equitable distribution of the national wealth, particularly in rural areas, new strategies have been designed by our policy makers and planners.

The development of rural industries is one such strategy. The rural industries will encourage the new class of entrepreneurs, particularly technocrats, and the educated unemployed to start their own industrial ventures. In this context the relationship between micro enterprises and poverty reductions coming up for serious consideration among the policy makers and development programme implementers.

In 1999 the involvement of the RBI made micro credit movement an official banking programme. The Government of India launched a new programme called the SGSY from 1st April 1999. Compared to the earlier self-employment programmes SGSY is a more holistic programme covering all aspects of self employment centered in organizing the women into Self Help Groups. This is a single cell self-employment programme for the rural poor aimed at the establishment of a large number of micro- enterprises. Micro enterprises have emerged as a real boon for the poor. Besides solving the problem of poverty, they help to generate additional 126 income for families in both rural and urban sectors. Further, they are ideal for many women who prefer part-time employment. Self employment opportunities allow women to have flexible working hours. Besides it trains them to acquire entrepreneurial ability and at the same time obtain economic independence (R. Amutha Rani, 2007).

Micro enterprises are an important source of income and employment for a significant proportion of rural poor. As per 2001 Census, micro – enterprises sub sector accounts for 25 per cent of employment of all main workers. Certain product lines such as brick making, dairy products, retailing of electronic entertainment, soft toys making, chalk piece making, mushroom culture, coir products, candle making, agarbatti making etc., are considered to have very encouraging market (V.S. Ganesamurthy,2007) .

Woman as Human Resources The effective utilization of human resources is a necessary condition for the developments of any economy. Women occupy 50 per cent of the total Indian population and they constitute an important segment of human resources. Women have been identified as potential contributions for fostering the pace of economic development. Agriculture is the major sector in which 70 per cent of the female working population is engaged. It is also a low wage occupation and income potential from agriculture depends on favorable climatic conditions. Alternative employment opportunities are inaccessible to women due to their poverty and unskilled nature. Rural women especially those belonging to the weaker sections of society have limited access to resources and employment opportunities that would make them to meet bare 127 consumption needs. Moreover the rural credit packages had been exclusively male oriented and women were largely ignored.

In this context formation of women into self help groups (SHGs) paved them a way to develop their economic standards there by building self confidence. Women in self help groups have been encouraged by the government as well as non-governmental organizations to undertake self- employment ventures with locally available raw material and other resources. Availability of micro credit helped SHG women a lot and many women came forward and established micro enterprises. At present a good number of NGOs and financial institutions have been offering micro fiancé especially to women micro entrepreneurs. As a result micro entrepreneurship is gradually growing importance among the jobless particularly among the educated and uneducated urban and rural women.

Micro Credit for Micro Enterprises Micro enterprises are considered a potent growth engine that triggers the development process. Micro enterprises have emerged as a real boon for the poor. Besides solving the problem of poverty, it helps to generate additional income for families in both rural and urban sectors.

Several studies on micro enterprises have brought out the fact that the profitability as well as viability of these enterprises can be greatly enhanced if they are provided access to credit on fair terms. Here comes the importance of integrating micro credit with the micro enterprises sector. The linking of micro enterprises and micro credit through SHGs can become financially self-sustaining.

128 Marketing of Products Micro enterprises can be grouped into two categories viz., those which do not have much of marketing problem and the others that experience challenging problems in marketing.

Especially in rural areas the women micro entrepreneurs continue to produce the traditional designs for local markets. What is required is the systematic market promotion through building up of market intelligence, product designs, bargaining strength and exploration of new markets to overcome the challenges in marketing products.

Challenges and Strategies Micro enterprises require some entrepreneurial skills:  Some of these can be acquired through training programmes like Entrepreneurship Development Training Programmes. Government and Non-Governmental Organization have to motivate women to undergo these training programmes so as to develop their entrepreneurial skills and capacities.  The growth of micro entrepreneurship mainly depends on creativity and innovative ideas.  Since the markets are highly dynamic, price and demand fluctuations are very common.

Therefore for the sustainability and growth of micro enterprises women must be able to understand the behaviour of markets and respond appropriately to meet the challenges thrown by the markets.

Microfinance or small amount of credit is essential input in poverty alleviation and women empowerment. The provision of microfinance to 129 the poor was made in India since 1970s under various poverty alleviation and women empowerment programmes. The Indian economy needs to generate a large number of jobs in the decentralized rural non-farm sector, comprising to small, tiny, cottage, village industries in order to arrest the rising unemployment and urban migration in the country. The rural economy in recent years has been showing clear positive signs for the micro enterprise opportunities especially for women. To make the SHGs movement in India really meaningful and successful the governments at different levels have to intervene in a large scale not as financier or provider of other inputs but as facilitator and promoter.

Since the markets are highly dynamic and for the growth and sustainability of micro enterprises, the entrepreneurs must be able to understand the behaviour of markets and respond appropriately to the challenges of competition. Micro enterprise promotion among women requires comprehension of market dynamics also in addition to innovations and creativity.

3.4. ECONOMIC EMPOWERMENT OF WOMEN In the 21st century, women enjoy more freedom and power than ever before. However, they are still disadvantaged when compared to men in virtually all aspects of life. Women are deprived of equal access to education, health care, capital, and decision making powers in the political, social, and business sectors. Whereas men are credited with performing three quarters of all economic activities in developing countries, women actually perform 53 per cent of the work, according to the United Nations. The 1995 UN Human Development Report, states that “an estimated $16 trillion in global output is currently ‘invisible,’ of which $11 trillion is estimated to be produced by women.” 130 According to the UNDP Human Development Report, women in Africa represent 52 per cent of the total population, contribute approximately 75 per cent of the agricultural work, and produce 60 to 80 per cent of the food. Yet they earn only 10 per cent of African incomes and own just 1 per cent of the continent’s assets. These numbers indicate the tremendous challenges women face on their road to gender equality. Despite repeated efforts made by governments, NGOs, and multilateral development agencies, the majority of women in the developing world are still relegated to micro enterprises and informal tasks.

In addition, women still make-up the majority of part-time and temporary workers in developed countries. Consequently, these women working in informal economies are likely to have less access to basic health care services, education, financial capital, political appointments, employee rights, and land ownership.

For example, in Southeast Asian countries, Khadija Haq states that women are still underrepresented in the government and civil services, and face a persistent gap in education and job opportunities. However, there is wide consensus that investment in the economic empowerment of women can and will help reverse these trends.

Increased income controlled by women gives them self confidence, which helps them obtain a voice and vote in:  Household decisions such as domestic well-being decisions: For instance, women tend to use income clout for more equitable decisions about sons and daughters’ diet, education and health.  Economic decisions: acquiring, allocating, and selling assets. 131  Fertility decisions: economically empowered women tend to have fewer children.  Land use and conservation decisions: rural women tend to favor sustainable environmental practices since they are usually the ones that collect the families’ natural resources such as water and firewood.

Female economic power also enhances the “wealth and well-being of nations. Women who control their own income tend to have fewer children, and fertility rates have shown to be inversely related to national income growth. Women are also more able – and generally more willing than male counterparts – to send daughters as well as sons to school, even when they earn less than men. In turn, a woman’s level of education affects her decision-making process when it comes to questions about contraception, age of marriage, fertility, child mortality, modern sector employment and earnings.

Unfortunately, widespread cultural and economic practices work to prevent empowerment.

Factors impacting women’s economic empowerment include:  Violence: women are the predominant victims of conflict, sexual violence, injury, death, intimidation and human trafficking.  Lack of adequate access to education, training and technology  Lack of access to clean water, sanitation  Lack of access to responsible health care/ reproductive health (one of the costs of widely available pre-natal screening in India has been the selective abortion of female fetuses, 10 million in 132 the past two decades – this has led to one of the most skewed gender ratios in the world with 927 girls to every 1000 boys in 2001).  Lack of access to credit / finance, safe work conditions, living /minimum wages  Cultural practices, tradition, religious interpretations of women’s status  Women’s lack of knowledge about rights and laws (economic, social, political, religious)  Lack of adequate representation in decision – making positions and governance structures

The real tragedy is that women are often better economic stewards of capital than men. Research has shown that women are more likely to reinvest profits back into human capital than are men. When women have economic power – defined as control of income and capital (land, livestock, etc.) – they gain more equality and control over their own lives, while contributing directly to their children’s development (nutrition, health and education) and thereby indirectly to their nation’s income growth.

Women’s economic empowerment could ease corruption and violence, promote greater environmental sustainability, and through education, contraception, and lower fertility rates, helps lower HIV/AIDS rates. If this kind of process is accepted by society, then it should be apparent that women’s education and economic empowerment is not only a matter of human rights but also human security.

Yet, there exist many impediments to women’s economic empowerment. Recently, the World Economic Forum ran a study on 58 133 countries to assess the size of the gender gap. The Forum’s analysis concluded that no country has managed to close the gender gap with the exception of the Nordic nations. For example, Sweden scored high in its efforts to advance women’s participation in all aspects of societal structure, while the United States ranked 17th, Mexico 52nd, Jordan 55th, and Egypt 58th. These findings suggest that the world has a long way to go to bring women to the forefront of economic, social, and political participation.

Unless women’s economic security is strengthened, we will not be able to eliminate poverty, achieve gender equality, or realize any genuine progress on the UN’s stated Millennium Development Goals. Below are just some of the statistics that highlight the discrepancies between men and women in the contemporary world.  There are 135 million children in the world between 7 and 18 who are not receiving any education at all, of which approximately 60 per cent are girls.  Of the girls who do begin primary school, only 1 in 4 is still in school four years later  The gender gap increases at higher levels of education.  Two-thirds of the 880 million illiterate adults around the world are women.  When women’s income increases, money is more likely to be channeled back into families and they are more likely to educate daughters.  Each additional year in school raises a woman’s earnings by about 15 per cent compared to 11 per cent for a man.

134 Women represent half the World’s population, and gender inequality exists in every nation on the planet. To discriminate and prevent half of humanity from reaching its full potential is economic folly. Denying women and girls equality and fairness not only hurts them, but also hinders the rest of society.

As described earlier, in the majority of poor nations, mothers, not fathers, have the most influence on their children. Mothers are the ones who dictate the decisions on whether or not children are sent to school, what school they go to, and how much time they spend working for the family. Until women are given the same opportunities that men are, entire societies will be destined to perform below their true potentials. Other large global humanitarian issues such as poverty, unemployment, population growth, the HIV/AIDS epidemic, and violence are all intertwined with the gender equality issue. Thus, concerted action to educate women, give them equal access to credit, and generally empower them, are critical components in battling all of the above-mentioned ills. Until societies, governments and non-governmental organizations around the world come together and make a concentrated effort to empower and grant equality to women, the world will be stuck in the past, and human well-being will never truly realize its full, vigorous potential.

As it is clear that the rights and protection of women from social inequalities in statute books are not good enough, some practical solutions are to be acknowledged and most importantly, implemented. Women have been deprived of economic independence. The empowerment of women and improvement of their status and economic role needs to be integrated into economic development programs, as the development of any country is inseparably linked with the status and development of 135 women. Given the gender division of labour that prevails in India, Nutrition, Child Health, and related matters typically depend mostly on women’s actions and decisions. Experience has shown that promotion of enterprise creation and income generating activities among women would transform them from ‘being alive’ to ‘living with dignity’. For instance, woman like Indira Nooyi who has become the Chief Executive Officer of Pepsi Company is really an achievement. Similarly Kiran Mazumdar of Biocon, Lijiad Papad, now functioning on a large scale are really making a mark equally, efficient like men. But they are only few in numbers, which needs to be increased in future with improvement in economic empowerment of women.

With this factual and conceptual background the present study focuses attention on the role of SHGs and Micro Enterprises in women empowerment in Thanjavur District of Tamil Nadu which is known as the “Rice Bowl” of the state. The profile of the study area is portrayed in the next chapter. CHAPTER IV DESCRIPTION OF THE STUDY AREA AND METHODOLOGY

This chapter includes two sections; the first section deals with the profile of the study area and it brings out the quantitative and qualitative background, some essential characteristics and its general features of the study area. It also focuses on economic issues and the background of the district. The second section explains the methodology of the present study.

4.1. PROFILE OF STUDY AREA India With a total land frontier of about 15200 km. measuring about 3214 km. from North to South and about 2933 km. from East to West, India ranks the seventh largest country in the world. Its total area is 32,87,263 square kilometers, which constitutes about 2 per cent of the total land area in the world.

It is well marked off from the rest of Asia by mountain and the sea, thus giving the country a fairly distinct geographical entity. The mainland comprises of four regions. Some of the highest peaks in the world are found in Kashmir and Kullu regions in Himalayas. The mountain wall extends over a distance of about 2400 km. with a varying depth of 240 to 320 km. In the East between India and Myanmar and in the West between India and Bangladesh, hill ranges are much lower. Garo, Khasi Jaitia and Naga hills, running almost East-West, join the chain to Mizo and Rakhine hills running north-south. Thus India is bound in the north by Himalayas, East by Bay of Bengal and Bangladesh, South by Indian Ocean and West by Arabic Sea and Pakistan. 137

Right from the beginning of the planning in India, women received due attention from the Government. But in the sixth plan period (1980- 85), there was a shift in the government policy from ‘welfare’ to ‘development’. During the Eighth Plan period (1992-97), it was emphasized that the benefits of planned development should not bypass women. In 1993, a Rashtriya Mahila Kosh was set up to help the assetless and poor women and providing the credit needs for economic activities. The Ninth Plan (1997-2002) emphasized the need for change in the strategy of planning for women. “Empowerment of Women” became the primary objective the plan documents attempted “convergence of existing services” available for both women specified and women related sectors. The Tenth Plan (2002-2007) has made a significant commitment towards empowering women as agents of socioeconomic change and development. On the recommendations of the National Policy for Empowerment of Women, the Tenth Plan promises a threefold strategy for empowerment of women, through social empowerment, economic empowerment and gender justice.

Empowerment of Indian women is linked to their status in the household and society. In spite of the fact that there has been a slight increase in the total female population, 49.57 crores in 2001 from 10.71 crores in 1991, life expectancy at birth 65.3 years in 1996-2001 from 59.7 years in 1989-93 and Sex-ratio 993 in 2001 from 927 in 1991, but there continues to exist demographic imbalance in the country. In the Indian family the male child is still preferred as a son is supposed to be the bread earners for the parents in their old age, providers of old age security for them and also feeling that the funeral fire given by the son helps in getting ‘Moksha’ for the parents. Gender discrimination, low level of education of 138 a girl child and work participation, poor nutrition status violence against women, poor health and lack of health care are the factors that make any effort of women empowerment more complicated. The problem is aggravated if the girl child is born in a poor family. A girl child faces discrimination right from her birth till death. Another factor creating problems in the way of women empowerment in India is poverty in the society. The vicious circle of poverty has greater impact on women. Women constitute 70 per cent of the total population living below the poverty line. Now the time is opportuned to break this vicious circle of poverty. Tenth Plan documents clearly state that although 40 per cent of the benefits under SGSY are categorically marked for women but in practice benefits are not reached to women in the same proportion. Therefore, the poverty alleviation programmes should target the needs, expectations, aspirations and problems of such women as poverty affected women more than men.

The occupational distribution of women work force also indicates disturbing features, indicating the underlying truth of high illiteracy among female works, which forced them to accept low paid and unskilled jobs when compared to male workers. The employment of women is highest i.e. 36 per cent of the total employment in agriculture and allied activities, 19.07 per cent of the total employment in the service sector, followed by only 12.42 per cent of the total employed in the industry sector which consists of mining and quarrying, manufacturing, electricity, gas & water and construction activities. In the unorganized sector, women constitute 90 per cent of the total workers (80%) are engaged in agriculture and allied activities and 10 per cent in other activities.

139 Since only 10 per cent of the total households are headed by females, this results in the absence of ownership of the resources because ownership of land and other properties are mostly in the name of the male members of the family. Female work participation in income generating activities for the family is no doubt increasing but this cannot ensure true economic empowerment as the ownership of the resources still lies in the hands of the male members of the family. The work participation rate of the female workers is a necessary condition but it is not a sufficient condition for economic empowerment of women. Full ownership of the resources and full autonomy to spend their income are the necessary prerequisites for the economic empowerment of women.

In 2001-02 the enrollment of girls in Class I-XII was 50.29 per cent but it was only 6.71 per cent in higher education, including polytechnic. This data indicates the existence of a large number of literate but unskilled and untrained women work forces which cannot be employed in large well established business houses. In India very few women entrepreneurs are in big enterprises. The share of units managed by women in terms of employment was 7.14 per cent only. The share of female entrepreneurs (10 per cent) is still very low when compared to their work participation rate (25.7 per cent).

A number of problems are faced by Indian women entrepreneurs both in establishing and running their enterprises. These problems arise due to their family systems and as a part of the large system. Marketing of the products or services is found to be their main problem. Lack of education and training, time management, lack exposure to business environment, less mobility, low risk taking capability, lack of access to credit, lack of marketing knowledge are some other problems generally faced by women entrepreneurs. 140

The Tenth Plan continues with the three fold strategy formulation for “Empowering women”  Social Empowerment: To create an atmosphere to release their full potentials through various policies and programmes for the development of women by providing them opportunities to have easy and equal access to all basic minimum services.  Economic Empowerment: To make women economically independent and self reliant by providing them the opportunities, training, employment and income generation activities.  Gender Justice: To guarantee de facto rights and fundamental freedom at par in political, economic, social, civil and cultural spheres of life.

While examining the evolution of the Indian Planning process one can find a major paradigm shift on women’s problems from the First Five Year plan to the Tenth Plan (2002-2007). Nobody thought about a women’s empowerment cell during the formulation of the First Plan. Now it is a major component of our national plan.

It has been realized that to emerge as a strong and modern nation and to secure here rightful place in the comity of nations, India should ensure sustainable development in the rural areas. In order to correct the developmental imbalances and accord due priority to rural areas, the Rural Development Ministry is implementing a number of programmes aimed at sustainable development of rural areas with special focus on the weaker and vulnerable sections. There has been a paradigm shift in the policy of rural development. The rural poor are now being treated as a resource, whose ideas and experiences form an integral part of the development strategy. 141

To bridge the rural-urban gap the allocation of funds for rural development programmes has been hiked to Rs.76774 crores for the Tenth Plan as against Rs.42874 crores during Ninth Plan. There has been greater emphasis on giving greater participation to people in the development process through Panchayat Raj Institutions and Self Help Groups. Presently, the SGSY is a massive self employment programme in the country. The focus of the SGSY is on the development of the rural poor through SHG-supported micro finance. Both the Central and State Governments have come forward to assist these SHGs through micro finance.

The growth and development of SHG in India has been tremendous. “The number of SHGs financed by banks in Indian as increased from 32,995 in 1992-93 to 2,476,492 in 2006-07. The loan sanctioned and disbursed to these SHGs went up from Rs.571 million in 1992-93 to Rs.135,119 million in 2006-07.” (Annual Reports NBARD 1992-93, 2006-07). The number of households benefited under SHG programme is more than 32.98 million. Lot of progress in SHG movement took place in India in terms of their numbers and members (Map 4.1).

142 Tamil Nadu In the 2001 census Tamil Nadu’s population was counted as 6,21,10,839 persons of which 3,12,68,654 were males and 3,08,42,185 were females (3,48,69,286) 56.14 per cent of population live in the rural areas (2,72,41,553) 43.86 per cent of population live in the urban areas. The state is sixth most populated state populated state of Indian Union besides, U.P., Maharashtra, Bihar, West Bengal and A.P. It accounts for 6.05 per cent of country’s population. The density of population at 478 persons per square kilometer, up from 429 in 1991 and much higher than the all India density of 324, makes if the eleventh most densely populated state as per 2001 census.

The state’s literacy rate increased from 63.72 per cent in 1991 to 73.47 per cent in 2001. The female literacy rate increased from 51.30 per cent in 1991 to 64.55 per cent in 2001 and male literacy grew with population slowly from 74.88 per cent in 1991 to 82.83 per cent in 2001. The population sex ratio defined as the girls per 1000 boys in the age group of 0-6 years has been raised from 974 in 1991 to 986 in 2001.(M.P. Boraian, 2007) More than 70 per cent of the population is engaged in agriculture, as the State’s economy is largely dependent on the agricultural sector. About 48 per cent of the total cultivated area is under irrigation.

The following table explains the degree of achievement of forming the number of SHGs in Tamil Nadu during the year 2006-07.

143 Table 4.1. Spread of SHGs in Tamil Nadu, 2006-07 No. of New No. of New % of Sl.No District Groups to be Groups formed Achievement formed 01 Kancheepuram 600 1297 216 02 Thiruvallur 325 804 247 03 Vellore 550 384 70 04 Thiruvannamalai 250 260 104 05 Dharmapuri 250 341 136 06 Krishnagiri 175 174 99 07 Salem 825 889 108 08 Namakkal 475 585 123 09 Erode 1325 2032 153 10 Coimbatore 1300 1599 123 11 The Nilgris 275 536 195 12 Cuddalore 400 605 151 13 Villupuram 375 704 188 14 Thanjavur 550 966 176 15 Nagapattinam 200 522 261 16 Thiruvarur 175 409 234 17 Tiruchirappalli 425 418 98 18 Perambalur 150 180 120 19 Pudukkottai 200 175 88 20 Dindugal 600 1318 220 21 Karur 275 364 138 22 Madurai 300 172 57 23 Theni 550 316 57 24 Ramanathapuram 175 92 53 25 Virudhunagar 225 257 114 26 Sivaganga 300 136 45 27 Tirunelveli 900 1340 149 28 Tuticorin 475 1230 259 29 Kanyakumari 1400 3349 239 Total 14025 21454 153 Source: SHG Report, National Bank for Agriculture and Rural Development, 2007. 144

Table 4.2. Training Through Self Help Groups in Tamil Nadu

SHGs Trained Name of No. of Persons trained Nature of Training District No. of SHGs Total SC ST Women Kancheepuram 15 169 99 7 136 Catering, Motor winding Tiruvallur 20 268 148 0 203 Tailoring, catering, fashion, driving Vellore 82 146 33 71 115 Computer, Electrician, fitter Tiruvannamalai 24 60 20 35 90 Computer, Tailoring, Driving Dharmapuri 52 115 --- 115 174 Tailoring, Rexine leather Krishnagiri 41 90 --- 90 170 Tailoring, Rexine leather Salem 120 359 0 359 359 Tailoring, Beautician, Rexine Namakkal 62 135 0 135 135 Tailoring, Beautician, Rexine Erode 75 225 82 174 62 Tailoring, Computer, Mat Coimbatore 84 170 65 170 129 Tailoring, Making of Bags, Baking, Beautician Nilgiris 56 127 70 62 65 Computer, Tailoring Cuddalore 35 501 66 20 140 Candle, appalam, Seaweed / crab culture, Book binding, Horticulture, Coir Making, Herbal Products, Palm Products, Masonry Villupuram 20 257 50 10 85 Appalam, Jam, Seaweed/crab culture, Vermi culture Thanjavur 158 585 87 45 283 Computer, Tailoring Nagapattinam 2 231 37 18 44 Leather products Tiruvarur 54 150 15 12 28 Computer, Tailoring Tiruchirappalli 52 130 25 1 122 Terracotta, Greeting card, Readymade, Home appliances Perambalur 47 101 31 1 36 Driving Pudukkottai 34 87 43 0 82 Screen Print, Home Appliance, Note making, Table mat making Dindugal 18 74 27 12 41 Tailoring Karur 11 37 21 8 21 Tailoring Madurai 14 59 4 0 30 Computer, Tailoring, Toys

Theni 87 196 45 0 124 Computer, Tailoring, Toys Ramanad 19 49 5 10 39 Computer Virudhunagar 25 46 31 0 27 Computer Sivagangai 24 55 9 0 54 Tailoring Tirunelveli 132 314 9 27 259 Computer, Coir, Fisheries, Honey Tuticorin 114 148 4 0 141 Computer, Coir, Seashore sippies, panai Total 1589 5132 1026 1382 3363 Source: SHG Report, National Bank for Agriculture and Rural Development, 2007 145 Provision of economic independence attained from independent earning capacity. If adequate self-employment can be generated for women not at the expense of their role in housekeeping, it will help increase their economic, social and physical well-being. Undoubtedly necessary vehicle for the purpose is supplied by institutions of SHGs which will help Improve economic status of women, protecting their significance in the society and above all, effectively implementing the employment policies of the government for women (Map 4.2).

Thanjavur Thanjavur is one of the industrially backward districts in Tamil Nadu. The main occupation of the people in this area is agriculture; hence the people are engaged in agriculture and as such the industries in this district had not shown much growth. However for the past five years agriculture was affected due to scarcity of water and lack of seasonal rainfall. This forced the people of the district to concentrate on self- employment and they started migrating leaving native land to urban cities. The village and cottage industries are found more common in this district. As a historically important city promoting handicrafts, Thanjavur plates and sculptures are popular still.

Entrepreneurial development in village and cottage industries of Thanjavur district is on the rise as the entrepreneurs of industries in Thanjavur District have gradually developed their ventures with the available resources and support provided by government and other financial institutions. It is true such activities are motivated and complimented by the respective government and various institutions. This study would help one to know the available infrastructure facilities for the village and cottage industries. 146 Location Thanjavur is situated on the banks of river Cauvery in Tamil Nadu. It is bounded by Pudukkottai and Tiruchirappalli on South and West respectively, Thiruvarur and Nagapattinam on the East, Perambalur district and Palk Straight on the Northern side. It is located between 9.50 and 11.25 of the northern latitude and 78.45 and 70.25 of the Eastern longitude. Its total landscape is 3396.57 sq. kms.

History of Thanjavur District Thanjavur district stands unique from time immemorial for its agricultural activities and is rightly acclaimed as the Granary of the South India lying in the deltaic region of the famous river Cauvery. It is criss- crossed by lengthy network of irrigation canals; this coastal district abounds in green paddy fields, tall coconut groves, vast gardens of mango and plantain trees and other verdant vegetation.

It is called as ‘the green mansion’ of the South. On an average annual rice production comes to around 3.5 lakhs metric tons (1991-92). This district tops all the other districts of India in the production of rice. The economy of the district is, therefore, primarily agrarian in nature with very few industrial units.

Till 1990’s Thanjavur was united with Nagapattinam and Thiruvarur. For administrative convenience, Nagapattinam and Thiruvarur were separated from Thanjavur and became separate districts. The present Thanjavur consist of eight Taluks which include Thanjavur, Orathanadu, Thiruvaiyaru, Kumbakonam, Thiruvidaimarudur, Papanasam, Pattukkottai and Peravurani.

147 Table 4.3. Taluks and Blocks in Thanjavur Districts Taluks Blocks Thanjavur Budalur, Thanjavur Orathanad Thiruvonam, Orathanadu Thiruvaiyaru Thiruvaiyaru Kumbakonam Kumbakonam, Valangaiman Thiruvidaimarudur Thiruvidaimarudur, Thiruppanandhal Papanasam Papanasam, Ammapettai Pattukkottai Pattukkottai Peravurani Sethubhavachatram, Peravurani Source: India Census 2001.

Table 4.4. Thanjavur District Population as per 2001 Population Sex Rural Urban Total Total Population Personal 1457204 748171 2205375 Male 721677 369880 1091557 Female 735527 378291 1113818 0-6 Population Person 78433 311528 389961 Male 40508 166674 207182 Female 37925 144854 182779 Decadal growth rate ----- 32.00 29.94 61.94 (1991-2001) % of Rural / Urban population ------66.08 33.92 100 to total population Sex (Females per 1000 male) ------1019 1023 1021 Literacy rate Person 71.34 85.70 78.52 Male 81.83 92.43 87.13 Female 61.13 79.56 69.63 % of 0-6 population to total Person 16.06 16.54 32.60 population Male 15.74 18.19 33.93 Female 16.40 14.83 -31.23 Source: 2001 Census of India.

The above table shows the rural and urban population of Thanjavur as per Census 2001. It shows that concentration of female population is higher than the male population in all aspects including 0-6 population. 148 Adult sex ratio shows more female than male, the child sex ratio does not show the same trend, which has to be enquired into.

Population According to 2001 census, the total population of Thanjavur district was 22,05,375. Of the total population, 1457204 lived in rural areas and 748171 lived in urban areas. 1091557 was the male population and 1113818 was the female population in this district. Literate population was 2,35,909 in this district.

Table 4.5. Category of Workers as per 2001 Category No. of Persons Total Workers 887123 Male Workers 618471 Female workers 278652 Rural Workers 443510 Urban Workers 130950 Cultivators 300437 Agrl Labourers 33437 Household Industrial workers 33425 Other workers 285220 Marginal workers 18257 Non-workers 1319015 Source: 2001 Census of India.

