A STUDY ON

COMMUNITY SERVICE PROJECT

IN
“CONSUMER SATISFACTION TOWARDS
PUREIT WATER PURIFIERS”
PROJECT REPORT SUBMITTED IN PARTIAL
FULFILLMENT FOR THE AWARD OF DEGREE OF
BACHELOR OF COMMERCE

BY
S AFROZ AHMAMED
(C22BC771018)

UNDER THE GUIDANCE

OF S.PRATHYSHA
Department of Commerce & Management Studies
SRI VIJAYADURGA DEGREE COLLEG KURNOOL

CENTER FOR DISTANCE EDUCATION

ACHARYA NAGARJUNA UNIVERSITY

GUNTUR – 522510

2023
 PROJECT GUIDE CERTIFICATE

S AFROZ AHAMMED, a student of l BCOM in partial fulfillment for the award of

Degree in Bachelor OF COMMERCE has done her Project entitled “CONSUMER

SATISFACTION TOWARDS PUREIT WATER PURIFIERS” under my guidance. All

the details collected and furnished by her are true and original according to my knowledge.

PLACE:

DATE: PROJECT GUIDE

 ACKNOWLEDGEMENT

I express my heartful and sincere gratitude to, P.SURYANARAYANA

BABU GARU Director and M.Mahindra Principal, Sri Vijayadurga
Degree College, Kurnool for the excellent inspiration provided.
I express my spontaneous gratitude to my guide S.Prathyusha Lecturer
in Commerce and Management Studies for his spontaneous motivation and
support.
And I also thank all the Commerce and Management department
lecturers for their valuable suggestions and continuous encouragement and
gave full support to me while completing project.
 INDEX

Sr. Titke of the chapter

No.
1. CHAPTER1-Introduction
1.1 Meaning of self help group
1.2 Background of self help group
1.3 Characteristics of self help group
1.4 Formation of self help group
1.5 Functions of self help group
1.6 loan system
1.7 Problems faced by self help group
2 CHAPTER 2 – RESEARCH METHODOLOHY
2.1 Objective of study
2.2 Hypothesis
2.3 scope of study
2.4 limitation of study
2.5 importance of study
2.6 challenges of study
2.7 data collection
2.8 sample size of data
2.9 collection of primary data
2.10 collection of secondary data
3 CHAPTER3-LITERATURE REVIEW
4 CHAPTER4-DATA ANALYSIS
Data interpretation and presentation
5 CHAPTER5- CONCLUSION AND
SUGGESTION
5.1finding
5.2 conclusion
5.3 suggestion
5.4 bibliography
 INTRODUCTION

India is a country of villages. Nearly 6,99,000 villages are in India with 68.2% people
living in them. Even Planning Commission data say that a large number of rural people
(30% i.e 35.46 crore) still live under very miserable conditions spending only 26 Rs. Per
day. Until and unless the quality of life of these poor is improved and they are brought
into the main stream of the economy (inclusive growth) no goal of economic and social
development can be achieved. For this we have to change our approach and attitude as
according to C.K.
Prahlad, “If we stop thinking of the poor as victims or as a burden, and start recognizing
them as resilient and creative entrepreneurs and value conscious consumers, a whole world
of opportunity will open up.”
This challenge of bringing them into main stream (inclusive growth) can be achieved
through policy changes by encouraging them to become self-entrepreneurs by establishing
their own micro enterprises with support of government. But before coming to this let us
come to the basics first what are SHGs, their structure, functions, objectives etc

MEANING
Self Help Groups (SHGs) or in-short SHGs is now a well-known concept. It is now almost
twodecade old. It is reported that the SHGs have a role in hastening country’s economic
development. SHGs have now evolved as movement.
Mainly, members of the SHGs are women. Consequently, participation of women in the
country’s economic development is increasing. They also play an important role in
elevating the economic status of their families. This has led boost to the process of
women’s empowerment.
In the recent years, empowerment has been recognized as the central issue in determining
status of women. Since women become more potent source of development empowering
them is prerequisite for over all development. By empowering women not only make them
to share in the development progress but also bring out their lasting efficiency.

