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Impact of Micro Finance on Rural women Empowerment Impact of Micro Finance on Rural women Empowerment Document Transcript

  • S. K. School of Business Management, PATAN.P a g e | IA Management Research Project ReportOn“IMPACT OF MICROFINANCE ON RURAL WOMENEMPOWERMENT IN NORTH GUJARAT REGION”For The Partial Fulfillment of the Requirement ofMaster in Business AdministrationSubmitted on 29thApril, 2013Submitted ToDr. B. A. PrajapatiHead of the Department,S K School of Business Mgmt.,HNGU, PatanUnder the Guidance of:Dr. Nishith Bhatt Dr. K. K. PatelFaculty Member, Faculty Member,S K School of Busi. Mgmt. S K School of Busi. Mgmt.Submitted By:Shakti Dodiya (318)Hemant Hadiel (319)Mittal Purohit (340)Shoeb Sheikh (342)Varsha Tadvi (344)
  • S. K. School of Business Management, PATAN.P a g e | IIDeclarationA Management Research Project-II on ―Impact ofMicrofinance on Rural Women Empowerment in NorthGujarat Region”under the guidance ofDr. Nishith Bhatt andDr. K. K. Patel, Project Co-ordinator and Faculty Member ofSKSBM. This is the original work done by us. This is theproperty of the Institute & use of this report without priorpermission of the Institute will be considered illegal &actionable.Shakti Dodiya (318)Hemant Hadiel (319)Mittal Purohit (340)Shoeb Sheikh (342)Date: 29/04/2013 Varsha Tadvi (344)Place: PATAN Batch : 2011-2013
  • S. K. School of Business Management, PATAN.P a g e | IIIPrefaceIn the process of socio-economic development of any country, the empowerment ofwomen plays a major role. In the context of national development, women’sparticipation in economics activity is of crucial importance. Though women compriseof the 48% of the country’s population , yet they are among the poorest of the poor,they are among the malnourished and underfed most of them have no say in anymatter in their household. Thus women even day continue to the most helpless beingin the society. In general Banks or any Financial Institutions do not give money to thepoor and women, in particular. It is mainly because women do not have any collateralsecurities to offer and they find the bank proceeding to complicated. With the increasein the literacy rate among the women, it necessitates the society to empower them andmake them self-reliant.The early Nineties, saw that reshaping of strategies of socio-economic developmentand the emphasis gradually shifted from “Development” to “Empowerment”. In thisregard the government has taken up the theme of women empowerment as one ofmeasures to tackle the socio-economic backwardness.Empowerment is an ongoing and dynamic process, which enhances women’s andother marginalized and alienated group’s ability to change the structures andideologies that keep them subordinates. It is the process of making present powerstructure more inclusive, including all women and men, senior citizens, Dalits,Indigenous people and people with disabilities. Empowerment is, therefore, clearlyconcerned with power, and particularly with power relations and distribution ofpower between individual and groups.Among the financial institutions serving poor household around the world, the microfinance programs have emerged as important players. These programs typically makeavailable small loans and sometimes large loans, available to households lackingaccess to formal sector bank. The premise behind such targeting is to folds:1. Microfinance is an effective tool in improving women’s status and2. Overall household welfare is likely to be higher when microfinance isprovided to women rather than men. View slide
  • S. K. School of Business Management, PATAN.P a g e | IVAcknowledgmentPreparing this project is an arduous task. Wewere fortunate enough toget help and guidance from a large number sources and people. It is apleasure to acknowledge them, though it is still inadequateappreciation to their contributions.We take this opportunity to express my sincere gratitude to all thosewho have contributed directly or indirectly towards completion theproject. It would be different for us to adequately acknowledge ourindebtedness to all such people. All the same, we must mention someof them whose help was of considerable importance.We especially thanks to all SHGs in the District of Patan,Sabarkantha and Banasakantha who participated and giveninformation and their valuable time to filling the questionnaire, whichwe required to complete this project.We would also like to express my gratitude to our course co-coordinator and Professor Dr. Nishith Bhatt &Dr. K.K.Patel fortheir guidance and support.Yours sincerely,Shakti Dodiya (318)Hemant Hadiel (319)Mittal Purohit (340)Shoeb Sheikh (342)Varsha Tadvi (344) View slide
  • S. K. School of Business Management, PATAN.P a g e | VEXECUTIVE SUMMERYBACKGROUNDMicrofinance is considered as a development tool to alleviate poverty in Asian,African, and South American countries. Microfinance gives quick and tangible resultsto the poor people, especially women. Microfinance , when extended to people,especially women, in rural areas coupled with supporting activities like training, rawmaterials supply, marketing of goods leads to investment in micro enterprise, womenmay become entrepreneurs, generate main or additional to the family, poverty isreduced, and development takes place and the women get the self confidence to go forenterprising activities with social, economic and political empowerment and with herincreased knowledge and awareness , development takes place. When the group ofpeople joins as a group and is provided with required financial assistance, massdevelopment takes place with considerable reduction in poverty, and theempowerment leads to social and economic development in holistic and sustainablemanner.Empowerment literally means making someone powerful, facilitating the weak toattain strength, enable someone to confront injustice and oppression. Empowermentis a process which makes the powerless to acquire and control over power throughawareness, capacity building, participation in decision making, acquiringinformation, attaining confidence and self employment. It is the process by which thepowerless gain control over physical, human and financial resources. It is notextrinsic- but also intrinsic capacity of self confidence and inner transformation toovercome barrier to access resources. In the process of empowerment, womenbecome economically important, not only in earning, but also in controlling theirincome.METHODOLOGY:Three district were selected namely Sabarkantha, Patan and Banaskantha from northGujarat Region. 50 Respondents were selected from each district. In Sabarkantha wehave visited some of the villages of Prantij Taluka, namely Anvarpura, Limla, Katpur,
  • S. K. School of Business Management, PATAN.P a g e | VIBalisana, Unchha. In Patan we have visited Aghar, Paldi, Para, Saghodiya, Runi. InBanaskantha we have visited lalwada, Asheda.The women empowerment was divided in three kinds of empowerments such aseconomic empowerment, social empowerment and political empowerment. Andquestionnaire was made to collect the data by personal interview with the rural SHGmembers.RESULTS:Data analysis was performed with the help of Statistical Package For Social Science(SPSS). We found that empowerment was different between three districtsSabarkantha, Patan and Banaskantha. We further found that that there is significantrelationship between duration of membership and economic empowerment. The studyreported that Education and The Women Empowerment has significant relationship.There is significant relation between No of Family Members and Empowerment ofRural Women as a result of participation in Microfinance.Out of 150 respondents 425 respondents are illiterate and 42.3% respondents havedone primary education. Whereas 69.3% respondents have family size 4-8 members.only 13.35 respondents have annual income above 60000rs, 47.3% respondents haveannual income between 20000-40000rs.The study shows that out of 150 respondents 70% members still have not availed anyloans, whereas 22.7% members have availed loan facility 1 time.The study states that there was good increase in savings (4.07) as a part of beingmembers of SHG. Participation in saving , expense and child education wasmoderate to good. But the protest against bowery was around to moderate. On theother hand participation in gram Sabah was good (3.93) and ability to cast- votesindependently was also good.(4.35)
  • S. K. School of Business Management, PATAN.P a g e | VIIIndexCH.PARTICULARSPAGENO. NO1ResearchMethodology……………………………………………………………………………............... 11.1 Research Methodology 21.2 Research Objectives 42 Introduction………………………………………………………………………………………………. 52.1 Microfinance 62.2 Background 72.3 Microfinance debates and challenges 112.4 History of microfinance 142.5 Microfinance standards and principles 152.6 Scale of microfinance operations 162.7 Inclusive financial system 182.8 Microcredit and the web 202.9 Microfinance and social interventions 212.10 Impact and criticism 213 Literature Overview…………………………………………………………………………………. 244 Primary Data Analysis………………………………………………………………………………. 274.1 Frequency of Data 284.2 District wise Demographic Data 555 Hypothesis Testing…………………………………………………………………………………… 605.1 Reliability Statistics 615.2 ONEWAY ECO SOC POL BY Duration of Membership 625.3 Post Hoc Tests 645.4 Homogeneous Subsets 655.5 ONEWAY ANOVA Empowerment & Duration of Membership 675.6 ONEWAY ANOVA Empowerment & Age 695.7 ONEWAY ANOVA Empowerment & Member Education 715.8 ONEWAY ANOVA Empowerment & Family Members 735.9 ONEWAY ANOVA Empowerment & Family Income 755.10 ONEWAY ANOVA Empowerment & Loan Amount 776 Findings &Conclusion…………………………………………………………………………….. 796.1 Findings 806.2 Conclusion 836.3 Suggestion 85Bibliography……………………………………………………………………………………………. 86Annexure…………………………………………………………………………………………………. 88
  • S. K. School of Business Management, PATAN.P a g e | VIIIList of tablesSR. TablePARTICULARPAGENO. NO. NO1 4.1.1 Establishment Years of the SHGs 282 4.1.2 Duration of the Membership in SHGs 293 4.1.3 Age of the Member of the SHGs 304 4.1.4 Education background of the Member of SHGs 315 4.1.5 No. of Person in the Family of the Member of SHGs 326 4.1.6 Annual Family income of the Member of SHGs 337 4.1.7 No. of Loan Availed to the Member of the SHGs 348 4.1.8 Status of Increase in income of Member as a Part of the SHGs 359 4.1.9 Level of Improvement in Saving of the Member of SHGs 3610 4.1.10 Level of Undertaking Income Generating Activities though the SHGs 3711 4.1.11 Status of Reduction of Dependency on Money Lenders of Member of SHGs 3812 4.1.12 Level of Reduction of Poverty in the Family of SHGs 3913 4.1.13 Participation of the Member in Decision of Savings 4014 4.1.14 Participation of Member in Decision of Expenses 4115 4.1.15 Ability to Deal with Financial crisis of the Family 4216 4.1.16 Level of Moving Independently of the Member of SHGs 4317 4.1.17 Status of Being able to express view freely in the family by the Member 4418 4.1.18 Ability to Discuss freely with the Bank / Govt. Officers / NGOs 4519 4.1.19 SHGs Helping the member to protest against Liquor Sales / Alcoholic Uses 4620 4.1.20 SHGs Helping member to Protest against Pollution 4721 4.1.21 SHGs Helping Member to Protest against Drinking Water Problems 4822 4.1.22 SHGs Helping Member to protest against Dowry 4923 4.1.23 SHGs Helping member to protest against Abuse of fellow group member by Husband 5024 4.1.24 Member Participation in Women’s Day 5125 4.1.25 Member Participation in Labour Abolition 5226 4.1.26 Member Participation in Gram Sabha Meeting 5327 4.1.27 Member Ability to Cast Votes Independently 5428 4.2.1 Dist. X Membership 5529 4.2.2 Dist. X No. of Person in Family 5530 4.2.3 Dist. X Family Income 56
  • S. K. School of Business Management, PATAN.P a g e | IXSR. TablePARTICULARPAGENO. NO. NO31 4.2.4 Dist. X Loan Availed to Member 5732 4.2.5 Dist. X Loan Amount 5833 4.2.6 Dist. X Age of Member 5928 5.1.0 Reliability Item Statistics 6129 5.2.1 Descriptive: Empowerment By District 6230 5.2.2 ANOVA : Empowerment By District 6331 5.3 Post Hoc : Multiple Comparison 6432 5.4.1 Homogeneous Subsets : Economic Empowerment 6533 5.4.2 Homogeneous Subsets : Social Empowerment 6534 5.4.3 Homogeneous Subsets : Political Empowerment 6635 5.5.1 Descriptive: Empowerment By Duration of Membership 6736 5.5.2 ANOVA : Empowerment By Duration of Membership 6837 5.6.1 Descriptive: Empowerment By Age 6931 5.6.2 ANOVA : Empowerment By Age 7032 5.7.1 Descriptive: Empowerment By Member Education 7133 5.7.2 ANOVA : Empowerment By Member Education 7234 5.8.1 Descriptive: Empowerment By No of Family Member 7335 5.8.2 ANOVA : Empowerment By No of Family Member 7436 5.9.1 Descriptive: Empowerment By Duration of Membership 7537 5.9.2 ANOVA : Empowerment By Family Income 7638 5.10.1 Descriptive: Empowerment By Family Income 7739 5.10.2 ANOVA : Empowerment By Loan Amount 78
  • S. K. School of Business Management, PATAN.P a g e | XList of charts and graphsSR. GraphPARTICULARPAGENO. NO. NO1 4.1.1 Establishment Years of the SHGs 282 4.1.2 Duration of the Membership in SHGs 293 4.1.3 Age of the Member of the SHGs 304 4.1.4 Education background of the Member of SHGs 315 4.1.5 No. of Person in the Family of the Member of SHGs 326 4.1.6 Annual Family income of the Member of SHGs 337 4.1.7 No. of Loan Availed to the Member of the SHGs 348 4.1.8 Status of Increase in income of Member as a Part of the SHGs 359 4.1.9 Level of Improvement in Saving of the Member of SHGs 3610 4.1.10 Level of Undertaking Income Generating Activities though the SHGs 3711 4.1.11 Status of Reduction of Dependency on Money Lenders of Member of SHGs 3812 4.1.12 Level of Reduction of Poverty in the Family of SHGs 3913 4.1.13 Participation of the Member in Decision of Savings 4014 4.1.14 Participation of Member in Decision of Expenses 4115 4.1.15 Ability to Deal with Financial crisis of the Family 4216 4.1.16 Level of Moving Independently of the Member of SHGs 4317 4.1.17 Status of Being able to express view freely in the family by the Member 4418 4.1.18 Ability to Discuss freely with the Bank / Govt. Officers / NGOs 4519 4.1.19 SHGs Helping the member to protest against Liquor Sales / Alcoholic Uses 4620 4.1.20 SHGs Helping member to Protest against Pollution 4721 4.1.21 SHGs Helping Member to Protest against Drinking Water Problems 4822 4.1.22 SHGs Helping Member to protest against Dowry 4923 4.1.23 SHGs Helping member to protest against Abuse of fellow group member by Husband 5024 4.1.24 Member Participation in Women’s Day 5125 4.1.25 Member Participation in Labour Abolition 5226 4.1.26 Member Participation in Gram Sabha Meeting 5327 4.1.27 Member Ability to Cast Votes Independently 54
  • S. K. School of Business Management, PATAN.P a g e | XIChapter-1ResearchMethodology
  • S. K. School of Business Management, PATAN.P a g e | XII1.0 RESEARCH METHODOLOGYTo analyze the present scenario of the Microfinance Impact on Rural WomenEmpowerment in North Gujarat Region, We have form the following researchobjectives and sub objectives of the study. Research Methodology also includes thedata collection method s and models used to analyze the data.1.1.1 Sampling Design:To collect the data three districts were selected namely Sabarkantha, Patan andBanaskantha from north Gujarat Region. 50 Respondents were selected from eachdistrict. In Sabarkantha we have visited some of the villages of Prantij Taluka, namelyAnvarpura, Limla, Katpur, Balisana, Unchha. In Patan we have visited Aghar, Paldi,Para, Saghodiya, Runi. In Banaskantha we have visited lalwada, Asheda.1.1.2 Data Collection:To perform the Analysis of Microfinance Impact on Rural Women Empowerment, wehave selected the two method of data collection 1. Primary Data by filling thequestionnaire form the rural women of SHGs 2. Secondary Data has been collectedfrom various newspapers, Journals, Websites, past reports etc.1.1.3 Analysis of Data & Tools:Descriptive statistical analysis such as mean, percentage etc. was carried out andANNOVA test were also carried out whether necessary.1.1.4 Economic Empowerment:The status of women is connected with their economic position, or status whichdepends on their participation in economic activities such as ability to access credit,role in decision making in financial matters etc.The following variables have been used to access the economic empowerment amongthe respondents as a result of Microfinance.Increase in Income