As per 2001 census, the workers status among male and female, rural and urban, household, agricultural and industrial workers etc. that female participation has been less than half showed of male. Similarly just one third of the workers are in urban areas and other are in rural areas as Thanjavur is basically a rural district, workers in household and agricultural industries are minimum whereas the non workers and other workers constitute the maximum indicating that the district to agriculturally predominant. After globalization and green revolution the 149 agriculturally dependent population managed to migrate to other places or remain as non-workers and other workers. It is at this juncture the need for self employment becomes relevant. There is a need to cultivate entrepreneurship among the women.

Education Education is one of the most important factors for developing the economical status of any area. In Thanjavur district, there are 04 universities, 21 Arts and Science Colleges, 09 Engineering and Polytechnic Colleges, 3 special Education Colleges, 1 Music College, 1 Medical College, 10 Industrial training Institutes. There are 1535 school functioning in this district which provides general school education and professional education.

Agriculture Agriculture is considered to be the main occupation in this district and the district is called as the rice bowl of Tamil Nadu. The total cultivation area is 2,67,850 hectares and the net sown area is 2,03,175 hectares. The major crops in this district are paddy, sugarcane, coconut, pulses, gingelly and plantain. And the minor crops include maize, soyabeans and redgram etc. The total paddy cultivable area is 1,88,910 (000) hectares and paddy produced 3306 kg / hectares. Besides this, non- food crops cultivation area is 10,801 hectares.

Paddy is raised in the entire district in three crops. The first crop is known as ‘Kuruvai’ (the short-term crop) with duration of three and a half to four months from June-July and October – November. The second crop called the ‘Thaladi’ which has duration of five to six months from October – November and February – March. Third is the ‘Samba’ which 150 is grown on a very limited area in places where the water is less and not available for two crops.

Considerable improvement has been made in the cultivation of paddy since the introduction of the Five-Year plan and especially the package plan. As a consequence, there has been rapid increase in paddy yield per hectare in the district. The services rendered by the Agricultural Research Station at Aduthurai and Pattukkottai are especially important for the improvement in cultivation of paddy in the district.

Among commercial crops, the most important are the oil seeds which are produced in fairly large quantities in the dry soil tracts of the district. These are raised mostly in Pattukkotai and Thanjavur taluks. Apart from coconut, the important oil seeds produced are groundnut and gingelly.

The farmers in Thanjavur, like all other farmers in South India, have also now started to cultivate the Sunflower, the seeds of which are rich in oil, in non-deltaic regions.

Irrigation The total area irrigated in Thanjavur district was 1,50,943 hectares. The main sources of irrigation are rivers, rainfed tanks, tube wells and wells.

The presence of the perennial river “Cauvery” and the numerous irrigation projects that have been carried out even from the days of Chola kings have ensured the best irrigation system in Tamil Nadu.

151 Today, Thanjavur has one of the best irrigation systems in the state and ranks fore most in the area of irrigation. Over 72 per cent of the gross cropped area is under irrigation from one source or the other. Over 86.4 per cent of the net area sown enjoys the benefit of irrigation.

The chief sources of irrigation in the district are rivers, as there are few rainfed tanks and wells. These tanks and wells occur mostly in the upland regions. The river Cauvery with its numerous branches have proved a very dependable source of irrigation and most of the irrigated area in the district derives water from the Cauvery only. Nearly 80 per cent of the total area irrigated is served by canals and these canals are fed only the river Cauvery. These comprise mainly of three important projects. They are the famous Grand Anicut, the Upper Anicut and the Cauvery Vennar Regulator Project.

Apart from these major sources of irrigation, Thanjavur is benefited from other sources also. Next in importance are tube-wells and wells. A few tanks in the upland region prove quite helpful and irrigate quite a considerable area. It is followed by other sources like springs, channels, etc.

Rainfall The annual rainfall in the district as a whole is in the range of 44 inches. It is lowest in Arantangi (35 inches) and highest in Nagapattinam (54 inches). Thanjavur itself receives only 36 inches on an average. Most of the rain falls during the north-east monsoon, which strikes directly on the more northern region of the coast taluks, and throughout the rainfall there is consequently higher than in inland, the south-west monsoon rains 152 also reach as far as this district, and are occasionally heavier than those received from the north-east current.

The district has rarely suffered much from scarcity of rain, but serious losses from floods and hurricanes have been frequent. Of these disasters, the most serious was the flood in the Cauvery in 1853, which covered the delta with water. A few lives were lost, much serious damage was done to property. A flood in 1859 fortunately did little harm, but in 1817 a hurricane caused much loss of life and property on land and sea. There have been several inundations in more recent times, but the regulators constructed across the branches of the Cauvery have now done much to minimize the effect of such Calamities.

Animal Husbandry According to 2001 census, the live stock position in this district can be described by taking into consideration veterinary institutions, poultry development and livestock and poultry population. There were 06 veterinary hospitals, 45 veterinary dispensaries and 02 clinic centre in this district. There are 73 sub-centre, 14 extension veterinary dispensaries, 03 mobile veterinary dispensaries and 16 visiting sub-centre in this district. Livestock populations in this district in terms of cattle, buffaloes, sheep and goats are 376128, 58873, 27143 and 230470 respectively. And under Cattle Breeding and Fodder development, Semen Bank has been established at Ammapettai about 19 km from Thanjavur.

Fisheries Thanjavur is leading in marine fish production accounting for about 30 per cent of the total catch of the State as a whole. The marine fish catch 153 mainly comprises of leognathics, sharks, flying fish, chank, cat-fish, prawns, silver bellies, crabs, rays and other miscellaneous varieties.

Fisheries are one of the CPRs (Common Property Resources) activity. It provides more employment opportunities directly or indirectly to the dependents. Thanjavur is one of the 13 maritime districts of Tamil Nadu engaged in Marine Fishing and its fish production is about 5% of the total catch of the state. The state has a total coastal line running 1076 kms embedded with 442 fishermen villages of which Thanjavur District occupies 45.1 kms stretch in Palk Strait.

There are 27 fishing villages in the district which lie scattered in Thambikkottai in Pattukkottai Taluk in the North and Sembagmadevi Pattinam in Peravurani Taluk in the South. Out of total population of these villages a significant percentage are engaged in this activity. Nearly 40 per cent of the children, both male and female are engaged in fishing activities. Inland fish production in this district comes around 8.030 tonnes.

Industry of District Thanjavur continues to be predominantly an agricultural district and no wonder that it has been identified as industrially a backward district.

Food production has become the most important industry due to the growth and development of agriculture and a large number of rice mills that operate in this district under food production process. Manufacturing of cotton textiles, beverage, tobacco and tobacco products, are other important industrial group worthy to be mentioned here. 154 Handloom Industry The handloom industry occupies an important place in the economy of Thanjavur District, as it provides livelihood to more than 72,000 people in the district. The number of handlooms has increased substantially during the recent years.

The district even today stands foremost in the varieties of the handloom fabrics woven in silk, cotton and lace in the designs of the patterns and the artistic workmanship exhibited. Silk weaving is mainly carried out in Thanjavur, Kumbakonam and Koranadu. Table 4.6. Industry-wise Registration of Small Scale Industry Sl. No. Small Scale Industry No. of SSI 01 Food Products 2634 02 Cotton Textiles 343 03 Hosiery 1065 04 Wood and Wooden products and fixtures 490 05 Printing and publishing paper and paper 358 products 06 Leather and leather products 396 07 Chemical and chemical products 488 08 Metal Products except transport and 492 machinery and equipments 09 Machinery and machine tools and parts 389 except electrical machinery 10 Other manufacturing item 1890 Total 8545 Source: District Industrial Centre Hand Book (2001).

There are 10 types of small scale units functioning in Thanjavur. Food products predominated followed by Hosiery others are just emerging wood based and metal based units are traditional type of SSI in this district.

The Government has also established an industrial training institute at Thanjavur to foster and promote small scale industries in this district. 155 Further, the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) was set up in 1971 as a public limited company wholly owned by the government of Tamil Nadu with the object of developing medium and major industries in the backward and under developed districts of the state. The District Industries Centre (DIC) also known as rigorous Extension Agencies was started in 1978 under the National Policy of directing concerted efforts to promote, the development of cottage, rural and small scale industries by ensuring the supply of inputs besides arranging for marketing the finished products. Resuscitating traditional arts and crafts through offering timely financial support is also an important object of the District Industries Centres.

The trade of the district mainly consists of the export of rice, fish, handloom cloth, silk and cotton saris, metal work and handicraft goods. The import items consist of silk and cotton yarn, Brass sheets, Copper, timber and other consumer goods. The trade is carried on both by rail and road.

TNCDW – Mahalir Thittam (Women’s Project) The Tamil Nadu Corporation for Development of Woman is the nodal agency implementing the SHG programmes in Tamil Nadu. Its main aim is to empower the women economically and socially and also ensure skill development through training. The TNCDW has made once inaccessible resources such as bank credit, available to poor women.

The primary survey done in Thanjavur District has revealed that SHG are of different types formed by various agencies through the objectives are same. There are SHGs formed by NGOs facilitating women to form groups, handling the records, banking operations etc and ultimately linking with bank for revolving funds as well as small 156 enterprise loans. Another kind of SHG is formed by NGOs which are basically in remote areas and banks may not be able to extend support to them nor are the individual able to access the bank. In this situation the NGOs themselves take the loan on behalf of the SHGs and in turn lend to the SHGs on relatively higher interest rates that falls between the market and bank interest rates. Yet another kind of group observed are those the banks themselves particularly the co-operative banks and the lead banks identify and support.

In Thanjavur District 19 NGOs are approved by the TNCDW and are engaged in forming SHGs in all the 14 Blocks of the District. Apart from the above mentioned 19 NGOs about 74 more NGOs which do not come under the fold of the TNCDW are involved in forming and assisting SHGs. The District offers immense potential for forming SHGs due to its backwardness. All the Blocks in the District are covered by the NGOs and the formation of SHGs is continuing. The status of SHGs in Thanjavur District is given in Table 4.7

Table 4.7. Different Area-wise Distribution of SHG Members in Thanjavur District (up to 2007)

Sl. Number of Women Self Help Groups (WSHGs) Members No. WSHGs 01 In Rural Panchayat 11257 190769 02 In Town Panchayat 1155 18445 03 In Municipality 1195 17395 Total 13607 226609 Total savings of WSHGs 3784.86 (Rupees in lakhs) Total internal loan of WSHGs 9541.72 (Rupees in lakhs) Source: Mahalir Thittam, Thanjavur. 157

Table 4.7 revealed that women SHGs in rural areas are dominating. This may be due to the intervention of both government and non- government agencies in promoting rural women.

In Thanjavur District, there are 19 Non-Governmental Organizations, working in 14 Blocks. The following table explains the block-wise distribution of number of women SHGs in Thanjavur District.

Table 4.8. Block-wise Distribution of Women SHGs in Thanjavur District – up to 2007 Sl. Name of the Block No. of SHGs No. 01 Thanjavur 2649 02 Budalur 1016 03 Thiruvaiyaru 1006 04 Orathanadu 1836 05 Thiruvonam 636 06 Kumbakonam 870 07 Thiruvidaimarudur 774 08 Thirupanandal 749 09 Papanasam 733 10 Ammapettai 880 11 Pattukkottai 780 12 Madukkur 646 13 Peravurani 495 14 Sethubavachatram 537 Total 13607 Source: Mahalir Thittam, Thanjavur.

158 The SHG are on probation for six months to prove themselves before they can become eligible to get a loan from the bank. During this time, the SHGs make weekly deposits of their savings. The animator, the representatives and the members who go to deposit the savings get to know the bank officials, especially the bank manager. Generally, during this period a good rapport is built between the SHG and the bank. Age- wise distribution of women SHGs in Thanjavur District is given in Table 4.9 indicates the number of women SHGs in probationary period.

Table 4.9. Age-wise Distribution of women SHGs in Thanjavur District up to 2007

Sl. No. Name of the Block

Upto 06 Months 6 months to 1 year 1-2 years 2-3 years 3-4 years Above 04 years Total No. of SHGs Members Groups not functioning Total SHGs 01 Thanjavur 54 540 462 438 496 614 2604 42757 45 2649 02 Budalur 19 243 177 184 166 212 1001 17174 15 1016 03 Thiruvaiyaru 10 173 139 145 198 332 997 16987 9 1006 04 Orathanadu 9 358 382 334 331 409 1823 31130 13 1836 05 Thiruvonam 0 111 105 118 140 159 633 10748 3 636 06 Kumbakonam 12 183 178 136 131 211 851 14111 19 870 07 Thiruvidaimarudur 10 118 131 140 120 240 759 13084 15 774 08 Thirupanandal 3 144 132 168 159 134 740 12594 9 749 09 Papanasam 2 127 130 159 125 183 726 1692 7 733 10 Ammapettai 0 119 204 138 172 236 869 14756 11 880 11 Pattukkottai 6 149 133 133 163 192 776 13533 4 780 12 Madukkur 12 102 150 108 111 149 632 11001 14 646 13 Peravurani 6 61 66 66 74 204 477 7637 18 495 14 Sethubavachatram 8 94 107 76 105 137 527 8778 10 537 Total 151 2522 2496 2343 2491 3412 13415 215982 192 13607 Source: Mahalir Thittam, Thanjavur.

159 160

Direct Credit Linkage (DCL) The SHGs become eligible for a loan after they are rated or graded about their performance. The MT (Mahalir Thittam) has established a performance-rating card, and the MT, Panchayat Union officials and the bank officials give marks. An SHG should score at least 70% in order to qualify for a long.

Still it is the bank manger’s prerogative to sanction a loan to the SHG. The bank has sanctioned DCL in the ratio of 1:2 or 1:4 to the savings amount, that is, for Rs.10,000/- savings, the bank sanctions progressively, loans of Rs.20,000/- (1:2) and Rs.40.000/- (1:4) one after another.

The number of SHGs sent for credit rating and credit rated are given in Table 4.10 which indicates that 13138 SHGs have been credit rated up to the year of 2007.

161

Table 4.10. Details of Credit Rating in Thanjavur District - up to 2007 No. of No. of No. of SHGs SHGs No. of SHGs not Sl. No. of sent SHGs Name of the Block more eligible No. SHGs for credit than 6 for credit rated months credit rating linkage 01 Thanjavur 2622 2594 2541 2459 82 02 Budalur 1016 1014 987 965 22 03 Thiruvaiyaru 1006 1004 991 969 22 04 Orathanadu 1838 1830 1825 1790 35 05 Thiruvonam 636 636 648 635 13 06 Kumbakonam 849 839 846 815 31 07 Thiruvidaimarudur 773 771 780 769 11 08 Thirupanandal 748 744 755 737 18 09 Papanasam 733 728 736 718 18 10 Ammapettai 874 872 879 853 26 11 Pattukkottai 822 818 827 800 27 12 Madukkur 649 649 663 646 17 13 Peravurani 475 472 481 454 27 14 Sethubavachatram 532 532 540 528 12 Total 13573 13503 13499 13138 361 Source: Mahalir Thittam, Thanjavur.

162 SGSY – Allocation of Funds SGSY is a centrally sponsored scheme and financing is done by the central and the state in the ratio of 75:25. The central allocation earmarked for the states will be distributed in relation to the incidence of poverty in the states. However, additional parameters like absorption capacity and special requirements will also be taken into consideration during the course of the year.

With the launch of the SGSY scheme in the year 1999, the flow of credit to SHGs has significantly increased. The main aim of the scheme is to assure sustainable income to the poor through self employment. The scheme, in order to realize its objectives, provides extensive financial assistance to SHGs through its credit-cum-subsidy programme. It aims at establishing a large number of micro enterprises in the rural areas by forming SHGs after identifying key activities in each Block-based on the resources and skill of the people and the marketing potential. It also aims at filling up infrastructure gap by separate allocation of funds.

Table 4.11 indicates the number of Self Help Groups that have received revolving fund and the number of groups which have received economic assistance up to 2007.

Table 4.11. Block-wise Distribution of SGSY Revolving Fund and Economic Assistance to Women SHGs for the year 1999-2007 in Thanjavur District

SGSY SGSY Revolving Fund Economic Assistance

Sl. No. Name of the Block No. of SHGs Subsidy (Rs. In lakhs) Credit (Rs. In lakhs) Total (Rs. In lakhs) No. of SHGs Subsidy (Rs. In lakhs) Credit (Rs. In lakhs) Total (Rs. In lakhs) 01 Thanjavur 865 86.5 210.75 297.25 61 31.950 49.700 81.650 02 Budalur 563 56.3 154.95 211.25 37 43.402 73.401 116.803 03 Thiruvaiyaru 820 82.0 241.00 323.00 57 64.629 116.584 181.213 04 Orathanadu 988 98.8 187.70 286.50 183 157.886 250.480 408.366 05 Thiruvonam 410 41.0 76.00 117.00 41 29.263 45.360 74.623 06 Kumbakonam 435 43.5 96.25 139.75 70 83.146 147.110 230.256 07 Thiruvidaimarudur 345 34.5 78.75 113.25 43 35.496 70.291 105.791 08 Thirupanandal 407 40.7 101.05 141.75 144 36.222 62.990 99.215 09 Papanasam 394 39.4 81.60 121.00 44 37.619 61.918 99.535 10 Ammapettai 398 39.8 76.20 116.00 42 20.483 34.240 54.720 11 Pattukkottai 307 30.7 48.05 78.75 23 41.052 72.104 113.160 12 Madukkur 380 38.0 81.50 119.50 33 13.595 24.580 38.180 13 Peravurani 209 20.9 38.85 59.75 31 22.922 40.217 63.140 14 Sethubavachatram 260 26.0 44.50 70.50 36 39.449 65.960 105.410 Total 6781 678.1 1517.15 2195.25 845 657.114 1114.935 1772.046 Source: Mahalir Thittam, Thanjavur.

163 164 There were 13607 groups formed, out of which only 6781 groups have received revolving fund. The number of groups that have received economic assistance was only 845 during the period under reference. Only 6.2 per cent of the SHGs have received Economic Assistance and 50 per cent of the groups established have qualified for revolving fund.

Scheme-wise Women SHG Beneficiaries In India, the credit programmes have ignored women despite their significant contribution to production and economic growth. Targeting women for credit programme began to receive serious consideration at the 1975 International Women Conference in Mexico City. In India this concern found recognition during the Sixth Plan (1980-85). Since then, a concentrated effort has been made in the direction by rural credit institutions and central and state government institutions. Government has been conscious to have on environment in which the concerns of women are reflected, articulated and redressed by the government, the voluntary and corporate world. Banks also have adopted the most simplified policy in respect of security, documentation, margin, repayment terms, disbursement schedule, mode and period of repayment, appraisal and sanction. Moreover, a banking working day once in a week allocated to assist the weaker sections of society. The focus of banks has gradually shifted from big customers to small customers; from class banking to mass banking from purely security oriented traditional lending to need based lending.

Realising the significance of SHGs in micro credit delivering mechanism, the micro credit funding institutions have established SHGs for the purpose of lending and getting repayment in time. The following 165 table 4.12 shows the scheme-wise micro credit funding in India and the number of beneficiaries up to the year 2006.

Table 4.12 Scheme-wise Distribution of Credit Linkage in Thanjavur District – up to 2006

Sl. No. of Amount (Rs. Name of the Scheme No. WSHGs In lakhs) 01 SGSY – Revolving Fund 5781 1695.25 02 SGSY – Economic Assistance 723 1550.68 03 TAHDCO – Revolving Fund 716 179.00 04 TAHDCO – Economic Assistance 132 247.70 05 NABARD – Direct Linkage 8051 4480.00 06 Rashtriya Mahila Kosh (R.M.K.) 287 70.14 Total Number of Credit 15690 8222.77 Number of SHGs received credit 994 ---- from more than one scheme Source: Mahalir Thittam, Thanjavur.

Training and Capacity Building for a Movement Training is the backbone of the Self Help Groups in Tamil Nadu. This is a movement to empower women socially, economically and politically through capacity building of the poorest and most disadvantaged. What sets the Self-Help Groups in Tamil Nadu apart from those elsewhere is that they undergo a well conceived and well structured training through the specifically developed training modules. Various training programmes are given through the NGOs concerned and the Mahalir Thittam. The details of training are given in Table.

166 Table 4.13. Details of Training to SHG Women in Thanjavur District

I Entrepreneurship Target Achievement Development Programme 01 2001-2002 3722 3722 02 2002-2003 4819 4819 03 2003-2004 4444 4219 04 2004-2005 3919 3919 05 2005-2006 5170 5170 06 2006-2007 930 750 Total 23004 22599 II Group Member’s Training I Model 13500 II 12705 Model III 12705 Model IV 12705 Model III Animator and Representative Training I Model 13463 II 11873 Model III 11873 Model IV Vocational Training Fund Expenditure Allocated 2002-2003 480 480 278000 278535 2003-2004 402 379 321000 320149 2004-2005 402 422 321000 301165 2005-2006 402 403 321000 318015 V Skill Training 2001-2002 649 659 184121 185700 2002-2003 115 283 205125 201205 2003-2004 115 221 181125 184871 2004-2005 115 144 181125 173786 2005-2006 115 113 181125 176505 2006-2007 850 50 ------VI Skill upgradation Training 2002-2003 20 82 100000 98500 2003-2004 15 50 75000 73415 2004-2005 15 26 75000 68072 2005-2006 25 25 ------2006-2007 130 100 ------Source: Mahalir Thittam, Thanjavur.

167 Table 4.13 reveals year-wise details of training imparted to various SHG members. Apart from vocational and EDP training as a follow-up, for developing the women in income generation various skill-upgradation and skill –development training programmes were implemented through resource persons, master crafts men and through NGOs.

Block-wise Identification of Key Activities The members of the SHGs are involved in a variety of entrepreneurial activities through micro enterprises. Table 4.14 shows the important entrepreneurial activities undertaken by the SHG members in all the blocks of Thanjavur District. The micro enterprises have been started on the basis of available resources (Map 4.3).

Table 4.14. Key Activities in Thanjavur District No. of SHGs Sl. involved in Name of the Block Identified Key Activity of the Block No. that key Activity 01 Thanjavur Thanjavur paintings, Dress Materials 32 and Ladies Garments, Art Plates, Shield, Provisional shop, Photo lamination, Beauty Parlour, Chalk- piece making, Candle Making 02 Budalur Brick making, Pillow Covers, 06 Gloves, cotton fabrics 03 Thiruvaiyaru Provisional shop, Land Leases, 05 Bamboo products 04 Orathanadu Herbal Bath soap, coir production, 60 Agarpathies production , Carpentry, Interior products, Animal rearing, Petty shop, vegetable cultivation 05 Thiruvonam Thatches making 15 06 Kumbakonam Beds, pillows, Beauty parlours, 50 Departmental stores, Brass production, Handicrafts, Rose plantation, Silk Weaving, Readymade Garments, Rental Stores. 168 07 Thiruvidaimarudur Brass Metal product, Brass lamps, 25 Flower plantation, Bamboo products, Icon statues 08 Thirupanandal Silk Weaving, Brass metal products, 25 Thatches Weaving, Hollow Blocks, Departmental Stores, Fancy Stores 09 Papanasam Silk Weaving, Soap Powder making, 30 Bag making, Hollow Block, pickles, Brick making, vegetable cultivation, paper cover making 10 Ammapettai Silk weaving, Power Driller, 22 Dairying, Vegetable cultivation, brick making, agarpathies making 11 Pattukkottai Coir production 15 12 Madukkur Readymade garments, mat weaving, 50 coir production, coconut kopparai production 13 Peravurani Coconut kopparai production 10 14 Sethubavachatram Sea Food production, Dry Fish 10 products Source: Mahalir Thittam, Thanjavur.

4.2. METHODOLOGY Scope of the Study This research work is basically exploratory in nature. The aim of this research work is to find out the economic empowerment of SGSY assisted SHG women micro entrepreneurs in Thanjavur District. To assess this, the present study considers three components, namely, characteristic features of the sample micro women entrepreneurs, performance of women micro enterprises and economic impact of SGSY assistance on SHG members.

Entrepreneurs nature of activity, age, marital status, Religion, Caste, Community, size of family, type of family, nature of house, education, previous occupation, previous experience, etc., were the factors used to assess the characteristics features of the micro women entrepreneurs. 169

Investment, sales turn over, employment and borrowing were the factors used to identify the performance of sample micro women enterprises.

Changes in income, savings, expenditure, asset holding and decision making power were the factors used to measure the economic impact of SGSY assistance on SHG members.

Area of the Study Thanjavur District of Tamil Nadu – South India has been chosen as the study area. Out of the 14 Blocks in Thanjavur District, 05 Blocks were selected since they accounted for a major proportion of SGSY- assisted SHGs in the District. They were purposively selected since a relatively higher percentage of SHGs had taken up entrepreneurial activities. They include Thanjavur, Orathanad, Kumbakonam, Papanasam and Ammapettai. So enterprises run by women concentrated blocks have been purposely selected for the present research.

Sources of Data This study is based on both Primary and secondary data. The primary data were collected from the sample women entrepreneurs through personal interview using a pre-tested interview schedule. The secondary data was collected from published financial statements and annual reports of the NGOs, reports of the Mahalir Thittam and the District Rural Development Agency (DRDA) and also from Government Reports, journals etc.

170 Sampling The researcher obtained a list of 845 SHGs which have received Economic Assistance under SGSY scheme during the years 2002-2007 from DRDA (District Rural Development Agency) and Mahalir Thittam, Thanjavur. Out of the 14 Blocks in Thanjavur District, 05 Blocks were selected. In these 05 Blocks, 400 SHGs have received Economic Assistance from SGSY Scheme. Of these a sample of 30 per cent of the SHGs from each of the 05 Blocks was chosen at simple random sampling covering 120 women groups. To select the number of members of the groups, the researcher has chosen 01 member from each groups, totally constituting the sample of 120 SHG entrepreneurs for intensive analysis. For comparison, a sample of 30 similar types of rural women owned Non- SHG units located within a 2 k.m. radius were chosen. Thus, the sample consists of SGSY assisted SHG members and Non-SHG members. So the total respondents were 150 women micro entrepreneurs.

Table 4.15. Year-Wise SGSY-EA Details in Thanjavur District (2002-2007) Sl. 2002- 2003- 2004- 2005- 2006- Name of the Block Total Sample No. 03 04 05 06 07 01 Thanjavur 04 13 08 18 18 61 18 02 Budalur 08 08 10 04 07 37 -- 03 Thiruvaiyaru 08 01 23 06 19 57 -- 04 Orathanadu 31 17 81 19 35 183 55 05 Thiruvonam 08 04 13 03 13 41 -- 06 Kumbakonam 07 18 10 16 19 70 21 07 Thiruvidaimarudur 11 01 02 13 16 43 -- 08 Thirupanandal 10 09 04 58 63 144 -- 09 Papanasam 09 07 09 09 10 44 13 10 Ammapettai 09 19 04 01 08 42 13 11 Pattukkottai 17 01 05 00 00 23 -- 12 Madukkur 15 03 05 03 07 33 -- 13 Peravurani 09 02 06 03 11 31 -- 14 Sethubavachatram 15 00 22 00 00 36 -- Total 161 103 202 153 226 845 120 Source: Mahalir Thittam, Thanjavur. 171

Survey Tools The researcher applied separate semi structured interview schedule for both SHG and for Non-SHG units. The researcher tried to collect all basic information through structured interview schedules. The interview schedules were very fruitful to the researcher to collect necessary information.

The researcher collected data by using separate interview schedule for the SGSY assisted SHG units and for women owned Non-SHG units.

In interview schedule for SHG units the researcher covered all the basic and necessary aspects such as personal, social, economic, functioning of group, purpose of joining the group, women empowerment, training and impact of SHG, role of women in decision making and so on.

The interview schedule of Non-SHG units consists of details regarding age, religion, education, investment in business, borrowings, factors which affect the business, sales, income, employment etc.

Statistical Tools The data collected from the respondents have been classified and tabulated for purposes of analysis and drawing of inferences. Necessary tools such as percentage, averages, the economic dependency ratio [“Dependency Model” developed by Annemettee Sorensen and Sara Mc Lanahan (1987)], weighted score ranking method, correlation and regression techniques etc., have been used. A few case studies also have been made to illustrate key aspects of the sample SHGs.

172 Period of the Study Sample SHG units were selected from a list of Economic assistance received under SGSY scheme during the years 2002-2007.

Analysis of performance of the sample enterprises in the terms of investment, sales turnover, employment etc the data relates to one-year period 2008-2009.

Classification of Units For the sake of analytical purpose, the micro enterprises have been grouped into fourteen. They are as follows: 01. Agriculture 02. Animal rearing 03. Tailoring 04. Shield Work 05. Petty Shop 06. Pottering 07. Chalk Piece making 08. Beauty Parlour 09. Stationery Stores 10. Candle making 11. Catering 12. General Stores 13. Thanjavur Doll and Art Plate making 14. Others (Others include mushroom growing, Fish aquarium, Readymade Garments sales, photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, paper cover making, Hallow Block making, Brick making and Agarbathi making) CHAPTER V ANALYSIS AND DISCUSSION

The principal objective of the thesis is to assess the performance of the SGSY assisted Women SHG units in the study area with reference to changes in income, expenditure, savings, assets of their members since their admission into the groups and incidentally compare the performance of SHG and Non-SHG enterprises run by women.