Empowerment of women is sinqua non to achieve the goals of social development. It is

necessary that women must be brought in the main stream of national development.
Programmes by empowering them to discharge all types of roles. Empowerment of women
cannot be ignored. While devising various policies for socio-economic development. The
economic status of women is now accepted as an indicator of an economy’s level of
development. This does not mean that economic development necessarily results in
improving the women who constitute about 50 percent of the population.

Empowerment is the recent approach articulated by the third world countries women. It
seeks to meet women’s strategic gender needs due to their subordinate position to men,
through bottom up mobilization around 1 practical gender need according to their accepted
role in society. It aims at increasing women’s power in terms of their self-reliance and
internal strength to determine choices in life and to influence the direction of change.

The empowerment of women through SHGs would lead benefits not only to the individual
women but also for the family and community as a whole through collection action the
development. These SHGs have collection action. Empowering women is not just for
meeting their economic needs but also more holistic social development. The SHGs
empower women and train them to take active part in socio-economic progress of the
nation.

Formation of SHGs with women has empowered them largely SHGs are now gaining
acceptance as an alternative system credit delivery for meeting the credit needs especially
to the people who are the poorest of poor generally comprising small/marginal farmers
and landless agricultural labors.
The origin of self-help group can be traced is from Grameen bank of Bangladesh, which
was founded by Mohamed Yunus. SGHs were started and formed in 1975. In India
NABARD initiated in 1986-1987. The absence of institutional credits available in the rural
area has led to the establishment of SHGs. The concept of self-help groups has been
evolved to organize the rural poor to meet their productive and consumption needs out of
their saving.

A self-help group is a small economically homogeneous affinity group of the rural poor
voluntarily coming to gather to save small amount regularly. Which are deposited in
common fund to meet member emergency needs and to provide collateral free loans
decided by the group.

India has adopted the Bangladesh model in a modified form. To alleviate the poverty and
empower the women. The micro-finance has emerged as powerful instrument in the new
economy. With availability of micro-finance, self-help group (SHGs) and credit
management groups have also started in India. And thus the movement of SHG has spread
out in India. In 1991-92 Nabard started promoting self-help groups on a large scale. And
it was the real take off point for the SHGs movement. In 1993, the Reserve Bank of India
also allowed SHGs to open saving accounts in banks facility of availing bank services was
a major boost to the movement.

The concept of SHG was not new to Maharashtra. Beginning with a tiny amount of only
25 paise, the

women of Maharashtra from Amravati District had established on SHG long back in 1947

WHAT ARE SHGs?

marginalized in the field of employment and income generating activity.

BACKGROUND
The self help groups (SHGs) are voluntary association of 15-20 people formed to attain a
collective goal. Members of SHGs who are homogenous with respect of socio-economic
background. The genesis of 3 SHGs could be traced to mutual aid and trust in Indian rural
society. Self Help Groups (SHGs) is the brain child of Noble Peace Prize Winner
Prof.Mohammed Yunus who started Grameen Bank of Bangladesh as early as in 1976.
Self help groups (SHGs) and Microfinance (MF) is the recent past has emerged as a
potential instrument for poverty alleviation and financial inclusion and women
empowerment. The basic principles of the SHGs are group approach, mutual trust of small
and manageable group, spirit of thrift, demand based lending, collateral free, poor-friendly
loan, peer group pressure in repayment, skill training, capacity building and empowerment
(Lalitha 1998). In the decade of nineties and twentieths National Agriculture Bank for
Rural development (NABARD), Government Organization, Non government
Organizations (NGOs), Micro Finance Institutions(MFIs), initiates and started Self help
groups for microfinance, micro credit activities for the objectives of poverty alleviation,
women empowerment and financial inclusion. Government of India had decided to
restructure the self-employment programmes, the earlier programmes were no long in
operation. A new programme known Swarnjayanti Gram Swarozgar Yojana (SGSY) has
been launched from April 1999. Broadly, the microfinance could be classified into the
following model.