  • S. K. School of Business Management, PATAN.P a g e | XIIIIncrease in SavingIncreasing in Income Generating ActivitiesReduction of Poverty in the FamilyReduction of Dependency on Money LendersAbility to meet the financial crisis in the familyRole in decision making related to savings, expenses and Child Education1.1.5 Social Empowerment:Social Empowerment is a gradual process a cumulative effort of economic andpolitical empowerment. But without social empowerment it is very difficult to achieveeconomic and political empowerment. Independent mobility, freedom of expressionview in the house, groups as well as in other places, social interaction with outsidersand assertiveness to fights against in justice and problem are the indicators of thesocial empowerment. With this background the following variables had been selectedto assess the impact of the social empowerment among the respondents.Assertiveness in participating protest against Alcoholic abuse by malemembers of the family, environmental pollution, drinking water problem,Dowry related problems and abuse of women by their Husbands.Participation in rallies for Women’s Day. Child Labor Ablution.Moving to other places independently without the support of male memberExpression of Views in family as well as in groups.Interaction with Bankers / Govt. Officers and NGOs1.1.6 Political Empowerment:Participation of women in political process at the gross root level enhances theirsocial status and it helps to solve the local problems, particularly drinking water,health, education,child development, social security for aged, disabled and in grassroot leval planning,Based on the above facts, the following variables were used to assess theempowerment of women.Participation in gram Saba Meeting.Voting independently.Participation in election as contestants.The study reported that majority of the respondents informed that micro financeincrease the income of the family and the increase in income by micro finance is animportant indicator of women empowerment, it is interesting to observe that themajority of the respondents opined that micro finance enhanced the savings of
  • S. K. School of Business Management, PATAN.P a g e | XIVwomen, which helps them to meet urgent family needs and many of the respondentsindicated that they joined the SHGs to save the money.Micro finance helped to undertake income- generating activities, and the income-generating activities generates.1.2 Research Objective:1.2.1 Main Objective:“To Study of the Impact of Microfinance on RuralWomen Empowerment in North Gujarat Region”1.2.2 Sub Objectives:To know status of member to increase in income of member being as a part of SHGsTo know Level of improvement in the saving of the memberTo Know Level of undertaking income generating activities of SHGsTo Know status of the reduction of dependency of member on the Money LendersTo know Level of reduction of poverty in the familyTo know Level of Participation in decision making in the Savings, Expenses, ChildrenEducationTo kwon the ability to deal with the financial crisis of the familyTo indentify level of moving independentlyTo know status of the being able to express view freelyTo know ability to discuss freely with the Govt. Officers/ Bank / NGOsTo know Members Participation in the Protest against the Liquor Sales, Pollution,Dowry & Water ProblemsTo know Participation of Members in Women’s Day and Child Labor Abolition,Gram Sabha MeetingTo Know the Ability to Caste votes independently by the member
  • S. K. School of Business Management, PATAN.P a g e | XVChapter – 2Introduction
  • S. K. School of Business Management, PATAN.P a g e | XVI2.0 MicrofinanceMicrofinance is usually understood to entail the provision of financial services tomicro-entrepreneurs and small businesses, which lack access to banking and relatedservices due to the high transaction costs associated with serving these clientcategories. The two main mechanisms for the delivery of financial services to suchclients are (1) relationship-based banking for individual entrepreneurs and smallbusinesses; and (2) group-based models, where several entrepreneurs come togetherto apply for loans and other services as a group.In some regions, for example Southern Africa, microfinance is used to describe thesupply of financial services to low-income employees, which is closer to the retailfinance model prevalent in mainstream banking.For some, microfinance is a movement whose object is "a world in which as manypoor and near-poor households as possible have permanent access to an appropriaterange of high quality financial services, including not just credit but also savings,insurance, and fund transfers."[1]Many of those who promote microfinance generallybelieve that such access will help poor people out of poverty. For others, microfinanceis a way to promote economic development, employment and growth through thesupport of micro-entrepreneurs and small businesses.Microfinance is a broad category of services, which includes microcredit. Microcreditis provision of credit services to poor clients. Although microcredit is one of theaspects of microfinance, conflation of the two terms is endemic in public discourse.Critics often attack microcredit while referring to it indiscriminately as eithermicrocredit or microfinance. Due to the broad range of microfinance services, it isdifficult to assess impact, and very few studies have tried to assess its full impact.Proponents often claim that microfinance lifts people out of poverty, but the evidenceis mixed. What it does do, however, is to enhance financial inclusion.
  • S. K. School of Business Management, PATAN.P a g e | XVII2.2 Background2.2.1 Why microfinance?Traditionally, banks have not provided financial services, such as loans, to clientswith little or no cash income. Banks incur substantial costs to manage a clientaccount, regardless of how small the sums of money involved. For example, althoughthe total gross revenue from delivering one hundred loans worth $1,000 each will notdiffer greatly from the revenue that results from delivering one loan of $100,000, ittakes nearly a hundred times as much work and cost to manage a hundred loans as itdoes to manage one. The fixed cost of processing loans of any size is considerable asassessment of potential borrowers, their repayment prospects and security;administration of outstanding loans, collecting from delinquent borrowers, etc., has tobe done in all cases. There is a break-even point in providing loans or deposits belowwhich banks lose money on each transaction they make. Poor people usually fallbelow that breakeven point. A similar equation resists efforts to deliver other financialservices to poor people.In addition, most poor people have few assets that can be secured by a bank ascollateral. As documented extensively by Hernando de Soto and others, even if theyhappen to own land in the developing world, they may not have effective title to it.This means that the bank will have little recourse against defaulting borrowers.Seen from a broader perspective, the development of a healthy national financialsystem has long been viewed as a catalyst for the broader goal of national economicdevelopment (see for example Alexander Gerschenkron, Paul Rosenstein-Rodan,Joseph Schumpeter, Anne Krueger). However, the efforts of national planners andexperts to develop financial services for most people have often failed in developingcountries, for reasons summarized well by Adams, Graham & Von Pischke in theirclassic analysis Undermining Rural Development with Cheap Credit.Because of these difficulties, when poor people borrow they often rely on relatives ora local moneylender, whose interest rates can be very high. An analysis of 28 studiesof informal money lending rates in 14 countries in Asia, Latin America and Africaconcluded that 76% of moneylender rates exceed 10% per month, including 22% that
  • S. K. School of Business Management, PATAN.P a g e | XVIIIexceeded 100% per month. Moneylenders usually charge higher rates to poorerborrowers than to less poor ones. While moneylenders are often demonized andaccused of usury, their services are convenient and fast, and they can be very flexiblewhen borrowers run into problems. Hopes of quickly putting them out of businesshave proven unrealistic, even in places where microfinance institutions are active.Although much progress has been made, the problem has not been solved yet, and theoverwhelming majority of people who earn less than $1 a day, especially in the ruralareas, continue to have no practical access to formal sector finance. Microfinance hasbeen growing rapidly with $25 billion currently at work in microfinance loans. It isestimated that the industry needs $250 billion to get capital to all the poor people whoneed it.[6]The industry has been growing rapidly, and concerns have arisen that therate of capital flowing into microfinance is a potential risk unless managed well.As seen in the State of Andhra Pradesh (India), these systems can easily fail. Somereasons being lack of use by potential customers, over-indebtedness, poor operatingprocedures, neglect of duties and inadequate regulations.Financial needs and financial services.In developing economies and particularly in the rural areas, many activities thatwould be classified in the developed world as financial are not monetized: that is,money is not used to carry them out. Almost by definition, poor people have verylittle money. But circumstances often arise in their lives in which they need money orthe things money can buy.In Stuart Rutherford‘s recent book The Poor and Their Money, he cites several typesof needs:Lifecycle Needs: such as weddings, funerals, childbirth, education,homebuilding, widowhood, old age.Personal Emergencies: such as sickness, injury, unemployment, theft,harassment or death.Disasters: such as fires, floods, cyclones and man-made events like war orbulldozing of dwellings.
  • S. K. School of Business Management, PATAN.P a g e | XIXInvestment Opportunities: expanding a business, buying land or equipment,improving housing, securing a job (which often requires paying a large bribe),etc.Poor people find creative and often collaborative ways to meet these needs, primarilythrough creating and exchanging different forms of non-cash value. Commonsubstitutes for cash vary from country to country but typically include livestock,grains, jewelry, and precious metals.As Marguerite Robinson describes in The Microfinance Revolution, the 1980sdemonstrated that "microfinance could provide large-scale outreach profitably," andin the 1990s, "microfinance began to develop as an industry" (2001, p. 54). In the2000s, the microfinance industrys objective is to satisfy the unmet demand on a muchlarger scale, and to play a role in reducing poverty. While much progress has beenmade in developing a viable, commercial microfinance sector in the last few decades,several issues remain that need to be addressed before the industry will be able tosatisfy massive worldwide demand. The obstacles or challenges to building a soundcommercial microfinance industry include:Inappropriate donor subsidiesPoor regulation and supervision of deposit-taking MFIsFew MFIs that meet the needs for savings, remittances or insuranceLimited management capacity in MFIsInstitutional inefficienciesNeed for more dissemination and adoption of rural, agricultural microfinancemethodologies2.2.2 Ways in which poor people manage their moneySaving upRutherford argues that the basic problem poor people as money manager‘s face is togather a usefully large amount of money. Building a new home may involve savingand protecting diverse building materials for years until enough are available toproceed with construction. Children‘s schooling may be funded by buying chickens
  • S. K. School of Business Management, PATAN.P a g e | XXand raising them for sale as needed for expenses, uniforms, bribes, etc. Because all thevalue is accumulated before it is needed, this money management strategy is referredto as saving up.Often people dont have enough money when they face a need, so they borrow. Apoor family might borrow from relatives to buy land, from a moneylender to buy rice,or from a microfinance institution to buy a sewing machine. Since these loans must berepaid by saving after the cost is incurred, Rutherford calls this saving down.Rutherfords point is that microcredit is addressing only half the problem, andarguably the less important half: poor people borrow to help them save andaccumulate assets. Microcredit institutions should fund their loans through savingsaccounts that help poor people manage their myriad risks.Saving downMost needs are met through mix of saving and credit. A benchmark impactassessment of Grameen Bank and two other large microfinance institutions inBangladesh found that for every $1 they were lending to clients to finance rural non-farm micro-enterprise, about $2.50 came from other sources, mostly their clientssavings. This parallels the experience in the West, in which family businesses arefunded mostly from savings, especially during start-up.Recent studies have also shown that informal methods of saving are unsafe. Forexample a study by Wright and Mutesasira in Uganda concluded that "those with nooption but to save in the informal sector are almost bound to lose some money –probably around one quarter of what they save there."The work of Rutherford, Wright and others has caused practitioners to reconsider akey aspect of the microcredit paradigm: that poor people get out of poverty byborrowing, building microenterprises and increasing their income. The new paradigmplaces more attention on the efforts of poor people to reduce their manyvulnerabilities by keeping more of what they earn and building up their assets. Whilethey need loans, they may find it as useful to borrow for consumption as formicroenterprise. A safe, flexible place to save money and withdraw it when needed isalso essential for managing household and family risk.[citation needed]
  • S. K. School of Business Management, PATAN.P a g e | XXI2.3 Microfinance debates and challengesThere are several key debates at the boundaries of microfinance.2.3.1 Interest ratesThis shop in South Sudan was opened using money borrowed from the Finance SudanLimited (FSL) Program. This program was established in 2006 as one of the onlymicrofinance lenders in the country.One of the principal challenges of microfinance is providing small loans at anaffordable cost. The global average interest and fee rate is estimated at 37%, withrates reaching as high as 70% in some markets.[12]The reason for the high interestrates is not primarily cost of capital. Indeed, the local microfinance organizations thatreceive zero-interest loan capital from the online micro lending platform Kiva chargeaverage interest and fee rates of 35.21%. Rather, the main reason for the high cost ofmicrofinance loans is the high transaction cost of traditional microfinance operationsrelative to loan size.Microfinance practitioners have long argued that such high interest rates are simplyunavoidable, because the cost of making each loan cannot be reduced below a certainlevel while still allowing the lender to cover costs such as offices and staff salaries.The result is that the traditional approach to microfinance has made only limitedprogress in resolving the problem it purports to address: that the worlds poorestpeople pay the worlds highest cost for small business growth capital. The high costsof traditional microfinance loans limit their effectiveness as a poverty-fighting tool.Offering loans at interest and fee rates of 37% mean that borrowers who do notmanage to earn at least a 37% rate of return may actually end up poorer as a result ofaccepting the loans.According to a recent survey of microfinance borrowers in Ghana published by theCenter for Financial Inclusion, more than one-third of borrowers surveyed reportedstruggling to repay their loans. Some resorted to measures such as reducing their foodintake or taking children out of school in order to repay microfinance debts that hadnot proven sufficiently profitable.