The discussion in the chapter based on an analysis of data collected comprises five parts. In part one there is a review of the socio-economic profile of sample women entrepreneurs in both the groups, namely, SHG and Non-SHG units and the qualitative and quantitative benefits derived by the units. Part two deals with the performance of the sample enterprises. Part three contains impact analysis of SGSY intervention on sample SHG entrepreneurs. Part four deals with the problems faced by the entrepreneurs and part five produces the case studies of successful SHG women entrepreneurs.

5.1. THE SOCIO-ECONOMIC PROFILE OF THE WOMEN ENTREPRENEURS IN SHG AND NON-SHG UNITS A study of the socio-economic background of the women entrepreneurs is necessary to understand the background from which women are drawn to business and accordingly suitable policies may be framed.

An attempt has been made in this part to make a comparative analysis of the socio-economic profile of entrepreneurs in the sample SGSY-SHG units and the Non-SHG units. A sample of 120 SGSY 174 entrepreneurs and 30 Non-SHG entrepreneurs from the five blocks namely Thanjavur, Orathanadu, Kumbakonam, Papanasam and Ammapettai of Thanjavur District of Tamil Nadu were selected and their performance as entrepreneurs have been assessed on the basis of their social, family, educational and economic background.

Today women are encouraged to take up entrepreneurial activities. Rural poverty and unemployment have forced rural women to take up various enterprises so as to get over financial difficulties. (Yadav, 1999)

Being entrepreneurs involve combining personal characteristics and financial means and resources within an environment to set up a business studied by Meredith, Neck and Nelson (1982); Hisrich and Brush (1986); Shah (1987); Singh (1992); Dhillon (1996); Kaur and Bawa (1999); and Khajuria and Sinha (2000) stress that socio – psychological characteristics play an important role in the enhancement of entrepreneurial behaviour.

According to Weber (1930), entrepreneurs are a product of particulars social conditions in which they live and it is the society, which shapes the personality of individuals as entrepreneurs.

A study conducted by Sharma K.L. (1975) affirms that socio- economic background matters to a greater extent for one’s entry into entrepreneurship.

Another study conducted by National Institute of Community Development (1970) revealed that socio-psychological factors influence entrepreneurship in rural areas. Many studies have emphasized the vital 175 role of the socio-economic background of the women entrepreneurs because socio-economic background is related to the success or failure of the entrepreneurs. Hence, this study also analyses the socio-economic background.

Nature of Activity Both types of respondents, that is, women assisted by SHG and women running the enterprises without any SHG assistance, have in fact come out of the shell to which the sample women were condemned and are first generation entrepreneurs. Such being the case it is too much on our part to expect them to go in for non-traditional innovative enterprises. The study has shown that almost all the respondents have opted for traditional enterprises. Table 5.1.1 shows the distribution of both categories of sample women activity-wise.

176 Table 5.1.1. Distribution of Sample Women in Activity-wise SHG Units Non-SHG Units Sl. Nature of No. of No. of No. Activity sample Percentage sample Percentage women women 01 Agriculture 19 15.83 02 6.67 02 Animal rearing 15 12.5 05 16.67 03 Tailoring 10 8.33 06 20.00 04 Shield work 05 4.17 - - 05 Petty shop 12 10.00 04 13.33 06 Pottering 06 5.00 03 10.00 07 Chalk piece 03 2.5 - - making 08 Beauty parlour 06 5.00 02 6.67 09 Stationery stores 05 4.17 - - 10 Candle making 04 3.33 - - 11 Catering 07 5.83 03 10.00 12 General stores 07 5.83 - - 13 Thanjavur doll 05 4.17 - - and Art plate making 14 Others 16 13.33 05 16.67 Total 120 100.00 30 100.00 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

The table shows that among the sample women belonging to SHGs nearly 28 per cent are engaged in agriculture and agriculture-related activities such as cattle rearing. Tailoring and petty shop business between themselves account for 8.33 per cent and 10 per cent respectively. The remaining sample women are found scattered in small numbers among other enterprises. As far as Non-SHG respondents are concerned it can be said that sample women have strayed from the trodden path. Only 6.67 per cent are engaged in agriculture. The others are found distributed among 177 other enterprises chief of which are cattle rearing, tailoring, running of petty shops, pottery making and catering.

But the study of the sample women shows that women who are able to run an enterprise, in addition to their usual household responsibilities. So the culture that women should remain within four walls and combine to only the three K’s namely Kitchen, Kid and Knitting have been belied. Beauty clinic, which is the most modern activity, reflects the duality of business where both modern and traditional activities co-exist, in which women are found.

Age of the Entrepreneurs A study of the age wise distribution of sample women of both the categories is essential to know the extent to which women who are in the threshold of life have dared to break away with the bondage and act independently. Age-wise distribution of respondents is shown in Table 5.1.2.

Table 5.1.2. Distribution of Sample Women by Age SHG Units Non-SHG Units Sl. Age No. of No. of No group Mean Sample Percentage Mean Sample Percentage Women Women 01 Below 28 19 15.83 26 04 13.33 30 02 30-40 35 50 41.67 35 13 43.34 03 40 -50 45 47 39.17 44 09 30.00 04 50and 53 04 3.33 52 04 13.33 above Total 39 120 100.00 40 30 100.00 Source: Primary Data. 178 It is significant to note in the table that in both the categories only a small percentage of the sample women in the age group below 30 years have dared to come out of the shackles of family bound life. More than 80 per cent of the sample women in both the groups are found in the age group 30 to 50 years.

Age determines an individual’s physical growth, mental maturity and capacity to make decisions in life. The average age of entrepreneurs is 39 among SHG units and 40 among Non-SHG units. The incidence of a higher percentage of entrepreneurs in the age of 30 – 40 signifies that this is the age which is best suited to take up entrepreneurial responsibilities. This is the age at which on an average, children are grown up and independent, so that the women find more leisure time than earlier and decide to invest this leisure time productively. They are in a position to sort out problems that might come in their way. Srivastava (1994), Lalitha Rani D (1996), Manimekalai N and Rajeswari G (1998) have also found that women entrepreneurs take up ventures when they are around 35 years.

Marital Status of Women Entrepreneurs In the case of Indian Women marriage has acted as a social barrier to those who wish to pursue higher education and go for jobs. Early marriage which is widely prevalent in rural areas has acted as a great disincentive in this direction. In recent years with the spread of women education the trend is fast changing in rural areas. Many married women are coming forward to work and thereby supplement their family income. The marital status of the respondents in the present study is shown in Table 5.1.3

179 Table 5.1.3. Distribution of Sample Women Entrepreneurs on the Basis of Marital Status SHG Units Non-SHG Units Marital Sl.no No. of Sample No. of Sample Status Percentage Percentage Women Women 01 Married 102 85.00 21 70.00

02 Unmarried 04 03.33 02 06.67

03 Widow 08 06.67 04 13.33

04 Divorced 06 05.00 03 10.00

Total 120 100.00 30 100.00 Source: Primary Data.

The table reveals that marriage as a social institution has ceased to be a constraint to married women seeking economic and social empowerment. It shows that in both the categories of sample women more than 70 per cent have strayed from the trodden path and are seeking economic independence by starting or partaking in enterprises of their own.

The marital status of the sample women entrepreneurs revealed that majority of the entrepreneurs has started the units after marriage (85%). Theoretically speaking, women entrepreneurs are either forced or distressingly assume entrepreneurial occupations. It is always underlined that both push and pull factors contribute for the emergence of entrepreneurs. As such it is observed in this study that widows and divorces categories have been pushed to this occupation of running an enterprise of on own, either due to death of husband or other economic necessity. Even among the married categories, majority of the entrepreneurs have been observed to have assumed such activities as their husbands or fathers were not able to support and manage the family with 180 single earning. The presence of 3.33% in SHG units and 6.67% in Non- SHG units indicates that even young married women are opting for entrepreneurship to supplement the income of their families.

Religion wise Distribution The society is divided on religious basis and it is natural to expect that women belonging to the majority religion will dominate over others belonging to minority religions. Table 5.1.4 confirms this.

Table 5.1.4. Religion –wise Distribution of the Sample Women Entrepreneurs SHG Units Non-SHG Units Sl. No. of No. of Religion No. Sample Percentage sample Percentage women women 01 Hindu 102 85.00 26 86.67

02 Muslim 06 05.00 01 03.33

03 Christian 12 10.00 03 10.00

Total 120 100.00 30 100.00 Source: Primary Data.

It is evident from the table that in both the categories of sample women more than 85 per cent of the sample women belong to the majority Hindu religion.

Next to Hindu religion, a considerable number of entrepreneurs were Christians. As far as entrepreneurship is concerned, it is a distant dream for women belonging to Islamic religion. Hence compared to other two religions Islamic entrepreneurs are represented very less in number. They are minority community. It may also be due to the social constraints. 181 Religion is an important cultural pursuit in all-social groups from primitive to modern society. Like the various other sections of a society, women device their ideological and moral bases for their status and their institutionalized role from the religion (Murali Mohan K 1983).

In several countries, entrepreneurs have emerged from a particular socio-economic class. It has been suggested that certain religions encourage the growth of entrepreneurial ability. Max Weber (1968), in his protestant religious ethics underlines the fact that the entrepreneurial drive among such entrepreneurs was rooted in the religious compulsion to earn and part with a portion of it to religion. Such a belief in religion has activated earning potential and the entrepreneurial drive to expand their venture.

Community wise Distribution of the Sample Entrepreneurs Like religion, caste system too plays a significant role in India to determine the fate of people. This is true in the case of Indian women. Generally women belonging to forward castes prefer jobs both government and private as they ensure them economic security.

Table 5.1.5. Distribution of the Sample Women Entrepreneurs by Community SHG Units Non-SHG Units Sl. No. of No. of Community No. sample Percentage sample Percentage women women 01 Backward Community 62 51.67 12 40.00

02 Most-Backward 26 21.67 08 26.67 Community

03 Scheduled Caste/ST 32 26.66 10 33.33

Total 120 100.00 30 100.00 Source: Primary Data. 182 From the table it is clear that more than 65 per cent of the respondents in both the categories belong to backward and most backward castes. However, it is significant to note that more than 25 per cent of the respondents in both the categories belong to Scheduled Communities which have been subject to lot of suppression over years. This is indeed a welcome trend. The community-wise distribution also emphasizes the fact that entrepreneurial activity is no longer combined to the business community or the so called socially or economically forward communities. (Manimekalai N 1992). The traditionally weaker sections namely SCs was serving the richer communities for a long period. It is heartening to note that, SHGs have helped them to become managers of micro enterprises, which is really a breakthrough. The fact to be appreciated is that the policies of the Government and the encouragement given by the NGOs have covered vulnerable groups among the rural poor.

There are certain communities which tend to exhibit more entrepreneurial traits than others. Persons from the business community background show a better performance, than those from a non-business background (Manimekalai, 1999; Thangamuthu and Iyyampillai, 1992; Murugesan, 2000). 183 Caste Table 5.1.6. Caste-Wise Distribution of Sample Women Entrepreneurs SHG Units Non-SHG Units Sl. No. of No. of Caste No. Sample Percentage sample Percentage women women 01 Agamudaiyar 05 4.17 01 3.33 02 Ambalakarar 12 10.00 02 6.67 03 Chettiyar 11 9.17 01 3.33 04 Dhobi 03 2.5 - - 05 Goundar 03 2.5 02 6.67 06 Kallar 05 4.17 01 3.33 07 Kuyavar 04 3.33 02 6.67 08 Lebbai 06 5.0 01 3.33 09 Maravar 09 7.5 02 6.67 10 Nadar 08 6.67 01 3.33 11 Naidu 06 5.0 01 3.33 12 Pallan 16 13.33 06 20.00 13 Parayar 16 13.33 04 13.33 14 Sowrastra 02 1.67 01 3.33 15 Udaiyar 03 2.5 02 6.67 16 Vanniar 04 3.33 01 3.3 17 Vellalar 07 5.83 02 6.67 Total 120 100.00 30 100 Source: Primary Data. 184 Table 5.1.6 shows the caste-wise distribution of sample women. It is significant to note that more than 26 per cent of the sample women in both the categories belong to Pallan and Paraiyan communities which were treated as social outcastes over a long period of time. It is a matter of great satisfaction that poor people, irrespective of their castes and religions, are coming together for self-help and mutual help by way of SHGs.

Information regarding the caste wise distribution of sample women by activity of both the categories is provided in Table 5.1.7 and 5.1.8.

Table 5.1.7. Activity-wise Caste Distribution of Sample Women Entrepreneurs (SHG Units) Caste

Activity Agamudaiyar Agamudaiyar Ambalakarar Chettiyar Dhobi Gounder Kallar Kuyavar Lebbai Maravar Nadar Naidu Pallan Parayar Sowrastra Udaiyar Vanniyar Vellalar Total Percentage

Agriculture -- 06 ------02 -- -- 06 05 ------19 15.83 Animal rearing -- 01 -- 01 ------02 -- -- 05 06 ------15 12.5 Tailoring 02 -- -- 02 -- 01 -- 01 01 ------01 -- 01 01 10 8.35 Shield Work ------01 01 ------01 01 01 05 4.17 Petty Shop -- -- 02 ------01 02 -- 02 02 -- 01 02 -- 12 10.00 Pottering ------04 ------01 01 ------06 5.00 Chalk piece making -- -- 02 ------01 03 2.5 Beauty parlour ------01 -- 02 01 ------01 -- 01 06 5.0 Stationery stores -- -- 01 -- -- 01 -- 01 -- -- 01 ------01 05 4.17 Candle making 01 -- 01 -- -- 01 ------01 ------04 3.33 Catering 01 -- 04 ------01 -- 01 ------07 5.83 General stores ------01 01 -- -- 01 03 -- -- 01 ------07 5.83 Thanjavur doll and ------02 ------01 01 ------01 05 4.17 Art plate making Others 01 05 01 -- -- 01 -- 03 01 -- -- 01 01 01 -- -- 01 16 13.33 Total 05 12 11 03 03 05 04 06 09 08 06 16 16 02 03 04 07 120 100 % 4.17 10.00 9.17 2.5 2.5 4.17 3.33 5.0 7.5 6.67 5.0 13.33 13.33 1.67 2.5 3.33 5.83 100 -- Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making. 185 Table 5.1.8. Activity-wise Caste Distribution of Sample Women Entrepreneurs (Non-SHG Units)

Caste

Activity Agamudaiyar Ambalakarar Chettiyar Dhobi Gounder Kallar Kuyavar Lebbai Maravar Nadar Naidu Pallan Parayar Sowrastra Udaiyar Vanniyar Vellar Total Percentage Agriculture - 01 ------01 - - - - - 02 6.67 Animal rearing - 01 ------02 02 - - - - 05 16.66 Tailoring 01 - - - 01 01 - 01 ------01 - 01 06 20.00 Shield Work ------Petty Shop ------02 02 - - - - 04 13.33 Pottering ------02 - - - - 01 - - - - - 03 10.00 Chalk piece ------making Beauty parlour ------01 - - - - 01 - 02 6.67 Stationery stores ------Candle making ------Catering - - 01 ------01 ------01 03 10.00 General stores ------Thanjavur doll ------and Art plate making Others - - - - 01 - - - 02 - - - - 01 01 - - 05 16.67 Total 01 02 01 - 02 01 02 01 02 01 01 06 04 01 02 01 02 30 - % 3.33 6.67 3.33 - 6.67 3.33 6.67 3.33 6.67 3.33 3.33 20.00 13.33 3.33 6.67 3.33 6.67 100 100.00

Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

186

187 The tables show that of the total number of sample women entrepreneurs in SHG units is nearly 23 per cent, nearly 43 per cent of women entrepreneurs not attached to SHG units are engaged in small or tiny business like tailoring, petty shop and pottery. Schedule caste and Schedule tribal are mostly engaged in the activity of agriculture, animal rearing and petty shop. Also, it indicates that women entrepreneurs in particular are drawn from various communities and breaking the trend that only business communities could be in business. Most of the studies on entrepreneurship have established that social background especially the caste goes a long way in promoting entrepreneurship. The dominant caste to be those which are socially and economically advanced one (Brahmin, Vellalar, Mudaliar and Chettiar, these are classified as socially and economically forward communities by the state Government, Tamil Nadu). Cultural speaking, every community would have an heir in business, especially Maruthuvar communities are doing traditionally the business of beauty clinic, but in this study area among women none of Maruthuvar community is found.

Family Background It is generally believed that the joint family system which was the predominant type of family organization up to the first quarter of the twentieth century and which still dominates in certain packets of the country acted as a great disincentive to women seeking education and employment. With the disintegration of the joint family system and the evolution of individual family system women have earned the freedom to pursue education and vocation of their choice. Table 5.1.9 provides information about the family system-wise distribution of the women entrepreneurs of both the categories.

188 Table 5.1.9. Distribution of the Sample Women Entrepreneurs by Type of Family SHG Units Non-SHG Units Number of Number of Sl. Type of women women No. Family entrepreneurs Percentage entrepreneurs Percentage 1 Joint 28 23.33 08 26.67 2 Nuclear 92 76.67 22 73.33 Total 120 100.00 30 100.00 Source: Primary Data. It is seen in the table that there is not much difference between the two groups of women entrepreneurs with regard to distribution between joint and individual families. In both the categories absolute majority of the women entrepreneurs are from individual or nuclear families.

It is proved in many studies that the majority of the women entrepreneurs emerge from nuclear families rather than from large and medium families (Shah (1985), Singh, Sehga, Madan Tithani and Rita Sengupta (1986) and Takshak Renu (1990)). An independent family environment is favourable for promoting management potential among women entrepreneurs (Lalitha Rani, 1996). The reason for the relatively larger number of women entrepreneurs from nuclear families is that women in these families have leisure time and are free to make plans and take decisions on their own. In the joint families they have to spend more time in their household activities, wait for opinions and consent from one and all in their families.

There is another school of thought who tends to support the view that joint families are necessary if women are to take up outside employment or ventures. They facilitate freedom for taking up 189 entrepreneurial ventures by ensuring better care of children. But a co- operative mode of dealing with such a situation is a necessary condition; otherwise joint families would be a burden instead of a blessing for business women.

The studies by Singh (1992), Anna (1990), Surti and Sarupriya (1983) show that nuclear and joint families had certain advantages and disadvantages in facilitating entrepreneurship.

Size of the Family Apart from the structure of the family the size of the family in terms of the number of members is one of the constraints to women seeking jobs and economic independence. Bigger the size of the family less will be the scope for women to seek jobs outside. Major part of their time will be taken by household work. Table 5.1.10 portrays the distribution of the sample women entrepreneurs belonging to both the categories on the basis of the size of their families. Table 5.1.10. Distribution of the Sample Women Entrepreneurs by Size of Family SHG Units Non-SHG Units Sl. Family Total Total No. Size Sample Percentage Sample Percentage Women Women 1 Below 3 22 18.33 06 20.00 2 4-6 92 76.67 17 56.67 3 7 and 06 05.00 07 23.33 Above Total 120 100.00 30 100.00 Mean 4.22 - 4.75 - Source: Primary Data. 190 It is clear from the table that majority of the women entrepreneurs in both the categories hail from families comprising of 4 to 6 members. Moreover with the intervention of the state, the size of the family has come to be limited. The size of the family either pushes or pulls the women to assume entrepreneurship. If the size of the family is too large, women cannot choose business as their household responsibilities would suffer them. However depending on the economic background, they may also be pulled to entrepreneurship, though they belong to large sized families. The size of the family either discourages the women or forces the women depending on economic necessity.

Table 5.1.11 and 5.1.12 are further elaboration of the size of the family of women entrepreneurs on the basis of occupation they are engaged in.

Table 5.1.11. Size of the Family of the Sample Women Entrepreneurs [SHG Units] – Occupation-wise

Activities

Family Size Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store and Thanjavur doll Art plate making Others Total %

Below 3 02 02 01 01 03 - - 01 03 - 01 02 03 03 22 18.33

4-6 17 13 08 04 08 06 03 03 02 04 06 04 02 12 92 76.67

7 and Above - - 01 - 01 - - 02 - - - 01 - 01 06 05.00

Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100

Percentage 15.83 12.5 8.33 4.17 10.00 5.00 2.5 5.00 4.17 3.33 5.83 5.83 4.17 13.33 100 -

Mean 4.32 4.00 4.70 4.40 3.83 4.17 4.00 5.33 4.00 4.00 4.14 4.14 3.40 4.31 4.22 - Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

191

Table 5.1.12. Size of the Family of the Sample Women Entrepreneurs (Non-SHG Units) – Occupation-wise

Activities

Family Size Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store and Thanjavur doll Art plate making Others Total %

Below 3 01 - 01 - 01 - - 01 - - 01 - - 01 06 20.00

4-6 01 03 04 - 02 02 - 01 - - 02 - - 02 17 56.67

7 and - 02 01 - 01 01 ------02 07 23.33 Above

Total 02 05 06 - 04 03 - 02 - - 03 - - 05 30 100

Percentage 6.67 16.67 20.00 - 13.33 10.00 - 6.67 - - 10.00 - - 16.67 100 -

Mean 4.5 5.8 4.33 - 5.00 5.33 - 4.0 - - 3.67 - - 5.4 4.75 - Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

192 193 Majority of the women entrepreneurs’ family has medium size family with 4 to 6 persons. Overall mean of the women entrepreneurs’ family size is 4.22 to SHG units and 4.75 to Non-SHG units. However, in the entrepreneurial context, the small size of the family has been in tune with the requirement of the time of both the members (husband and wife) of the family, to look after the business. There are other factors say, economic and social compulsions which must have driven them to particular activity or mere openings only such activities or the existing demand, suitability to their entrepreneurial career etc. rather than size of the family. Hence size of the family may not be an important determinant of choice of activity, compared to other structural and cultural compulsions or constraints.

Nature of House In the Indian social panorama the type of house owned by an individual is one of the indicators to his social status. People who do not own a house of their own and who live in rented houses are looked upon as second grade citizens. Table 5.1.13 shows the type of house owned by both the categories of sample women entrepreneurs.

Table 5.1.13. Type of House Owned by Sample Women Entrepreneurs

Sl. SHG Units Non-SHG Units Nature of houses No. of Houses % No. of Houses % No. Owned % Rented % Owned % Rented %

01 Concrete 23 20.91 06 60 29 24.17 04 16 02 40 06 20

02 Tiled 52 47.27 04 40 56 46.67 11 44 03 60 14 46.67

03 Thatched 35 31.82 - - 35 29.17 10 40 - - 10 33.33

Total 110 100.00 10 100 120 100.00 25 100 05 100 30 100.00

Percentage 91.67 - 8.33 - 100.00 - 83.33 - 16.67 - 100.00 -

Source: Primary Data.

194 195 It is evident from the table that more than 50 per cent of the women entrepreneurs in both the categories own pucka houses either tiled or concrete roofed. A significant percentage of the women entrepreneurs live under own thatched roofs. Therefore those who are having own houses are relieved from paying rent. It is observed that the entrepreneurs who reside in rented houses have to spend their income for house rent besides attending to their basic necessities. In this ownership of house, there is no difference observed among the women of SHG and Non-SHG categories. This indicates the nature of economic commitments and their social background. The women of micro enterprises are venture to entrepreneurship provision for economic reasons.

Education Education is one of the major factors which have enabled the emancipation of women in recent time and that have provided them the sustenance to work for their economic independence. Education gives necessary base to equip the entrepreneurs to benefit from entrepreneurial opportunities. An entrepreneur has to deal with a number of formal situations such as dealing with officials, functionaries, customers, etc. This requires a minimum level of education. A basic level of education is reported to be important for an entrepreneur (Bhattacharya, 1979). The World Development Council in its Annual Report (1981) rightly stated that the education of women is the best resource for all developmental programmes. According to Malarmangai and Leelavathi (1992), education has an influence on income, because, the education gives them courage to take up ventures. Therefore, education is always looked upon to be a means to improve one’s socio economic status in the society in the developing economy. Table 5.1.14 shows the educational status of the respondents. 196

Table 5.1.14. Educational Status of the Sample Women Entrepreneurs SHG Units Non-SHG Units Sl. Educational No. of No. of No. Status Sample Percentage Sample Percentage Women Women 01 Up to 18 15.00 12 40.00 Primary 02 Middle 37 30.83 11 36.67 School 03 High School 38 31.67 05 16.67 04 Higher 15 12.50 02 06.66 Secondary 05 Graduate 08 06.67 - - 06 Post 04 03.33 - - Graduate Total 120 100.00 30 100.00 Source: Primary Data.

Table shows that educational status wise women entrepreneurs in SHG units are better compared to their counterparts in Non-SHG units. There are a few graduates and post-graduates among them.

The educational profile indicates that the majorities of the sample entrepreneurs are not able to go for higher education but are still able to become entrepreneurs. Many studies which have found that there is no significant relationship between education and entrepreneurship Manimekalai (1992), Thangamuthu and Iyyampillai (1992), Rajeswari and Manimekalai (1998), Rekha R. Gaonkar (1999) in a study conducted in south Goa has however shown that a significant percentage of women 197 entrepreneurs are illiterate but are successful in their endeavours. There are several success stories among large corporates. Reliance Ambani, VG Panneerdas, The Bata Shoe Company, Nalli Silks etc were started by men who had no formal education but they become giants in the field. It is to be mentioned that the rural women choose micro enterprises primarily due to availability of time, the existing demand and to earn for their subsistence. In this context, education may not be a pre condition for entry into entrepreneurship. Rather experience which is practical learning may be a driving force.

Parental Occupation It is generally believed that women belonging to rural households are not allowed by their husband / father to go in search of job. The trend is gradually changing as is evident from Table 5.1.15.

Table 5.1.15. Distribution of Sample Women Entrepreneurs by the occupation of their Husband / Father

Sl. SHG Units Non-SHG Units Occupation No. Husband % Father % Total % Husband % Father % Total %

1 Agriculture 22 21.57 02 25.0 24 20 06 28.57 01 16.67 07 23.33

2 Business 19 18.63 - - 19 15.83 03 14.29 - - 03 10.00

3 Govt employed 07 06.86 - - 07 5.83 02 9.52 - - 02 06.67

4 Privately employed 21 20.59 01 12.5 22 18.33 05 23.81 01 16.67 06 20.00

5 Agricultural labourers 20 19.61 01 12.5 21 17.5 03 14.29 02 33.33 05 16.67

6 Daily Wage earners 13 12.74 02 25.0 15 12.5 02 9.52 01 16.67 03 10.00

7 Retired - - 02 25.0 02 1.67 - - 01 16.67 01 03.33

8 No parental occupation - - - - 10 8.34 - - - - 03 10.00

Total 102 100 08 100.0 120 100 21 100 06 100 30 100.00 Source: Primary Data.

198 199 The table shows that a significant per cent of the women entrepreneurs from both the categories are from agricultural household. It must be appreciated that some women without any business or industrial background whose parents or husbands are daily wage earners, could also be represented in entrepreneurial activities. They are from diverse backgrounds and prove successful, contrary to the general belief that only persons from business background could enter into and sustain entrepreneurial activities. This has a bearing on the present policies of the state namely privatization and liberalization in which there is declining scope for wage employment and increasing opportunities for self employment.

Previous Occupation of the Women Entrepreneurs Indian women for a very long time were tied to their work in their household and farm. Only recently they ventured to stray from the trodden path in search of better pasture.

200

Table 5.1.16. Distribution of the Sample Women Entrepreneurs on the Basis of Previous Occupation SHG Units Non-SHG Units Sl. No. of No. of Occupation No. Women Percentage Women Percentage entrepreneurs entrepreneurs 01 Farming 42 35.00 06 20.00

02 Non- 15 12.50 02 06.67 Farming

03 Business 12 10.00 04 13.33

04 Private 09 07.50 03 10.00 Company

05 House 30 25.00 12 40.00 Keeping

06 Others 12 10.00 03 10.00

Total 120 100.00 30 100.00 Source: Primary Data.

Table 5.1.16 shows the occupation of the women entrepreneurs before they joined the SHGs or started to work independently.