1) Grammen Model
2) The group approach.
3) Individual credit
4) Community Banking
In India, group approach model is very popular. The SHGs become the basis for socio-
economic revolution and build as a relationship of mutual trust to among members and
promoting organization credit delivery through thrift and credit groups.
Indian Scenario

India has adopted the Bangladesh’s model in a modified form. To alleviate the poverty
and to empower the women, the micro-finance has emerged as a powerful instrument in
the new economy. With availability of micro-finance, self-help groups (SHGs) and credit
management groups have also started in India. And thus the movement of SHG has spread
out in India.

In India, banks are the predominant agency for delivery of micro-credit. In 1970, Ilaben
Bhat, founder member of ‘SEWA’(Self Employed Women’s Association) in Ahmadabad,
had developed a concept of ‘women and micro-finance’. The Annapurna Mahila Mandal’
in Maharashtra and ‘Working Women’s Forum’ in Tamilnadu and many National Bank
for Agriculture and Rural Development (NABARD)-sponsored groups have followed the
path laid down by ‘SEWA’. ‘SEWA’ is a trade union of poor, self-employed women
workers.

Since 1987 ‘Mysore Resettlement and Development Agency’ (MYRADA) has promoted
Credit Management Groups (CMGs). CMGs are similar to self-help groups. The basic
features of this concept promoted by MYRADA are: 1] Affinity, 2] Voluntarism, 3]
Homogeneity and 4] Membership should be limited to15-20 persons. Aim of the CMG is
to bestow social empowerment to women.

In 1991-92 NABARD started promoting self-help groups on a large scale. And it was the
real takeoff point for the ‘SHG movement’. In 1993, the Reserve Bank of India also
allowed SHGs to open saving accounts in banks. Facility of availing bank services was a
major boost to the movement. 3 The movement of SHG was nourished innourished in the
states of Gujarat, Maharashtra, Andhra Pradesh, Rajasthan, Tamilnadu and Kerala.

Now nearly 560 banks like NABARD, Bank of Maharashtra, State Bank of India,
Cooperative Banks, Regional rural banks, the Government institutions like Maharashtra
Arthik Vikas Mahamandal (MAVIM), District Rural Devlopment Agency (DRDA),
Municipal corporations and more than 3,024 NGOs are collectively and actively involved
in the promotion of SHG movement.
India In India three different models of linkage of SHGs to the financial institutions
NGOs and other agencies but financed By banks.

CHARACTERISTICS

-These groups are based on the concept of ‘self-help’

-They can become members of a cooperative society;
-They need not be registered with any official agency;
-They are fully autonomous and free from official controls;
-They can form their own associations/federations;
-Associations are legal entities
-SHGs can be gender-biased or mixed groups;
-They are engaged in thrift and credit activities;
-They are managed by the members themselves;
-They have their own leaders and secretaries;
-They maintain their accounts well and which are clearly understood by all;
-Very little funds are borrowed from the banks for internal circulation;
-Almost all their needs are met from out of group’s own funds;
-Almost all the members use the group funds for their benefit;
-Whatever loans are taken from the group/bank are returned in time;
-They generally deposit their surplus funds with the bank or in FDs;
-A part of the earning from the wages is deposited with the group;
-All groups hold their meetings regularly and every month;
-SHGs encourage inter-group lending

FORMATION OF SELF HELP GROUP

Micro finance is recognized as a key strategy for addressing issues of poverty alleviation
and women's empowerment. Access to financial services and the subsequent transfer of
financial resources to poor women enable them to become economic agents of change.
Women become economically self-reliant, contribute directly to the well-being of their
families, play a more active role in decision-making, and are able to confront systemic
gender inequalities.

In this regard Foundation facilitated the concept of SHGs among community women to
encourage them to participate in their development and work towards day-to-day problems
through small savings. It was a major step to realize economic freedom. 10 SHGs are
successfully functioning in the various villages. The meetings for the formation of new
groups and follow-up with the existing groups are a regular feature of the programme.
These SHGs have given the members a sense of identity and a common platform to discuss
their grievances.