  • S. K. School of Business Management, PATAN.P a g e | XXIIIn recent years, the microfinance industry has shifted its focus from the objective ofincreasing the volume of lending capital available, to address the challenge ofproviding microfinance loans more affordably. Microfinance analyst David Roodmancontends that in mature markets, the average interest and fee rates charged bymicrofinance institutions tend to fall over time. However global average interest ratesfor microfinance loans are still well above 30%.The answer to providing microfinance services at an affordable cost may lie in arethinking of one of the fundamental assumptions underlying microfinance: thatmicrofinance borrowers need extensive monitoring and interaction with loan officersin order to benefit from and repay their loans. The P2P micro lending service Zidishais based on this premise, facilitating direct interaction between individual lenders andborrowers via an internet community rather than physical offices. Zidisha hasmanaged to bring the cost of microloans to below 10% for borrowers, includinginterest which is paid out to lenders, while maintaining a repayment rate ofapproximately 98%. However, it remains to be seen whether such radical alternativemodels can reach the scale necessary to compete with traditional microfinanceprograms.2.3.2 Use of loansPractitioners and donors from the charitable side of microfinance frequently argue forrestricting microcredit to loans for productive purposes–such as to start or expand amicroenterprise. Those from the private-sector side respond that because money isfungible, such a restriction is impossible to enforce, and that in any case it should notbe up to rich people to determine how poor people use their money[citation needed].2.3.3 Who should provide microfinance services?Perhaps influenced by traditional Western views about usury, the role of thetraditional moneylender has been subject to much criticism, especially in the earlystages of modern microfinance. As more poor people gained access to loans frommicrocredit institutions however, it became apparent that the services ofmoneylenders continued to be valued. Borrowers were prepared to pay very highinterest rates for services like quick loan disbursement, confidentiality and flexible
  • S. K. School of Business Management, PATAN.P a g e | XXIIIrepayment schedules. They did not always see lower interest rates as adequatecompensation for the costs of attending meetings, attending training courses to qualifyfor disbursements or making monthly collateral contributions. They also found itdistasteful to be forced to pretend they were borrowing to start a business, when theywere often borrowing for other reasons (such as paying for school fees, dealing withhealth costs or securing the family food supply). The more recent focus on inclusivefinancial systems (see section below) affords moneylenders more legitimacy, arguingin favour of regulation and efforts to increase competition between them to expandthe options available to poor people.Modern microfinance emerged in the 1970s with a strong orientation towards private-sector solutions. This resulted from evidence that state-owned agriculturaldevelopment banks in developing countries had been a monumental failure, actuallyundermining the development goals they were intended to serve (see the compilationedited by Adams, Graham & Von Pischke).[4]Nevertheless public officials in manycountries hold a different view, and continue to intervene in microfinance markets.2.3.4 Reach versus depth of impactThese goats are being raised by Rwandan women as part of a farm cooperative fundedby microfinance.There has been a long-standing debate over the sharpness of the trade-off betweenoutreach (the ability of a microfinance institution to reach poorer and more remotepeople) and its sustainability (its ability to cover its operating costs—and possiblyalso its costs of serving new clients—from its operating revenues). Although it isgenerally agreed that microfinance practitioners should seek to balance these goals tosome extent, there are a wide variety of strategies, ranging from the minimalist profit-orientation of BancoSol in Bolivia to the highly integrated not-for-profit orientation ofBRAC in Bangladesh. This is true not only for individual institutions, but also forgovernments engaged in developing national microfinance systems.2.3.5 Gender
  • S. K. School of Business Management, PATAN.P a g e | XXIVMicrofinance experts generally agree that women should be the primary focus ofservice delivery. Evidence shows that they are less likely to default on their loans thanmen. Industry data from 2006 for 704 MFIs reaching 52 million borrowers includesMFIs using the solidarity lending methodology (99.3% female clients) and MFIsusing individual lending (51% female clients). The delinquency rate for solidaritylending was 0.9% after 30 days (individual lending—3.1%), while 0.3% of loans werewritten off (individual lending—0.9%). Because operating margins become tighter thesmaller the loans delivered, many MFIs consider the risk of lending to men to be toohigh. This focus on women is questioned sometimes, however. A recent study ofmicroenterpreneurs from Sri Lanka published by the World Bank found that the returnon capital for male-owned businesses (half of the sample) averaged 11%, whereas thereturn for women-owned businesses was 0% or slightly negative.2.4 History of microfinanceOver the past centuries practical visionaries, from the Franciscan monks who foundedthe community-oriented pawnshops of the 15th century, to the founders of theEuropeancredit union movement in the 19th century (such as Friedrich WilhelmRaiffeisen) and the founders of the microcredit movement in the 1970s (such asMuhammad Yunus) have tested practices and built institutions designed to bring thekinds of opportunities and risk-management tools that financial services can provideto the doorsteps of poor people.[21]While the success of the Grameen Bank (whichnow serves over 7 million poor Bangladeshi women) has inspired the world,[citationneeded]it has proved difficult to replicate this success. In nations with lower populationdensities, meeting the operating costs of a retail branch by serving nearby customershas proven considerably more challenging. Hans Dieter Seibel, board member of theEuropean Microfinance Platform, is in favour of the group model. This particularmodel (used by many Microfinance institutions) makes financial sense, he says,because it reduces transaction costs. Microfinance programmes also need to be basedon local funds. Local Roots
  • S. K. School of Business Management, PATAN.P a g e | XXVThe history of micro financing can be traced back as long to the middle of the 1800swhen the theorist Lysander Spooner was writing over the benefits from small creditsto entrepreneurs and farmers as a way getting the people out of poverty.Independently to Spooner, Friedrich Wilhelm Raiffeisen founded the first cooperativelending banks to support farmers in rural Germany.The modern use of the expression "micro financing" has roots in the 1970s whenorganizations, such as Grameen Bank of Bangladesh with the microfinance pioneerMuhammad Yunus, were starting and shaping the modern industry of microfinancing. Another pioneer in this sector is Akhtar Hameed Khan.2.5 Microfinance standards and principlesA group of Indian women have assembled to make bamboo products that they intendto resell.Poor people borrow from informal moneylenders and save with informal collectors.They receive loans and grants from charities. They buy insurance from state-ownedcompanies. They receive funds transfers through formal or informal remittancenetworks. It is not easy to distinguish microfinance from similar activities. It could beclaimed that a government that orders state banks to open deposit accounts for poorconsumers, or a moneylender that engages in usury, or a charity that runs a heifer poolare engaged in microfinance. Ensuring financial services to poor people is best doneby expanding the number of financial institutions available to them, as well as bystrengthening the capacity of those institutions. In recent years there has also beenincreasing emphasis on expanding the diversity of institutions, since differentinstitutions serve different needs.Some principles that summarize a century and a half of development practice wereencapsulated in 2004 by CGAP and endorsed by the Group of Eight leaders at the G8Summit on June 10, 2004:[21]
  • S. K. School of Business Management, PATAN.P a g e | XXVI1. Poor people need not just loans but also savings, insurance and money transferservices.2. Microfinance must be useful to poor households: helping them raise income,build up assets and/or cushion themselves against external shocks.3. "Microfinance can pay for itself."[23]Subsidies from donors and governmentare scarce and uncertain, and so to reach large numbers of poor people,microfinance must pay for itself.4. Microfinance means building permanent local institutions.5. Microfinance also means integrating the financial needs of poor people into acountrys mainstream financial system.6. "The job of government is to enable financial services, not to provide them."7. "Donor funds should complement private capital, not compete with it."8. "The key bottleneck is the shortage of strong institutions and managers."Donors should focus on capacity building.9. Interest rate ceilings hurt poor people by preventing microfinance institutionsfrom covering their costs, which chokes off the supply of credit.10. Microfinance institutions should measure and disclose their performance –both financially and socially.Microfinance is considered as a tool for socio-economic development, and can beclearly distinguished from charity. Families who are destitute, or so poor they areunlikely to be able to generate the cash flow required to repay a loan, should berecipients of charity. Others are best served by financial institutions.2.6 Scale of microfinance operationsTwo women talk about financial matters. The woman on the right is a loan officer forThe Small Enterprise Foundation (SEF). The conversation shown is taking place inTzaneen, South Africa. February 2010.No systematic effort to map the distribution of microfinance has yet been undertaken.A benchmark was established by an analysis of alternative financial institutions in
  • S. K. School of Business Management, PATAN.P a g e | XXVIIthe developing world in 2004. The authors counted approximately 665 million clientaccounts at over 3,000 institutions that are serving people who are poorer than thoseserved by the commercial banks. Of these accounts, 120 million were with institutionsnormally understood to practice microfinance. Reflecting the diverse historical rootsof the movement, however, they also included postal savings banks (318 millionaccounts), state agricultural and development banks (172 million accounts), financialcooperatives and credit unions (35 million accounts) and specialized rural banks (19million accounts).Regionally the highest concentration of these accounts was in India (188 millionaccounts representing 18% of the total national population). The lowestconcentrations were in Latin America and the Caribbean (14 million accountsrepresenting 3% of the total population) and Africa (27 million accounts representing4% of the total population, with the highest rate of penetration in West Africa, and thehighest growth rate in Eastern and Southern Africa ). Considering that most bankclients in the developed world need several active accounts to keep their affairs inorder, these figures indicate that the task the microfinance movement has set for itselfis still very far from finished.By type of service "savings accounts in alternative finance institutions outnumberloans by about four to one. This is a worldwide pattern that does not vary much byregion."An important source of detailed data on selected microfinance institutions is theMicro Banking Bulletin, which is published by Microfinance Information Exchange.At the end of 2009 it was tracking 1,084 MFIs that were serving 74 million borrowers($38 billion in outstanding loans) and 67 million savers ($23 billion in deposits).Another source of information regarding the environment of microfinance is theGlobal Microscope on the Microfinance Business Environment, publication preparedby the Economic Intelligence Unit (EIU), the Inter-American Development Bank, andothers. The 2011 report contains information on the environment of microfinance in55 countries among two categories, Regulatory Framework and the SupportingInstitutional Framework. This publication, also known as the Microscope, was first
  • S. K. School of Business Management, PATAN.P a g e | XXVIIIdeveloped in 2007, focusing only on Latin America and the Caribbean, but by 2009,this report had become a global study.As yet there are no studies that indicate the scale or distribution of informalmicrofinance organizations like ROSCAs and informal associations that help peoplemanage costs like weddings, funerals and sickness. Numerous case studies have beenpublished however, indicating that these organizations, which are generally designedand managed by poor people themselves with little outside help, operate in mostcountries in the developing world.Help can come in the form of more and better qualified staff, thus higher education isneeded for microfinance institutions. This has begun in some universities, as OliverSchmidt describes. Mind the management gap2.7 Inclusive financial systemThe microcredit era that began in the 1970s has lost its momentum, to be replaced bya financial systems approach. While microcredit achieved a great deal, especially inurban and near-urban areas and with entrepreneurial families, its progress indelivering financial services in less densely populated rural areas has been slow.The new financial systems approach pragmatically acknowledges the richness ofcenturies of microfinance history and the immense diversity of institutions servingpoor people in developing world today. It is also rooted in an increasing awareness ofdiversity of the financial service needs of the world‘s poorest people, and the diversesettings in which they live and work.Brigit Helms in her book Access for All: Building Inclusive Financial Systems,distinguishes between four general categories of microfinance providers, and arguesfor a pro-active strategy of engagement with all of them to help them achieve thegoals of the microfinance movement.2.7.1 Informal financial service providersThese include moneylenders, pawnbrokers, savings collectors, money-guards,ROSCAs, ASCAs and input supply shops. Because they know each other well
  • S. K. School of Business Management, PATAN.P a g e | XXIXand live in the same community, they understand each other‘s financialcircumstances and can offer very flexible, convenient and fast services. Theseservices can also be costly and the choice of financial products limited andvery short-term. Informal services that involve savings are also risky; manypeople lose their money.2.7.2 Member-owned organizationsThese include self-help groups, credit unions, and a variety of hybridorganizations like financial service associations and CVECAs. Like theirinformal cousins, they are generally small and local, which means they haveaccess to good knowledge about each others financial circumstances and canoffer convenience and flexibility. Grameen Bank is a member-ownedorganization. Since they are managed by poor people, their costs of operationare low. However, these providers may have little financial skill and can runinto trouble when the economy turns down or their operations become toocomplex. Unless they are effectively regulated and supervised, they can becaptured by one or two influential leaders, and the members can lose theirmoney.2.7.3 NGOsThe Microcredit Summit Campaign counted 3,316 of these MFIs and NGOslending to about 133 million clients by the end of 2006.[41]Led by GrameenBank and BRAC in Bangladesh, Prodem in Bolivia, and FINCA International,headquartered in Washington, DC, these NGOs have spread around thedeveloping world in the past three decades; others, like the Gamelan Council,address larger regions. They have proven very innovative, pioneering bankingtechniques like solidarity lending, village banking and mobile banking thathave overcome barriers to serving poor populations. However, with boardsthat don‘t necessarily represent either their capital or their customers, theirgovernance structures can be fragile, and they can become overly dependenton external donors.2.7.4 Formal financial institutionsIn addition to commercial banks, these include state banks, agriculturaldevelopment banks, savings banks, rural banks and non-bank financial
  • S. K. School of Business Management, PATAN.P a g e | XXXinstitutions. They are regulated and supervised, offer a wider range offinancial services, and control a branch network that can extend across thecountry and internationally. However, they have proved reluctant to adoptsocial missions, and due to their high costs of operation, often cant deliverservices to poor or remote populations. The increasing use of alternative datain credit scoring, such as trade credit is increasing commercial banks interestin microfinance.With appropriate regulation and supervision, each of these institutional types canbring leverage to solving the microfinance problem. For example, efforts are beingmade to link self-help groups to commercial banks, to network member-ownedorganizations together to achieve economies of scale and scope, and to support effortsby commercial banks to down-scale by integrating mobile banking and e-paymenttechnologies into their extensive branch networks.2.8 Microcredit and the webDue to the unbalanced emphasis on credit at the expense of microsavings, as well as adesire to link Western investors to the sector, peer-to-peer platforms have developedto expand the availability of microcredit through individual lenders in the developedworld. New platforms that connect lenders to micro-entrepreneurs are emerging onthe Web, for example MYC4, Kiva, Zidisha, myELEN and the Microloan Foundation.Another WWW-based microlender United Prosperity uses a variation on the usualmicro lending model; with United Prosperity the micro-lender provides a guarantee toa local bank which then lends back double that amount to the micro-entrpreneur. In2009, the US-based nonprofit Zidisha became the first peer-to-peer micro lendingplatform to link lenders and borrowers directly across international borders withoutlocal intermediaries.The volume channeled through Kivas peer-to-peer platform is about $100 million asof November 2009 (Kiva facilitates approximately $5M in loans each month). Incomparison, the needs for microcredit are estimated about 250 bn USD as of end
  • S. K. School of Business Management, PATAN.P a g e | XXXI2006.[44]Most experts agree that these funds must be sourced locally in countries thatare originating microcredit, to reduce transaction costs and exchange rate risks.There have been problems with disclosure on peer-to-peer sites, with some reportinginterest rates of borrowers using the flat rate methodology instead of the familiarbanking Annual Percentage Rate.[45]The use of flat rates, which has been outlawedamong regulated financial institutions in developed countries, can confuse individuallenders into believing their borrower is paying a lower interest rate than, in fact, theyare.2.9 Microfinance and social interventionsThere are currently a few social interventions that have been combined with microfinancing to increase awareness of HIV/AIDS. Such interventions like the"Intervention with Microfinance for AIDS and Gender Equity" (IMAGE) whichincorporates micro financing with "The Sisters-for-Life" program a participatoryprogram that educates on different gender roles, gender-based violence, andHIV/AIDS infections to strengthen the communication skills and leadership ofwomen [46]"The Sisters-for-Life" program has two phases where phase one consistsof ten one-hour training programs with a facilitator with phase two consisting ofidentifying a leader amongst the group, train them further, and allow them toimplement an Action Plan to their respective centers.Microfinance has also been combined with business education and with otherpackages of health interventions.[47]A project undertaken in Peru by Innovations forPoverty Action found that those borrowers randomly selected to receive financialtraining as part of their borrowing group meetings had higher profits, although therewas not a reduction in "the proportion who reported having problems in theirbusiness".