Table 5.1.17. Activity-Wise Previous Occupation of the Sample Women Entrepreneurs Previous Occupation(SHG Units) Previous Occupation (Non-SHG Units)

y g

Activity an in p p Others Total % Farming Non Farming Business Private Company House Keeping Others Total % Farming Non Farming Business Private Com House Kee Agriculture 19 - - - - - 19 15.83 02 - - - - - 02 6.67 Animal rearing 15 - - - - - 15 12.5 03 - - - 02 - 05 16.67 Tailoring - 02 01 01 02 04 10 8.33 - - 02 - 03 01 06 20.00 Shield Work - 02 01 01 01 - 05 4.17 ------Petty Shop 04 02 02 01 02 01 12 10.00 01 - - 01 02 - 04 13.33 Pottering 02 01 - 01 02 - 06 5.00 - 02 - - 01 - 03 10.00 Chalk piece making - 01 01 - 01 - 03 2.50 ------Beauty parlour - - - - 04 02 06 5.00 - - - - - 02 02 6.67 Stationery stores - - 01 01 02 01 05 4.17 ------Candle making - - 01 01 01 01 04 3.33 ------Catering - 02 01 01 02 01 07 5.83 - - 02 - 01 - 03 10.00 General stores 02 - 02 01 01 01 07 5.83 ------Thanjavur doll and Art plate making - 01 01 01 02 - 05 4.17 ------Others - 04 01 - 10 01 16 13.33 - - - 02 03 - 05 16.69 Total 42 15 12 09 30 12 120 100 06 02 04 03 12 03 30 100 % 35 12.5 10.00 7.5 25 10 100 - 20.00 6.67 13.33 10.00 40.00 10.00 100 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

201 202 This table is an elaboration of the previous occupation of women entrepreneur’s activity wise. A significant percentage of the present women entrepreneurs were working in farms and households before they have began their own business. The table reveals that the majority of the women entrepreneurs among SHG units were engaged in farm-based activities, indicating thereby the traditional nature of the enterprises they are continuously followed by rural women entrepreneurs. 25 per cent of women in SGSY assisted SHG Units had not had any paid employment as such. They had been doing only housekeeping. Now the SGSY scheme has enabled them to engage themselves in various kinds of activities.

Previous Experience of the Women Entrepreneurs Women entrepreneurs in rural India have had varying quantum of service in various activities in the rural sector such as farming, dairy farming, petty business and household work. Details of the previous experience of the present women entrepreneurs and the particulars of the same, activity wise are furnished in Table 5.1.18 and Table 5.1.19. Table 5.1.18. Previous Experience of the Sample Women Entrepreneurs SHG Units Non-SHG Units Sl. Experience(in No. of No. of No. years) Sample Percentage Sample Percentage Women Women 01 Below 03 33 27.50 07 23.33 02 03-06 29 24.17 05 16.67 03 06 and Above 28 23.33 06 20.00 04 No experience 30 25.00 12 40.00 Total 120 100.00 30 100.00 Source: Primary Data. 203 The previous experience of the entrepreneurs either in same or related field plays a very important role in determining the success of the enterprise. Many empirical studies pointed out that there is a positive relationship between the previous experience and entrepreneurial performance. (Manimekalai, 1997, Thangamuthu and Manimekalai, 1989; Gangadhara Rao, 1985).

The previous experience is defined as the experience derived before starting the enterprise, by either working with family business or outside. The previous experience gained from same or related line in particular could help entrepreneurs to achieve desired results and realize something remarkably well. About 60 per cent of the successful entrepreneurs had required considerable previous work experience (Thangamuthu and Manimekalai, 1989). In this study 25 per cent of SHG entrepreneurs and 40 per cent of Non-SHG entrepreneurs did not have any previous experience. Majority of the entrepreneurs have got previous experience of more than 3 years. But almost all the entrepreneurs have got previous experience in the same or related line. Women in the traditional nature of activity of agriculture are with more years of experience and on the other, the modern and manufacturing nature of activities women have with less years of experience. Thus, previous experience helps them not only in selecting the particular business activity but also helps them to find out the market, to understand the knowledge of technical skill, awareness of government norms along with SHG relating to available opportunities to women. It must be mentioned that the previous experience does not refer to engaging in business but even as a labourer.

Table 5.1.19. Activity-Wise Previous Experience of the Sample Women Entrepreneurs

SHG Units Non-SHG units Activity Experience (in Years) Experience (in Years) Below- 03- 06 and No Below- 03- 06 and No Total Average Total Average 03 06 Above Experience 03 06 Above Experience Agriculture - 09 10 - 19 5.05 - - 02 - 02 6.5 Animal rearing - 07 08 - 15 6.06 - 02 01 02 05 4.00 Tailoring 02 04 02 02 10 4.0 02 01 - 03 06 2.67 Shield Work 03 01 - 01 05 1.5 ------Petty Shop 05 03 02 02 12 3.4 01 - 01 02 04 4.5 Pottering 04 - - 02 06 2.0 - 02 - 01 03 3.5 Chalk piece - 01 01 01 03 7.5 - - - - - making Beauty parlour 02 - - 04 06 2.0 02 - - 02 1.5 Stationery stores 02 - 01 02 05 5.33 ------Candle making 02 - 01 01 04 6.33 ------Catering 03 01 01 02 07 4.2 01 - 01 01 03 4.5 General stores 03 02 01 01 07 4.0 ------Thanjavur doll 03 - - 02 05 2.0 ------and Art plate making Others 04 01 01 10 16 3.83 01 - 01 03 05 4.00 Total 33 29 28 30 120 4.09 07 05 06 12 30 3.90 % 27.5 24.17 23.33 25.00 100 - 23.33 16.6720.00 40.00 100 - Average 1.5 4.0 6.77 - 4.09 - 1.14 4.40 6.16 - 3.9 - Source: Primary Data . Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

204 205

Activity-wise experience of the entrepreneurs reveals that the mean years of experience has been 4 years. The year of previous experience is above this average for agriculture, animal rearing, chalk piece making, stationery stores and candle making. The least experience units are shield work, pottering, Beauty Parlour and Thanjavur doll and Art plate making. However women entrepreneurs from the SHG group have more experience than those from Non-SHG group.

Reasons for Joining the SHG Women join SHGs for various reasons. The various motivating factors and their relative importance are given in Table 5.1.20.

Table 5.1.20. Motive of Sample Women Entrepreneurs to Join SHG Units SHG Units Sl. No. Reasons Score Rank 01 To get social status 341 VIII 02 To get education 368 VII 03 To utilize talents 461 V 04 To get loan 589 III 05 To promote savings 619 II 06 To become an Entrepreneurs 527 IV 07 To exchange ideas 417 VI 08 Motivated by NGOs/Government officials 693 I Source: Primary Data.

In this Table the various motivating factors have been ranked on the basis of the scores given by the sample women. Of the 8 motives 206 mentioned by the women entrepreneurs support given by NGOs / governmental agencies, desire to save and the desire to avail credit occupy the first three places. This finding is in conformity to the findings of Amudha Rani and Devi (2007) and Padmavathi (2002).

One of the reasons for joining SHGs is to avails credit (Rao, 2002), which is true in the present study area. SHG are the boon to the rural people, because instead of approaching banks individuals, SHGs can easily approach the banks and other institution to get loan. The SHG get loan from credit institutions then, they refinance (share) to the members in the SHGs. The SHGs charge reasonable interest. Other reasons too are insignificant, say exchange ideas, to get education, to get social status etc.

Size of the Sample SHGs The number of members in a group ranges from 12 to 20 as per the stipulations of the Tamil Nadu Women Development Corporation and other agencies. The Self Help Groups (SHGs) to which the women entrepreneurs belonging are of different sizes. The distribution of size of the group of women entrepreneurs activity-wise is shown in Table 5.1.21.

Table 5.1.21. Activity Wise Distribution of the Sample Women Entrepreneurs in the Size of Self Help Groups (SHGs)

Size of Sl. the No. group members Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total %

01 12-14 05 03 04 01 02 01 02 01 01 01 - 02 - 08 31 25.83

02 15-17 06 03 03 01 02 02 - 02 01 01 03 02 02 04 32 26.67

03 18-20 08 09 03 03 08 03 01 03 03 02 04 03 03 04 57 47.5

Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100.00

Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

207 208 The table shows that nearly 48 per cent of the SHG women entrepreneurs engaged in various activities whose size varies from 18 to 20 members. Majority of the women entrepreneurs engaged in the activities of Agriculture, Animal rearing and petty shop have a membership of 18-20. Normally, the size of the group depends on the homogeneity of the group, in terms of social and economic conditions i.e., community, occupation, income etc.

Monthly Savings Pattern of SHG Members One of the motivating factors of women entrepreneurs is the desire to save and use the saving to repay debts / pay interest and to meet contingency expenses. The monthly savings of the SHGs sample women entrepreneurs are shown in Table 5.1.22.

Table 5.1.22. Monthly Savings by the SHG Women Entrepreneurs (in Rs.) SHG Units Sl. Amount of Monthly No. of women No. Savings (In Rupees) Percentage entrepreneurs 01 Up to 75 27 22.50 02 76-100 77 64.17 03 101-125 12 10.00 04 Above 125 04 3.33 Total 120 100.00 Source: Primary Data. It is encouraging to note that all the women entrepreneurs save money and that more than 77 per cent save more than Rs.75/- a month which is indeed a significant amount considering as saving. Table 5.1.23 shows the savings earned by the sample women engaged in different activities.

Table 5.1.23. Monthly Savings of the Sample Women SHG Members Engaged in Various Activities

Activity

Amount of Sl. No. Monthly Savings Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total

01 Up to 75 08 06 - - 05 01 01 - - 01 - - - 05 27

02 76-100 11 09 08 02 07 05 02 02 03 03 05 06 04 10 77

03 101-125 - - 02 02 - - - 02 02 - 02 01 01 - 12

04 Above 125 - - 01 - - - 02 - - - - 01 04

Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

209 210 It is observed from the table that only 4 members are able to save more than Rs.125/- per month. They are engaged in the activities of shield work, beauty parlour and photo lamination (included in activity of others). The rationale behind converting individual savings into group funds is not just to facilitate group formation but for the utilization of poor women’s resources for women entrepreneurs own progress. In fact a silent revolution is taking place among the rural women through these savings and their recycling. The economic impact of the “saving movement” has been availability of timely credit at least cost. It is to be mentioned that the saving is lent for all purposes including for consumption, investment and unproductivity and productivity expenses. It may be mentioned that group members also go beyond saving in attending to the needs of member’s families during funerals, festival or ceremonial occasions. Women Entrepreneurs help each other sharing the financial responsibility.

Periodicity of Savings The savings of the women entrepreneurs are not made in a day. Depending upon the circumstance the women entrepreneurs opt for weekly, fortnightly and monthly savings. The frequency of saving of women entrepreneurs and the particulars of the same activity-wise are furnished in Tables 5.1.24 and 5.1.25. Table 5.1.24. Period of Savings of Sample SHG Women Entrepreneurs SHG Units Sl. No. Frequency No. of Sample Women Percentage 01 Weekly 24 20.00 02 Fort-nightly 32 26.67 03 Monthly 64 53.33 Total 120 100.00 Source: Primary Data.

Table 5.1.25. Period of Savings of the Sample SHG Women Entrepreneurs Activity-wise

Activity

Sl. No. Frequency Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total

01 Weekly 09 07 - - 06 ------02 24

02 Fort Nightly 08 05 - - 04 03 01 - - - - 02 02 07 32

03 Monthly 02 03 10 05 02 03 02 06 05 04 07 05 03 07 64

Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120

Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

211 212 From the Table, it is clear that majority of the women entrepreneurs prefer saving on monthly basis and that weekly and fortnightly savings are restricted to a few trades only. The savings performance shows their unity and increasing frequency of savings reveals their dynamism and commitment. It is not that the group functions smoothly always, with full participation, attendance, enthusiasm and commitment from all the members. But still the women learn to accommodate everything and able to take off the group to heights.

Reasons for Savings Women entrepreneurs attached to SHGs have developed a desire to save with an assured income and the support extended by government and NGOs. Various studies undertaken early have brought out the motives of individual entrepreneur to save a part of their earnings. The present study has revealed that the women entrepreneurs have developed a desire to save and their desire is governed by six variables mentioned in Table 5.1.26. Table 5.1.26. Reasons for Savings by the Sample Women Entrepreneurs Sl. SHG Units Reasons No. Score Rank 01 Business expansion 445 II 02 Children’s education 510 I 03 For Pilgrimage / Social function 297 V 04 To buy land 249 VI 05 To build a House / To repair House 396 III 06 To buy consumer durables 322 IV Source: Primary Data. 213 In the Table the six variables governing the desire to save of the sample women have been ranked according to the score given by the women entrepreneurs. Education of children, business expansion and the desire to buy a new house or undertake repairs in the existing one occupy the first three places in the estimation of the women entrepreneurs.

For instance social functions and consumer durables were least in the priority. However the foremost priorities are children’s education and business expansion. Anyhow, the point to be understood is that the women in SHGs do not always save for unproductive expenditure alone i.e., festivals or social functions or such other unimportant needs but only for essential investment based future oriented, business related expenses as revealed in the table 5.1.26.

Borrowing Pattern The success of SHGs and other related programmes was possible only through micro finance facility to the poor and needy women members of the group. The origin of micro finance can be traced to the Grameen Bank model in Bangladesh. There has been a considerable decline in borrowing from non-institutional sources with the launching of micro finance. Particulars of micro credit availed by various enterprises attached to SHGs as well as Non-SHG enterprises, during 2002-2007 are furnished in Table 5.1.27. Table 5.1.27. Particulars of Borrowed Capital of SHG and Non-SHG Units (in Rupees)

SHG Units Non-SHG Units External Borrowings External Borrowings Sl. Internal Activity Total Others No. Borrowings SGSY Bank Money Private Total RF Bank Total Borrowing (Friends & (SHG) (EA) Loan lender Finance Borrowings Relatives) 01 Agriculture 8026.32 23874.05 1310.42 3052.63 28237.1 36263.42 - 15416 4996 5100 25512 02 Animal 9133.33 22957.13 1064.6 3100 27121.73 36255.06 - 12400 7410 8500 28310 rearing 03 Tailoring 9700 24457.7 1033.6 2870 28361.3 38061.3 10550 16604 - 2352 29506 04 Shield Work 15400 22440.2 1452 7900 31792.2 47192.2 - - - - - 05 Petty Shop 7458.33 22031 1168.5 2166.67 25366.17 32824.5 - 20210 - 4206.5 24416.5 06 Pottering 15833.33 23003.33 1378.67 1833.33 26215.33 42048.66 - 12604.6 3299.6 3212.4 19116.6 07 Chalk piece 10000 26289.33 1309 3041.67 30640 40640 - - - - - making 08 Beauty 10666.67 22605.5 1335 2833.33 26773.83 37440.5 12500 8126 3210 3330 27166 parlour 09 Stationery 8200 23019.6 1271.2 3000 27290.8 35490.8 - - - - - stores 10 Candle 8250 23566.25 964 2750 27280.25 35530.25 - - - - - making 11 Catering 13000 21718 1230.57 2500 25448.57 38448.57 8215 12410 2285 3490 26400 12 General 15000 24800.29 1187.29 4571.43 30559.01 45559.01 - - - - - stores 13 Thanjavur 12800 22280.4 1116.4 2100 25496.8 38296.8 - - - - - doll and Art plate making 14 Others 9000 25480.13 1261.06 3625 30366.19 39366.18 - 16404.5 6540 6367.5 29312 Total 10890.57 23465.92 1220.17 3238.86 27924.95 38815.52 3908.13 14271.89 3467.58 4569.8 26217.39 Source: Primary data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

214 215

Correlations Total external borrowings .850** Borrowings from SGSY Pearson correlation Sig(2-tailed) .000 N 120 **. Correlation is significant at the 0.01 level (2-tailed).

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .850a .722 .720 2195.52941 a. Predictors: (Constant), External Borrowing

ANOVAb Model Sum of Squares df Mean Square F Sig. 1 Regression 1.477E9 1 1.477E9 306.392 .000a Residual 5.688E8 118 4820349.374 Total 2.046E9 119 a. Predictors: (Constant), External Borrowing b. Dependent Variable: Economic Assistance

Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 4536.002 1104.462 4.107 .000 External .681 .039 .850 17.504 .000 Borrowing a. Dependent Variable: Economic Assistance

216 It is significant to note in the table that while SHG units have internal and external sources of borrowing, Non-SHG units depend mainly on external sources only. The average internal borrowings of SHG enterprises is Rs.10,890/-. They are availed from the resources of the SHG units. External sources of borrowing are SGSY (EA), RF, and Banks. It is significant that these units have not availed any credit from non- institutional finances such as money lenders, indigenous finance and friends and relatives. The total credit availed by SHGs from external sources is more than three times the internal borrowing. Correlation and ANOVA tests shows that there is a positive correlation between external borrowings and SGSY (EA) of SHGs. The correlation is significant at 1 per cent. Therefore, the hypothesis that there is a significant positive correlation between external borrowings and S.G.S.Y. (EA) is accepted as true. It is to be noticed that loan assistance by the SHGs depends mostly on the gradation, performance and financial discipline shown by the group.

Number of Times Loan Availed Table 5.1.28 shows the number of times the women entrepreneurs have availed credit during the period of study. Women entrepreneurs attached to SHGs have borrowed more number of times than their counterparts who are outside the ambit of SHGs.

Table 5.1.28. Activity-wise Number of Times Loan Availed by Sample Women Entrepreneurs

SHG Units Non-SHG Units Sl. Activity No of times loan availed No of times loan availed No. Total Total Below 3 3-5 5-7 7&above Below 3 3-5 5-7 7&above 01 Agriculture 01 09 07 02 19 01 01 - - 02 02 Animal rearing 01 06 06 02 15 03 01 01 - 05 03 Tailoring 01 04 04 01 10 04 01 01 - 06 04 Shield Work - 02 02 01 05 - - - - - 05 Petty Shop 01 06 04 01 12 02 02 - - 04 06 Pottering - 03 03 - 06 01 01 01 - 03 07 Chalk piece - 01 02 - 03 - - - - - making 08 Beauty parlour - 02 03 01 06 01 01 - - 02 09 Stationery - 02 02 01 05 - - - - - stores 10 Candle making - 02 02 - 04 - - - - - 11 Catering - 02 03 02 07 02 - 01 - 03 12 General stores 01 03 03 - 07 - - - - - 13 Thanjavur doll 01 02 02 - 05 - - - - - and Art plate making 14 Others 01 02 12 01 16 02 02 01 - 05 Total 07 46 55 12 120 16 09 05 - 30 Percentage 5.83 38.33 45.84 10.00 100.00 53.33 30.00 16.67 - 100.00 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

217 218 It is inferred that the availability of institutional credits has given women entrepreneurs of SHGs to avail credit on more occasions. It is observed that repeatedly all of them had involved in availing loan. The SHG entrepreneurs have borrowed more than 7 times at a lower rate of interest is to be appreciated from the point of view of the rural women entrepreneurs. None of the sample entrepreneurs have stopped with a single loan which implies (i) the prompt repayment (ii) expansion of the units (iii) encouragement of the financial institution by way of continuously sanctioning additional loan and above all (iv) the affordable interest charged. Around 45 per cent of the women entrepreneurs availed more than five loans of the SHG category. This shows that SHG members have been regularly taking loans from the groups and repaying the loan promptly. It indicates that the women entrepreneurs view the loan productively, use it to generate income.

Loan Repayment One of the tasks assigned to SHGs is to enable their members to develop the habit of prompt repayment of loans availed by them from different sources. The promptness of women entrepreneurs in repaying loans is shown in Table 5.1.29.

219 Table 5.1.29. Repayment of Loan by SHG and Non-SHG Units

SHG Units Non-SHG Units Sl. Particulars No of No of No. women Percentage Women Percentage entrepreneurs entrepreneurs

01 Repayment 34 28.33 07 23.33 in time

02 Repayment 29 24.17 06 20.00 in advance

03 Repayment 57 47.50 17 56.67 not in time

Total 120 100.00 30 100.00 Source: Primary Data.

As far as loan repayment is concerned the performance of SHG women entrepreneurs is better than that of the counterparts in the Non- SHG group. This is partly due to the encouragement given by NGOs for prompt repayment of loans. This is in conformity with the findings of Anjugam and T. Alagumani (2001) in their study of the impact of micro finance in Madurai District of Tami Nadu. Banks, Small Industries Development Bank of India (SIDBI) and Non Government Organisation (NGOs) have been assisting rural poor by creating awareness among staff and villagers for better utilization of credit, by participatory financing for the education, health, sanitation, better living conditions etc. and through mobilizing small savings and generating rural employment.

Regular borrowing, borrowing for production purposes, moving away from the money lenders, utilization of loans for the right purposes, prompt repayment are some of the important indicators which speak of the 220 impact of the SHGs on the members. The repayment of loans by the women entrepreneurs on the whole is satisfactory.

Sources of Repayment Before some years back rural folk borrowed money for the purpose of repaying old loans thereby accentuating the indebtedness. Some time the property is sold for repaying loans. With the advent of SHGs the trend has been changed. With the help from NGOs and government agencies women entrepreneurs have developed the capacity to repay loans from women entrepreneurs own means. This is evident from Table 5.1.30.

Table 5.1.30. Sources of Repayment for Sample Women Entrepreneurs

SHG Units Non-SHG Units Sl. Repayment sources No. No of No of Sample Percentage Sample Percentage women women

01 Through Profit 106 88.33 11 36.67

02 Through borrowing - - 04 13.33

03 Through sale of - - - - property

04 Others(savings + 14 11.67 12 40.00 profit+ own fund +borrowing)

05 Nil - - 03 10.00

120 100.00 30 100.00 Source: Primary Data. 221 The table shows that the women entrepreneurs of SHGs are better placed than the counterparts in Non-SHG groups as more than 88 per cent of these women entrepreneurs have reported that they are repaying their loans from their profit.

Training Women entrepreneurs are in need of training so as to manage the micro enterprises. The training must be an intensive, field-based and product specific. In the case of present women entrepreneurs coming within the ambit of SHGs more than 77 per cent have stated that they have undergone training. Particulars of trained respondents in various activities are furnished in Table 5.1.31.

Table 5.1.31. Activity wise Distribution of the Sample SHG Women Entrepreneurs who have Undergone Training

Activity

Training Received Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total %

Yes 17 09 10 05 08 06 03 06 01 04 07 05 05 07 93 77.5

No 02 06 - - 04 - - - 04 - - 02 - 09 27 22.5

Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100.00 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

222 223 Activity wise distribution of sample entrepreneurs by training (table 5.1.31) reveals that 27 per cent of the entrepreneurs did not attend any training programmes related to the occupation for it the women entrepreneurs always felt shortage of time as children’s education and domestic work required quite a lot of time. It may also be true that those entrepreneurs, who did not attend any training, might not have required such training as they are engaged in activities which are agricultural-based or farm based.

The number of training programmes attended by each one of the respondents is given in Table 5.1.32.

Table 5.1.32. Activity wise Number of Training Programmes Attended by the Sample SHG Women Entrepreneurs

Activity

Sl. No. No of Training Program Attended Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total % 01 One Programs(A and R) - 03 - - 03 ------06 5.00 02 Two programs(EDP) 17 06 03 - 05 04 01 - 01 02 - 05 - 05 49 40.83 03 Three Programs(skill) - - 03 02 - 02 02 04 - 02 03 - 02 02 22 18.33 04 Four Programs (Skill upgradation) - - 02 02 - - - 01 - - 02 - 02 - 09 7.5 05 All Programs(Awareness) - - 02 01 - - - 01 - - 02 - 01 - 07 5.83 06 Sub Total 17 09 10 05 08 06 03 06 01 04 07 05 05 07 93 77.5 07 Not attended 02 06 - - 04 - - - 04 - - 02 - 09 27 22.5 Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100.00 Source: Primary Data. Note: (1) A and R – Animator and Representative; EDP – Entrepreneurships Development Programme (2) Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

224 225 A strong and cohesive SHG can be formed only by giving systematic training, adopting a participatory method. Banks, Government agencies and NGOs are important agencies that impart training to the members. These organisations organize various training programmes for SHGs such as orientation training, EDP training, skill building and upgradation training, workshop exposure visits etc. It is significant to note that 40.83 per cent of the women entrepreneurs have undergone two training courses, i.e., Entrepreneurship Development Programme (EDP) and the Animator and Representative training. Entrepreneurship Development Programmes (EDP) which gives inputs on how to initiate enterprises, the procedure for registration etc. More than 30 per cent of the Sample Women have completed more than two training programmes and they are engaged in the modern and manufacturing nature of activities.

Reasons for Selecting Present Business Each of the women entrepreneurs in SHG category has been selected to a particular activity. It may be for one or more reasons. The reasons given have been catalogued in Table 5.1.33. The table furnishes the reasons furnished by the other category of respondents (Non-SHG) also.

226 Table 5.1.33. Reasons for the Choice of the ‘Present’ Activity Sl. SHG Units Non-SHG Units Factors No. Score Rank Score Rank 01 Training received 630 I - - 02 Family Business 455 IV 98 III 03 Previous experience 364 V 82 IV 04 Constant demand 228 VIII 68 V 05 Easy marketability 275 VII 58 VI 06 High profit margin 355 VI 53 VII 07 To be self employed 584 II 127 I 08 Can be done as a 550 III 108 II household activity Source: Primary Data. On the basis of the weighted score assigned by the women entrepreneurs for various motivating factors have been ranked. In the case of SHG women entrepreneurs training imparted occupies the first place while in the case of the Non-SHG group self employment comes first. It is found that the women entrepreneurs of both the categories choose to the present line mainly because to be self employed. This may be due to the fact that these women are from economically vulnerable sections.

Employment Details An important achievement of micro enterprises as self-employment activities is that the entrepreneurs have become job providers to others. This is true in this study as the majority of the women entrepreneurs are not only self-employed by employing themselves but also extended employment to others. Employment was extended to both family members and hired labourers. Many of the micro enterprises in both the categories require the labour of more than one individual. Particulars of labour employed are shown in Table 5.1.34.

Table 5.1.34. Distribution of the Sample Women Entrepreneurs by the Number of Employees

Activity

Sl. Labour No. Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total Percentage SHG Units 01 SHG member with Family- labour 10 09 02 - 12 03 01 - 04 - 03 02 - 06 52 43.33 02 SHG member with hired- labour 09 06 01 - - 01 01 - 01 - - 01 - 02 22 18.33 03 SHG member alone - - 07 05 - 02 01 06 - 04 04 04 05 08 46 38.34 04 SHG member with family- labour and ------hired- labour Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100.00 Non-SHG Units 01 Family-labour 01 05 02 - 04 03 - 01 - - 01 - - 01 18 60.00 02 Hired-labour 01 - 04 - - - - 01 - - - - - 02 08 26.67 03 Family -labour and hired- labour ------02 - - 02 04 13.33 Total 02 05 06 - 04 03 - 02 - - 03 - - 05 30 100.00 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

227 228 Both SHG entrepreneurs and Non-SHG entrepreneurs have admitted that both family as well as hired labourers are employed. In both the cases family labour occupies a significant place. But majority of training needed activities like Tailoring, Shield Work, Beauty Parlour, Candle making, Thanjavur Doll and Art plate making etc., are running enterprises with trained SHG members.

Marketing Centre Marketing occupies an important place in any enterprise small or tiny. In fact the subsistence of an enterprise depends on the existence of a market. The area of the market differs according to the nature of the product. Perishable products are sold in local market while semi-durable and durable products are dispatched to nearby or far off markets. The market area covered by the sample enterprises are given in Table 5.1.35.

Table 5.1.35. Distribution of Women Entrepreneur Units by Area of Marketing

Activity

Sl.no Marketing centre Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total % SHG Units 01 Local 04 06 03 - 12 02 01 02 05 - 04 07 - 02 48 40 02 Within district 11 09 03 - - 02 02 04 - - 03 - - 06 40 33.33 03 Within state 04 - 04 03 - 02 - - - 04 - - 03 06 26 21.67 04 All India - - - 02 ------02 02 06 05.00 Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100.00 Non-SHG Units 01 Local - 02 03 - 04 01 - - - - 03 - - 03 16 53.33 02 Within district 02 03 03 - - 02 - 02 - - - - - 02 14 46.67 03 Within state ------04 All India ------Total 02 05 06 - 04 03 - 02 - - 03 - - 05 30 100.00 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

229 230 It is significant to note in the table that more than 70 per cent of the enterprises in both the categories cater to local markets and markets within the district. However, through indirect marketing, their products may reach other district or other state say candle and agro based products, etc which are marketed to the agents. Only six enterprises in the SHG are catering to markets all over India. For expansion and sustenance of the units initiated by the women SHGs it is necessary that they should increase their market share by expanding their boundaries from local to District and State level.

Sources of Marketing Sources of marketing open to women enterprises are presented in Table 5.1.36.

Table 5.1.36. Distribution of Sample Entrepreneurs by Sources of Marketing SHG Units Non-SHG Units Sl. Sources No. of No. of No. Percentage Percentage Units Units 01 Direct Marketing 21 17.5 06 20.00 02 Retail 18 15.00 11 36.67 03 Whole sale 37 30.83 03 10.00 04 Direct +Retail 10 08.33 02 06.67 05 Retail+ Whole 06 05.00 01 3.33 sale 06 Direct +Whole 15 12.5 04 13.33 Sale 07 Direct +Retail+ 13 10.84 03 10.00 Whole Sale Total 120 100.00 30 100.00 Source: Primary Data. 231 For the same product an enterprise may adopt different distribution channels to meet the demand of different market segments. The sources of marketing used by the sample entrepreneurs were identified. Agriculturists depend on middlemen for selling their products. Table 5.1.36 reveals that 17.5 per cent in SHG and 20 per cent in Non-SHG units engage in direct marketing. Majority of the units (30%) in the SHG sell through wholesale. In the case of Non-SHG units more than 55 per cent depends on middlemen for selling their products.