The matters of common interest have instilled a sense of unity. The funds created by
their own savings helps them meet urgent monetary needs without depending on their men
folk or moneylenders. Recently AIF organized weeklong training to 50 women of three
Self Help groups of Mirbhitta Uttartola and Mirbhitta Dakshintola in Powakhali
Panchayat. Resource persons sent by Khadi and Village Commission, Patna conducted it
in three trades of candle making, agarbatti making and detergent making. This was a
unique experience for the women as it was for the first time this type of training was
conducted in such remote villages.

Most of the women had come out of their homes for the first time at the local Madarsa
building where it was being conducted. Infact most of them had never spoken in front of
the outsiders before. However their confidence was highly inspiring. They all decided to
work together to fully utilize this training. We were happy to see that even the men folk,
especially their husbands and guardians fully supported them and pledged to help them in
setting up small units.
FUNCTIONS OF SELF HELP GROUP

a. The group functions democratically with 2-3 office bearers elected by a consensus of
the group. Two office bearers viz. the President and Secretary are essential, while a third
office bearer i.e. a Treasurer is optional.

b. Office bearers should rotate at least once in two years. Ideal rotation would be once
every year, depending on availability of educated members to act as Secretary.

c. Group meets periodically at fixed intervals to discuss, reflect on and find solutions to
socioeconomic issues / problems of members, the group and of the community.to transact
business.

d. All members’ attendance and active participation at meetings is essential.

e. Decisions are taken at meetings by a consensus of the group and not by the President
and Secretary alone. The President and Secretary manage the administration of group as
per the bye-laws and group consensus.

f. All business is transacted at meetings and not privately with the President or Secretary
at their residence. The business that is transacted at meetings is related to:

i. Collecting savings, fines, interest on loans, installments of refund of loans, and

ii. Contribution for nominal administrative expenses.

iii. Decision on loan applications, and the amount to be sanctioned.

iv. Decision to take up any social or common activity in the village.

v. Decision to take up a common economic activity to build up the group’s corpus

vi. Deliberation and decision on disciplinary action against any member.

vii. Deliberation and decision on disciplinary action against the President or Secretary in
case of mismanagement of the affairs of the group or the funds of the group.

viii. Decision on application for admission as a member or for resignation from

membership.

Ix. Decision to participate in any SHG meeting or training program organised by the
government or by any NGO
LOAN SYSTEM

SHGs must save for at least sixth months before they can be linked to a bank credit or
provide loans to its members. The interest rate in lending among the members from the
groups fund will be decided by the group as well as the amount to be given and the interest
rate to be charged. Loans may be given to members for either productive or consumption
purposes subject to the group’s decision. All types of income generating activities of SHGs
must be support by a concise market survey. All income generating activities require
functional skills which promote its members to be trained in their selected activity to
enhance their capability for sustainable surplus production.

SHG Bank-Linkage Models:

Since the beginning of financial sector reforms in 1991, the banks are using these distinct
linkage models to finance SHGs
 . Model I-Banks provide micro finance to Non-Governmental Organizations (NGOs),
SHGs and ultimately to the micro entrepreneur. (It covers about 27 percent of
SHGs) 16
 Model II-Banks provide financing directly to SHGs for lending to micro entrepreneur.
(It covers about 17 percent)
 Model III-Banks finance directly to SHGs for lending micro entrepreneur with
intervention of NGOs as a social mobilizers and facilitators (It covers 56 percent of
SHGs)
 Model IV-The fourth model envisages bank loans directly to individual members of
SHGs upon recommendations of the SHGs and NGOs. In this matter the NGOs
assists the bank in monitoring, supervising and recovery of loans.
Formal and Informal Systems:
Traditionally, the formal sector banking institution in India has been serving only the
needs of commercial sectors and providing loans for middle and upper income groups. In
India, we have multi-agency rural credit delivery structure comprising Commercial Banks,

Regional Rural Banks and Cooperative Banks with a huge network of more than 1, 53,000
retail credit outlets (One for every 4100 population). Yet, reaching poorest, whose credit
requirements are very small, regular and unpredictable, is still a difficult task and
‘Sahukars’ (the rural non-formal money lenders) continues to be the main agency. Further,
the system and lengthy procedures of the banking institutions which