  • S. K. School of Business Management, PATAN.P a g e | XXXII2.10 Impact and criticismMost criticisms of microfinance have actually been criticisms of microcredit.Criticism focuses on the impact on poverty, the level of interest rates, high profits,over indebtedness and suicides. Other criticism include the role of foreign donors andworking conditions in companies affiliated to microfinance institutions, particularly inBangladesh.2.10.1 ImpactFor more details on this topic, see Impact of microcredit.The impact of microcredit is a subject of much controversy. Proponents state that itreduces poverty through higher employment and higher incomes. This is expected tolead to improved nutrition and improved education of the borrowers children. Someargue that microcredit empowers women. In the US and Canada, it is argued thatmicrocredit helps recipients to graduate from welfare programs.Critics say that microcredit has not increased incomes, but has driven poor householdsinto a debt trap, in some cases even leading to suicide. They add that the money fromloans is often used for durable consumer goods or consumption instead of being usedfor productive investments, that it fails to empower women, and that it has notimproved health or education.The available evidence indicates that in many cases microcredit has facilitated thecreation and the growth of businesses. In has often generated self-employment, but ithas not necessarily increased incomes after interest payments. In some cases it hasdriven borrowers into debt traps. There is no evidence that microcredit hasempowered women. In short, microcredit has achieved much less than what itsproponents said it would achieve, but its negative impacts have not been as drastic assome critics have argued. Microcredit is just one factor influencing the success ofsmall businesses, whose success is influenced to a much larger extent by how muchan economy or a particular market grows.2.10.2 Role of foreign donors
  • S. K. School of Business Management, PATAN.P a g e | XXXIIIThe role of donors has also been questioned. CGAP recently commented that "a largeproportion of the money they spend is not effective, either because it gets hung up inunsuccessful and often complicated funding mechanisms (for example, a governmentapex facility), or it goes to partners that are not held accountable for performance. Insome cases, poorly conceived programs have retarded the development of inclusivefinancial systems by distorting markets and displacing domestic commercialinitiatives with cheap or free money.2.10.3 Working conditions in enterprises affiliated to MFIsThere has also been criticism of micro lenders for not taking more responsibility forthe working conditions of poor households, particularly when borrowers becomequasi-wage labourers, selling crafts or agricultural produce through an organizationcontrolled by the MFI. The desire of MFIs to help their borrower diversify andincrease their incomes has sparked this type of relationship in several countries, mostnotably Bangladesh, where hundreds of thousands of borrowers effectively work aswage labourers for the marketing subsidiaries of Grameen Bank or BRAC. Criticsmaintain that there are few if any rules or standards in these cases governing workinghours, holidays, working conditions, safety or child labour, and few inspectionregimes to correct abuses.[50]Some of these concerns have been taken up by unionsand socially responsible investment advocates.
  • S. K. School of Business Management, PATAN.P a g e | XXXIVChapter - 3LiteratureReview
  • S. K. School of Business Management, PATAN.P a g e | XXXV3.0 REVIEW OF LITERATURE:Rajeshekhar d. (2000): conducted a study on ―micro finance programs andwomen‘s empowerment: A study of two NGO‘S from Kerala‖, and found thatmicro finance programmers are important institutional devices for providingsmall credit to the rural poor in order to alleviate poverty, Micro financeprogrammes initiated by SHG‘s expected by non- governmental organizationin several parts of India, have the potential to minimize the programmes ofinadequate access to banking services to the poor.Dwarakanath. H. D. (2002) in this study analyzed that the characteristics anddevelopment of self help groups in the state of Andhra Pradesh and found thatSHGs were mainly using the loan facilities from the cooperative credit banks,commercial banks, mahila banks and maheswaran banks, and had producedmore than 50 varieties of products –such as candelas, carpets, coir items,pickles, etc. in this study , the researcher found that women groups started toeducate their Owen group members, and they realized the important ofliteracy. SHGs have a greater vision for their family, and also aimed to createawareness regarding the socio-economic and political conditions in rangareddy district of Andhra Pradesh.T. Anita Prasad(2005) in her study on ‗ EMERGING TRENDS IN MICROFINANCE- a case study of swayam krishi sangam‘ found that therequirements of rural poor are very small and often unpredictable. Thesepeople are bankable, almost all poor households need to save and have theinherent capacity to save, if they are properly motivated. There is increasedcompetition among MFIs and hence, the interest rates charged have becomecut-throat. It was found that Swayam Krishi Sangam has brought microfinanceto the door steps of the rural poor, who otherwise had to be at the door steps ofa bank, 90% of their employees were the rural poor, who understood theproblems of their region, and were willing to take initiatives for the socio-economic development of their native place. Very young and enthusiasticemployees who were in the age group of 22 to 28 years are a major strength ofSKS. Their services are technology driven.Shailaja Gajjala (2005) in her study on ‗MICRO FINANCE ; a case study‘,examined the differences between micro savings and micro credit. Thefindings of the study were mainly on Indian public sector banks in the area ofmicro finance. The findings of the study revealed that micro finance givesbanks link at the community level, from which financial and non-financialbenefits accrue to the banks, the borrower and the community. AndhraPradesh is home to the most profitable micro finance organizations, and themaximum numbers of WSHGs (Women self help center) in the country.
  • S. K. School of Business Management, PATAN.P a g e | XXXVIM. V. S. Mahendra. (2011) In his study ‗ Empowerment Of Women ThroughMicrofinance – A case study of Ranga Reddy District, Andra Pradesh‘ , foundthat All the members of SHGs are not equally educated, so the NGOs shouldprovide basic education and training to them. Repayment of loan among themembers of SHG is quick, therefor, the banks may reduce the interest rates.There was lack of efforts to market products produced bymembers of SHGs soGovernment should organize trade fairs at regular intervals.K. Rajendran and Dr. R. P. Raya(2011) in their paper ‗Does MicrofinanceEmpower Rural Women? – A Study In Vellore District, Tamil NaduExamined that, rural women were able freely to discuss issues freely withbankers and government officials and NGOs. Women‘s role in decisionmaking in children‘s education had improved. There was negligible socialempowerment as a result of participating in Microfinance through the SHGprogramme.
  • S. K. School of Business Management, PATAN.P a g e | XXXVIIChapter - 4Data Analysis
  • S. K. School of Business Management, PATAN.P a g e |XXXVIII4.1 Frequency of Data4.1.1 Establishment Years of the SHGsTable : 4.1.1 Establishment Year of SHGsFrequency Percent Valid PercentCumulativePercentValid 2006 13 8.7 8.7 8.72007 50 33.3 33.3 42.02008 22 14.7 14.7 56.72009 54 36.0 36.0 92.72010 11 7.3 7.3 100.0Total 150 100.0 100.0Graph 4.1.1Interpretation:From the above data it can be seen that most of the SHGs were established during2007 and 2009, as per the Taluka Panchayat requirement and motivation al programsto establish such SHGs.
  • S. K. School of Business Management, PATAN.P a g e | XXXIX4.1.2 Duration of the Membership in SHGsTable : 4.1.2 Duration of Membership in SHGsFrequency Percent Valid PercentCumulativePercentValid Less than Year 13 8.7 8.7 8.71-3 Year 40 26.7 26.7 35.33-6 Year 90 60.0 60.0 95.3More than 6 Year 7 4.7 4.7 100.0Total 150 100.0 100.0Graph 4.1.2Interpretation:As per the above data we found that in the North Gujarat region, most of the membersare joined in the SHGs from 3 to 6 year, the percentage of membership from 3 to 6year is around 60%.
  • S. K. School of Business Management, PATAN.P a g e | XL4.1.3 Age of the Member of the SHGsTable : 4.1.3 Age of MembersFrequency Percent Valid PercentCumulativePercentValid 20 - 30 Year 33 22.0 22.0 22.031 - 40 Year 55 36.7 36.7 58.741 - 50 Year 43 28.7 28.7 87.3Above 50 Year 19 12.7 12.7 100.0Total 150 100.0 100.0Graph 4.1.3Interpretation:From the collected data we found that the most of the members of the SHGs have aage between the 30 to 50 year. Out of the total samples around 70% are falling in thisage group
  • S. K. School of Business Management, PATAN.P a g e | XLI4.1.4 Education background of the Member of SHGsTable 4.1.4 Member EducationFrequency Percent Valid PercentCumulativePercentValid Illiterate 63 42.0 42.0 42.0Primary 62 41.3 41.3 83.3Intermediate 21 14.0 14.0 97.3Degree & Above 4 2.7 2.7 100.0Total 150 100.0 100.0Graph 4.1.4Interpretation:From the above research we found that the most of the members of SHGs was takeneducation up to the primary. The Educated women in the SHGs are hardly around15% who taken the education up to the Intermediate and above.
  • S. K. School of Business Management, PATAN.P a g e | XLII4.1.5 No. of Person in the Family of the Member of SHGsTable 4.1.5 No. of Person in FamilyFrequency Percent Valid PercentCumulativePercentValid Less Than 4 15 10.0 10.0 10.04-8 104 69.3 69.3 79.39-12 30 20.0 20.0 99.3More Than 12 1 .7 .7 100.0Total 150 100.0 100.0Graph 4.1.5Interpretation:As per the above collected data we found that the nos. of person in the family of themember of SHGs are 4 to 6 person. The percentage of the this criteria is around 70%.
  • S. K. School of Business Management, PATAN.P a g e | XLIII4.1.6 Annual Family income of the Member of SHGsTable : 4.1.6 Annual Family Income of MemberFrequency Percent Valid PercentCumulativePercentValid Less Than 20000 Rs 37 24.7 24.7 24.720001 - 40000 Rs 71 47.3 47.3 72.040001 - 60000 Rs 22 14.7 14.7 86.7More Than 60000 Rs 20 13.3 13.3 100.0Total 150 100.0 100.0Graph 4.1.6Interpretation:As per the above collected data we found that around 50% of the total respondents arehaving family income between the Rs. 20000 to Rs. 40000.
  • S. K. School of Business Management, PATAN.P a g e | XLIV4.1.7 No. of Loan Availed to the Member of the SHGs4.1.7 No. of Loan Availed to MembersFrequency Percent Valid PercentCumulativePercentValid Not Any 105 70.0 70.0 70.01 Time 34 22.7 22.7 92.72 Times 8 5.3 5.3 98.03 Times 3 2.0 2.0 100.0Total 150 100.0 100.0Graph 4.1.7Interpretation:As per the above data we can say that out of the total respondent of the survey aroundthe 70 % of the members of the SHGs in the North Gujarat region was not taken aloan from the SHGs at single times.
  • S. K. School of Business Management, PATAN.P a g e | XLV4.1.8 Status of Increase in income of Member as a Part of the SHGsTable : 4.1.8 Status of increase in income as being part of SHGFrequency Percent Valid PercentCumulativePercentValid Poor 10 6.7 6.7 6.7Moderate 56 37.3 37.3 44.0Good 59 39.3 39.3 83.3Very Good 25 16.7 16.7 100.0Total 150 100.0 100.0Graph 4.1.8Interpretation:As per the above data we found that the found that the 80% member of the SHGs areresponding that their status of increasing in income as a being part of SHGs isModerate to Good.
  • S. K. School of Business Management, PATAN.P a g e | XLVI4.1.9 Level of Improvement in Saving of the Member of SHGsTable : 4.1.9 Improvement in savingsFrequency Percent Valid PercentCumulativePercentValid Poor 4 2.7 2.7 2.7Moderate 21 14.0 14.0 16.7Good 86 57.3 57.3 74.0Very Good 39 26.0 26.0 100.0Total 150 100.0 100.0Graph 4.1.9Interpretation:As per the above data we found that the found that the 60% member of the SHGs areresponding that their status saving improvement as a being part of SHGs is Good.