Various agencies involved in the SGSY scheme such as Mahalir Thittam, Block Development Office (BDO), NGOs etc., play a key role in finding out the necessary market support for the product of the sample women entrepreneurs. The steps initiated are:  Organization of exclusive exhibition for SHG products.  Facilitating the member’s participation in government exhibition.  Allotment of space for SHGs in the DSMS (District Supply and Marketing Society) shopping complex.  Purchase of materials by the government departments.  Special interest and concern shown by the government in purchase / sale of the products of the SHGs. There are various way and techniques by which the SHG women can establish the marketing. The district collectorate may provide space for SHG women to sell the products in the city, in crowded areas, so that their products get ‘mainstreamed’.

Membership in Association The women entrepreneurs from the SHGs have they own association that function in three different capacities, namely, animator, representative and members. Particulars of membership are furnished in Table 5.1.37.

Table 5.1.37. Sample SHG Women Entrepreneurs as Members of Associations Activity

Sl. Position No. Nature Agriculture Animal rearing Tailoring Shield Work Petty Shop Pottering Chalk piece making Beauty Parlour Stationery stores Candle making Catering General Store Thanjavur doll and Art plate making Others Total %

01 Animator 06 03 04 03 03 01 01 01 - 01 02 01 - 02 28 23.33

02 Representative 11 06 03 02 05 03 01 03 01 03 01 01 02 03 45 37.50

03 Member 02 06 03 - 04 02 01 02 04 - 04 05 03 11 47 39.17

Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100.00

Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

232 233 The animators, representatives and members are responsible for convening meetings, resolving conflicts, maintenance of books, operation of bank accounts and case dealings such as collection of savings and disbursement of credits. They are trained by the NGOs.

The distribution of the sample entrepreneurs by membership in Association (Table 5.1.37) exhibits that some (47) of the women entrepreneurs had joined the SHG as members and continuing the same position. This must be appreciated because the traditionally bounded rural women have broken the barriers and majority (73) of the entrepreneurs had joined as members and selected as leaders. Many previous studies explain that self-help group has resulted in leadership, innovative delivery systems and implementation processes that responded to the problems of poor women. SHGs help to keep their knowledge up to date with management of the enterprises. Thanks to the NGO because the participation in income generating activities increased the confidence levels and managerial / leadership talents in rural women. It is observed that there is a good interaction between the members within the group and also with other groups and SHGs help the women entrepreneurs in the process of getting empowerment.

Location of the Sample Micro Enterprises Many of the micro enterprises are generally located in the homes of the entrepreneurs. These are tiny units using mostly family labours. The micro enterprises which employ labour from outside are housed in work shed or NGO centres.

234 Table 5.1.38. Location of the Sample Micro Enterprises SHG Units Non-SHG Units

Sl. Place No. Activity Home Home Shed Work NGO Centre Total Home Shed Work Other location Total 01 Agriculture 07 12 - 19 - 02 - 02 02 Animal rearing 15 - - 15 05 - - 05 03 Tailoring 06 03 01 10 03 03 - 06 04 Shield Work 04 01 - 05 - - - - 05 Petty Shop 10 02 - 12 04 - - 04 06 Pottering 03 02 01 06 03 - - 03 07 Chalk piece 03 - - 03 - - - - making 08 Beauty parlour - 05 01 06 - 02 - 02 09 Stationery 03 02 - 05 - - - - stores 10 Candle making 04 - - 04 - - - - 11 Catering 04 03 - 07 01 02 - 03 12 General stores 05 02 - 07 - - - - 13 Thanjavur doll 05 - - 05 - - - - and Art plate making 14 Others 09 07 - 16 03 02 - 05 Total 78 39 03 12019 11 - 30 Percentage 65 32.5 2.5 10063.33 36.67 - 100 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

235 It is evident from the table that more than 60 per cent of the enterprises in both the categories are located in the houses of women entrepreneurs. Therefore, more percentage of the units is located in the residential area itself. This kind of household productive unit’s better supplement the income by involving all members of the family including children and it is indirectly obligatory on each member to learn and perform the activity.

Sources of Raw Materials Raw materials for the micro enterprises are usually procured locally or from within the district. The centers from which the present women entrepreneurs procure their raw materials are categorized in Table 5.1.39.

Table 5.1.39. Sources of Raw Materials for Sample Women Entrepreneurs

Sl. No. SHG Units Non-SHG Units Source

Activity

Local Within the district Outside the district Total Local Within the district Outside the district Total 01 Agriculture 05 14 - 19 - 02 - 02 02 Animal rearing 11 04 - 15 02 03 - 05 03 Tailoring 02 08 - 10 04 02 - 06 04 Shield Work - 03 02 05 - -- - - 05 Petty Shop 02 10 - 12 03 01 - 04 06 Pottering 04 02 - 06 02 01 - 03 07 Chalk piece making 01 02 - 03 - -- - - 08 Beauty parlour - - 06 06 - 01 01 02 09 Stationery stores 02 03 - 05 - -- - - 10 Candle making - 04 - 04 - -- - - 11 Catering - 07 - 07 02 01 - 03 12 General stores - 02 05 07 - -- - - 13 Thanjavur doll and Art plate making - 04 01 05 - -- - - 14 Others - 12 04 16 02 02 01 05 Total 27 75 18 120 15 13 02 30 % 22.5 62.5 15.00 100.00 50.0 43.33 6.67 100.00 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

236 237 The table shows that while traditional enterprises like agriculture, dairy farming, tailoring, petty shop and potteries use raw materials which are available locally and within the district, new enterprises like chalk piece making, candle making, beauty parlours, Thanjavur doll / Art plate making, catering and shield work get raw materials from within and outside the district. Thus, raw material plays an important part in small entrepreneurship development because the availability and non- availability of raw materials affects the functioning of the enterprises.

Factors and Constraints The factors that influenced the sample women to become entrepreneurs were studied. These factors then were classified as motivational factors to start the enterprise, encouraging (or) facilitative factors to run the enterprise, compelling and discouraging factors.

Motivational Factors Motivation is the impelling force in an individual to achieve something on his or her own. The motivation may be within the individual or from outside. Motivation is the important factor to start the enterprise. An enterprising person is “one who takes initiative to achieve self determined goal that is the part of a future vision, in order to achieve one’s meaning in life, while sharing its outcome with others”. (Geneluczkew, 1996)

Many are the factors which have motivated women entrepreneurs to launch micro enterprises. In the case of the present women entrepreneurs have mentioned 11 such factors during the interview. The factors are given in Table 5.1.40.

238 Table 5.1.40. Factors which have Enabled Sample Women Entrepreneurs to Start the Unit Sl. SHG Units Non-SHG Units Motivational Factors No. Score Rank Score Rank 01 Training received 821 I - - 02 Advice of other Entrepreneurs 254 X 67 VIII 03 Encouragement given by NGO 754 II - - 04 Advice of family members 300 IX 70 VII 05 Availability of time 376 VII 96 IV 06 Availability of activity 588 IV 74 VI 07 To become independent 500 V 116 II 08 To gain social status 320 VIII 85 V 09 To earn money 696 III 146 I 10 Education 232 XI 58 IX 11 To prove oneself 397 VI 105 III Source: Primary Data.

On the basis of the weighted scores given by the women entrepreneurs the factors have been assigned ranks. In the case of women entrepreneurs from SHG Training received, supports from NGO and to earn money occupy the first three places respectively. Whereas in the case of Non-SHG women entrepreneurs who are earning money, economic independence and the desire to prove one’s merit occupy the first three ranks respectively.

The point to be underlined here is that both the women entrepreneurs have been motivated by ‘the urge to earn money’. This was because the adult male in the households (father / husband / son / father- 239 in-law) were unemployed or were employed but spent their earnings on alcohol and gambling, or were daily wage earners who did not earn enough to support the family. Several women were therefore driven to entrepreneurship by the sense of responsibility and obligation towards their family.

Encouraging (or) Facilitative Factors The encouraging factors are in a way for facilitating again to the entrepreneurs to survive and sustain in the field. A person might have the business idea but unless they are encouraged by physical, financial and moral support systems from various sides the women entrepreneurs have not gained. So encouragement of several factors and forces are need. Of them the present women entrepreneurs have mentioned ten factors which have proved to be encouraging. The factors are furnished in Table 5.1.41.

Table 5.1.41. Distribution of the Entrepreneurs by the Factors which Encouraged them to Start the Units Non-SHG Sl. SHG Units Encouraging Factors Units No. Score Rank Score Rank 01 Previous experience 390 V 117 II 02 Technical Skill 485 III 88 IV 03 Family Business 326 VII 95 III 04 Co-Operation of the 293 VIII 73 V Parents/Friends/Relatives 05 Government 588 II - - concession/Credit/Availability 06 NGO’s Encouragement 722 I - - 07 Availability of Resources 451 IV 58 VIII 08 Self-Confidence 347 VI 137 I 09 Constant Demand 271 IX 64 VI 10 Easy Marketability 248 X 61 VII Source: Primary Data.

240 As far as women entrepreneurs of SHGs are concerned encouragement from NGOs, credit availability and availability of technical skill occupy the first three places. In the case of the Non-SHG of women entrepreneurs’ self-confidence, previous experience and family business occupy the first three places.

Facilitative factors are primarily related to economic factors such as credit availability and resource availability among the SGSY assisted SHGs though the priorities are different among the Non-SHGs, whereas self confidence has been mentioned as the greatest facilitative factor. The need for economic independence makes women choose entrepreneurial activities. This is line with the theory of Everett E Hagen on Japanese Entrepreneurs which shows economic compulsions among the samurai community which lost all its resources was also dominant factor. To regain the status they choose entrepreneurship. An in-depth discussion with the entrepreneurs in the sample reveled that many of the people enjoyed a better status but were pushed to a poor condition by failure of agriculture, lack of supportive earnings and inadequate earnings of husbands etc. Hence the people were pushed to earn to improve the ‘lost’ status. A few of them never had any background and hence it is the NGOs and the availability of micro credit that have driven to become entrepreneurs.

Compulsory Factors Many distress factors might have forced some women to enter into venturous activity. It is found that the factors which have compelled the entrepreneurs to start the enterprise. These labeled as push factors.

Table 5.1.42. Distribution of the Entrepreneurs by Factors Compelled to Start the Units

SHG Units Non-SHG Units Sl. No. Compelling Factors Score Rank Score Rank 01 Dependency Situation 868 II 138 II

02 Unemployment 794 III 159 I

03 Economic compulsion 965 I 127 III

04 Husband’s and parent deaths 360 IX 73 VII

05 Compulsion of parents and husband 282 XI 33 X

06 To make use of availability of resources 443 VII 69 VIII

07 Work experience 471 VI 84 VI

08 Participation of other women in the neighbourhood 313 X 66 IX

09 Education and training received 644 IV ------

10 Leisure time 399 VIII 106 V

11 Drought and rain fed land unfit for cultivation 545 V 112 IV Source: Primary Data.

241 242 It is the compulsive (distress) factors that have compelled women in both the categories to choose entrepreneurship. It is observed that ‘Economic compulsions’ and ‘Dependency situation’ together with ‘unemployment’ forced both the group members to choose micro enterprises. Such compulsions serve as push factors

Discouraging Factors For generations, women in India shuddered to think of taking up any role outside the household. Only recently women have ventured to take challenging roles outside the family fold. In the beginning women were discouraged by many factors. Apart fourteen such discouraging factors mentioned by the respondents from in both categories are enumerated in Table 5.1.43.

243 Table 5.1.43. Factors which Discouraged the Sample Women Entrepreneurs in Starting the Enterprise

Non-SHG Sl. SHG Units Discouraging Factors Units No. Score Rank Score Rank 01 Absence of marketing 634 IV 300 III 02 Lack of finance 1575 I 399 I 03 Competition 945 III 356 II 04 Lack of business tactics 215 XII 164 VIII 05 Lack of support from family 190 XIII 59 XIV members 06 Lack of training 170 XIV 131 IX 07 Fluctuating demand 1204 II 285 IV 08 Unfavourable government policy 258 X 65 XIII 09 Lack of support from banks 239 XI 251 V 10 Non-availability of quality raw- 284 IX 70 XII materials 11 Lack of skilled labourers 402 VII 83 XI 12 Inadequate knowledge about the 346 VIII 105 X latest technologies 13 Low price/profit 513 V 204 VI 14 Child care 487 VI 191 VII

Source: Primary Data.

It has been established by many studies that ‘lack of finance’ particularly ‘working capital’ has been a major problem in every stage of enterprise development. It is true in this study also that lack of finance has been ranked as the foremost factor followed by competition, absence of market, fluctuating demand etc., hindering the entry of women into entrepreneurial activities. It is true with both the types of women entrepreneurs. 244

Entrepreneurial Generation It is quite natural that in a tradition-ridden society like the one in India women entrepreneurs are mostly first generation entrepreneurs.

Table 5.1.44. Distribution of the Enterprises by Generation of Entrepreneurs SHG Units Non-SHG units Sl. No of No of Generation No. Sample Percentage sample Percentage women women 01 First 94 78.33 24 80.00 02 Second 26 21.67 06 20.00 Total 120 100.00 30 100.00 Source: Primary Data.

The table confirms the fact mentioned above. It shows that more than 78 per cent of the women entrepreneurs are first generation entrepreneurs indicating that a business background was not a necessary factor affecting the choice of venturing into entrepreneurship. Being first generation entrepreneurs, the labour and management support provided by the families enabled the entrepreneurs to deal with the problems faced during start-up.

Founders of the Enterprises It is observed that their distribution as self, parents, husband and others as founders of the enterprises in both the categories of entrepreneurs.

245 Table 5.1.45. Founders of the Micro Enterprises SHG Units Non-SHG units Sl. No of No of Founder No. sample Percentage sample Percentage women women 01 Self 92 76.67 20 66.67 02 Parents 18 15.00 02 6.67 03 Husband 08 6.67 04 13.33 04 Others 02 1.66 04 13.33 (Friends & relatives) Total 120 100.00 30 100.00 Source: Primary Data.

The table shows that majority of the enterprises have been founded by women entrepreneurs on their own and they are being run by them. A small percentage of the enterprises have been founded by others (husband / father / others) and are being run by women entrepreneurs. It is identified that self-motivation and self-confidence are the determining factors to enter into entrepreneurial activities.

Reasons for Choosing the Location Unlike major industries, many of which have a tendency to agglomerate micro-enterprises are prone to decentralize. However in the case of SHGs sponsored micro enterprises sometimes there is a tendency to centralize. In the case of present micro enterprises the women entrepreneurs have mentioned 7 factors which account for the present location. They are furnished in Table 5.1.46.

246 Table 5.1.46. Reasons for Sample Micro Enterprises Choosing the Present Location Sl. SHG Units Non SHG Units Reasons No. Score Rank Score Rank 01 Industrial area 211 VII 45 VI 02 Easy access to transport 589 II 128 II 03 Easy labour availability 303 VI 54 V 04 Easy access in marketing 440 IV 112 III 05 Raw material availability 329 V 69 IV 06 Advice by authority 578 III - - 07 Others 699 I 148 I Source: Primary Data. Note: Others include protection from social ill -Action, Near to house, Main place, less competition, Own building, Residential area

Location is the most significant factor for any business to survive. Even if a business is very prospective, customer catching and innovative, if it is not located in a proper location it will not survive. Alfred Weber (1960) in his location theory and others in this field ascertained that labour, transport, easy access to raw material etc are the major factors which attract the industrial location. In this study it is found that, for women entrepreneurs others (include protection from social ill-action, near to house, main place, less competition, own building, residential area), transport and marketing are the three major factors for choosing the location. It is slightly different in the order for SHG units as the advice by authority came as the third factor. Anyhow, the factor of location is in line with the factors underlined in the growth pole and location theories.

247 In the context of the socio-economic background an attempt may be made to evaluate the performance of the micro enterprises owned and operated by the sample women entrepreneurs of this study in terms of investment, capital, sales turn over etc.

5.2. PERFORMANCE ANALYSIS OF WOMEN MICRO- ENTERPRISES This section deals with the growth performance analysis of the sample enterprises in terms of capital, investment, sales turn over etc. The data relates to the year 2008 and 2009.

Investment The sample women entrepreneurs of this study own different types of enterprises which may be broadly divided into farming, farming related activities and non-farming activities. The size of the investment varies from Rs.20,000/- in agriculture to Rs.80,000/- in shield work in SHG enterprises and Rs.15,000/- in petty shop to Rs. 50,000/- in Tailoring shop in Non-SHG enterprises. Particulars of investment made by SHG enterprises are given in Table 5.2.1.

Table 5.2.1. Size of Investment of Sample Enterprises (SHG Units-in Rs.)

Activity

Size of investment Agriculture Animal rearing Tailoring Shield work Petty shop Pottering Chalk Making Beauty parlour Stationary stores Candle making Catering General stores Thanjavur doll and Art plate making Others Total % Mean Below 08 02 01 - 08 03 - 03 01 03 02 - 01 03 35 29.17 22714.29 25000 25000- 10 11 07 03 04 03 03 03 04 01 03 04 03 11 70 58.33 32371.43 50000 50000- 01 02 01 01 ------02 02 01 02 12 10.00 50833.34 75000 75000- - - 01 01 ------01 - - 03 2.5 76666.67 100000 Total 19 15 10 05 12 06 03 06 05 04 07 07 05 16 120 100 - mean 29315.79 33666.67 35500 50000 25083.33 26333.33 35000 26166.67 31600 25250 34285.71 44714.29 37600 32062.5 - - 32508.33 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

248 249 In the table the sample SHG enterprises have been classified into four frequency groups based on the volume of their investment. Majority of the enterprises, that is, 58.33 per cent have reported capital investment varying between Rs.25,000/- and Rs.50,000/-. Only three establishments constituting 2.5 per cent have declared that their investment falls between Rs.50,000/- and Rs.75,000/-. These are enterprises which need machinery, equipments and a work spot purchase of goods. A significant proportion (84%) of the total investment is met through borrowed sources and the rest through own contributions. The average of investments in SHG enterprises is Rs.32,508.33. Tailoring, shield work, General Stores etc, have a relatively large investment compared to the average as shown in Table 5.2.1. There are certain categories like agriculture, petty shop, etc which have lower investment with Rs.22,714 on an average. The latter categories do not require much investment on plant and machinery. Only labour or raw material is being processed.

Investment particulars of Non-SHG enterprises are given in Table 5.2.2.

Table 5.2.2. Size of Investment of Non-SHG Enterprises (in Rs.)

Activity

Size of investment Agriculture Animal rearing Tailoring Shield work Petty shop Pottering Chalk Making Beauty parlour Stationary stores Candle making Catering General stores and Thanjavur doll Art plate making Others Total % Mean Below 02 04 04 - 04 03 - 01 - - 01 - - 04 23 76.67 18119.57 25000 25000- - 01 01 - - - - 01 - - 02 - - 01 06 20.00 27041.67 50000 50000- - - 01 ------01 3.33 50000 75000 75000------100000 Total 02 05 06 - 04 03 - 02 - - 03 - - 05 30 100.00 - mean 19000 20100 24833.33 - 16625 17083.33 - 21625 - - 25666.67 - - 20700 - - 20966.67 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

250 251 It is striking to note that absolute majority of the women entrepreneurs in this group (76.67 per cent) have declared that their investment is less than Rs.25,000/-. Investment wise these enterprises are no match to SHG enterprises. This is because their sources of borrowings are limited whereas SHG enterprises apart from their own resources avail assistance from the state and loans from SHG and the banks. The average investment in the Non-SHG enterprises is Rs.20,966.67.

Performance by size of investment A comparative assessment of the performance by size of investment of both the groups in terms of various indicators is shown in Table 5.2.3.

Table 5.2.3. Investment-Wise Annual Mean Performance of the SHG and Non-SHG Enterprises in Terms of Various Indicators (In Rupees)

SHG Units Non-SHG Units

Size of Investment Investment Investment Own capital Borrowed capital Fixed capital Working capital Sales turnover Employment Investment Own capital Borrowed capital Fixed capital Working capital Sales turnover Employment Below 22714.29 2142.46 20571.83 8771.43 12954.29 73142.86 1 18119.57 1447.83 16671.74 9402.17 8217.39 46869.57 1 25000 25000- 32371.43 4900.39 27471.04 12460 18865.71 105400 2 27041.67 2583.33 24458.33 16666.67 9608.33 68000 1 50000 50000- 50833.34 10053.67 40779.67 21250 28291.67 165833.33 2 50000 4250 45750 38700 10300 125000 2 75000 75000- 76666.67 20423.67 56243 26666.67 48666.67 250000 3 ------100000 Total 32508.33 4999.4 27508.93 12618.33 18829.17 105650 2 20966.67 1768.33 19198.33 11831.67 8565 53700 1 Source: Primary Data. 252 253 The table shows the average for each of the seven variables for each of the four investment groups. It also shows overall average for each of the variables. A comparison of the performance of the two groups of enterprises shows that the overall average performance of SHGs in respect of the given variables is better than that of Non-SHG enterprises. This is because of the support and encouragement the former group received from the Government, the NGOs and the banks and also due to the resources generated within the group. Thanks to the economic support under the SGSY, those units have shown higher performance than the Non-SHG units. Such positive and encouraging results will definitely motivate the departments implementing such programmes to increase their coverage in future. Then it is observed in the table 5.2.3 that there has been a positive relationship between size of investment and mean growth of various indicators in both the categories.

The annual mean performance activity-wise is furnished in table 5.2.4.

Table 5.2.4. Activity-Wise Annual Mean Performance of the Sample Units in Terms of Various Indicators (In Rupees)

SHG Units Non-SHG Units

Activity Investment Investment Own capital Borrowed capital Fixed capital Working capital Sales Turnover Employment Investment Own capital Borrowed capital Fixed capital Working capital Sales Turnover Employment Agriculture 29315.79 4336.47 24979.32 4526.32 23647.37 82263.16 2 19000.00 1750.00 17250.00 5500.00 12850.00 47500.00 01 Animal 33666.67 5997.67 27669.00 24333.33 8120.00 116333.33 2 20100.00 1800.00 18300.00 12300.00 7250.00 51000.00 01 rearing Tailoring 35500.00 7174.50 28325.50 14200.00 20420.00 99500.00 2 24833.33 2091.67 22741.67 18033.33 6216.67 62666.67 02 Shield Work 50000.00 9643.40 40356.60 19000.00 29800.00 170000.00 2 ______Petty Shop 25083.33 2448.17 22635.17 11583.33 12316.67 83750.00 01 16625.00 1250.00 15375.00 6500.00 9650.00 44500.00 01 Pottering 26333.33 2844.00 23489.33 10200.00 15216.67 87500.00 02 17083.33 1000.00 16083.33 5416.67 11333.33 46333.33 01 Chalk piece 35000.00 3669.00 31331.00 18333.33 15833.33 96666.67 02 ______making Beauty 26166.67 2727.83 23438.83 11333.33 13866.67 92500.00 02 21625.00 2000.00 19625.00 11000.00 10200.00 55000.00 01 parlour Stationery 31600.00 6580.40 25019.60 11000.00 19560.00 108000.00 02 ______stores Candle 25250.00 1683.75 23566.25 11000.00 13250.00 86250.00 01 ______making Catering 34285.71 5470.86 28814.86 14285.71 19000.00 116428.57 02 25666.67 2666.67 23000.00 16333.33 8566.67 65666.67 02 General 44714.28 7087.00 37627.29 12857.14 30600.00 145714.29 02 ______stores Thanjavur 37600.00 5986.40 31613.60 17000.00 19520.00 126000.00 02 ______doll and Art plate making Others 32062.50 4769.88 27292.63 8062.50 23112.50 112500.00 02 20700.00 1600.00 19100.00 12200.00 7800.00 52200.00 01 Total 32508.33 4999.40 27508.93 12618.33 18829.17 105650.00 02 20966.67 1768.33 19198.33 11831.67 8565.00 53700.00 01 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

254 255

Correlations Investment sales SHG Investment Pearson Correlation 1 .430** Sig. (2-tailed) .000 N 120 120 sales SHG Pearson Correlation .430** 1 Sig. (2-tailed) .000 N 120 120 **. Correlation is significant at the 0.01 level (2-tailed).

Correlations SALES INVESTMENT TURNOVER NON-SHG NON-SHG INVESTMENT Pearson 1 .994** NON-SHG Correlation Sig. (2-tailed) .000 N 30 30 SALES Pearson .994** 1 TURNOVER Correlation NON- SHG Sig. (2-tailed) .000 N 30 30 **. Correlation is significant at the 0.01 level (2-tailed).

256 In this table too like the previous one there is enough information to show that the overall average performance of the SHGs activity-wise is better than that of Non-SHG enterprises. By correlating investment and sales turn over it is found that there is a high positive correlation between investment and sales turnover in both the categories and that correlation co efficient of Non-SHG is more than that of SHGs. This nullifies the hypothesis that the correlation coefficient between investment and sales turnover is higher for SHGs than Non-SHGs.

As far as the activity-wise mean performance of the sample enterprises in terms of various indicators such as investment, employment, sales turn over etc. have been done to understand the differential performance of the sample enterprises. The overall performance explains that shield work and General Stores among SHG units are able to perform better in terms of all the indicators. But on the other hand tailoring and catering among Non-SHG units have shown relatively higher performance in all the indicators.

Performance by Education An attempt was made to evaluate the performance of the women entrepreneurs coming under different levels of literacy in terms of the given variables. Table 5.2.5 shows the performance of the women entrepreneurs from the SHG.

Table 5.2.5. Performance of the Sample Women Entrepreneurs by their Education (SHG Units –in Rs.)

Educational Own Borrowed Fixed Working Sales No of Investment Employment Percentage status capital Capital capital capital Turnover Units Up to primary 32833.33 5379.44 27453.89 18288.89 13427.77 108333.33 2 18 15

Middle school 30351.35 4486.76 25864.59 9378.38 19832.43 93864.87 2 37 30.83

High School 34710.53 5447.92 29262.61 14473.68 19194.74 113815.79 2 38 31.67

Higher 32266.67 5372.27 26894.4 10733.33 20660 106333.33 2 15 12.5 Secondary

Graduate 34750 4727 30023 10375 23425 116250 2 08 6.67

Post Graduate 26500 2916.75 23583.25 11000 14325 88750 2 04 3.33

Average 32508.33 4999.4 27508.93 12618.33 18829.17 105650 2 120 100.00 Source: Primary Data.

257 258 The table shows that the respondent women entrepreneurs form SHG with literacy level up to high school and graduate have performed well compared to other groups in respect of given variables. The same is not true of the women entrepreneurs from Non-SHGs as is evident from Table 5.2.6.

Table 5.2.6. Performance of the Sample Women Entrepreneurs by their Education (Non-SHG Units –in Rs.)

No Educational Invest Own Borrowed Fixed Working Sales Employment of Percentage status Capital capital capital Turnover ment capital Units Up to 18666.67 1600 17066.67 9333.33 8812.5 47916.67 1 12 40 primary Middle 23704.55 2022.73 21681.82 14177.27 8872.73 60818.18 2 11 36.67 school High 19250 1520 17730 11600 7220 50000 1 5 16.67 School Higher 24000 2000 22000 14500 8750 58500 2 2 6.66 Secondary Graduate ------. - - Post ------. - - Graduate Average 20966.67 1768.33 19198.33 118313.67 8565 53700 1 30 100.00 Source: Primary Data. The performance measured in terms of investment, sales turn over, employment etc by education among respondents from Non-SHG reveals (Table 5.2.6) that up to primary and high school lag behind the other educated women entrepreneurs.

Performance by Years of Experience An attempt was made to assess the performance of the respondents in the context of their experience as women entrepreneurs. The data relating to women entrepreneurs from SHGs are given in 5.2.7 and those relating to women entrepreneurs from Non-SHG are furnished in table 5.2.8.

Table 5.2.7. Performance of the Sample Women Entrepreneurs on the Basis of Years of Experience (SHG Units –in Rs.)

No Experience Invest- Own Borrowed Fixed Working Sales Employment of Percentage Capital capital capital Turnover (in years) ment capital Units

Below 03 27151.52 3700.25 23451.27 10884.85 15321.21 90090.91 2 33 27.5

03-06 33448.28 4815.97 28632.31 12689.6619655.17 107413.792 29 24.17

06&Above 48321.43 9900.59 38420.84 18535.7128632.16 157678.572 28 23.33

No Experience 22733.33 2031.36 20701.97 8933.33 12740 72500 2 30 25

Average 32508.33 4999.4 27508.93 12618.3318829.17 105650 2 120 100 Source: Primary Data.