Commercial banks, Housing Finance Institutions, NABARD, and Rural Development

Banks, Land Development Banks, Co-Operative Banks etc. are the major formal financial
institutions. Urban Cooperative Banks and Urban Credit Cooperative Societies are the two
Primary Cooperative Financial Institutions operating in the urban areas. The informal
financial sources generally include funds available within family sources or local money
lenders. The local money lenders charge high rates of interests due to their informal
behavior and absence of other sources of credit for non conventional needs. Chit funds
and Bishis are other forms of credit operated by group of people for their mutual benefit.
Lately, few of the NGOs engage in the activities related to community mobilization for
their socio-economic development have initiated savings and credit programmes for their
target groups. The community based financial system can be categorized into two models.
1. Group based financial intermediary, and
2. NGO linked financial intermediary.
Most of the NOGs like Sharan in Delhi, Federation of Thrift and Credit Association
(FTCA) in Hyderabad, Society for the Promotion of Area Resources Centers (SPARC) in
Bombay, Self Employed Woman’s Association (SEWA) in Ahmadabad shows the
experience of the informal intermediaries that although the savings of group members,
small in nature do not attract high returns, it is still practice due to security reasons for
getting unsecured loans without much formality and collaterals at lower rates comparative
to that available from money lenders. In his book “The Fortune at the Bottom of the
Pyramid”, Prof. C.K. Prahlad comments, “A well understood but poorly articulated reality
of development role of women. Women are central to the entire development process.
They are also at the avant-garde of social transformation. For example, Grameen Bank’s
success is based on lending only to women. The SHGs at ICICI bank are all women, as
are the Shakthi Ammas at Hindustan Liver Limited (HLL). The women entrepreneurs are
responsible for saving and accessing credit. In the case of Cemex Management Pvt. Ltd,
the company works only with women. Amul, a milk cooperative, depends on women for
their milk origination in villages. Women have achieved a new social status by collecting
cash for the milk. Access economic independence can change the long tradition of
suppression of women and denial of opportunities.
16 The success of Avon, Mary Kay and Tupperware in US and parts of world are based
on the role of women entrepreneurship.

Micro Finance and Micro Credit:

Since formal credit institutions rarely lend the poor, special institutional arrangements
become necessary to extend to credit to those who have no collateral to offer. Micro
Finance (MF) by providing small loans and savings facilities to those who have been
excluded from commercial financial services has been promoted as a key strategy for
reducing poverty in all its forms by agencies, all over the world, particularly in developing
countries.
Micro Credit (MC) has been defined as “programmes that can provide credit for self
employment and other financial and business services (including savings, technical
assistance, training networking and peer support) to very poor persons (Micro Credit
Summit, 1997). The task force on supportive policy and regulatory framework for micro
finance (NABARD, 1999) defined it as ‘provision of thrift, credit and other financial
services and products of very small amounts to raise the income levels of clients, and
improve their living standards.”
While micro credit loans generally advance for self employments projects, but also
sometimes advance for consumption, repayment of earlier loans, and other social needs as
well. It is mandatory for micro credit institutions to get borrowers make the transition from
consumption loans to production or loans for income bearing projects. According to the
definition of International Labour Organization (ILO), micro finance is an economic
development approach that involves providing financial services through institutions to
low income clients. Presently, micro finance represents something more than micro credit.
Micro Finance (MF) is a financial service of small quantity provided by financial
institutions to the needy poor. These financial services include savings, credit, insurance,
leasing, money transfer, equity transaction etc. Any type of financial service is provided
to customers to meet their normal financial needs i.e., life cycle, economic opportunity
and emergency, with the only requirement that (i) that transaction value is small, and (ii)
the customers are poor (Dasgupta, 2005).
Thus, micro finance refers to the entire range of financial and nonfinancial services,
including skill up gradation and entrepreneurship development, rendered to the poor for
enabling them to overcome poverty. Beside, size and clientele group, what makes micro
credit different from normal is credit is that the latter is “Walk in” and the former is “Walk
out” business for the financial institutions. Normally, micro credit is linked with the
collateral substitute and credit plus services unlike normal credit. Thus, micro credit is
distinct from other regular credit, where not only the credit amount is
The basic unit of micro finance is a group of persons called self-help groups (SHGs).
SGHs are small informal associations of 15-20 persons created for the purpose enabling
members to obtained economic benefit out of mutual help, solidarity and joint
responsibility. These small and homogeneous groups involved in savings and credit
activity are capable of taking care of challenges through peer monitoring. The informal
voluntary associations of SHGs are form to attain a collective goal. To some extent, micro
credit is not a new concept in India, priority sector credit in general and weaker section
credit in particular was actually a kind of micro credit. So far as micro savings services
are concerned, these are indeed recent with the advent of self-help group movement, from
1992, with the initiative of the Reserve Bank of India (RBI) and National Bank for
Agriculture and Rural Development (NABARD) in introducing pilot projects of SHGs
with savings and credit objectives and adoption of best management practices.
PROBLEMS FACED
The important problems are briefly stated below:
1. Ignorance of Members/Participants: Even though the authorities take measures for
creating awareness among the group members about the schemes beneficial to them, still
majority of the group are unaware of the schemes of assistance offered to them. Many are
Ignorant about the scheme.
2. Inadequate Training Facilities: The training facilities given to the members of SHGs in
the specific areas of product selection, quality of products, production techniques,
managerial ability, packing, other technical knowledge ate are not adequate to compete
with that of strong units.
3. Problems Related with Raw Materials: Normally each SHG procures raw materials
individually from the suppliers. They purchase raw materials in smaller quantities and
hence they may not be able to enjoy the benefits of large scale purchase like discount,
credit facilities etc.
Moreover, there is no systematic arrangement to collect raw materials in bulk quantities
and preserve them properly. There is no linkage with major suppliers of raw materials.
Most of the SHGs are Ignorant about the major raw material suppliers and their terms and
conditions. All these causes high cost of raw materials.
4. Problems of Marketing: Marketing is an important area of functioning of the SHGs.
However they face different problems in the marketing of products produced by them.