  • S. K. School of Business Management, PATAN.P a g e | XLVII4.1.10 Level of Undertaking Income Generating Activities though the SHGsTable : 4.1.10 Level of undertaking income generating activitiesFrequency Percent Valid PercentCumulativePercentValid Poor 35 23.3 23.3 23.3Moderate 75 50.0 50.0 73.3Good 30 20.0 20.0 93.3Very Good 10 6.7 6.7 100.0Total 150 100.0 100.0Graph 4.1.10Interpretation:As per the above data we found that the found that the 50% member of the SHGs areresponding that their Level of undertaking income generating activities of SHGs areModerate in the North Gujarat region.
  • S. K. School of Business Management, PATAN.P a g e | XLVIII4.1.11 Status of Reduction of Dependency on Money Lenders of Member ofSHGsTable : 4.1.11 Status of reduction of dependency on Money LendersFrequency Percent Valid PercentCumulativePercentValid Poor 19 12.7 12.7 12.7Moderate 70 46.7 46.7 59.3Good 54 36.0 36.0 95.3Very Good 7 4.7 4.7 100.0Total 150 100.0 100.0Graph 4.1.11Interpretation:As per the above data we found that the found that the around 50% member of theSHGs are responding that reduction of dependency on the money lenders of their ofSHGs are Moderate in the North Gujarat region.
  • S. K. School of Business Management, PATAN.P a g e | XLIX4.1.12 Level of Reduction of Poverty in the Family of SHGsTable : 4.1.12 Level of Reduction of Poverty in the FamilyFrequency Percent Valid PercentCumulativePercentValid Poor 22 14.7 14.7 14.7Moderate 74 49.3 49.3 64.0Good 43 28.7 28.7 92.7Very Good 11 7.3 7.3 100.0Total 150 100.0 100.0Graph 4.1.12Interpretation:As per the above data we found that the found that the around 50% member of theSHGs are responding that reduction of poverty in the family level are Moderate in theNorth Gujarat region.
  • S. K. School of Business Management, PATAN.P a g e | L4.1.13 Participation of the Member in Decision of SavingsTable : 4.1.13 Participation in Decision of SavingsFrequency Percent Valid PercentCumulativePercentValid Poor 10 6.7 6.7 6.7Moderate 41 27.3 27.3 34.0Good 84 56.0 56.0 90.0Very Good 15 10.0 10.0 100.0Total 150 100.0 100.0Graph 4.1.13Interpretation:As per the above data we found that the found that the around 55% member of theSHGs are responding that their participation in the Decision of Saving is Good.
  • S. K. School of Business Management, PATAN.P a g e | LI4.1.14 Participation of Member in Decision of ExpensesTable : 4.1.14 Participation in Decision of ExpenseFrequency Percent Valid PercentCumulativePercentValid Poor 15 10.0 10.0 10.0Moderate 47 31.3 31.3 41.3Good 70 46.7 46.7 88.0Very Good 18 12.0 12.0 100.0Total 150 100.0 100.0Graph 4.1.14Interpretation:As per the above data we found that the found that the around 50% member of theSHGs are responding that their participation in the Decision of Expenses is Good.
  • S. K. School of Business Management, PATAN.P a g e | LII4.1.15 Ability to Deal with Financial crisis of the FamilyTable : 4.1.15 Able to Deal with Financial Crisis of the FamilyFrequency Percent Valid PercentCumulativePercentValid Poor 27 18.0 18.0 18.0Moderate 83 55.3 55.3 73.3Good 35 23.3 23.3 96.7Very Good 5 3.3 3.3 100.0Total 150 100.0 100.0Graph 4.1.15Interpretation:As per the above data we found that the found that the around 55% member of theSHGs are responding that their ability to deal with the financial crisis of the family isModerate as a part of the being a part of the SHGs
  • S. K. School of Business Management, PATAN.P a g e | LIII4.1.16 Level of Moving Independently of the Member of SHGsTable : 4.1.6 Level of Moving IndependentlyFrequency Percent Valid PercentCumulativePercentValid Poor 24 16.0 16.0 16.0Moderate 22 14.7 14.7 30.7Good 71 47.3 47.3 78.0Very Good 33 22.0 22.0 100.0Total 150 100.0 100.0Graph 4.1.16Interpretation:As per the above data we found that the found that the around 50% member of theSHGs are responding that their level of the moving independently is Good as a beingpart of the SHGs.
  • S. K. School of Business Management, PATAN.P a g e | LIV4.1.17 Status of Being able to express view freely in the family by the MemberTable : 4.1.17 Status of Being Able to Express Views FreelyFrequency Percent Valid PercentCumulativePercentValid Poor 13 8.7 8.7 8.7Moderate 52 34.7 34.7 43.3Good 47 31.3 31.3 74.7Very Good 38 25.3 25.3 100.0Total 150 100.0 100.0Graph 4.1.17Interpretation:As per the above data we can say that in the North Gujarat region the ability toexpress view freely of the member of the SHGs is Moderate to Good.
  • S. K. School of Business Management, PATAN.P a g e | LV4.1.18 Ability to Discuss freely with the Bank / Govt. Officers / NGOsTable : 4.1.18 Ability to Discuss freely with Bank/Govt.Officers/NGOs & OthersFrequency Percent Valid PercentCumulativePercentValid Poor 16 10.7 10.7 10.7Moderate 52 34.7 34.7 45.3Good 42 28.0 28.0 73.3Very Good 40 26.7 26.7 100.0Total 150 100.0 100.0Graph 4.1.18Interpretation:As per the above data we can say that in the North Gujarat region the ability todiscuss freely with the Bank / Government Officers / NGOs by member of the SHGsis Moderate to Good.
  • S. K. School of Business Management, PATAN.P a g e | LVI4.1.19 SHGs Helping the member to protest against Liquor Sales / Alcoholic UsesTable : 4.1.19 Help Member to Protest against Liquor sales/ Alcoholic UseFrequency Percent Valid PercentCumulativePercentValid Poor 22 14.7 14.7 14.7Moderate 85 56.7 56.7 71.3Good 32 21.3 21.3 92.7Very Good 11 7.3 7.3 100.0Total 150 100.0 100.0Graph 4.1.19Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Moderate while help member to protest against Liquor Sales/ AlcoholicUse.
  • S. K. School of Business Management, PATAN.P a g e | LVII4.1.20 SHGs Helping member to Protest against PollutionTable : 4.1.20 Help Member to Protest Against PollutionFrequency Percent Valid PercentCumulativePercentValid Poor 10 6.7 6.7 6.7Moderate 75 50.0 50.0 56.7Good 52 34.7 34.7 91.3Very Good 13 8.7 8.7 100.0Total 150 100.0 100.0Graph 4.1.20Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Moderate while help member to protest against Pollution.
  • S. K. School of Business Management, PATAN.P a g e | LVIII4.1.21 SHGs Helping Member to Protest against Drinking Water ProblemsTable : 4.1.21 Help Member to Protest Against Drinking Water ProblemFrequency Percent Valid PercentCumulativePercentValid Poor 22 14.7 14.7 14.7Moderate 74 49.3 49.3 64.0Good 43 28.7 28.7 92.7Very Good 11 7.3 7.3 100.0Total 150 100.0 100.0Graph 4.1.21Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Moderate while help member to protest against Drinking Water Problem.
  • S. K. School of Business Management, PATAN.P a g e | LIX4.1.22 SHGs Helping Member to protest against Dowry4.1.22 Help Member to Protest Against DowryFrequency Percent Valid PercentCumulativePercentValid Poor 48 32.0 32.0 32.0Moderate 61 40.7 40.7 72.7Good 36 24.0 24.0 96.7Very Good 5 3.3 3.3 100.0Total 150 100.0 100.0Graph 4.1.22Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Poor to Moderate while help member to protest against Dowry.
  • S. K. School of Business Management, PATAN.P a g e | LX4.1.23 SHGs Helping member to protest against Abuse of fellow group memberby HusbandTable : 4.1.23 Help Member to Protest Against Abuse of fellow group members byHusbandFrequency Percent Valid PercentCumulativePercentValid Poor 18 12.0 12.0 12.0Moderate 103 68.7 68.7 80.7Good 24 16.0 16.0 96.7Very Good 5 3.3 3.3 100.0Total 150 100.0 100.0Graph 4.1.23Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Moderate while help member to protest Against Abuse of fellow groupmembers by Husband.
  • S. K. School of Business Management, PATAN.P a g e | LXI4.1.24 Member Participation in Women’s DayTable : 4.1.24 Participation in Women DayFrequency Percent Valid PercentCumulativePercentValid Poor 4 2.7 2.7 2.7Moderate 59 39.3 39.3 42.0Good 56 37.3 37.3 79.3Very Good 31 20.7 20.7 100.0Total 150 100.0 100.0Graph 4.1.24Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Moderate to Good while participation in the Women Day.
  • S. K. School of Business Management, PATAN.P a g e | LXII4.1.25 Member Participation in Labor AbolitionTable : 4.1.25 Participation in Child Labor AbolitionFrequency Percent Valid PercentCumulativePercentValid Poor 14 9.3 9.3 9.3Moderate 86 57.3 57.3 66.7Good 39 26.0 26.0 92.7Very Good 11 7.3 7.3 100.0Total 150 100.0 100.0Graph 4.1.25Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Moderate while participation in the Child Labor Abolition.
  • S. K. School of Business Management, PATAN.P a g e | LXIII4.1.26 Member Participation in Gram Sabha Meeting4.1.26 Participation in Gram Sabha MeetingFrequency Percent Valid PercentCumulativePercentValid Poor 8 5.3 5.3 5.3Moderate 29 19.3 19.3 24.7Good 78 52.0 52.0 76.7Very Good 35 23.3 23.3 100.0Total 150 100.0 100.0Graph 4.1.26Interpretation:As per the above details we can say that the status of the SHGs in the North GujaratRegion is Good while participation in the Gram Sabha Meeting.
  • S. K. School of Business Management, PATAN.P a g e | LXIV4.1.27 Member Ability to Cast Votes Independently4.1.27 Ability to cast votes IndependentlyFrequency Percent Valid PercentCumulativePercentValid Poor 3 2.0 2.0 2.0Moderate 16 10.7 10.7 12.7Good 56 37.3 37.3 50.0Very Good 75 50.0 50.0 100.0Total 150 100.0 100.0Graph 4.1.27Interpretation:As per the above details we can say that the Ability to cast votes independently of themember status of the SHGs in the North Gujarat Region is Good.
  • S. K. School of Business Management, PATAN.P a g e | LXV4.2 District Wise Demographic DataTable : 4.2.1 DISTRICT * Duration of Membership in SHGsDuration of Membership in SHGsTotalLess than Year 1-3 Year 3-6 YearMore than 6YearDISTRICT Sabarkantha 8 11 30 1 50Patan 3 12 31 4 50Banaskantha 2 17 29 2 50Total 13 40 90 7 150Interpretation:From the above table it can be concluded that , in all three district most of membersjoined SHGs during 2007-08, As higher no of members belonged to 3-6 yearscolumn.Table: 4.2.2 DISTRICT * No. of Person in FamilyNo. of Person in FamilyTotalLess Than 4 4-8 9-12 More Than 12DISTRICT Sabarkantha 4 38 8 0 50Patan 4 33 13 0 50Banaskantha 7 33 9 1 50Total 15 104 30 1 150
  • S. K. School of Business Management, PATAN.P a g e | LXVIInterpretation:From the above table it can be seen that the most of respondent‘s family size is 4-8Members per family in the all three districts. Second highest members belonged to 9-12 members in a family in all three districts. Whereas in Banaskantha 7 family ishaving family members less than 4. And Sabarkantha and Patan both having 4members having less than 4 members family size.Table : 4.2.3 DISTRICT * Annual Family Income of MemberAnnual Family Income of MemberTotalLess Than20000 Rs20001 -40000 Rs40001 -60000 RsMore Than60000 RsDISTRICT Sabarkantha 19 30 1 0 50Patan 15 33 1 1 50Banaskantha 3 8 20 19 50Total 37 71 22 20 150Interpretation:From the above table it can be seen that Sabarkantha and Patan both having similarresults. Sabarkantha having 30 members having 20001-40000 Rs annual income and19 members having less than 20000 Rs annual income whereas in Patan 30 Membershaving 20001-40000 Rs annual income and 15 members having less than 20000 Rsannual income.Banaskantha shows different results Where 20 members having 40001-60000 Rsannual Income And 19 members having annual income more than 60000 Rs.
  • S. K. School of Business Management, PATAN.P a g e | LXVIITable : 4.2.4 DISTRICT * No. of Loan Availed to MembersNo. of Loan Availed to MembersTotalNot Any 1 Time 2 Times 3 TimesDISTRICT Sabarkantha 43 7 0 0 50Patan 37 12 1 0 50Banaskantha 25 15 7 3 50Total 105 34 8 3 150Interpretation:From the above table it can be concluded that out of 150 respondents only 45members have availed the loan facility. In Sabarkantha only 7 Members have availedloan and that is only one time. In Patan district the result is better than Sabarkantha as13 Members have availed loan and 1 member has availed the loan facility 2 times. InBanaskantha 50% that is 25 members have availed loan facility out of that 15members have availed loan 1 time, 7 members availed the loan 2 times and only 3members availed the loan 3 times.
  • S. K. School of Business Management, PATAN.P a g e | LXVIIITable : 4.2.5 DISTRICT * Amount of Loan Availed to MemberAmount of Loan Availed to MemberTotalNot AnyLess Than5000 Rs5001 - 10000Rs10001 -15000 Rs15001 - 20000RsMore Than20000 RsDISTRICT Sabarkantha 43 2 2 1 1 1 50Patan 37 3 6 1 1 2 50Banaskantha 25 13 8 3 0 1 50Total 105 18 16 5 2 4 150Interpretation:From the above table it can be concluded that, In Sabarkantha 2 members availed loanof less than 5000 Rs and 2 members availed loan of 5001-10000 Rs. Whereas 1member availed loan of 150001-20000 Rs and 1 member availed loan of more than20000 Rs. In Patan 3 Members availed loan of less than 5000 Rs , 6 members got loanof 5001-10000 Rs , 1 member availed 10001-15000 Rs loan, 1 member availed15001-20000 Rs loan and 1 member got loan of more than Rs 20000. In Banaskantha13 members received loan worth less than 5000 Rs, 8 members received loan worth5001-10000 Rs, 3 members got loan of 10001-15000 Rs and 1 member got loan ofmore than 20000 Rs.