259

Table 5.2.8. Performance of the Sample Women Entrepreneurs on the Basis of Years of Experience (Non-SHG Units in Rs.) Experience Own Borrowed Fixed Working Sales No of Investment Employment % (in years) capital Capital capital capital Turnover Units Below 03 21964.29 2071.43 19892.86 12928.57 8400.00 55428.57 1 07 23.33

03-06 25100.00 2110.00 22990.00 14640.00 9900.00 63800.00 2 05 16.67

06 and above 23333.33 2166.67 21166.67 11666.67 10908.33 58666.67 2 06 20.00

No 17479.17 1250.00 16229.17 10104.17 6933.33 46000.00 1 12 40.00 experience

Average 20966.67 1768.33 19198.33 11831.67 8565.00 53700.00 1 30 100.00 Source: Primary Data. 260 261 Both the tables show that respondents with experience have performed better compared to those who are fresh to the business. In the case of SHG women entrepreneurs the performance level has tended to increase with increase in experience. But the same is not true of women entrepreneurs from Non-SHGs.

Fixed and Working Capital Every type of business large, small and micro need fixed capital as well as working capital. In the case of micro enterprises fixed capital includes investment in tools, machinery, equipments, land and building. Working capital or variable capital is needed to meet day to day expenses such as wage, rent, cost of raw materials, electricity and water tariffs. Unlike fixed capital variable capital tends to grow with expansion in the volume of production. Particulars of total as well as average fixed and variable cost of both SHG and Non-SHG enterprises are shown in Table 5.2.9. The samples are mostly trading / service and farm – based units in which the variable capital would be relatively higher than fixed capital. Fixed capital will generally be higher in production and manufacturing units.

Table 5.2.9. Distribution of the Units by the Average Size of Fixed and Working Capital (In Rupees)

SHG Units Non-SHG Units Activity Fixed Capital Average Working Average Total Capital Average Fixed Capital Average Working Average Total Capital Average Capital Capital Agriculture 86000(5.68) 4526.32 449300(19.88) 23647.37 535300(14.19) 28173.69 11000(3.1) 5500 25700(10.00) 12850 36700(6.00) 18350 Animal Rearing 365000(24.11) 24333.33 121800(5.39) 8120 486800(12.90) 32453.33 61500(17.33) 12300 36250(14.11) 7250 97750(15.97) 19550 Tailoring 142000(9.38) 14200 204200(9.04) 20420 346200(9.17) 34620 108200(30.48) 18033.33 37300(14.52) 6216.67 145500(23.78) 24250 Shield Work 95000(6.27) 19000 149000(6.59) 29800 244000(6.47) 48800 ______Petty Shop 139000(9.18) 11583.33 147800(6.54) 12316.67 286800(7.6) 23900 26000(7.32) 6500 38600(15.02) 9650 64600(10.56) 16150 Pottering 61200(4.04) 10200 91300(4.04) 15216.67 152500(4.04) 25416.67 16250(4.58) 5416.67 34000(13.23) 11333.33 50250(8.21) 16750 Chalk piece making 55000(3.63) 18333.33 47500(2.10) 15833.33 102500(2.72) 34166.67 ______Beauty parlour 68000(4.49) 11333.33 83200(3.68) 13866.67 151200(4.01) 25200 22000(6.2) 11000 20400(7.94) 10200 42400(6.93) 21200 Stationery stores 55000(3.63) 11000 97800(4.33) 19560 152800(4.05) 30560 ______Candle making 44000(2.91) 11000 53000(2.35) 13250 97000(2.57) 24250 ______Catering 100000(6.60) 14285.71 133000(5.89) 19000 233000(6.17) 33285.71 49000(13.80) 16333.33 25700(10.00) 8566.67 74700(12.21) 24900 General stores 90000(5.94) 12857.14 214200(9.48) 30600 304200(8.05) 43457.14 ______Thanjavur Doll and 85000(5.62) 17000 97600(4.32) 19520 182600(4.84) 36520 ______Art plate making Others 129000(8.52) 8062.5 369800(16.37) 23112.5 498800(13.22) 31175 61000(17.19) 12200 39000(15.18) 7800 100000(16.34) 20000 Total 1514200(100) 12618.33 2259500(100) 18829.17 3773700(100) 314475 354950(100) 11831.67 256950(100) 8565 611900(100) 20396.67 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

262 263 In the table one can see that for SHG enterprises total fixed cost and average fixed cost are high in animal rearing. On the other hand, total as well as average working capital is high in agriculture. The average working capital required by SGSY assisted SHG units have been higher than that of average fixed capital. In the case of Non-SHG enterprises total fixed cost and average fixed cost are high in tailoring. Among the Non-SHG units, it is ‘agriculture’ has registered maximum average working capital. The average fixed capital required by Non-SHG units has been higher than that of average working capital. Unlike SHGs which have formal sources of credits for their working capital requirements the Non-SHG enterprises depend on their own resources and borrowed resources.

Sales Turnover Sales turnover is one of the important variables used to evaluate the relative performance of any enterprise. The mean of sales turnover of both the categories of enterprises at the time of their starting and at present are furnished in Table 5.2.10.

Table 5.2.10. Mean Performance in the Terms of the Sales Turnover for Sample Enterprises (in Rupees)

SHG Units Non-SHG Units Size of the Sales Turnover At Start up At present At Start up At present Mean N % Mean N % Mean N % Mean N % Below 100000 70333.33 72 60 77800 60 50 46103.45 29 96.67 51241.38 2996.67

100000-200000 121521.74 46 38.33 127368.42 57 47.5 118000 01 3.33 125000 01 3.33

200000-300000 237500 02 1.67 250000 03 2.5 ------

Total 92741.67 120 100.00 105650 120 100.00 48500 30 100.00 53700 30 100 Source: Primary Data.

264 265 Sales turnover is one of the important indicators of performance. It is to be mentioned that the entrepreneurs approach, competitive price, quality of the product or service, time of delivery etc. determine the sales performance. Since the women in micro enterprises are dealing with limited customers within the local area it is necessary that they establish their name and popularize the products so that the customers link effectively contributes to increase in sales turnover. The sales turnover for both the groups at the time of start up and at present exhibits more or less a similar trend in terms of mean sales turnover showing an increase of one seventh over the two years period. This is quite encouraging that the sample units are able to realize better growth in terms of sales turnover. However, spending more time on strengthening the marketability may still improve the sales turnover.

Table 5.2.11. Activity-Wise Annual Average Growth Rate of Sales Turnover for Sample Enterprises (in Rs.)

SHG Units Non-SHG Units Sl. Activity Initial Latest Initial Latest No. AAGR AAGR N Average N Average N Average N Average 01 Agriculture 19 71052.63 19 82263.16 15.78 02 37500 02 47500 26.67 02 Animal rearing 15 102333.33 15 116333.33 13.68 05 45000 05 51000 13.33 03 Tailoring 10 89500 10 99500 11.17 06 57166.67 06 62666.67 9.62 04 Shield Work 05 153000 05 170000 11.11 ------05 Petty Shop 12 71666.67 12 83750 16.86 04 40750 04 44500 9.20 06 Pottering 06 73166.67 06 87500 19.59 03 40000 03 46333.33 15.83 07 Chalk piece making 03 83333.33 03 96666.67 16.00 ------08 Beauty parlour 06 78333.33 06 92500 18.09 02 50000 02 55000 10.00 09 Stationery stores 05 96000 05 108000 12.5 ------10 Candle making 04 78750 04 86250 9.52 ------11 Catering 07 102857.14 07 116428.57 13.19 03 61666.67 03 65666.67 6.49 12 General stores 07 130000 07 145714.29 12.09 ------13 Thanjavur doll and Art plate making 05 117000 05 126000 7.69 ------14 Others 16 97187.5 16 112500 15.76 05 48800 05 52200 6.97 Total 120 92741.67 120 105650 13.92 3048500 30 53700 10.72 Source: Primary Data. Note: (1) Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making. (2)[AAGR]Annual Average Growth Rate 266 267 To understand the specific improvement in sales turn over, the average annual growth rate has been calculated and given in Table 5.2.11.The following formula used for finding the annual average growth rate: Current year - Previous year 100 Previous year Number of years

It is revealed that among the SHG units the maximum growth in absolute terms has been registered among shield work followed by general stores and Thanjavur doll and Art plate making. Similarly in absolute terms, the growth registered among the Non-SHG units reveals that catering and tailoring sales have shown maximum growth. In the annual average growth, however a different trend is observed. It is ‘pottering’, ‘Beauty parlour’ and ‘petty shop’, which have registered maximum annual average growth to SHG units. Among the Non-SHG units, Agriculture has registered maximum annual average growth. The overall annual average growth reveals that the SGSY assisted SHG units have registered a higher rate (13.92) than the Non-SHG units (10.72).

Monthly Income of Women Entrepreneurs The development of micro enterprises by women has assured a steady flow of a monthly income. The monthly income of the respondents in both the categories is shown in Table 5.2.12. Regular stream of income from any business is a very important factor to stimulate successful leading of the enterprise. If there is any delay or disturbance to get constant income, no one will be interested to continue. Income earned from business is not only wealth to enterprise, but also to their household financial management, to impart better education to the children etc. 268 Given this, it is necessary that the income of women entrepreneurs is analysed. Table 5.2.12. Distribution of the Sample Women Entrepreneurs by Monthly Income (in Rs.)

SHG Units Non SHG Units Income No of women No of women Group Percentage Percentage Entrepreneurs Entrepreneurs Below - - 23 76.67 2000 2000- 79 65.83 06 20.00 4000 4000- 36 30.00 01 3.33 6000 6000- 03 2.5 - - 8000 8000 & 02 1.67 - - above Average 3529.17 100.00 1898.33 100.00 Source: Primary Data.

It is significant to note that monthly income-wise women entrepreneurs in SHGs are better placed compared to their counterparts in Non-SHG. The overall average monthly income of the former is Rs.3529.17 while that of the latter is Rs.1898.33. Majority of the respondents in the Non-SHG category are getting a monthly income below Rs.2000/-. In the SHG category majority are drawing a monthly income between Rs.2000/- and Rs.4000/-. Forty one women entrepreneurs in SHG are getting above Rs.4000/- while only one respondent in the other category is blessed with such an income. The activity-wise average monthly income of the respondents in both the groups is shown in Table 5.2.13. 269

Table 5.2.13. Activity-wise Distribution of the Sample Women Entrepreneurs by Monthly Income Non-SHG Sl. SHG Units Activity Units No. N Mean N Mean 01 Agriculture 19 2763.16 02 1750.00 02 Animal rearing 15 3733.33 05 1840.00 03 Tailoring 10 3500.00 06 2175.00 04 Shield Work 05 5500.00 - - 05 Petty Shop 12 2833.33 04 1587.50 06 Pottering 06 3000.00 03 1600.00 07 Chalk piece making 03 3833.33 - - 08 Beauty parlour 06 3083.33 02 1900.00 09 Stationery stores 05 3600.00 - - 10 Candle making 04 2875.00 - - 11 Catering 07 3857.14 03 2300.00 12 General stores 07 4785.71 - - 13 Thanjavur doll and Art plate 05 4100.00 - - making 14 Others 16 3750.00 05 1870.00 Total 120 3529.17 30 1898.33 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

The average monthly income of the SHG Units is Rs.3529.17 which is more than the average monthly income of Non-SHG Units(Rs.1898.33).The normal distribution test also emphasizes that 270 there is a significance difference between the average income of the SHGs and Non-SHGs.(Z=3.2194>1.96 at 0.05 level of significance).

A comparison of the average monthly income of the women entrepreneurs in both the categories show that income from non-farming activities is more than that from farming and farming related activities.

Among SHG units it can be seen that the shield work have the highest monthly average income of Rs.5,500/-. The reason is that the demand for this product is spread throughout the year. The lowest average monthly income (Rs.2763/-) is earned by agriculture entrepreneurs. It is observed that women entrepreneurs who availed Economic Assistance under the SGSY Scheme are performing better compare with the Non- SHG women, in terms of mean monthly income. Among the Non-SHG ‘units’ the maximum income could be earned by the ‘catering’ followed by ‘tailoring’, whereas the lowest has been registered by petty shop. It is consistently proved that among the SGSY assisted SHG units, the productive ‘agro-based units’ tend to show better performance in terms of sales turnover, investment, and income etc. Among Non-SHG units, service related activities like catering and tailoring continue to show better performance. Women are generally comfortable with service activities that do not involve much risk.

The income-wise distribution of women entrepreneurs in relation to the experience, age and literacy status is shown in Table 5.2.14.

Table 5.2.14. Annual Income-wise Distribution of Sample Women Entrepreneurs of SHG and Non-SHG Units by Experience, Age and Education (in Rs.)

Experience SHG Units Non-SHG Units No No Below 03 03-06 06&above Total Below 03 03-06 06&above Total Income Experience Experience 10,000-25000 04(3.33) - - 03(2.5) 07(5.83) 04(13.33) 04(13.33) 03(10.00) 12(40.00) 23(76.67) 25001-50000 24(20.00) 23(19.17) 17(14.17) 27(22.5) 91(75.84) 03(10.00) 01(3.33) 03(10.00) - 07(23.33) 50001-75000 05(4.17) 06(05.00) 08(6.66) - 19(15.83) - - - - - 75001-100000 - - 02(1.67) - 02(1.67) - - - - - Above 100001 - - 01(0.83) - 01(0.83) - - - - - Total 33(27.5) 29(24.17) 28(23.33) 30(25.00) 120(100) 07(23.33) 05(16.67) 06(20.00) 12(40.00) 30(100) Age Below 30 30-40 40-50 50&above Total Below 30 30-40 40-50 50&above Total Income 10,000-25000 - 03(2.5) 04(3.33) - 07(5.83) 02(6.67) 12(40.00) 06(20.00) 03(10.00) 23(76.67) 25001-50000 13(10.84) 39(32.5) 38(31.67) 01(0.83) 91(75.84) 02(6.67) 01(3.33) 03(10.00) 01(3.33) 07(23.33) 50001-75000 05(4.17) 07(5.83) 04(3.33) 03(2.5) 19(15.83) - - - - - 75001-100000 01(0.83) - 01(0.83) - 02(1.67) - - - - - Above 100001 - 01(0.83) - - 01(0.83) - - - - - Total 19(15.83) 50(41.67) 47(39.17) 04(3.33) 120(100) 04(13.34) 13(43.33) 09(30.00) 04(13.33) 30(100) Education High High Graduate Graduate Up to Middle school & Up to Middle school & & post Total & post Total Income primary school Higher primary school Higher graduate graduate secondary secondary 10,000-25000 - 07(5.83) - - 07(5.83) 11(36.67) 07(23.33) 05(16.67) - 23(76.67) 25001-50000 16(13.33) 27(22.5) 39(32.5) 09(7.5) 91(75.84) 01(3.33) 04(13.33) 02(6.67) - 07(23.33) 50001-75000 02(1.67) 02(1.67) 12(10.00) 03(2.5) 19(15.83) - - - - - 75001-100000 - - 02(1.67) - 02(1.67) - - - - - Above 100001 - 01(0.83) - - 01(0.83) - - - - - Total 18(15.00) 37(30.83) 53(44.17) 12(10.00) 120(100) 12(40.00) 11(36.67) 07(23.33) 30(100) Source: Primary Data. 271 272 The annual incomes of the women entrepreneurs differ significantly by experience, age and education. Experience-wise income earned by the sample women owned enterprises revealed a positive and linear relationship revealing that women with relatively higher experience are in the higher income brackets than with less years of experience. Similarly with regard to age-wise distribution especially middle age group is able to do better than the young age. It is observed that the women with relatively less literacy are able to earn higher income than those have put in long years of education. However some of the arguments indicate that the educational status is not a major criterion for emerging as a successful entrepreneur (Iyyampillai 1991, Thangamuthu and Manimekalai 1995).

The Economic Dependency Ratio Dependency of the women entrepreneurs is defined as the difference between the income contribution of the women towards the income bowl of the family and contribution made by the other earning members of the family. The level of dependency has been explained with the help of “Dependency Model” developed by Annemettee Sorensen and Sara Mc. Lanahan (1987). The following formula used for finding the economic dependency ratio of sample women entrepreneurs and their families: INCF INCW DEP = - INCF + INCW INCF + INCW

DEP = Dependency level INCF = Income of the other family members INCW= Income of the sample women entrepreneurs 273 This dependency model explains that if the household is completely a dependent on women entrepreneur’s income i.e., INCF is less than INCW (INCF < INCW) the level of dependency is -1.

If a women is a completely dependent person on the household income, i.e., INCF is greater than INCW (INCF > INCW), then the level of dependency is +1. When the dependency value is zero, it indicates that family is an independent unit, which can survive without the earning of its women entrepreneurs. By applying this dependency model, the dependency level of the respondents and respondent household are analysed as follows. The variables taken into consideration are the size of the income of the women entrepreneurs and income of the household.

The rationale behind the women SHGs is to reduce women’s dependence on the family and subsequently bring about the empowerment. In this connection, a study was made to assess the economic dependence of the women entrepreneurs in both the categories. The findings are presented in Table 5.2.15. Table 5.2.15. Economic Dependency of Sample Women Entrepreneurs Activity-wise SHG units Non-SHG Units Other Total Proportion Other Total Proportion Activity Entrepreneurs Level of Entrepreneurs Level of N Members Family of Women’s N Members Family of Women’s Income Dependency Income Dependency Income Income Contribution Income Income Contribution Agriculture 19 630000 668400 1298400 48.52 0.03 2 42000 66000 10800 38.89 0.22 Animal 15 672000 690000 1362000 49.34 0.02 5 110400 132000 242400 45.54 0.09 rearing Tailoring 10 420000 396000 816000 51.47 -0.03 6 156600 172800 329400 47.54 0.05 Shield 05 330000 354000 684000 48.25 0.04 ______Work Petty Shop 12 408000 294000 702000 58.12 -0.16 4 76200 144000 220200 34.60 0.3 Pottering 06 216000 240000 456000 47.37 0.06 3 57600 96000 153600 37.5 0.25 Chalk 03 138000 180000 318000 43.40 0.14 ______piece making Beauty 06 222000 294000 516000 43.02 0.14 2 45600 74400 120000 38.00 0.24 parlour Stationery 05 216000 240000 456000 47.37 0.06 ______stores Candle 04 138000 156000 294000 46.94 0.06 ______making Catering 07 324000 348000 672000 48.21 0.04 3 82800 78000 160800 51.49 -0.03 General 07 402000 342000 744000 54.03 -0.08 ______stores Thanjavur 05 246000 240000 486000 50.62 -0.02 ______doll and Art plate making Others 16 720000 798000 1518000 47.43 0.06 5 112200 129600 241800 46.40 0.08 Total 120 5082000 5240400 10322400 49.23 0.02 30 683400 892800 1576200 43.36 0.14 Source: Primary Data. Note: Others include Mushroom growing, Fish aquarium, Readymade Garments sales, Photo lamination, Bag making, Furniture sales, Pickle making, Phenoyl-soap powder making, Paper cover making, Hallow block making, Brick making and Agarbathi making.

274 275 Correlations Entrepreneurs Family Income Income Entrepreneurs Pearson 1 .739** Income Correlation Sig. (2-tailed) .000 N 120 111 Family Income Pearson .739** 1 Correlation Sig. (2-tailed) .000 N 111 111 **. Correlation is significant at the 0.01 level (2-tailed).

Variables Entered/Removedb Model Variables Entered Variables Removed Method 1 Entrepreneurs Incomea . Enter a. All requested variables entered. b. Dependent Variable: Family Income

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .739a .546 .542 796.76644 a. Predictors: (Constant), Entrepreneurs Income

Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 1235.780 247.531 4.992 .000 Entrepreneurs .776 .068 .739 11.449 .000 Income a. Dependent Variable: Family Income 276 The table 5.2.15 explains the dependency level of the family. The dependency model defines that when the proportion of other member’s income in family income is greater than the proportion of women’s income, the level is positive. This indicates that women entrepreneurs are dependent on the family income. In such cases, it could be interpreted that, families are independent units and women’s income stands only as a supportive income for their families. When the proportion of women entrepreneur’s income in family is higher than the proportion of other member’s income, the dependency level is negative; indicating that the families are dependent on women entrepreneur’s income and it is concluded that women’s income determines the survival of the family.

A glance at the table shows that the dependency level is positive for many of the activities among the SHG units indicating that the families of women engaged in these activities do not depend mainly on women’s income and the women entrepreneur’s income stands only as a supportive income for their families. On the other hand, the negative dependency level in tailoring, petty shop, general stores and doll and Art plates making indicating that the family has been dependent on women’s income. This may be attributed to the absence of adult male earners, low income of male members, unemployment of husband or unskilled wage earners, or the aged father in those families etc. In the case of Non-SHG women entrepreneurs only the three engaged in Catering are independent, remaining all the activities indicating families are independent units, and women’s income stands only as a supportive income for their families. The table also indicates that the women entrepreneurs in SHG units contribute up to 49 per cent of the total family income to support their family’s well being. Among Non-SHG units the contribution made by the sample women to the income of their families is little lesser (43%) than 277 among SHG units. The economic assistance extended by the state has helped the women to earn nearly half of the household income.

However, there is a high positive of correlation between the SHG entrepreneur’s income and total income of their family. Under the circumstances the hypothesis that the SHG respondents’ income constitutes a significant proportion of the total income of the family is accepted as valid.

Dependence of women on their family depends on various factors such as their marital status, community back ground, age, education and previous experience. These relationships and its significance are brought out in Tables 5.2.16; 5.2.17; 5.2.18; 5.2.19 & 5.2.20.

Table 5.2.16. Economic Dependency of Sample Women Entrepreneurs on the Basis of their Marital Status

SHG Units Non-SHG Units Marital Entrepreneurs Other Total Proportion Other Total Proportion status Level of Entrepreneurs Level of N Income Members Family of women’s N members family of women’s dependency Income dependency Income Income contribution income income contribution Married 102 4242000 4970400 9212400 46.05 0.08 21 468000 712800 1180800 39.63 0.2

Unmarried 04 144000 84000 228000 63.16 -0.26 02 51600 80400 132000 39.09 0.22

Widow 08 402000 114000 516000 77.91 -0.56 04 69000 63600 132600 52.04 -0.04

Divorced 06 294000 72000 366000 80.33 -0.6 03 94800 36000 130800 72.48 -0.45

Total 120 5082000 5240400 10322400 49.23 0.02 30 683400 892800 1576200 43.36 0.14 Source: Primary Data.

278 279 The table shows that married women are economically more dependent than unmarried women, widows and divorcees.

On the other hand the negative dependency ratio in the case of unmarried, widow and divorced women indicate that the family has been dependent on women’s income and without the income of the women entrepreneur’s, the families would have faced survival difficulties. Thanks to the organization of SHGs which help unmarried, widow and divorced women too to become members of the groups, they have been enabled to participate in income-generating programmes.

Caste is one of the important factors which determine the performance of entrepreneurs. The caste-wise and marital status-wise dependency ratio was analysed to identify in which marital group and caste families are dependent units. Table 5.2.17. Economic Dependency of Sample Women Entrepreneurs by Caste

SHG Units Non-SHG Units Entrepreneurs Other Total Proportion Entrepreneurs Other Total Proportion Caste Level of Level of N Income Members Family of women’s N Income Members Family of women’s dependency dependency Income Income contribution Income Income contribution Agamudaiyar 05 162000 198000 360000 45.00 0.1 1 19200 30000 49200 39.02 0.22 Ambalakarar 12 468000 564000 1032000 45.35 0.1 2 40200 62400 102600 39.18 0.22 Chettiyar 11 480000 564000 1044000 45.98 0.08 1 30000 42000 72000 41.67 0.16 Dhobi 03 90000 126000 216000 41.67 0.16 ------Goundar 03 138000 132000 270000 51.11 -0.02 2 69000 33600 102600 67.25 -0.34 Kallar 05 240000 210000 450000 53.33 -0.06 1 20400 33600 54000 37.78 0.24 Kuyavar 04 126000 150000 276000 45.63 0.08 2 37200 60000 97200 38.27 0.24 Lebbai 06 222000 276000 498000 44.58 0.1 1 21000 34800 55800 37.63 0.24 Maravar 09 318000 372000 690000 46.09 0.08 2 51600 30000 81600 63.24 -0.26 Nadar 08 378000 348000 726000 52.07 -0.04 1 30000 - 30000 100.00 -1.00 Naidu 06 282000 288000 570000 49.47 0.01 1 26400 42000 68400 38.60 0.22 Pallan 16 636000 606000 1242000 51.21 -0.02 6 130200 171600 301800 43.14 0.14 Parayar 16 762000 626400 1388400 54.88 -0.1 4 78600 144000 222600 35.31 0.30 Sowrastra 02 78000 96000 174000 44.83 0.1 1 20400 36000 56400 36.17 0.28 Udaiyar 03 126000 114000 240000 52.5 -0.05 2 42000 66000 108000 38.89 0.22 Vanniar 04 204000 102000 306000 66.67 -0.34 1 19200 32400 51600 37.21 0.26 Vellalar 07 372000 468000 840000 44.29 0.12 2 48000 74400 122400 39.22 0.22 Total 120 5082000 5240400 10322400 49.23 0.02 30 683400 892800 1576200 43.36 0.14 Source: Primary Data. 280 281 It is significant to note that sample women belonging to Scheduled Castes such as Pallar, Paraiyar and most backward classes are less dependent economically on their family members. The finding suggests that in socially and economically backward communities’ women’s contribution to family income is significant.

Table 5.2.18. Age-wise Economic Dependency of Sample Women Entrepreneurs

SHG Units Non-SHG Units Age Other Proportion Other Total Proportion Entrepreneurs Total Family Level of Entrepreneurs Level of group N members of women’s N members Family of women’s Income Income dependency Income dependency Income contribution Income Income contribution Below 19 870000 800400 1670400 52.08 -0.04 4 97200 105600 202800 47.93 0.04 30

30-40 50 2046000 2298000 4344000 47.10 0.06 13 288000 388800 676800 42.55 0.15

40-50 47 1944000 1896000 3840000 50.63 -0.02 9 203400 296400 499800 40.70 0.18

50 & 4 222000 246000 468000 47.44 0.06 4 94800 102000 196800 48.17 0.04 above

Total 120 5082000 5240400 10322400 49.23 0.02 30 683400 892800 1576200 43.36 0.14 Source: Primary Data. 282 283 The age wise dependency of the women entrepreneurs in both the categories show that while in the case of a women entrepreneurs of Non- SHG units there is a regular pattern of dependence, it is not so in the case of SHG women. Table 5.2.18 reveals that the age groups below 30 and 40-50 have a negative dependency ratio, which means that the family has been dependent on women’s income. Because the existence of unmarried, widow and divorced women in these two age groups. In the families of unmarried women, when aged parents stay with women entrepreneurs, so women entrepreneurs are the income earners. This further implies that the proportion of women’s contribution to the total family income is 100 percent. In the case of the ‘widow’ and divorced groups of the sample women the family is completely dependent on the women entrepreneur’s income.

Table 5.2.19. Education Wise Economic Dependency of Sample Women Entrepreneurs

SHG Units Non-SHG Units Age Other Total Proportion Other Total Proportion Entrepreneurs Level of Entrepreneurs Level of group N members Family of women’s N members Family of women’s Income dependency Income dependency Income Income contribution Income Income contribution Up to 18 792000 912000 1704000 46.48 0.07 12 249600 376800 626400 39.85 0.2 Primary

Middle 37 1392000 1466400 2858400 48.70 0.02 11 277800 312000 589800 47.10 0.06 school

High 38 1734000 1536000 3270000 53.03 -0.06 05 105600 174000 279600 37.77 0.24 School

Higher 15 636000 732000 1368000 46.50 0.07 02 50400 30000 80400 62.69 -0.26 secondary school

Graduate 08 378000 396000 774000 48.84 0.02 ------

Post 04 150000 198000 348000 43.10 0.14 ------graduate

Total 120 5082000 5240400 10322400 49.23 0.02 30 683400 892800 1576200 43.36 0.14 Source: Primary Data.

284 285 The relationship between education of the women entrepreneurs and the dependency level is presented in Table 5.2.19. The data show that women entrepreneurs educated up to high school among SHG units and the higher secondary level educated entrepreneurs among Non-SHG units have a negative dependency ratio. It is observed that the women with relatively less years of education are able to contribute higher proportion of income in the total family income than the sample women with higher educational qualification.

Table 5.2.20. Economic Dependency of Sample Women Entrepreneurs by Previous Experience (in Rs.)

SHG Units Non-SHG Units Entrepreneurs Other Total Proportion Entrepreneurs Other Total Proportion Experience Level of Level of N Income Members Family of women’s N Income Members Family of women’s dependency dependency Income Income contribution Income Income contribution Below 03 33 1368600 1566600 2935200 46.63 0.06 7 147000 203280 350280 41.97 0.16 years

03-06 29 1225980 1112883 2338863 52.42 -0.04 5 111000 154560 265560 41.8 0.16 years

06 years 28 1285560 1160000 2445560 52.57 -0.06 6 182040 209520 391560 46.49 0.07 and above

No 30 1201860 1400917 2602777 46.18 0.08 12 243360 325440 568800 42.79 0.14 Experience

Total 120 5082000 5240400 10322400 49.23 0.02 30 683400 892800 1576200 43.36 0.14 Source: Primary Data. 286 287 Previous experience of women entrepreneurs is also one of the variables that determine the economic dependence on their family. Whatever may be the nature of the activity; previous experience of women entrepreneurs enables to contribute more to the family income. However, in the case of the present women entrepreneurs, Table 5.2.20 shows that there is higher the experience, the more would be the income and higher would be the contribution to family income.