Following are the major problems relating to marketing.

(a) Lack of sufficient orders.
(b) Lack of linkage with the marketing agencies.
(c) Lack of adequate sales promotion measures.
(d) Lack of permanent market for the products of SHGs.
(e) Absence of proper brand name.
(f) Poor/unattractive packing system.
(g) Poor quality of products due to the application of traditional technology, resulting In
poor market,
(h) Stiff competition from other major suppliers.
(i) Lack of a well-defined and well-knit channel of distribution for marketing.

5. Lack of Stability and Unity Especially among women SHGs: In the case of SHGs
dominated by women, it is found that there is no stability of the units as, many married
women are not in a position to associate with the group due to the shift of their place of
residence. Moreover, there is no unity among women members owing to personal reasons.
6. Exploitation by Strong Members: It is also observed that in the case of many SHGs,
strong members try to earn a lion’s share of the profit of the group, by exploiting the
ignorance and illiterate members.
7. Weak Financial Management: It is also found that in certain units the return from the
business is not properly invested further in the units, and the funds diverted for other
personal and domestic purposes like marriage, construction of house etc.
8. Low Return: The return on investment is not attractive in certain groups due to
inefficient management, high cost of production, absence of quality consciousness etc
9. Inadequate Financial Assistance: It is found that in most of the SHGs, the financial
assistance provided to them by the agencies concerned is not adequate to meet their actual
requirements. The financial authorities are not giving adequate subsidy to meet even the
labour cost requirements.
10. Non-co-operative Attitude of the Financial Institutions: The Financial Institutions do
not consider SHGs seriously while providing finance and other help.
11. Inadequate and ill-trained staff to meet the challenges: The attitude of the staff of the
rural development department is not encouraging. They are not well trained to accept the
challenges and equip the SHGs self-reliance.
12. Inadequate Support from Line Department: For obtaining assistance and support, the
group members have to approach the line officers. However the line officers are not co-
operative with the SHGs. This will hamper the very objective of the schemes.
 RESEARCH AND METHODOLOGY
OBJECTIVE
The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the truth which is hidden and
which has not been discovered yet. The specific objectives of the study are listed below:
1) To study the current scenario, working and growth of Self Help Groups in the region
and to analyze the impact of SHGs in women empowerment with respect to Durg region.
2) To study the activities of self help group in the study area and to identify employment
and livelihood skills of women’s related to Self Help Group.
3) To study and analyze the management and administrative structure of the Self Help
Groups.
4) To study the operating system and capital structure of the Self Help Groups and to
evaluate their Financial Positions.
5) To ascertain the Marketing policies, government support and future prospects in
marketing of the Self Help Groups.
6) To study the socio economic background of the members of the Self Help Groups and
to identify the reasons for women joining self help Group.
7) To ascertain the credit availability of the women’s of the group from different sources.
8) To identify problems related to the Self Help Groups at different levels and to analyse
and evaluate the challenges faced by the Self Help Groups.
9) To ascertain the role of C.G. Mahila Kosh in financing and forming of Self Help Groups
and also to study the implications related to policy decisions.
10) To submit the recommendations and suggestions for effective role of Self Help Groups
in women empowerment and to diversify their activities and area of interest for better
working of the groups.
HYPOTHESIS
A hypothesis simply means a mere assumption or some supposition to be proved or
disproved. But for a researcher hypothesis is a formal question that he intends to resolve.
Thus hypothesis may be defined as a proposition or set of proposition set forth as an
explanation for the occurrence of some specified group of phenomena either asserted
merely as a provisional conjecture to guide some investigation or accepted as highly
probable in the light of established facts. It is a predictive statement, capable of being
tested by scientific methods, that relates an independent variable to some dependent
variable.
1. Self Help Groups are promoting women empowerment.
2. Government organisations are eager to promote self help groups for women
empowerment.
3. There has been a positive impact on the socio-economic conditions of women working
in Self help Groups.
4. There will not be a difference in the work satisfaction level of the management and
members of the self Help group.