  • S. K. School of Business Management, PATAN.P a g e | LXIXTable : 4.2.6 DISTRICT * Age of MembersAge of MembersTotal20 - 30 Year 31 - 40 Year 41 - 50 Year Above 50 YearDISTRICT Sabarkantha 11 21 17 1 50Patan 10 23 14 3 50Banaskantha 12 11 12 15 50Total 33 55 43 19 150InterpretationFrom the above table it can be concluded that, In sabarkantha 21 members have agebetween 31-40 years, 11 members have age between 20-30 years, 17 members haveage between 41-50 years and only 1 member is above 50 years age. In Patan, 23members have age between 31-40 years, 10 members have age between 20-30 years,12 members have age between 41-50 years and 3 members are above 50 years age. InBanaskantha, 11 members have age between 31-40 years, 12 members have agebetween 20-30 years, 12 members have age between 41-50 years and 15 members areabove 50 years age.
  • S. K. School of Business Management, PATAN.P a g e | LXXChapter – 5HypothesisTesting
  • S. K. School of Business Management, PATAN.P a g e | LXXI5.1 Reliability StatisticsCronbachs Alpha N of Items.916 21The Cronbach alpha co-efficient is an indicator of internal consistency of the scale. Ahigh value of Cronbach alpha co-efficient suggest that the items that make the scale―Hang together‖ and measure the same underlying construct. A value of cornbachalpha above 0.70 can be used as a reasonable test of scale reliability. In over study thecronbach‘s Alpha is 0.916 (>0.70) so the scale is reliable and it means that one mayexpect to find the same result if the measurement is repeated.Table : 5.1 Item StatisticsMean Std. Deviation NStatus of increase in income as being part of SHG 3.66 0.834 150Improvement in savings 4.07 0.711 150Level of undertaking income generating activities 3.1 0.833 150Status of reduction of dependency on Money Lenders 3.33 0.755 150Level of Reduction of Poverty in the Family 3.29 0.805 150Participation in Decision of Savings 3.69 0.741 150Participation in Decision of Expense 3.61 0.827 150Participation in Decision of Child Education 3.24 0.88 150Able to Deal with Financial Crisis of the Family 3.12 0.732 150Level of Moving Independently 3.75 0.976 150Status of Being Able to Express Views Freely 3.73 0.939 150Ability to Discuss freely with Bank/Govt.Officers/NGOs & Others 3.71 0.98 150Help Member to Protest against Liquor sales/ Alcoholic Use 3.21 0.782 150Help Member to Protest Against Pollution 3.45 0.747 150Help Member to Protest Against Drinking Water Problem 3.49 0.757 150Help Member to Protest Against Dowry 2.99 0.835 150Help Member to Protest Against Abuse of fellow group members byHusband3.11 0.636 150Participation in Women’s Day 3.76 0.808 150Participation in Child Labor Abolition 3.31 0.743 150Participation in Gram Sabha Meeting 3.93 0.8 150Ability to cast votes Independently 4.35 0.752 150
  • S. K. School of Business Management, PATAN.P a g e | LXXII5.2 ONEWAY ANOVA Empowerment and DistrictH0 : There is no significant relation between District and Empowerment of RuralWomen as a result of participation in Microfinance.H1 : There is significant relation between District and Empowerment of RuralWomen as a result of participation in Microfinance.Table : 5.2.1 DescriptiveN MeanStd.Deviation Std. Error95% ConfidenceInterval for MeanMinimum MaximumLowerBoundUpperBoundEconomicEmpowermentSabarkantha50 3.313340 .5234205 .0740228 3.164586 3.462094 2.1111 4.5556Patan 50 3.304444 .5181612 .0732791 3.157184 3.451704 2.1111 4.3333Banaskantha 50 3.748888 .3432468 .0485424 3.651338 3.846438 3.0000 4.4444Total 150 3.455557 .5103548 .0416703 3.373216 3.537898 2.1111 4.5556SocialEmpowermentSabarkantha50 3.144000 .4096589 .0579345 3.027576 3.260424 2.2000 4.5000Patan 50 3.334000 .5355181 .0757337 3.181807 3.486193 2.2000 4.3000Banaskantha 50 3.876000 .4573928 .0646851 3.746010 4.005990 2.7000 4.7000Total 150 3.451333 .5613666 .0458354 3.360762 3.541905 2.2000 4.7000PoliticalEmpowermentSabarkantha50 3.990000 .6737801 .0952869 3.798514 4.181486 2.0000 5.0000Patan 50 4.000000 .6226998 .0880631 3.823031 4.176969 2.5000 5.0000Banaskantha 50 4.440000 .6197432 .0876449 4.263871 4.616129 3.0000 5.0000Total 150 4.143333 .6689084 .0546161 4.035411 4.251256 2.0000 5.0000
  • S. K. School of Business Management, PATAN.P a g e | LXXIIITable : 5.2.2 ANOVASum of Squares dfMeanSquare F Sig.Economic Empowerment Between Groups 6.455 2 3.228 14.665 .000Within Groups 32.354 147 .220Total 38.809 149Social Empowerment Between Groups 14.428 2 7.214 32.603 .000Within Groups 32.527 147 .221Total 46.955 149Political Empowerment Between Groups 6.603 2 3.302 8.080 .000Within Groups 60.065 147 .409Total 66.668 149Interpretation :The study reported that District and The Women Empowerment has significantrelationship ( p < 0.05 ), so here we will reject the Null Hypothesis. So we canconclude that there is significant relation between District and Its WomenEmpowerment. That means the status of women empowerment in all three district isdifferent.Post Hoc Multiple ComparisonRejection of null hypothesis in ANOVA only tell us that all population means are notequal. Multiple comparison are used to assess which group means differ from whichothers, once the overall F test tells us that at least one difference exists.
  • S. K. School of Business Management, PATAN.P a g e | LXXIV5.3 Post Hoc TestsTable : 5.3. Multiple ComparisonsDependentVariable (I) DISTRICT (J) DISTRICTMeanDifference(I-J) Std. Error Sig.95% ConfidenceIntervalLowerBoundUpperBoundEconomicEmpowermentSabarkantha Patan0.008896 0.093828 0.995 -0.21326 0.231052Banaskantha-.4355480*0.093828 0.000 -0.6577 -0.21339Patan Sabarkantha-0.0089 0.093828 0.995 -0.23105 0.21326Banaskantha-.4444440*0.093828 0.000 -0.6666 -0.22229Banaskantha Sabarkantha.4355480*0.093828 0.000 0.213392 0.657704Patan.4444440*0.093828 0.000 0.222288 0.6666SocialEmpowermentSabarkantha Patan-0.19 0.094079 0.111 -0.41275 0.032749Banaskantha-.7320000*0.094079 0.000 -0.95475 -0.50925Patan Sabarkantha0.19 0.094079 0.111 -0.03275 0.412749Banaskantha-.5420000*0.094079 0.000 -0.76475 -0.31925Banaskantha Sabarkantha.7320000*0.094079 0.000 0.509251 0.954749Patan.5420000*0.094079 0.000 0.319251 0.764749PoliticalEmpowermentSabarkantha Patan-0.01 0.127845 0.997 -0.3127 0.292697Banaskantha-.4500000*0.127845 0.002 -0.7527 -0.1473Patan Sabarkantha0.01 0.127845 0.997 -0.2927 0.312697Banaskantha-.4400000*0.127845 0.002 -0.7427 -0.1373Banaskantha Sabarkantha.4500000*0.127845 0.002 0.147303 0.752697Patan.4400000*0.127845 0.002 0.137303 0.742697*. The mean difference is significant at the 0.05 level.
  • S. K. School of Business Management, PATAN.P a g e | LXXVInterpretation:Since we have three districts total of the six pairs will be possible in which three willbe in mirror images. The results are shown in three rows.Economic Empowerment of Sabarkantha and Patan is same as p > 0.05 so there is nosignificant difference between Sabarkantha and Patan. Where there is significantdifference in economic empowerment of Sabarkantha and Banaskantha ( p < 0.05 )and there is significant difference between Patan and Banaskantha ( p < 0.05 ).As far as Social Empowerment is concerned , Sabarkantha and Patan is same as p >0.05 so there is no significant difference between Sabarkantha and Patan. Where thereis significant difference in Social empowerment of Sabarkantha and Banaskantha ( p< 0.05 ) and there is significant difference between Patan and Banaskantha ( p < 0.05).As far as Political Empowerment is concerned, Sabarkantha and Patan is same as p >0.05 so there is no significant difference between Sabarkantha and Patan. Where thereis significant difference in Political empowerment of Sabarkantha and Banaskantha (p < 0.05 ) and there is significant difference between Patan and Banaskantha ( p <0.05 ).5.4 Homogeneous Subsets5.4.1 Economic EmpowermentDISTRICT NSubset for alpha = 0.051 2Patan50 3.304444Sabarkantha50 3.31334Banaskantha50 3.748888Sig.0.995 1Means for groups in homogeneous subsets are displayed.5.4.2 Social EmpowermentDISTRICT NSubset for alpha = 0.051 2Sabarkantha50 3.144Patan 50 3.334Banaskantha50 3.876Sig. 0.111 1
  • S. K. School of Business Management, PATAN.P a g e | LXXVIMeans for groups in homogeneous subsets are displayed.5.4.3 Political EmpowermentDISTRICT NSubset for alpha = 0.051 2Sabarkantha50 3.99Patan 50 4Banaskantha50 4.44Sig.0.997 1Means for groups in homogeneous subsets are displayed.Interpretation :Economic Empowerment : The districts are clubbed in homogenous subsets.Banashkantha with a mean of 3.748 is put under subsets 2. And Sabarkantha andPatan with means of 3.304 and 3.313 are put under subsets 1. This means that districtSabarkantha and Patan are do not significantly differ from each other and formhomogenous subsets. Where as they are different from Banaskantha.Social Empowerment : The districts are clubbed in homogenous subsets.Banashkantha with a mean of 3.876 is put under subsets 2. And Sabarkantha andPatan with means of 3.144 and 3.334 are put under subsets 1. This means that districtSabarkantha and Patan are do not significantly differ from each other and formhomogenous subsets. Where as they are different from Banaskantha.Political Empowerment : The districts are clubbed in homogenous subsets.Banashkantha with a mean of 4.44 is put under subsets 2. And Sabarkantha and Patanwith means of 3.99 and 4.00 are put under subsets 1. This means that districtSabarkantha and Patan are do not significantly differ from each other and formhomogenous subsets. Where as they are different from Banaskantha.
  • S. K. School of Business Management, PATAN.P a g e | LXXVII5.5 ONEWAY ANOVA Empowerment &Duration ofMembershipH0 : There is no significant relation between Duration of Membership andEmpowerment of Rural Women as a result of participation in Microfinance.H1 : There is significant relation between Duration of Membership andEmpowerment of Rural Women as a result of participation in Microfinance.5.5.1 DescriptiveN MeanStd.DeviationStd.Error95% ConfidenceInterval for MeanMinimumMaximumLowerBoundUpperBoundEconomicEmpowermentLess than Year13 3.06837 0.441036 0.122321 2.80185 3.33488 2.3333 41-3 Year40 3.49723 0.405712 0.064149 3.36748 3.62698 2.5556 4.11113-6 Year90 3.47654 0.522554 0.055082 3.3671 3.58599 2.1111 4.5556More than 6 Year7 3.66667 0.750851 0.283795 2.97225 4.36109 2.1111 4.3333Total150 3.45556 0.510355 0.04167 3.37322 3.5379 2.1111 4.5556SocialEmpowermentLess than Year13 3.18462 0.63357 0.175721 2.80175 3.56748 2.2 4.51-3 Year40 3.52 0.573429 0.090667 3.33661 3.70339 2.5 4.73-6 Year90 3.43778 0.536233 0.056524 3.32547 3.55009 2.2 4.6More than 6 Year7 3.72857 0.585133 0.22116 3.18741 4.26973 2.8 4.6Total150 3.45133 0.561367 0.045835 3.36076 3.54191 2.2 4.7PoliticalEmpowermentLess than Year13 3.69231 0.990338 0.27467 3.09385 4.29076 2 51-3 Year40 4.2 0.503832 0.079663 4.03887 4.36113 3.5 53-6 Year90 4.2 0.652566 0.068787 4.06332 4.33668 2 5More than 6 Year7 3.92857 0.786796 0.297381 3.20091 4.65624 3 5Total150 4.14333 0.668908 0.054616 4.03541 4.25126 2 5
  • S. K. School of Business Management, PATAN.P a g e |LXXVIIITable : 5.5.2 ANOVASum of Squares Df Mean Square F Sig.Economic Empowerment Between Groups 2.370 3 .790 3.165 .026Within Groups 36.439 146 .250Total 38.809 149Social Empowerment Between Groups 1.668 3 .556 1.792 .151Within Groups 45.287 146 .310Total 46.955 149Political Empowerment Between Groups 3.385 3 1.128 2.603 .054Within Groups 63.284 146 .433Total 66.668 149Interpretation:Economic empowerment : the study states that there is significant relationshipbetween duration of membership and economic empowerment of women as nullhypothesis will be rejected as p < 0.05.Social empowerment: the study states that there is no significant relationship betweenduration of membership and Social empowerment of women as null hypothesis willbe accepted as p > 0.05.Political empowerment: the study states that there is no significant relationshipbetween duration of membership and Political empowerment of women as nullhypothesis will be accepted as p > 0.05.