5.3. IMPACT ANALYSIS OF SGSY INTERVENTION ON ECONOMIC EMPOWERMENT OF SAMPLE SHG ENTREPRENEURS Patrick Kilby of the National Center for Development studies, Australian National University puts Microfinance in the following way. “Microfinance aims at assisting communities of the economically excluded to achieve greater levels of asset creation and income security at the household and community level.”

Like everyone else, people living in poverty need access to a diverse range of financial services, including loans, savings, services, insurance and money transfers. Access to financial services enables the poor, increase income and smooth consumption flows, thus expanding their assets base and reducing the vulnerability to the external shocks that plague the daily existence. The availability of financial services acts as a buffer against sudden emergencies, business risks and seasonal slumps that can push a family into destitution. More and better financial services specially geared towards low-income groups can help poor households to move from mere subsistence for daily survival to planning for the future and investing in better nutrition, improved living conditions, and children’s health and education. 288

The Institution of Self-Help Groups has provided strength to micro- credit system. Subsequently SGSY introduced during the financial year 1999-2000. This is a holistic programme covering all aspects of self- employment such as organization of the poor into Self-Help Groups, training, credit, technology, infrastructure and marketing. Formation of Self-Help Groups is not only a key element for the success of this programme but also act as an intervening agency to give a break through to the “Vicious cycle of poverty” in rural areas. In this section, the economic benefits accruing to SHG members due to the implementation of the SGSY - are discussed.

Economic Performance of SGSY Assisted Women SHG Entrepreneurs Before and After Joining SHG An attempt has been made in this study to assess the impact in terms of certain variables such as income, savings and access to credit of women after they assumed the role of entrepreneurs. Table 5.2.21 highlights the impact on women after joining SHG in terms of the above variables.

Table 5.3.1. Income, Savings and Borrowing of SGSY Assisted Women Entrepreneurs Before and After Joining SHG (in Rs.)

Variables Before joining SHG After joining SHG N Mean N Mean Income 90 924.44 120 3529.17 Savings 16 121.88 120 276.46 Borrowings 49 7163.27 120 38815.52 Source: Primary Data.

289 The table reveals a significant and positive rise in the income of the respondents as well as the access to credit after joining the SHG. The growth in the savings too is positive. The same is true of the women entrepreneurs in the other category whose income, savings and borrowings have shown a positive growth after having started the micro enterprises, but the quantum of growth is less. This is evident from the table given below (5.3.2). Therefore, the hypothesis that there is a significant difference between the average income, saving and borrowing of the SHGs and Non-SHGs is accepted as valid.

Table 5.3.2. Income, Savings and Borrowings of the Non-SHG Entrepreneurs Before and After Running the Enterprises Before After Variables N Mean N Mean Income 18 888.88 30 1898.33 Savings 05 70.00 18 131.94 Borrowings 14 4214.29 30 26217.39 Source: Primary Data.

Monthly Income of the Sample SHG Women The SHGs have certainly helped women entrepreneurs in several ways. SHGs have helped the empowerment both in rural and urban areas. They have provided scope for women to develop self-confidence and the right temperament to function as a group. The training imparted to women entrepreneurs and the group meetings organized by NGOs, banks and groups have provided them the opportunity for social interaction and provide the status of earning member in the family. Income measures the financial stability of a family. It also reveals the purchasing power of the family to take care of basic household expenses, education of children and the like. Knowing the monthly income of the family will be helpful to 290 NGOs and Banks to design their credit schemes for micro entrepreneurs. Table 5.3.3 shows the growth in individual income of the respondents after they joined the SHG units.

Table 5.3.3. Monthly Income of Sample Women Entrepreneurs Before and After Joining SHG (in Rs.) SHG Units Income Before joining After joining Level Percentage Percentage SHG SHG Less than 45 50.00 - - 1000 1000-2000 44 48.89 - - 2000-3000 01 01.11 37 30.83 3000-4000 - - 42 35.00 4000-5000 - - 24 20.00 Above 5000 - - 17 14.17 Total 90 100.00 120 100.00 Source: Primary Data.

It is evident from the table that 98.89 per cent of the sample women were earning less than Rs.2000/- before joining the SHGs. Now the whole lot of them are earning more than Rs.2000/-. It is significant to note that more than 34 per cent are earning Rs.4000/- and above. This is indeed a positive trend.

This improvement in the monthly earning as seen from table 5.3.3 empowered the entrepreneurs economically. The financial independence helped the entrepreneurs to clear family debt and to save. Further, managing the business enabled the entrepreneurs to take decisions independently and at times jointly regarding the expenditure pattern of household, food and children’s education.

291 The growth in the average monthly income of the sample women after they joined the SHGs is further analysed in terms of their age, literacy status and marital status in Table 5.3.4.

Table 5.3.4. Age, Education and Marital Status –wise Distribution of Monthly Income of the Sample Women Entrepreneurs (SGSY) Before and After Joining SHG (in Rs.) Before joining SHG After joining SHG Variables N Mean N Mean

Age group Below 30 17 1094.12 19 3815.79 30-40 32 889.06 50 3410.00 40-50 38 867.11 47 3446.81 50 &above 03 1066.67 04 4625.00 Total 90 924.44 120 3529.17 Education Up to Primary 12 912.5 18 3666.67 Middle school 32 767.19 37 3135.14 High school 26 1059.62 38 3802.63 Higher secondary 11 972.73 15 3533.33 Graduate 07 1064.29 08 3937.5 Post Graduate 02 1000 04 3125 Total 90 924.44 120 3529.17 Marital status Married 73 908.90 102 3465.69 Unmarried 04 775 04 3000 Widow 07 1057.14 08 4187.5 Divorced 06 1058.33 06 4083.33 Total 90 924.44 120 3529.17 Source: Primary Data. 292

The table does not show any definite trend between growth in income and other variables except for the fact that it portrays a growth in income. It is true that those women belong to a homogeneous group and the income earned is influenced by the nature of activity, nature of support systems, nature of demand etc and not necessarily by age, education and marital status. Hence there has not been much of a difference in the income earned influenced by age, education and marital status.

The average monthly income of the women entrepreneurs from SHGs is related to the previous experience and their community in Table 5.3.5. Table 5.3.5. Previous Experience and Community-wise Distribution of Monthly Income of Sample Women Entrepreneurs After Joining SHG Variables N Mean Experience (in years) Below 03 33 3456.06 03-06 29 3522.93 06 and above 28 3826.07 No Experience 30 3338.5 Total 120 3529.17 Community Backward Community 62 3548.39 Most Backward Community 26 3346.15 Scheduled Caste\Scheduled tribe 32 3640.63 Total 120 3529.17 Source: Primary Data. 293 Two things are significant in the table. In the first place the average monthly income has shown a tendency to increase with every increase in their experience. Secondly, respondents from Scheduled communities are enjoying a monthly average income which is higher than that of the others. The perseverance, hard work and drive to enter the mainstream with economic and social uplift found among communities like SC/STs must have contributed to such positive improvement.

Monthly Expenditure of the SHG Members With the growth of the monthly income, the women entrepreneurs’ monthly expenditure has also shown an increase. The growth of expenditure is shown in Table 5.3.6

Table 5.3.6. Monthly expenditure of Sample Women Entrepreneurs Before and After Joining SHG (in Rs.) SHG Units Expenditure Before joining After joining Level Percentage Percentage SHG SHG Less than 1000 - - - - 1000-2000 79 65.83 37 30.83 2000-3000 40 33.33 42 35.00 3000-4000 01 0.84 36 30.00 Above 4000 - - 5 4.17 Total 120 100.00 120 100.00 Source: Primary Data.

Before the women entrepreneurs having joined the SHG only one of them was incurring an expenditure between Rs.3000/- and Rs.4000/-. After having joined the SHG 41 women entrepreneurs, that is, 34.17 per 294 cent have admitted that the expenditure is above Rs.3000/-. This indicates that the members spending power increase after having become members of SHGs. The pattern of expenditure of women entrepreneurs has changed after having joined the SHGs. The present group of women entrepreneurs is no exception to this general trend as is evident from Table 5.3.7.

Table 5.3.7. Consumption Expenditure of the Women Entrepreneurs Before and After Joining SHG (in Rs.) Before After Items N % Mean N % Mean Food 120 72.66 1305.17 120 70.60 1831.25 Clothing 120 5.17 92.79 120 5.64 146.25 Education 120 6.60 118.58 120 8.14 211.04 Medical Expenses 120 4.28 76.79 120 5.14 133.33 Festival/Recreation 120 4.86 87.5 120 6.99 181.25 Others 120 6.43 115.42 120 3.49 90.63 Total 120 100.00 1796.25 120 100.00 2593.75 Source: Primary Data. The table shows the pattern of expenditure of the sample women in the pre and the post-SHG scenario. Apart from item wise increase the table shows a significant increase in expenditure on education of children and festivals and recreation. Majority of the respondents declared that they were particular in continuing the education of their children. This has sizably brought down the problem of dropouts in this group. They desire to impart better education to their wards, getting all the books, notes and uniform in time. The percentage of income spent on education has changed from 6.60 per cent to 8.14 per cent due to participation in SHG. It must be noted that expenditure on food and clothing at more than 75 per cent of the total expenditure continues to be the dominant item. The 295 consumption pattern on health expenditure generally explains that when there is an incremental income, it would be spent on visiting the doctor rather than on self medication. The SHG had created awareness among the members to regularly use the Government Health Centre. Expense on health / recreation has increased in the post SHG situation.

The expenditure pattern on unproductive and conspicuous items including alcohol, betel nut, smoking, gambling etc has been enquired for the pre and post SHG periods. It was found that the percentage of income spent on conspicuous items has declined from 6.43 to 3.49 due to the influence of SHG. After becoming active members in the SHG women are able to contribute to family income and share responsibilities. So there has been a significant change in the mind set of men. For instance, previously the husbands used to spend some amount on drinking alcohol. Now, the counterpart of the SHG women have given up drinking and give the money thus saved to the family. Sample women entrepreneurs and the husbands share the repayment of loan installments. The SHG thus protect SHG women’s families from spending on unproductive items. Participation of households in the SGSY-SHG linkage programme significantly contributed to the increase in expenditure and thereby, the level of living.

Monthly Savings of the SHG Members One of the important objectives of SHG scheme is to enable the women folk so as to cultivate the habit of savings, Malathi (2003) in her study of the impact of women SHGs in the rural, the urban and the tribal areas in Tiruchirappalli District found some attitudinal changes in women entrepreneurs towards the value of private savings. In the present study 296 also it is evident from the table 5.3.8 that the respondents after joining the SHGs have realized the value of personal savings.

Table 5.3.8. Monthly Savings Pattern of the Women Entrepreneurs Before and After Joining SHG SHG Units Savings Level Before joining After joining (Rs.) % % SHG SHG Less than 100 01 6.25 - - 100-200 12 75.00 08 6.67 200-300 03 18.75 72 60.00 300-400 - - 19 15.83 400-500 - - 10 8.33 Above 500 - - 11 9.17 Total 16 100.00 120 100.00 Source: Primary Data. Before the women entrepreneurs joining the SHGs only sixteen have had the habit of personal savings. After the women entrepreneurs joining the SHGs all the 120 have developed personal saving habit and more than 93 per cent are found to save more than Rs.200/-. This signifies that the savings of the members of the SHGs have risen with an increase in their income. This shows that the SHG movement in the right direction towards eradicating the poverty of the people.

The Asset Position A family in India commands a status in society based on the value of its assets both movable and immovable. As it acquire more and more assets its status in society goes up. In the present study the women entrepreneurs turn assets such as livestock, Poultry birds, agricultural 297 equipments, gold jewels, work shed, buildings and some consumer durables. The assets positions of the respondents before and after they joined the SGSY assisted SHG groups is shown in Table 5.3.9.

Table 5.3.9. Asset position of the Women Entrepreneurs Households in Pre and Post SHG Periods (in Rs.) Sl. Pre-SHG Post –SHG Assets Particulars No. N % Mean N % Mean 01 Consumer durables 75 18.91 2266.67 68 13.5 3573.53

02 Ownership of 23 31.56 3782.61 39 28.38 7512.82 house/Extension of additional rooms

03 Jewels/Ornaments/Deposits 21 30.19 3619.05 48 25.10 6645.83

04 Availability of facilities - - - 01 15.11 4000 water/electrified/toilet

05 Livestock:Milch 41 19.34 2317.67 66 17.91 4742.42 cattle/bullets/poultry bird/others

06 Total 160 100.00 11986 222100.00 26474.6

07 Increase in Assets 14488.6 120.88 Source: Primary Data.

From the table it is clear that the total value of the assets owned by the women entrepreneurs has gone up from Rs.11986/- to Rs.26474.60 an increase of Rs.14488.60. In percentage terms the increase is 120.88. The additional income generated from their micro enterprises has been used for constructing additional rooms or additional facilities in their house, for buying livestock and poultry birds for acquiring gold jewels and for purchasing consumer durables such as fans, TV sets, sewing machines, kitchenware and gas stove. Even though there are other factors which 298 have contributed to the growth in the value of assets owned by households, rise in the income of the women entrepreneurs is a key factor.

Involvement in Decision – Making For generations in Indian women were denied any role in decision- making. Whether it was household management or social or economic interaction all the decisions were taken by the male members and women did not have any say in the activities. With the advent of SHGs the concept of women empowerment gained strength and momentum and the women who are attached to them have a definite and positive role in taking decisions relating to the household, business and social interaction. The study has shown that the women entrepreneurs belonging to SHGs have an active role in their business and household management. This is evident from Table 5.3.10.

Table 5.3.10. Opinion of SHG Members Regarding Increase in Power of Decision-Making Opinion of Respondents Type of decisions Yes NO Total Decision making in 82 38 120(100.00) choosing economic activity Participation in group 79 41 120(100.00) meeting/speaking in SHG meeting Purchase and sales of fixed 68 52 120(100.00) assets Purchase and sales of 83 37 120(100.00) current assets Job opportunity for others in 61 59 120(100.00) her units Marketing, Bargaining 71 49 120(100.00) &Pricing of a product 299

Business Expansion and 62 58 120(100.00) Modernization Participation to training 64 56 120(100.00) programme, desire to join women’s Association Raising of loan 74 46 120(100.00) Repayment of loan 69 51 120(100.00) Involvement in house hold 66 54 120(100.00) decisions Purchase and sales of 65 55 120(100.00) domestic animals Purchase and sales of 62 58 120(100.00) ornaments Purchase of Home 64 56 120(100.00) Appliances Purchase of Clothes 62 58 120(100.00) Buying a house /Land 68 52 120(100.00) Constructions and 72 48 120(100.00) improvement of housing facility Savings and their 69 51 120(100.00) investment Economic security-her own 62 58 120(100.00) cash saving/Any protective Asset/house site in her name Mobility- To 66 54 120(100.00) Bank/Market/Theatre/Health centre/pilgrimage/Relative places/outside the village Education of children 65 55 120(100.00) Sending the children outside 43 77 120(100.00) for education Marriage of the children 49 71 120(100.00) Source: Primary Data. 300 From the table it is clear that majority of the women entrepreneurs have expressed the opinion that they play an active part in decision making except in matters relating to sending the children outside for education and marriage of the children. There is a general belief that economic freedom helps one to involve more in household decision- making. Accordingly it is analyzed as to how; the entrepreneurial activity has contributed to the sample women in enhancing the role in decision- making.

It is evident from the table 5.3.10 that out of all types of decisions taken for the study to know the opinion of the SHG members regarding the increase in the power in decision making in the family and business, majority of women entrepreneurs have opined that the opinion was considered and were allowed to take the decisions. These indicate that the members were given much more freedom in taking many important decisions of the family and business.

“Decision making is one of the important functions of entrepreneurs” (Vasant Desai, 1996). The entrepreneurs strongly believe in that ability to make good decisions, which is distinguishing feature and almost all the women entrepreneurs, fared very well in the art of good decision making (Simon, 1985). A women entrepreneur has to take proper decision to build up the small enterprise in different aspects. A proper decision determines the success of business. Hence, the moment of decision making is the most creative event of women entrepreneurs. The study of Rani C (1991) reveals that women are capable and confident of taking independent decisions.

301 5.4. DIFFICULTIES FACED BY SAMPLE SHG WOMEN ENTREPRENEURS As a part of the exercise an attempt was made to highlight the difficulties faced by the sample SHG entrepreneurs in playing the new role as entrepreneurs of micro enterprises. Rural women entrepreneurs have to perform the dual role of a homemaker and an entrepreneur. Women entrepreneurs have to face many difficulties. New entrepreneurs face a variety of problems during the production, expansion, financing and regular operation of the units. Such problems or difficulties, if not taken care of in time, may convert the viable unit into sick unit.

Difficulties faced by Women Entrepreneurs are ranked as per weighted score Ranking Method. The formula used is as follows: (a) Weighted score = Ranking factor x Number of respondents (b) Rating Percentage = Total of Weighted score / No. of ranking factor The problems are classified in this study as general problems, business related problems, family related problems, problems related to finance and social related problems.

General Problems Majority of the women who entered the field of entrepreneurship admit that there are problems in running the micro enterprise. Most of the sample entrepreneurs have more problems. But among the various problems confronting women entrepreneurs, the women pointed out that most serious one. There are as many as eleven general problems faced by the SHG women entrepreneurs.

Table 5.4.1. General Difficulties Faced by Sample SHG Women Entrepreneurs

Ranking of factors by Respondents Difficulties faced Weighted score Rating % Rank 1 2 3 4 5 6 7 8 9 10 11

Competition 20 15 9 7 15 12 14 13 10 3 2 844 76.73 III

Marketing 23 19 13 13 14 11 14 8 3 2 0 943 85.73 II

Working Capital 7 6 14 5 11 11 19 18 16 6 7 680 61.82 VII

Long-term finance 27 25 11 11 13 12 11 6 4 0 0 988 89.82 I

Technical Knowledge 8 4 5 4 12 15 23 15 20 7 7 635 57.73 VIII

Electrical supply 15 10 11 7 8 19 17 18 9 4 2 784 71.27 IV

Water supply 3 2 4 5 16 22 12 13 16 15 12 575 52.27 X

Inadequate Workspace 5 4 3 2 19 13 14 6 9 26 19 541 49.18 XI

Shortage of Material 10 9 11 6 7 13 15 21 15 6 7 697 63.36 VI

Low price/Profit 12 8 10 5 11 15 18 22 12 3 4 733 66.64 V

Government’s policy Change 0 2 8 9 12 19 21 24 16 9 0 629 57.18 IX Source: Primary Data. 302 303 It is observed from this table that major problems are related to ‘finance’, ‘competition’ and ‘marketing’. In spite of these problems the women entrepreneurs in the sample could successfully initiate and run micro business in rural areas, where the majority of their peers choose to work for wages.

Women entrepreneurs, who have overcome these problems successfully, thankfully acknowledge the support received from various stakeholders including the District Rural Development Agency (DRDA), women’s project of Tamil Nadu Women Development Corporation, NGOs’ working in their areas, the Group Members, Block Development Officers and Panchayat Union Officers for their support. The sample women entrepreneurs are interested in expanding their scale of operations and as such look for further financial support and also marketing facilities. The Mahalir Thittam has helped in marketing their products through the DSMS centres and continues to encourage them to expand their scale of operations by creating tie-ups with various departments.

Constraints Faced in Work Role by SHG Women Entrepreneurs Women entrepreneurs have to face many constraints in work role. Women entrepreneurs were given five choices and asked to rank it. Almost all of the women entrepreneurs mentioned multiple problems. Weighted score, rating percentage and ranks of the constraints, according to the SHG women entrepreneurs, are shown in Table 5.4.2.

Table 5.4.2. Constraints Faced in Work Role by Sample SHG Women Entrepreneurs

Ranking of constraints by SHG women entrepreneurs Constraints faced Weighted score Rating % Rank 1 2 3 4 5

Unable to cater Maximum time to enterprise 28 19 23 27 23 362 72.4 III

Unable to utilize the skills 27 22 20 29 22 363 72.6 II

Unable to expand the enterprises 32 29 24 20 15 403 80.6 I

Overload of work 20 20 21 34 25 336 67.2 IV

Profitability of enterprises 21 12 16 43 28 315 63.0 V Source: Primary Data.

304 305 Constraints faced in work role by women entrepreneurs are given in Table 5.4.2. The maximum role constraints existed in expanding the enterprise and in utilizing the skills of women entrepreneurs. Unable to cater maximum time to enterprise is ranked third with weighted score of 72.4 per cent. This may be because women give more importance to family and to their responsibilities as a home maker. This divides and diverts the interest and concentration, thus making it difficult for the women entrepreneurs to utilize their skills completely and to expand the enterprise further. Overload of work with 67.2% rating is ranked fourth and quoted as one of the areas of conflicts. Profitability of enterprise is placed at the end.

Challenges Faced in Home Role by SHG Women Entrepreneurs The patriarchal society expects women to bear and rear the children. When a women wants to emerge as an entrepreneur. She has to plan to discharge the household chores first and then think of running the enterprise. The dual roles make her to devote less time for work. This is inevitable too. “Women entrepreneurs feel frustrated at times, because they need to spare their energy both towards business as well as domestic affairs. At times they may not be to attend to both the duties because of which they are dissatisfied about the progress of their ventures.” (Narayana Reddy, 1991). The problems reported in the table are more or less the same or overlapping or women entrepreneurs are the outcome of dual responsibilities. Majority of the women felt that dual role of being a mother or wife and an entrepreneur; push them often to role conflict. Accordingly they failed to show better performance of enterprises in terms of turnover. They also fail to impress customers, adopt modernization, diversification and expansion.

306 Women entrepreneurs face multiple problems in home role. They were given six choices and asked to rank it. The weighted score rating percentage and ranks of the challenges faced according to the SHG women entrepreneurs are shown in Table 5.4.3.

Table 5.4.3. Challenges Faced at Home Role by Sample SHG Women Entrepreneurs

Ranking of challenges by SHG women entrepreneurs Challenges faced Weighted score Rating % Rank 1 2 3 4 5 6

Domestic work 27 21 21 20 17 14 459 76.5 IV

Being a good spouse 42 18 21 19 12 8 515 85.83 II

Time with Family 41 33 22 14 6 4 557 92.83 I

Time towards education of children 25 24 29 20 12 10 480 80.00 III

Personal hobbies and entertainment 0 0 15 28 38 39 259 43.17 VI

Lack of support from the family 6 5 20 19 28 42 296 49.33 V

Source: Primary Data. 307 308 The data presents the challenges faced by the women entrepreneurs at home role. The main challenge found with regard to the performance of home role is non-availability of time to spend with family. Around 85.83% women entrepreneurs have said that after long hours at business; find it difficult to meet the demands of all the family members. It is followed by challenges faced in time spent towards education of children with weighted percentage of 80%. Domestic work ranked fourth with weighted score of 76.5%, lack of support from the family is ranked fifth followed by personal hobbies and entertainment, ranked sixth.

Financial Constraints of Sample Women Entrepreneurs Finance is the life blood of any enterprise. It has to be available at the right time in right quantity. Availability of adequate financial support accelerates the success of an enterprise. If an entrepreneur is unable to mobilize the needed finance, then the dream of women entrepreneurs will not come true. Usually women do not have sufficient saving in order to start a own business as women entrepreneurs do not have economic freedom. (Varshnay, 1991). The financial problem exists for any business irrespective of its scale and gender. However women have additional problems of lack of collateral, lack of credibility and lack of support from family. The ranks given by the women entrepreneurs to the 10 financial constraints encountered by them are exhibited in Table 5.4.4.

Table 5.4.4. Financial Constraints of Sample SHG Women Entrepreneurs

Ranking of factors by Respondents Constraints Weighted score Rating % Rank 1 2 3 4 5 6 7 8 9 10 Shortage of fixed capitals 24 31 25 20 8 12 0 0 0 0 967 96.7 II

Shortage of working capitals 26 20 21 30 4 8 11 0 0 0 926 92.6 III

Negative attitude of Bankers 15 21 18 16 10 12 8 11 6 3 795 79.5 V

Delay in sanction loan 20 14 19 11 23 14 6 4 9 0 817 81.7 IV

Rigid repayment schedule 10 12 15 20 29 12 9 3 7 3 764 76.4 VI

Ignorance of banking Procedure 0 4 9 16 15 23 13 21 9 10 568 56.8 VIII

Inability to offer co-securities 8 9 12 24 25 23 9 5 4 1 750 75.00 VII

Bureau crazy and red tape 0 0 4 9 12 19 24 22 19 11 473 47.3 X

Inadequate size of loan 30 30 26 12 22 0 0 0 0 0 994 99.4 I

Lack of accounting skills 0 6 7 19 12 19 13 9 18 17 542 54.2 IX Source: Primary Data. 309 310 It could be inferred from the table 5.4.4 that inadequate amount of loan, shortage of fixed capital and shortage of working capital are serious constraints for women entrepreneurs with mean scores of 99.4, 96.7 and 92.6 respectively. Lack of finance as usual has been found to be the major problem of these enterprises as it is experienced by every entrepreneurs irrespective of sex, region etc.

The members of SHGs require funds for meeting emergency needs like expenditure on medicine, festival, education fees etc. Women entrepreneurs also need funds for running small economical activities of the livelihood. After satisfactory gradation of the SHG, it becomes eligible for getting credit from the bank. Under SHGs – bank linkage programme, the members are assisted with micro credit facilities for their micro enterprises individually or in combination with an aim of creating productive assets and income generation. It is to be noticed that loan assistance by the SHGs depends mostly on the gradation, performance and financial discipline shown by the group.

Social Constraints of SHG Women Entrepreneurs Social constraints are another problem for rural women. In rural areas, women lack family support. They cannot avail financial freedom. The ranks given by the women entrepreneurs to the nine social constraints encountered by women entrepreneurs are exhibited in Table 5.4.5.

Table 5.4.5. Social Constraints of Sample SHG Women Entrepreneurs

Ranking of factors by Respondents Constraints Weighted score Rating % Rank 1 2 3 4 5 6 7 8 9

Lack of Self –confidence 1 0 2 12 15 11 12 31 36 348 38.67 IX

Prejudice against Women 16 11 18 19 23 19 10 3 1 700 77.78 IV

No risk bearing capacity 21 20 23 12 11 10 14 9 0 737 81.89 III

Dual role of Women 31 29 27 20 13 0 0 0 0 885 98.33 I

Male domination 18 16 8 23 15 11 15 8 6 670 74.44 V

Lack of Exposure 30 23 29 15 19 3 1 0 0 857 95.22 II

Problems in public Relations 0 0 3 9 18 23 24 21 22 393 43.67 VII

Lack of Economic Freedom 12 14 11 26 11 14 18 6 8 638 70.89 VI

Fear of social security 0 0 0 9 18 17 19 26 31 352 39.11 VIII Source: Primary Data. 311 312 The data shows that the dual role of women is a major constraint of women entrepreneurs ranked first with a mean score of 98.33%. It is true that the women failed to totally concentrate on business as the fact remains that women have to concentrate on both family and business. It is highly impossible for women to divert the concentration fully to business, as she has to perform or involve the dual role as a homemaker and business entrepreneur. Moreover, it is necessary that these women, who emerge as a group to improve the entrepreneurial base, must be provided with the conducive environment both by the state, market and of course by family, to facilitate them to increase their time available for business so that they will be able to run the enterprise better.

It is true that the entrepreneurial activities necessarily involve risk and uncertainty and one can survive through innovative method of production, marketing etc. But the sample women entrepreneurs are happened to be from a class of proletariat who were trained for generation as labourers than as entrepreneurs. Hence, introducing these women suddenly to risk taking venture is it as major or tiny scale certainly brings problem which may be overcome in due course of time as experience is gained.

From the analysis of socio economic profile of the sample entrepreneurs of the present it is quite obvious that the sample women have really ventured into these activities merely but of economic necessity. Though women entrepreneurs have higher potential to save, invest and expand the units, lack of finance stand on the way. Since women by tradition are house wives or at most found in wage employment in both rural and urban areas. Relatively less educated, not informed about their surroundings better nor interested also, lack of 313 property right and all these do contribute in their way of progress and unless equal property right, equal encouragement, equal sharing of responsibilities is done, successful women entrepreneurship would be a dream.