Scope of study

As per DRDA office records, there were 1150 Women SHGs working in Kannad Block
of Aurangabad district as on 31St March 2013, for the purpose of the study. 115 groups
have been selected on Simple Random basis, i.e. 10% of the total Self Help 1150 Women
Groups in Kannad block of Aurangabad district of Maharashtra state

Limitation of study
The biggest limitation for this project was the lack of time. Since I only had two months
to conduct my research, I needed to quickly find a realistic project. Due to the time-
constraint, I needed to narrow my interests of gender equality and microfinance into a
reasonable topic of SHGs. Unfortunately, my project was only limited to Dokur. If
permitted more time, I would have developed a more comprehensive report that included
another village and VDSA data to correlate my findings.
Another obvious limitation was the language barrier. Although I had two very intelligent
and well-spoken translators, there were still words lost in translation between the
respondents, the translators and myself. In some interviews, other villagers would speak
on behalf of the respondent. As a result, their answers were impacted by other people’s
comments. Since I was a recent high school graduate during this internship, my lack of
knowledge on SAT and SHGs served as a minor barrier in this project. I had never learned
about the SAT nor heard about SHGs until I stepped foot on the MIP Program. Although
I did not have primary knowledge, I was properly mentored by Dr. Bantilan, Padmaja and
Kavitha. After an intensive first week of researching and learning, I finally came up with
my research project.