  • S. K. School of Business Management, PATAN.P a g e | LXXIX5.6 ONEWAY ANOVA Empowerment & AgeH0 : There is no significant relation between Age and Empowerment of RuralWomen as a result of participation in Microfinance.H1 : There is significant relation between Age and Empowerment of Rural Women asa result of participation in Microfinance.Table 5.6.1 DescriptiveN MeanStd.DeviationStd.Error95% ConfidenceInterval for MeanMinimum MaximumLowerBoundUpperBoundEconomicEmpowerment20 - 30 Year33 3.42761 0.44887 0.078138 3.26845 3.58677 2.4444 4.111131 - 40 Year55 3.45454 0.51421 0.069336 3.31553 3.59355 2.3333 4.444441 - 50 Year43 3.41604 0.546539 0.083346 3.24784 3.58424 2.1111 4.5556Above 50 Year19 3.59648 0.530574 0.121722 3.34075 3.85221 2.3333 4.3333Total150 3.45556 0.510355 0.04167 3.37322 3.5379 2.1111 4.5556SocialEmpowerment20 - 30 Year33 3.58485 0.557405 0.097032 3.3872 3.7825 2.2 4.731 - 40 Year55 3.39455 0.568435 0.076648 3.24088 3.54822 2.2 4.541 - 50 Year43 3.35116 0.531114 0.080994 3.18771 3.51462 2.2 4.6Above 50 Year19 3.61053 0.579171 0.132871 3.33138 3.88968 2.6 4.6Total150 3.45133 0.561367 0.045835 3.36076 3.54191 2.2 4.7PoliticalEmpowerment20 - 30 Year33 4.16667 0.703414 0.122449 3.91725 4.41609 2 531 - 40 Year55 4.17273 0.625227 0.084306 4.00371 4.34175 2.5 541 - 50 Year43 4.02326 0.663267 0.101147 3.81913 4.22738 2 5Above 50 Year19 4.28947 0.751217 0.172341 3.9274 4.65155 2 5Total150 4.14333 0.668908 0.054616 4.03541 4.25126 2 5
  • S. K. School of Business Management, PATAN.P a g e | LXXXTable 5.6.2 ANOVASum of Squares df Mean Square F Sig.EconomicEmpowermentBetween Groups .470 3 .157 .597 .618Within Groups 38.339 146 .263Total 38.809 149Social Empowerment Between Groups 1.679 3 .560 1.804 .149Within Groups 45.276 146 .310Total 46.955 149PoliticalEmpowermentBetween Groups 1.091 3 .364 .810 .490Within Groups 65.577 146 .449Total 66.668 149Interpretation:Economical empowerment: the study states that there is no significant relationshipbetween duration of membership and Economical empowerment of women as nullhypothesis will be accepted as p > 0.05.Social empowerment: the study states that there is no significant relationship betweenduration of membership and Social empowerment of women as null hypothesis willbe accepted as p > 0.05.Political empowerment: the study states that there is no significant relationshipbetween duration of membership and Political empowerment of women as nullhypothesis will be accepted as p > 0.05.
  • S. K. School of Business Management, PATAN.P a g e | LXXXI5.7 ONEWAY ANOVA Empowerment &Member EducationH0 : There is no significant relation between Education and Empowerment of RuralWomen as a result of participation in Microfinance.H1 : There is significant relation between Education and Empowerment of RuralWomen as a result of participation in Microfinance.Table 5.7.1 DescriptiveN MeanStd.Deviation Std. Error95% ConfidenceInterval for MeanMinimum MaximumLowerBoundUpperBoundEconomicEmpowermentIlliterate 63 3.25926 0.495301 0.062402 3.13452 3.384 2.1111 4.3333Primary 62 3.51793 0.473096 0.060083 3.39778 3.63807 2.3333 4.3333Intermediate21 3.7672 0.417084 0.091015 3.57734 3.95705 3 4.5556Degree &Above 4 3.94443 0.517189 0.258595 3.12146 4.76739 3.2222 4.4444Total 150 3.45556 0.510355 0.04167 3.37322 3.5379 2.1111 4.5556SocialEmpowermentIlliterate 63 3.2127 0.554597 0.069873 3.07303 3.35237 2.2 4.6Primary 62 3.49516 0.480242 0.060991 3.3732 3.61712 2.4 4.6Intermediate21 3.92857 0.446254 0.097381 3.72544 4.1317 3.1 4.7Degree &Above 4 4.025 0.095743 0.047871 3.87265 4.17735 3.9 4.1Total 150 3.45133 0.561367 0.045835 3.36076 3.54191 2.2 4.7PoliticalEmpowermentIlliterate 63 3.86508 0.702566 0.088515 3.68814 4.04202 2 5Primary 62 4.25 0.5337 0.06778 4.11447 4.38554 3 5Intermediate21 4.52381 0.622017 0.135735 4.24067 4.80695 3 5Degree &Above 4 4.875 0.25 0.125 4.47719 5.27281 4.5 5Total 150 4.14333 0.668908 0.054616 4.03541 4.25126 2 5Table : 5.7.2 ANOVA
  • S. K. School of Business Management, PATAN.P a g e | LXXXIISum of Squares Df Mean Square F Sig.Economic Empowerment Between Groups 5.664 3 1.888 8.317 .000Within Groups 33.145 146 .227Total 38.809 149Social Empowerment Between Groups 9.806 3 3.269 12.846 .000Within Groups 37.149 146 .254Total 46.955 149Political Empowerment Between Groups 10.765 3 3.588 9.371 .000Within Groups 55.904 146 .383Total 66.668 149Interpretation :The study reported that Education and The Women Empowerment has significantrelationship ( p < 0.05 ), so here we will reject the Null Hypothesis. So we canconclude that there is significant relation between Education and Its WomenEmpowerment. That means the status of women empowerment and status ofEducation has significant relationship.
  • S. K. School of Business Management, PATAN.P a g e |LXXXIII5.8 ONEWAY ANOVA Empowerment & Family MembersH0 : There is no significant relation between No of Family Members andEmpowerment of Rural Women as a result of participation in Microfinance.H1 : There is significant relation between No of Family Members and Empowermentof Rural Women as a result of participation in Microfinance.Table 5.8.1 DescriptiveN MeanStd.DeviationStd.Error95% ConfidenceInterval for MeanMinimum MaximumLowerBoundUpperBoundEconomicEmpowermentLess Than 4 15 3.6 0.386728 0.099853 3.38584 3.81416 2.7778 4.33334 - 8 104 3.5203 0.482029 0.047267 3.42656 3.61404 2.1111 4.44449 - 12 30 3.14815 0.56002 0.102245 2.93904 3.35727 2.1111 4.5556More Than 121 3.7778 . . . . 3.7778 3.7778Total 150 3.45556 0.510355 0.04167 3.37322 3.5379 2.1111 4.5556SocialEmpowermentLess Than 4 15 3.68 0.61783 0.159523 3.33786 4.02214 2.7 4.74 - 8 104 3.49808 0.507991 0.049813 3.39929 3.59687 2.2 4.69 - 12 30 3.15333 0.61405 0.11211 2.92404 3.38262 2.2 4.3More Than 121 4.1 . . . . 4.1 4.1Total 150 3.45133 0.561367 0.045835 3.36076 3.54191 2.2 4.7PoliticalEmpowermentLess Than 4 15 4.23333 0.622973 0.160851 3.88834 4.57832 3 54 - 8 104 4.26442 0.611209 0.059934 4.14556 4.38329 2 59 - 12 30 3.7 0.714384 0.130428 3.43325 3.96676 2 4.5More Than 121 3.5 . . . . 3.5 3.5Total 150 4.14333 0.668908 0.054616 4.03541 4.25126 2 5
  • S. K. School of Business Management, PATAN.P a g e |LXXXIVTable 5.8.2 ANOVASum of Squares df Mean Square F Sig.Economic Empowerment Between Groups 3.688 3 1.229 5.110 .002Within Groups 35.121 146 .241Total 38.809 149Social Empowerment Between Groups 4.096 3 1.365 4.652 .004Within Groups 42.858 146 .294Total 46.955 149Political Empowerment Between Groups 7.957 3 2.652 6.595 .000Within Groups 58.712 146 .402Total 66.668 149Interpretation :Economical empowerment: the study states that there is significant relationshipbetween No. of family member and Economical empowerment of women as nullhypothesis will be rejected as p < 0.05.Social empowerment: the study states that there is significant relationship betweenNo. of family member and Social empowerment of women as null hypothesis will berejected as p < 0.05.Political empowerment: the study states that there is significant relationship betweenNo. of family member and Political empowerment of women as null hypothesis willbe rejected as p < 0.05.
  • S. K. School of Business Management, PATAN.P a g e | LXXXV5.9 ONEWAY ANOVA Empowerment &Family IncomeH0 : There is no significant relation between Family Income and Empowerment ofRural Women as a result of participation in Microfinance.H1 : There is significant relation between Family Income and Empowerment of RuralWomen as a result of participation in Microfinance.Table 5.9.1 DescriptiveN MeanStd.Deviation Std. Error95% ConfidenceInterval for MeanMinimumMaximumLowerBoundUpperBoundEconomicEmpowermentLess Than 20000 Rs 37 3.222224 .4878458 .0802013 3.059568 3.384880 2.1111 4.333320001 - 40000 Rs 71 3.388108 .5042633 .0598450 3.268751 3.507466 2.1111 4.333340001 - 60000 Rs 22 3.803032 .3832681 .0817130 3.633100 3.972963 3.0000 4.5556More Than 60000 Rs 20 3.744445 .3765331 .0841954 3.568222 3.920668 3.0000 4.4444Total 150 3.455557 .5103548 .0416703 3.373216 3.537898 2.1111 4.5556Social Empowerment Less Than 20000 Rs37 3.118919 .5211301 .0856733 2.945165 3.292672 2.2000 4.600020001 - 40000 Rs 71 3.378873 .4916199 .0583445 3.262509 3.495238 2.2000 4.500040001 - 60000 Rs 22 3.850000 .4553910 .0970897 3.648091 4.051909 3.0000 4.7000More Than 60000 Rs 20 3.885000 .4693501 .1049499 3.665337 4.104663 2.7000 4.5000Total 150 3.451333 .5613666 .0458354 3.360762 3.541905 2.2000 4.7000Political Empowerment Less Than 20000 Rs37 3.878378 .6604439 .1085763 3.658175 4.098581 2.0000 5.000020001 - 40000 Rs 71 4.077465 .6361036 .0754916 3.926902 4.228028 2.0000 5.000040001 - 60000 Rs 22 4.500000 .6546537 .1395726 4.209743 4.790257 3.0000 5.0000More Than 60000 Rs 20 4.475000 .5495213 .1228767 4.217816 4.732184 3.5000 5.0000Total 150 4.143333 .6689084 .0546161 4.035411 4.251256 2.0000 5.0000Table 5.9.2 ANOVA
  • S. K. School of Business Management, PATAN.P a g e |LXXXVISum of Squares df Mean Square F Sig.Economic Empowerment Between Groups 6.663 3 2.221 10.087 .000Within Groups 32.146 146 .220Total 38.809 149Social Empowerment Between Groups 11.719 3 3.906 16.186 .000Within Groups 35.236 146 .241Total 46.955 149Political Empowerment Between Groups 7.904 3 2.635 6.546 .000Within Groups 58.764 146 .402Total 66.668 149InterpretationEconomical empowerment: the study states that there is significant relationshipbetween Family Income and Economical empowerment of women as null hypothesiswill be rejected as p < 0.05.Social empowerment: the study states that there is significant relationship betweenFamily Income and Social empowerment of women as null hypothesis will be rejectedas p < 0.05.Political empowerment: the study states that there is significant relationship betweenFamily Income and Political empowerment of women as null hypothesis will berejected as p < 0.05.
  • S. K. School of Business Management, PATAN.P a g e |LXXXVII5.10 ONEWAY ANOVA Empowerment &Loan AmountH0 : There is no significant relation between Loan Amount and Empowerment ofRural Women as a result of participation in Microfinance.H1 : There is significant relation between Loan Amount and Empowerment of RuralWomen as a result of participation in Microfinance.Table 5.10.1 DescriptiveN MeanStd.DeviationStd.Error95% ConfidenceInterval for MeanMinimumMaximumLowerBoundUpperBoundEconomicEmpowermentNot Any105 3.3238 0.5264 0.0514 3.2219 3.4257 2.1111 4.5556Less Than 5000 Rs18 3.8148 0.2902 0.0684 3.6705 3.9592 3.2222 4.33335001 - 10000 Rs16 3.6945 0.2204 0.0551 3.5770 3.8119 3.3333 4.111110001 - 15000 Rs5 3.8444 0.5128 0.2293 3.2077 4.4812 3.0000 4.333315001 - 20000 Rs2 3.8889 0.3142 0.2222 1.0656 6.7122 3.6667 4.1111More Than 20000 Rs4 3.6389 0.3440 0.1720 3.0915 4.1862 3.3333 4.1111Total150 3.4556 0.5104 0.0417 3.3732 3.5379 2.1111 4.5556SocialEmpowermentNot Any105 3.3362 0.5558 0.0542 3.2286 3.4437 2.2000 4.5000Less Than 5000 Rs18 3.8111 0.5476 0.1291 3.5388 4.0834 2.7000 4.70005001 - 10000 Rs16 3.5625 0.4193 0.1048 3.3391 3.7859 3.0000 4.400010001 - 15000 Rs5 3.6200 0.3033 0.1356 3.2434 3.9966 3.3000 3.900015001 - 20000 Rs2 3.7500 0.7778 0.5500-3.238410.7384 3.2000 4.3000More Than 20000 Rs4 4.0500 0.3873 0.1936 3.4337 4.6663 3.7000 4.6000Total150 3.4513 0.5614 0.0458 3.3608 3.5419 2.2000 4.7000PoliticalEmpowermentNot Any105 4.0333 0.6768 0.0660 3.9024 4.1643 2.0000 5.0000Less Than 5000 Rs18 4.2778 0.5996 0.1413 3.9796 4.5759 3.0000 5.00005001 - 10000 Rs16 4.3750 0.5627 0.1407 4.0751 4.6749 3.0000 5.000010001 - 15000 Rs5 4.5000 0.7071 0.3162 3.6220 5.3780 3.5000 5.000015001 - 20000 Rs2 4.5000 0.7071 0.5000-1.853110.8531 4.0000 5.0000More Than 20000 Rs4 4.8750 0.2500 0.1250 4.4772 5.2728 4.5000 5.0000Total150 4.14333 0.6689084 0.0546164.0354114.251256 2 5
  • S. K. School of Business Management, PATAN.P a g e |LXXXVIIITable 5.10.2 ANOVASum of Squares df Mean Square F Sig.Economic Empowerment Between Groups 6.325 5 1.265 5.608 .000Within Groups 32.484 144 .226Total 38.809 149Social Empowerment Between Groups 5.674 5 1.135 3.959 .002Within Groups 41.281 144 .287Total 46.955 149Political Empowerment Between Groups 5.486 5 1.097 2.583 .029Within Groups 61.182 144 .425Total 66.668 149InterpretationEconomical empowerment: the study states that there is significant relationshipbetween Loan Amount and Economical empowerment of women as null hypothesiswill be rejected as p < 0.05.Social empowerment: the study states that there is significant relationship betweenLoan Amount and Social empowerment of women as null hypothesis will be rejectedas p < 0.05.Political empowerment: the study states that there is significant relationship betweenLoan Amount and Political empowerment of women as null hypothesis will berejected as p < 0.05.