5.5. CASE STUDIES OF SUCCESSFUL SHG WOMEN ENTREPRENEURS Case 1: Bag Making Ms Aleema Beevi belongs to the village of Mappillanayakkampatti which is situated 10 Km away from the district headquarters of Thanjavur. She has completed B.Sc. Her husband is running a ‘General Store’ and they have a son who is studying in a private school. She faced economic difficulties which forced her to think of a self employment. She joined the SHG as a member and received training in bag making with jute, leather and cloths. Once she joined the group her life began to change. She received her first internal loan to cover her basic needs. Thanks to the assistance extended by the SGSY amounting Rs.20,000 towards the project cost. Aleema Beevi has turned into a micro entrepreneur. Marketing is done on retail and wholesale basis. She also participates in the state level / district level trade fairs. She employs one person as wage earners. She is a courageous and risk taking entrepreneurs. After starting this micro enterprise, the net earning per month of the family has gone up steadily from Rs.2,000 to Rs.5,000. She is able to meet the expenses of the household and the education expenditure of her son. She has improved the life style of the family. She has plans of extending her business. Seeing this, several other women in the village are planning to follow her example getting assistance under the SGSY scheme. The case of Aleema Beevi indicates that the SGSY Scheme has really contributed positively to enhance earning and ensure better living conditions for women. 314 Case 2: Shield Work Ms. Murugalakshmi, a 36 year old woman, engaged in shield work. She is just qualified 8th standard, married and has two children. Her happy married life soon came to an end when her husband met with an accident and died. The responsibility of fully looking after her family rested with her after the death of her husband and she started thinking to initiate an enterprise which will support to provide income to the entire family. In this situation, she came to know about the SHG and became a member. Murugalakshmi attended training programme in shield work. She got a loan of Rs.25,000 from the micro credit programme of the SGSY. In the beginning she earned only Rs.3,000 which has gone to Rs.6,000 within three years of time. There is lots of competition which really prevent her from expanding earning more. She advocates that at least one skill or industrial training must be needed for women to survive with peace in this world and therefore each woman should learn at least one skill in her life time.

What this case study suggests is that women must always to prepare to shoulder the responsibility at home. At any time, anything may happen, but one should not give up. It is that determination which had helped this member to become a entrepreneur and also survives with the sufficient livelihood earning he look after her children and parents.

Case 3: Photo Lamination Ms. Latha is 29 year old, unmarried woman, on the advice of her father, she became a member of the SHG, she attended a number of training programmes at Thanjavur. She had been forced by her father to enter into business. She has availed Rs.30,000 under SGSY (through DRDA), as economic assistance. She is a forced entrepreneur and her 315 poor economic condition made her inevitable to be in this business. Her sister is living who is unmarried. Both father and mother are sick and hence part of the income is spent on medicines.

In the beginning, she had only few customers but later, was able to get good response due to her kind customer approach, promptness in service etc have added to her business. This has facilitated her to increase her income from just Rs.2,500 to Rs.6,000 within two years of establishment. This is indeed a considerable improvement from zero earning to Rs.6,000. She still remains as spinster for the sole reason to support her parents.

What this case study reveals is that a woman can support their family with her own earning utilizing the skill acquired and also availing credit under government schemes.

Case 4: Thanjavur Doll and Art Plate Making Ms. Kargulazhi is a 42 year old woman. She has Bachelor degree in Commerce and has a son who is studying in an Engineering College. Her husband is a driver. Her husband’s income is not sufficient for the family. Knowing the advantages of joining the SHG, she became a member and received training in Thanjavur Doll and Art Plate Making. Hence she wanted to start an enterprise and her husband gave a green signal realizing her interest of becoming a micro entrepreneur. She has availed Rs.25,000 under the SGSY, through DRDA recommendation as economic assistance. She chose to this career mainly to support the family and also have an occupation on her own.

316 Kargulazhi gets through this business Rs.4,000/- per month after meeting the input expenses and repayment of loan. Now she could prove herself a good entrepreneur using the education and training received. Her husband assists her in business and helps in marketing her products. She sell her products in wholesale, retail shops and also directly to consumers.

She did get abuses from in-laws in the beginning and neighbours gossip lead to telling that her husband money does not suffice and so she is earning etc. But she could face all these successfully and established herself in the field as one of the best artisan in the area. She appoints two girls and also imparts training to others. Though two girls are working, the most significant works are done by her, which is the secret behind her success.

Both in-laws and neighbours now wondering on her progress and stop discouraging and even went to the extent of quoting her as model for others.

The will power, the customer friendly approach, devotion and commitment good worker-owner relationship, constant improvement in the fashion suiting to the current requirement are contributing to her success.

This case study lessons the fact that even when finance is available one may not be successfully in entering into business unless it is encouraged by the family particularly husband. Above all, the will power to withstand criticism will bring success.

317 Case 5: Beauty Parlour This is a case of Ms. Uma Maheswari who is 34 year old, running a Beauty Parlour, married, qualified with Post Graduate in history, has an 8 years-old daughter. Her husband is working in a medical shop. Her husband’s income could not meet family needs. She wanted to do some income earning activity her husband encouraged but her in-laws were reluctant. However she was fortunately came to know about the SHG and its objectives. She became a member and got training in beautician. Her life was changed after joining the SHG. The urge to achieve something in life made her start a beauty parlour. She has received a loan of Rs.30,000 under the SGSY scheme for this.

The sample entrepreneur faces lot of problems in terms of discouragement or abuse from in-laws when she took up this activity. She spends 12 hours with the enterprise and remaining hours at home and manages without any role conflict. She does not claim that dual responsibility is a burden. She supports the family fully contributing her income and in fact her earnings are more than her husband’s. She realizes an earning of Rs.4,000 per month. It was not realized overnight but her sincere, dedicated, committed and continuous effort made her to realize the same.

This case study implies that though women are educated, wanted to utilize the education and training for the betterment of family and also to be independent, but not able to get the support from in-laws. However, this respondent silently accepted everything but never gave up her idea of starting an enterprise and succeeds the same. The SGSY loan has helped the member to be self employed. Hence such courage and drive is needed 318 for every woman who wishes to start enterprises, using their own expertise etc.

The foregoing analysis of the socio-economic profile of women entrepreneurs belonging to SGSY assisted SHGs and Non-SHGs and the comparative performance of both the groups in terms of specific variables has brought out the better performance of women SHGs. It has also shown the sustained improvement in the income, saving and borrowing of women entrepreneurs in SHGs. The specific findings of the study are given in the concluding chapter. CHAPTER VI FINDINGS AND CONCLUSION

In this final chapter, the summary of the major findings of the analysis is given. This chapter is divided into two sections. The findings of the study are given in section one and suggestions are given in section two.

Poverty alleviation is an integral part of planning in India. Urban poverty in our country is considered a fall out of rural poverty. At the time of the commencement of planning in rural poverty and its destitutions were ramparts in India. Many significant efforts were made over the last few decades to reduce the extent of rural poverty. Women constitute nearly half of the population of our country. The condition of women at the time of independence was despicable. The women were socially and economically subjected to suppression in a male dominated society governed by worn out taboos and restrictions in the name of religion. They were confined to the four walls of their house.

Women’s contribution to national development is crucial as the women constitute nearly a half of the employable human resources in the country. The holistic concept of development should perceive women as an integral part of development along with men. The global Conference on Women Empowerment (1988) declared that women empowerment is the surest way of making women active partners in development. This is possible by inspiring women to develop a strong positive self image and the capacity for critical thinking, group participation and decision making.

320 In India until recent years women were kept outside the ambit of organized credit. The Sixth Five Year Plan emphasized for the first time access to institutional credit for rural men and women. In recent years the Government of India adopted the Self Help Group Approach as a strategy to ensure women empowerment. The rationale of this approach is to encourage women to work as cohesive groups to establish micro enterprises by making available micro finance on a liberal scale. There is a dire need to study the performance of such women SHGs especially those supported by Swarnjayanthi Gram Swarozgar Yojana (SGSY) by comparing them with women operated micro enterprises which do not have any such support.

A detailed analysis of the data collected in the present study has been made in the previous chapter. From this it has been possible to highlight the findings of the present study. The following are the principal findings.

6.1. MAJOR FINDINGS Socio- Economic Profile of Women Entrepreneurs The study has revealed that a considerable percentage of women entrepreneurs in SHGs (28 per cent) are engaged in agriculture and agricultural related activities whereas only 23 per cent of women entrepreneurs in Non-SHGs are engaged in these activities (Table 5.1.1).

In both the categories of women entrepreneurs more than 40 per cent are in the age group of 30-40 (Table 5.1.2) signifies that this is the age at which on an average, the children are grown up and independent, the women find more leisure time than earlier and decide to invest this leisure time productively. 321 Relatively higher percentage of women started their unit after marriage. Some of them are widows and divorcees (Table 5.1.3)

Religion-wise “Hindu” constitutes more than 85 per cent and few Christian and Muslim women are also represented. (Table 5.1.4)

More than 70 per cent of the women in both the categories belong to the backward and scheduled communities. It is significant to note that more than 25 per cent in both the categories belong to scheduled communities which are socially oppressed (Table 5.1.5)

From the caste-wise distribution, it is significant to note that more than 26 per cent of the respondents in both the categories belong to Pallan and Paraiyan communities which were treated as social out castes over a long period of time. (Table 5.1.6)

Scheduled Caste and Scheduled Tribal are mostly engaged in the activity of agriculture, animal rearing and petty shop (Tables 5.1.7 and 5.1.8).

In both the categories more than 70 per cent belong to nuclear families (Table 5.1.9) which reflects the current pattern among the people to choose to nuclear family which is the consequence of changing structure of social constitution of family and economic empowerment taking place.

Family size of women entrepreneurs revealed that most of the women have an average number of family members. One of the reasons is that they are aware of the family planning. In addition, they are able to 322 view the neighbor / friend’s family size and are able to take a common decision. It is not only in urban but also in rural to stick to small family norms in Tamil Nadu. In both the categories majority belong to families consisting of 4 to 6 members. Overall mean of the women entrepreneurs’ family size is 4.22 to SHG units and 4.72 to Non-SHG units. (Table 5.1.10)

It is evident from the Table (5.1.13) that more than 50 per cent of the women entrepreneurs in both the categories own pucka houses either tiled or concrete roofed.

Educational status wise women entrepreneurs in SHG are better compared to their counterparts in Non-SHG units (Table 5.1.14). Another implication is that the education is not the determining factor for making entry into entrepreneurships.

The study found that women from diverse background have proved successful in business. Parental occupational background reveals that most of them were agriculturist in both the categories. Previous experience in farming has helped the respondents in understanding the dynamics of cultivation of various crops and the existing demand, suitable condition of monsoon etc. (Table 5.1.15)

A significant percentage of the present women entrepreneurs were working in farms and households before becoming micro entrepreneurs. (Table 5.1.16)

Majority of the entrepreneurs have got previous experience of more than 3 years. Women in the traditional nature of activity of agriculture are 323 with more years of experience and on the other, the modern and manufacturing nature of activities women have with less years of experience. (Tables 5.1.18 and 5.1.19)

Women entrepreneurs have admitted that they were motivated by eight considerations to join SHGs. Of them supports given by NGOs / Governmental agencies, desire to save and desire to avail credit occupy the first three places. (Table 5.1.20)

The number of members in a group has been ranging from 12-20. Table 5.1.21 shows that nearly 48 per cent of the women entrepreneurs belong to SHGs engaged in various activities whose size varies from 18 to 20 members.

It is encouraging to note that all the respondents in the SHGs have developed the habit of saving and that more than 77 per cent save more than Rs.75/- a month. (Table 5.1.22)

Only 4 members are able to save more than Rs.125/- per month. They are engaged in the activities of shield work, beauty parlour and photo lamination (included in activity of others). (Table 5.1.23)

More than 53 per cent save on monthly basis. (Table 5.1.24)

Educating children, expanding business and building or repairing house are the main considerations which have developed the tendency to save. (Table 5.1.26)

324 There is a positive correlation between external borrowing and SGSY (EA) of SHGs. The correlation is significant at one per cent. This proves as true the hypothesis that there is a significant correlation between external borrowings and SGSY (EA). (Table 5.1.27)

Women entrepreneurs attached to SHGs have borrowed credit more number of times than the counterparts who are outside the ambit of SHGs. (Table 5.1.28)

As far as loan repayment is concerned the performance of SHG women entrepreneurs is better than that of the counterpart in the other group. (Table 5.1.29)

It is equally significant to note that more than 88 per cent of them are repaying the loans from the profit. (Table 5.1.30) The recovery performance can be rated as good, which is clear from the recycling of funds. It is observed that there is a good interaction between the members within the group and also with other groups as women entrepreneurs are in the process of empowerment.

In the case of present women entrepreneurs coming within the ambit of SHGs more than 77 per cent have stated that they have undergone training. (Table 5.1.31)

It is significant to note that 40.83 per cent of the women entrepreneurs have undergone two training courses. More than 30 per cent of the women entrepreneurs have completed more than two training programmes and women entrepreneurs are engaged in the modern and manufacturing nature of activities. (Table 5.1.32) 325 Majority of the SHG women entrepreneurs hold that the training imparted to them is the chief factor which prompted women entrepreneurs to enter the enterprises. It is found that the women entrepreneurs of both the categories choose to the present line mainly because to be self employed. This may be due to the fact that these women are from economically vulnerable sections. (Table 5.1.33)

Regarding employment in both the cases family labour occupies a significant place. This indicates their micro scale of operation; economic compulsions do not permit them to go in for hired labour. (Table 5.1.34)

With regard to marketing of products it is significant to note that more than 70 per cent of women entrepreneurs in both the categories cater to local markets and markets within the district. (Table 5.1.35)

The distribution of the sample entrepreneurs by membership in Association exhibits that some (47) of the women entrepreneurs had joined the SHG as members and continuing the same position. Majority of the entrepreneurs (73) had joined as members and selected as leaders. (Table 5.1.37)

Majority of the micro enterprises owned by both the groups are domestic in the sense that women entrepreneurs are operated in the house of the entrepreneur using mostly family labour. (Table 5.1.38)

Majority of the raw materials needed were bought locally and within the district. As the scale of operation is micro, it may not be possible to get the raw material in bulk from wholesale outside the district. (Table 5.1.39) 326 In the case of SHG women entrepreneurs training imparted and the support extended by the NGOs and the government are the chief motivating factors. On the other hand, Non-SHG entrepreneurs have been motivated by their desire to earn money and gain economic independence. (Table 5.1.40)

Women entrepreneurs have the support and encouragement of several factors and forces. As far as women entrepreneurs of SHGs are concerned encouragement from NGOs, credit availability and availability of technical skill occupy the first three places. In the case of the other group of respondent’s self-confidence, previous experience and family business occupy the first three places. (Table 5.1.41)

As far as the factors are concerned ‘Economic Compulsions’ and ‘Dependency’ situation together with ‘unemployment’ compelled both the group members to start the micro enterprises. (5.1.42)

The study found that lack of finance followed by competition; Absence of marketing, fluctuation of demand etc hinder the entry of women into entrepreneurial activities. (Table 5.1.43).

It is significant to note that more than 75 per cent of women entrepreneurs in both the categories are first generation entrepreneurs. (Table 5.1.44)

Women’s will power is to be economically independent had made women entrepreneurs to start the enterprise. Likewise for majority of the enterprises, the founder is the sample women in both the categories and 327 only in few cases it is the husband or father or friends or relatives helped in starting the enterprise. (Table 5.1.45)

It is learnt that proper location is one of the determinants of the successful functioning of the business. It is found in this study that main place, own building, residential area, easy access to transport and marketing were the major factors influenced to choose the present location. It is more or less the same for both the groups. (Table 5.1.46)

Performance of Women Entrepreneurs Majority of the enterprises in SHG have capital investment varying between Rs.25,000/- and Rs.50,000/-. The average of capital invested by the enterprises is Rs.32,508.33. Tailoring, shield work and General Stores have a relatively large investment. (Table 5.2.1)

In the case of Non-SHG enterprises 76 per cent have acknowledged that the capital investment is less than Rs.25,000/-. The average investment has Rs.20,966.67. Investment wise these enterprises are not match to SHG enterprises. This is because the sources of borrowings are limited whereas SHG enterprises have avail assistance from SHG, state & the banks. (Table 5.2.2)

A comparative assessment of the performance by size of investment of both the groups in terms of various indicators such as mean owned and borrowed capital; mean fixed and working capital, sales turnover and employment shows that the overall average performance of SHG in respect of the given variable is better than that of Non-SHG enterprises. This is because of the support and encouragement to formed group received from the Government, the NGO and the banks. Thanks to 328 the economic support under the SGSY such positive and encouraging findings will definitely motivate the department implementing such programmes to increase their coverage in future. Then it is observed that there has been a positive relationship between size of investment and mean growth of various indicators in both the categories. (Table 5.2.3)

The overall average performance of SHGs activity-wise is better than that of Non-SHG enterprises. By correlating investment and sales turnover for both the categories it has been found that the correlation is positive and that the correlation coefficient of Non-SHG is slightly more than that of SHG which nullifies the hypothesis that the correlation coefficient between investment and sales turnover is higher for SHGs than Non-SHGs. (Table 5.2.4)

It is neither the less educated or illiterate, nor the highly educated with post graduation, who show better performance in terms of all the indicators. So it cannot be altogether concluded that education does not or does contribute to better entrepreneurial performance, but to deal with business arithmetic. (Tables 5.2.5 and 5.2.6)

In the case of SHG Women entrepreneur’s performance level has tended to rise with increase in experience. But the same is not true of Non-SHG women entrepreneurs. (Tables 5.2.7 and 5.2.8)

The average working capital required by SGSY assisted SHG units have been higher than that of average fixed capital. The average fixed capital required by Non-SHG units has been higher than that of average working capital. Unlike SHG which have formal sources of credit for 329 their working capital requirements the Non-SHG enterprises depend on the own resources and borrowed resources. (Table 5.2.9)

The enterprises in both the categories have registered a positive increase in sales turnover. The sales turnover for both the groups at the time of start up and at present exhibits more or less a similar trend in terms of mean sales turnover showing an increase of one seventh over the two year period. However, spending more time on strengthening the marketability may still improve the sales turnover. (Table 5.2.10)

The annual average growths of sales turnover reveals that the SGSY assisted SHG units have registered a higher growth rate (i.e. 13.92) than the Non-SHG units (10.72). This needs to be appreciated and it gives a positive signal to the implementing agencies to expand their scale of operations. (Table 5.2.11)

It is significant to note that monthly income-wise women entrepreneurs in SHGs are better placed compared to their counterparts in Non-SHG. The overall average monthly income of the former is Rs.3,529.17 while that of the latter is Rs.1,898.33. It is observed that women entrepreneurs who availed Economic Assistance under the SGSY scheme are performing better compare with the Non-SHG women, in terms of mean monthly income. (Table 5.2.12)

Average monthly income of the respondents by activity-wise in both the category shows that income from non-farming activities is more than that from farming and farming related activities. (Table 5.2.13)

330 The annual incomes of the women entrepreneurs differ significantly by experience, age and education. Women with relatively higher experience, middle age group and less years of education are able to earn higher income than those have less years of experience, young age and have put in long years of education. (Table 5.2.14)

The rationale behind the women entrepreneurs is to reduce women’s dependence on their family and subsequently bring about their empowerment. In this connection, a study was made to assess the economic dependence of the women entrepreneurs in both the categories. The dependency level is positive for many of the activities among the SHG and Non-SHG units indicating that the families of women engaged in these activities do not depend mainly on women’s income and the women entrepreneur’s income stands only as a supportive income for their families. Women entrepreneurs in SHG units contribute up to 49 per cent of the total family income to support their family’s well being. Among Non-SHG units the contribution made by the sample women to the income of their families is little lesser (43%) than among SHG units. The economic assistance extended by the state has helped the women to earn nearly half of the household income. However, there is a high positive correlation between the SHG entrepreneur’s income and total income of their family. Under the circumstances the hypothesis that the SHG women entrepreneurs’ income constitutes a significant proportion of the total income of the family is accepted as valid. (Table 5.2.15)

The married women are economically more dependent than unmarried women, widows and divorcees. The negative dependency ratio in the case of unmarried, widow and divorced women indicate that the family has been dependent on women’s income and without the income of 331 the women entrepreneur’s their families would have faced survival difficulties. (Table 5.2.16)

The study has shown that women entrepreneurs belonging to scheduled and most backward classes are less dependent economically on the families. (Table 5.2.17)

The age wise dependents of the women entrepreneurs in the case of SHG women reveals that the age groups below 30 and 40-50 have a negative dependency ratio, which means that the family has been dependent on women’s income. Because of existence of unmarried women, widow and divorced women in these two age groups. (Table 5.2.18)

The relationship between education of the respondents and their dependency level indicates that women entrepreneurs with low educational qualification have less dependency ratio. On the whole the study indicates that education is not a major factor for the successful running of an enterprise. (Table 5.2.19)

Higher the previous experience of women entrepreneurs the more would be their income and higher would be their contribution to family income. (Table 5.2.20)

Economic Empowerment of Sample SHG Entrepreneurs The SGSY assisted SHGs in rural areas promote the economic empowerment of rural women and have helped many rural women to become entrepreneurs and develop several micro enterprises. The study 332 has revealed that there are indications of positive interventions in the women economic empowerment process.

The impact analysis of SGSY Scheme has been done by taking into consideration of both the pre and post SHG socio-economic situations. The major economic aspects included are income, savings, borrowings and consumption expenditure and asset position. The present study has proved that there is a significant change in the income, savings, borrowings, expenditure and asset position of the sample women after joining the SHG.

There has been a significant and positive rise in the income of the respondents as well as their access to credit after they joined the SHG. The growth in their savings too is positive. The same is true of the respondents in the other category whose income, savings and borrowings have shown a positive growth after they started their micro enterprises, but the quantum of growth is less. Therefore, the hypothesis that there is a significant difference between the average income, saving and borrowing of the SHGs and Non-SHGs is accepted as valid. (Tables 5.3.1 and 5.3.2)

Average monthly income of the women entrepreneurs revealed that 98.89 per cent of the women entrepreneurs were earn less than Rs.2,000/- before joining the SHGs. Now the whole lot of the women entrepreneurs are earning more than Rs.2,000/-. It is significant to note that more than 34 per cent are earnings Rs.4,000/- and above. This is indeed a positive trend. (Table 5.3.3)

The previous experience and community wise classification of income – earned shows that the average monthly income has a tendency to 333 increase with every increase in their experience and women entrepreneurs belong to scheduled communities are enjoying a monthly average income which is higher than that of the others. (Table 5.3.5)

A comparison between before and after joining SHG revealed that there has been a considerable improvement in the spending power after women entrepreneurs become members of SHGs. (Table 5.3.6)

The pattern of expenditure of women entrepreneurs has changed after the women joined the SHGs. Apart from item wise increase there has been a significant increase in expenditure on education of children and festivals and recreation. It was found that the percentage of income spent on conspicuous items has declined from 6.43 to 3.49 due to the influence of SHG. In fact the fate of the poor to live always in poverty is due to considerable spending on conspicuous consumption. But the SHGs really protect the families of members from spending on unproductive items. (Table 5.3.7)

All the women entrepreneurs in the SHGs admit that the ability to save has increased considerably after they formed the group. This shows that the SHG movement in the right direction towards eradicating the poverty of the people. (Table 5.3.8)

The implementation of the SGSY programme significantly contributed to the improvement of the asset position of the sample households as the mean value of assets has increased from Rs.11,986/- to Rs.26,474.60, an increase of Rs.14,488.60. In percentage terms the increase is 120.88. (Table 5.3.9)

334 Majority of the respondents from SGHs have admitted that they play an active part in decision-making relating to their family and business. (Table 5.3.10)

The statistical testing of pre and post SHG performance revealed, very encouraging findings which on the whole tend to support the fact that the SGSY assisted SHGs continue to show better performance in terms of various indicators. Similarly, the SGSY-assisted SHGs have shown a relatively higher growth in terms of savings, income, borrowings etc than the Non-SHG women entrepreneurs. The present study has proved that there is a significant change in the income, savings, expenditure, borrowings & asset holding of the sample women after joining the SHG. It is found that the borrowing have been productively invested to generate increased income. From the analysis of the performance of the sample units, it is found that institutional support in the form of economic assistance under the SGSY schemes has positively contributed to women sustaining and expanding their micro entrepreneurial activities. Thus the SGSY assisted SHGs in rural areas promote the economic empowerment of rural women and have helped many rural women become entrepreneurs and develop several micro enterprises.

Problems of SHG Women Entrepreneurs Distribution of SHG Women Entrepreneurs by problems revealed that lack of long-term finance, marketing and competition are the major general problems faced by them. (Table 5.4.1)

The women entrepreneurs in work role feel that inability to expand the enterprises, inability for optimum utilization of the skill and the 335 inability to devote much time to the enterprises are the chief constraints in their trade. (Table 5.4.2)

The main challenges found with regard to the performance of home role are non-availability of time to spend with family, difficult to meet the demands of all the family members and challenges faced in time spent towards education of children. (Table 5.4.3)

Financial problems of Women Entrepreneurs revealed that inadequate size of loan, shortage of fixed capital and shortage of working capital are serious constraints for women entrepreneurs with mean scores of 99.4, 96.7 and 92.6 respectively. (Table 5.4.4)

The problem in playing a dual role as house maker and entrepreneurs and lack of exposure to outside world are the main social constraints faced by the respondents. (Table 5.4.5)

6.2. SUGGESTIONS In the light of the foregoing analysis the following suggestions are worthwhile for consideration and further action:  All SHGs may be imparted intensive and product specific training before women entrepreneurs start micro enterprises. During the period of training the trainers may be taken on a visit to some of the successful micro enterprises in the region.  The training component of the EDP should also bring successful women entrepreneurs as role models.  There should be proper coordination between the organizers such as banks, NGOs, DRDA and Panchayat Raj institutions which are involved in the promotion of women SHGs. 336  Infrastructural facilities need to be strengthened in all the blocks.  Performance rating or grading of SHGs is a good system. Sometimes it takes a long time for some SHGs to get rated. This delays their credit linkage.  At the Block level periodic meetings may be organized to review the functioning of SGSY assisted SHGs. Such review will enable the SHGs to improve their style of functioning.  The financial assistance given by banks should not be one-time affair. Banks should continue the assistance depending on the working of the enterprise as well as its credit need.  A proper survey must be held in every block to find out the marketing prospects of the products of the micro enterprises. The micro enterprises must be encouraged to undertake the production of such goods for which there is demand.  Exclusive periodical trade fairs, exhibition etc., should be organized to display the products of women entrepreneurial units so that people can identify the products and services that are offered.  With the help of the DSMS, a network is to be formed with full details of the products produced by various SHGs. This will facilitate better marketing.  To minimize risks, the market potential of all ideas for new business ventures should be closely scrutinized. Nobel Lourette Amartye Sen stresses the need to strengthen the role of women through education, the creation of job opportunities and guarantying property rights. This must be made available to the women to mainstream women into economic development. 337  Successful women entrepreneurs must be given rewards in the form of cash subsidy or other incentives which will encourage them to take more interest in their enterprise.  Associations of women entrepreneurs may be formed with a view to provide them a platform to exchange information about the problems and performance and to draw the attention of the government to the problems.  Government in implementing various schemes of assistance must see that whether it reaches to women properly.  Women entrepreneurs must understand the different laws, regulations and procedures to be followed in the establishment of an enterprise.  Major reasons for lack of expansion and sustenance have been attributed to lack of support from family. In this context, it is necessary that the members of family give up the conservative attitude and support the women to utilize the skill, upgrade the skill and contribute to the development.  The educational institutions must have a compulsory component on entrepreneurship and the placement cells should not only be provides of job but also for entrepreneurship.  Women choose business in which they feel comfortable. In doing so, merely following the existing technologies or techniques may not help them to improve and shine in the field. Women entrepreneurs have to put more effort to intensively work in the chosen area, specialize and contribute differently, to sustain the areas of specialization.  Publicity regarding the various schemes of assistance, special schemes for improving the entrepreneurial base among women, special incentives and encouragement on the group 338 entrepreneurship, green industries, localization of industries using indigenous raw materials, catering the demand of localities without allowing them to move outside for the products available within their area, ensuring the quality of the products in par with imparted providing at a competitive price, all will go a long way in sustaining the women enterprise.  There is a lesson learnt from Self-Help Group that which proved that women through groups may be able to avail formal credit. It is therefore necessary that the women micro entrepreneurs also go in group as partnership concerns to get formal credit.

The present study has shown that SHGs receiving institutional support and economic assistance under the SGSY scheme have done commendable service to economic empowerment of women. The SHGs are fast emerging as instrument of rural poverty alleviation. They have gained momentum with the SGSY Scheme. The present study has focused attention on the performance of SHG enterprises vis-à-vis Non-SHG ones. There is enormous scope for further research on the role of different agencies which are assisting the SHGs and the role of micro credit in creating self employment for women. Future research studies will be done well to focus attention on these areas.

In conclusion it may be said that this research is done at micro level with reference to Thanjavur District SGSY assisted SHGs. Even though it is a micro level study the findings and suggestions or implications may be quite useful for policy making of the Government or authorities in SHGs.