  • S. K. School of Business Management, PATAN.P a g e |LXXXIXChapter - 6FindingsConclusion&SUGGESTIONS
  • S. K. School of Business Management, PATAN.P a g e | XC6.1 FindingsThe study shows that most of the SHGs were established during 2007 and2009. Out of 150 respondents 33.3% SHGs were established in 2007 and 36%SHGs were established in 2009. The further states that 90 member‘s i.e. 60%members were having 3-6 years membership duration.As far as the age of the respondents in concerned 22% respondents have 20-30years age, 36% member have 31-40 years age, only 12.7 % members have ageabove 50 years.Out of 150 respondents 42.5 % respondents are illiterate and 42.3%respondents have done primary education. Whereas 69.3% respondents havefamily size 4-8 members. only 13.35% respondent have annual income above60000rs, 47.3% respondents have annual income between 20000-40000rs.The study shows that out of 150 respondents 70% members still have notavailed any loans, whereas 22.7% members have availed loan facility 1 time.The study states that there was good increase in savings (4.07) as a part ofbeing members of SHG. Participation in saving , expense and child educationwas moderate to good. But the protest against Dowry was around tomoderate. On the other hand participation in gram Sabah was good (3.93) andability to cast- votes independently was also good.(4.35)most of respondent‘s family size is 4-8 Members per family in the all threedistricts. Second highest members belonged to 9-12 members in a family in allthree districts. Whereas in Banaskantha 7 family is having family membersless than 4. And Sabarkantha and Patan both having 4 members having lessthan 4 members family size.As far as family income is concerned Sabarkantha and Patan both havingsimilar results. Sabarkantha have 30 members having 20001-40000 Rs annualincome and 19 members having less than 20000 Rs annual income whereas inPatan 30 Members having 20001-40000 Rs annual income and 15 membershaving less than 20000 Rs annual income.
  • S. K. School of Business Management, PATAN.P a g e | XCIBanaskantha shows different results Where 20 members having 40001-60000Rs annual Income And 19 members having annual income more than 60000Rs.Out of 150 respondents only 45 members have availed the loan facility. InSabarkantha only 7 Members have availed loan and that is only one time. InPatan district the result is better than Sabarkantha as 13 Members have availedloan and 1 member has availed the loan facility 2 times. In Banaskantha 50%that is 25 members have availed loan facility out of that 15 members haveavailed loan 1 time, 7 members availed the loan 2 times and only 3 membersavailed the loan 3 times.In Sabarkantha 2 members availed loan of less than 5000 Rs and 2 membersavailed loan of 5001-10000 Rs. Whereas 1 member availed loan of 150001-20000 Rs and 1 member availed loan of more than 20000 Rs. In Patan 3Members availed loan of less than 5000 Rs , 6 members got loan of 5001-10000 Rs , 1 member availed 10001-15000 Rs loan, 1 member availed 15001-20000 Rs loan and 1 member got loan of more than Rs 20000. In Banaskantha13 members received loan worth less than 5000 Rs, 8 members received loanworth 5001-10000 Rs, 3 members got loan of 10001-15000 Rs and 1 membergot loan of more than 20000 Rs.In sabarkantha 21 members have age between 31-40 years, 11 members haveage between 20-30 years, 17 members have age between 41-50 years and only1 member is above 50 years age. In Patan, 23 members have age between 31-40 years, 10 members have age between 20-30 years, 12 members have agebetween 41-50 years and 3 members are above 50 years age. In Banaskantha,11 members have age between 31-40 years, 12 members have age between20-30 years, 12 members have age between 41-50 years and 15 members areabove 50 years age.The study reported that District and The Women Empowerment hassignificant relationshipFindings of Hypothesis Testing
  • S. K. School of Business Management, PATAN.P a g e | XCII the study states that there is significant relationship between durationof membership and economic empowerment of women the study states that there is no significant relationship betweenduration of membership and empowerment of women The study reported that Education and The Women Empowerment hassignificant relationship the study states that there is significant relationship between No. offamily member and empowerment of women the study states that there is significant relationship between FamilyIncome and empowerment of women the study states that there is significant relationship between LoanAmount and empowerment of women6.2 Conclusion
  • S. K. School of Business Management, PATAN.P a g e | XCIIIThrough, field Survey we found that , In Sabarkantha, Patan And Banaskantha thewomen were not fully aware of the SHGs And Micro finance, They consider it as aninsurance scheme i.e. if they are in need of money , the team leader will provide themout of their savings. It may be because the education level was very poor 42 %women are illiterate and 41.3 % women have taken primary education.We found that some of the member were not having their own deposit books, and nointerest was paid by the leader to them for 1 year deposit, and only par value wasreturned to them. On the other hand all the papers of SHGs were well maintained byleader but no auditing was there.We also found that only group leaders were very enthusiastic, initiators, risk takersand ready to work for goodness of the village, but those leaders were backed up byhusband or family. And some of them were widows.Some of the leader‘s experiences are as follows.Patel Shardaben M- Bansi Sakhi Mandal- Shaghodiya, Patan shares herviews,‖ She has good faith in microfinance and abilities of her SHG members,she further tells that how she worked since 2006 for SHG members as a leaderand her views regarding loan advancement, her group mebers have taken loansfor income generating activities such as seeds, buffalo, sewing machine, shop,ice cream lauri etc. she has won‘ Aadarsh Aangadwadi Karykar Award‘ –From Indian Government And ‗ Mata Yashoda Award First in District‘ ByGujarat Government in 2007.Parmar Ramilaben Mahendrabhai- Brahmani Skhi mandal -Anvarpura, Prantij,Shares her experience, ― She went to Ranchi, Zarkhand under ‗SwayamSIdhdha Yojana‘, Further she says that she has 20,000 Rs Deposits in the bankacconts and they have applied for the loan but grameen bank if delaying theprocess and not sanctioning the loan, futher she tells about her willingness towork for the village‖Nayi Sarojben Manubhai- Jay Ambe Sakhi Mandal- Balisana PrantijSbarkantha, Says that, ― Women of her village were not ready to join theSHGs but she took active interest to convince others , apart from that she isrunning aangadwadi, she is also active for girl child education in the village,she is supportive to awareness programmes of dieases, she is strictly againstDowry system and is fighting for it in the village, she has one girl and one boychild and both are taking their regular education.‖Some of the members complained that they are in need of loans but the leader is notproviding them the money, moreover there is considerable delay in loan sanctioning,and if loan passes the amount of loan is proportionately less to the amount demanded.Members were unaware of the fact that banks arealso providing loan on the basis ofdeposit account in their branch.
  • S. K. School of Business Management, PATAN.P a g e | XCIVMost of the leaders said that the members after taking loan do not return as per timeconstraint and they also do not pay required interest though interest charged is verylow.In some villages there was conflict between leader and its followers , there wereproblems of distrust, group members said that revolving fund of 5000 Rs wereconcealed by leader and appropriate use of it was not done.Very few people had used the loan amount for income generating activities such as: Purchase of buffalo Shop Purchase of Sewing machine Ice cream lauri Farming seeds Business of Saris Tea stall etcRather most of the members had taken loan for those things which do not generateany income such as: Medical treatment Renovation of house Daughter‘s marriage To pay the debt For children‘s education etcThere was motivation and support from Taluka Panchayat for establishing the SHGsin the villages and for betterment of village they were ready for all support.There was lack of awareness amongst the group members regarding best use of themoney and creating the self employment by use of that money, on the other handwomen were lacking entrepreneurial qualities and no training programme was carriedout for that by any NGO or Government.In Banaskantha, one group had initiated the business of Saris in the village but iteventually went flop as enough profit was not being earned, apart from that there wasno collective effort found for creating employment in village by any other groupduring the survey.
  • S. K. School of Business Management, PATAN.P a g e | XCV6.3 SuggestionMost of the SHG members are illiterate and some of them have taken primaryeducation, so NGOs and Government should undertake programmes toprovide basic education and training programmes should be given to them.The Government and NGOs should firstly undertake awareness programmesto teach rural women what is SHG and what are the best use of it? After thatthey should motivate more number of women to join the SHGs. They alsopublicize the various schemes available to SHGs.There is lack of entrepreneurial abilities in women , so training to rural womenshould be provided to emerge women entrepreneurship in rural areas.The loan takers do not indulge into income generating activities soinformation should be provided regarding how they can generate selfemployment by investing the loan amount in income generating activities.In order to increase the competition amongst the SHGs and to providemotivation , the government should announce presentation and awards to thebest performing group at district and state level.
  • S. K. School of Business Management, PATAN.P a g e | XCVIBIBLI0GRAPHyWebsites:http://en.wikipedia.org/wiki/Microfinance accessed on 12th April, 2013www.nabard.org.in accessed on 15thApril, 2013www.sidbi.org accessed on 15thApril, 2013www.microfinancegateway.org accessed on 15thApril, 2013References:1. Anita Prasad T.(2005), ―Emerging Trends of Microfinance A case study ofSwayam Krishi Sangam‖, Osmania Journals of Management, Volume 4,November 2005, Page No.171 to 1802. Dwarkanath H. D. (2002), Rural Credit and Women Self Help Groups. AProfile of Ranga Reddy District in Andhra Pradesh‖. Kurukshatra, Vol. 51,No.1, November, Page No. 9 to 153. Rajsekhar D.(2001), ―Microfinance Programs and Women‘s Empowerment. Astudy of two NGOs of Kerala, Journal of Social Development, Vol 3, No1,Jan-June, Page No. 76 to 944. Shailja Gajjala ( 2005 ), ―Microfinance: A case study‖, Osmania Journal ofManagement, Vol 4, November 2005, Page no. 62 to 675. M.V. S. Mahendra ( 2011), ― Empowerment of Women though Microfinance -A case study of Ranga Reddy District, Andhra Pradesh, Indian Journals ofFinance, Volume 5, No. 10, Page No. 21 to 276. K. Rajendran and Dr. R.P. Raya (2011) , ―Does Microfinance Empower RuralWomen ?- A Study In Vellore District, Tamil Nadu‖ Indian Journals ofFinance, Volume 5, No. 11, Page No. 47 to 557. Atul Srivastva (2012), ―Microfinance revisited : ―A Study With Reference ToA Few Villages Of Gorakhpur District, Uttar Pradesh.‖Indian Journals ofFinance, Volume 6, No. 11, Page No. 26 to 34
  • S. K. School of Business Management, PATAN.P a g e | XCVII8. Amith Roy and Dr. Sumanash Dutta, ―Assessing Income Generation FromSHG Micro Enterprises : Astudy Of Backward Region Of Assam‖IndianJournals of Finance, Volume 6, No. 02, Page No. 39 to 47Report:Status Of Micro Finance In India 2009-10 By NABARD. Page No. III To XIXMicrofinance India – The Social Performance Report 2011 – AccessKnowledge Series Page No. 1 To 12Microfinance In India: A Crisis At The Bottom Of The Pyramid – LegatumVentures.The Impact Of Microfinance On Women And Economic Development –Women‘s World Banking – www.womensworldbanking.orgSustainable Banking With The Poor - Micro Finance Handbook – JoannaLedgerwood – Page No. 2 To 31
  • S. K. School of Business Management, PATAN.P a g e | XCVIIIAnnexure
  • S. K. School of Business Management, PATAN.P a g e | XCIXQuestionnaireWe are the students of S.K. School of Business Management, HNGU, Patan. We are doingManagement Research Project-II on the subject of “Impact of Micro-Finance on Rural WomenEmpowerment”, so we have to collect the data for the project. This is a part of our study of Masterof Business Management. So, we are requesting you give us your valuable few minutes for the fillup this questionnaire.QuestionsVeryPoorPoor Moderate GoodVeryGoodEconomicEmpowerment1. Status of increase in income as being part of SHG2. Improvement in your savings3. Level of undertaking income generating activities4. Status of reduction of dependency on money lenders5. Level of Reduction of poverty in the Family6. Level of Participation in decision making in thefollowinghousehold decisionA. SavingsB. ExpensesC. Childrens EducationD. Able to deal with financial crisis of thefamilySocialEmpowerment7. Social EmpowermentA. Level of Moving independentlyB. Status of Being able to express your viewsfreelyC. Able to discuss freely with bankers/Govt.Officers/NGOs & Others8. Micro Finance helped the members to participate inprotest againstA. Liquor sales/ Alcoholic useB. PollutionC. Drinking Water ProblemD. DowryE. Abuse of fellow group members byhusbands9. Participation in rallies onA. Women’s DayB. Child Labour AbolitionPoliticalEmpt.10. Your participation in Gram Sabha Meeting11. Ability to cast votes independently
  • S. K. School of Business Management, PATAN.P a g e | CPersonal Information:Group Name:_______________________________________________Group Establishment (Year):_______________________________________________Member’s Name:______________________________________________Village:_______________TA:______________________Dist:_____________________Duration of MembershipLess Than 1 Yrs 1 – 3 yrs 3 – 6 yrs More than 6YrsAge Group:20 – 30 yrs 30-40 yrs 40-50 yrs Above 50yrsEducation:Illiterate Primary Intermediate Degree &AboveNo. of person in Family:Less Than 4 4-8 8-12 More Than12Family Income (yearly): (In Rs.)Less Than 20000 20000-40000 40000-60000 More than60000
  • S. K. School of Business Management, PATAN.P a g e | CIHow Many Time Loan availed by you?1 Time 2 Times 3Times 4 Times 5TimesAmount of Loan availed by you: (In Rs.)Less Than 5000 5000-1000 10001-15000 15001-20000More Than 20000* * * * * * * * *