Importance of study
The study focuses on determining the financial and social status and empowerment of
women. The many SHGs are interlinked with the banks to get micro-credit facility. The
banks are providing needed facility to all SHGs to achieve their social needs and financial
gaols. The SHGs are been successful in the development of Indian economy. The SHGs
more focusing on rural background and poor people because to develop their living status.
They are empower to overcome many of the shortcomings
1.To mobilizing the resources of individual‟s for their development
2. To create a habit of savings among the people
3. To create awareness about the rights.
4. A Study on Women Empowermwnt through Self Help GroupsTo identify the problems
of the individual‟s and SHGs.
5. To act media for socio-economic development.
6. To help to cover loans.
7. To create good relationship among the people.
8. To build a team work.
9. To create awareness about the necessity of SHGs.
10. To educate the people.
11. To build a decision power among women.
Challenges of study
 Develop a doable topic.Determine what resources you have available—time,
money, people—and choose a topic that you can do justice. Getsch scrapped an
initial study idea of replicating another researcher’s study because it would be too
resource-intensive.
 Read everything you can on the topic. Getsch “stumbled across” systems theory,
an interdisciplinary framework for understanding systems in science and society.
The topic was outside her required class reading, but ultimately provided Getsch’s
theoretical framework.
 Find a theoretical basis to support your topic. The key is having an overarching
theoretical context for your results. “I was really thrilled when I found these
theories that fit my study like a glove,” Getsch says.
 Make sure the topic will hold your interest. You’ll be spending at least a year
on a dissertation or any large research project, so it has to be compelling enough
that you’ll go the distance.
 Look for a niche in which you can make a difference … My view is that you
really should be offering something new to the field,” says Getsch.
 but remember you can’t change the world with one dissertation. Getsch’s
dissertation committee chair, Dr. Stephanie Cawthon, helped her focus on the crux
of what she wanted to explore. “She gently pointed out that I couldn’t change the
whole world with my dissertation, but I could add to the body of knowledge,” says
Getsch.
 Let yourself shift gears. Getsch admits that the topic she started out with was “in
no way” what she ended up with.
 Fine-tune your topic based on input from others. “Take every opportunity you
can to pick the brains” of experts, Getsch recommends. “I went across disciplines.
I drove people crazy. And each time, I would revise slightly based on what the last
person taught me.”
 DATA COLLECTION ON SELF HELP GROUP

1) SAMPLE SIZE: - is the act of choosing the number of observations or replicates to

include in a statistical sample. The sample size is an important feature of any empirical
study in which the goal is to make inferences about a population from a sample. In practice,
the sample size used in a study is usually determined based on the cost, time, or
convenience of collecting the data, and the need for it to offer sufficient statistical power.
In complicated studies there may be several different sample sizes: for example, in
a stratified survey there would be different sizes for each stratum. In a census, data is
sought for an entire population, hence the intended sample size is equal to the population.
In experimental design, where a study may be divided into different treatment groups,
there may be different sample sizes for each group.

Sample sizes may be chosen in several ways:

 using experience – small samples, though sometimes unavoidable, can result in

wide confidence intervals and risk of errors in statistical hypothesis testing.
 using a target variance for an estimate to be derived from the sample eventually obtained,
i.e. if a high precision is required (narrow confidence interval) this translates to a low
target variance of the estimator.
 using a target for the power of a statistical test to be applied once the sample is collected.
 using a confidence level, i.e. the larger the required confidence level, the larger the sample
size (given a constant precision requirement).


2) COLLECTION OF PRIMARY DATA

Primary data is data that is collected by a researcher from first-hand sources, using
methods like surveys, interviews, or experiments. It is collected with the research project
in mind, directly from primary sources.
The term is used in contrast with the term secondary data. Secondary data is data gathered
from studies, surveys, or experiments that have been run by other people or for other
research.
Typically, a researcher will begin a project by working with secondary data. This allows
time to formulate questions and gain an understanding of the issues being dealt with before
the more costly and time consuming operation of collecting primary data.

Primary data collect method

.
Questionnaire
Questionnaire is a set of questions has been prepared to ask a number of questions and
collect answers from respondents relating to the research topic. A number of questions
usually in printed or electronic form are to be answered by the individuals. The forms
often have blank spaces in which the answers can be written. Sets of such forms are
distributed to groups and the answers are collected relating to research topic. A
questionnaire is a series of questions asked to individuals to obtain statistically useful
information about a given topic. When properly constructed and responsibly administered,
questionnaires become a vital instrument by which statements can be made about specific
groups or people or entire populations. Inappropriate questions, incorrect ordering of
questions, incorrect scaling, or bad questionnaire format can make the survey valueless,
as it may not accurately reflect the 11 views and opinions of the participants. A useful
method for checking a questionnaire and making sure it is accurately capturing the
intended information is to pretest among a smaller subset of target respondents. In a
research or survey questions asked to respondents, and designed to extract specific
information. It serves four basic purposes: to
(1) collect the appropriate data,
(2) make data comparable and amenable to analysis,
(3) minimize bias in formulating and asking question, and
(4) to make questions engaging and varied. For our study purpose a set of questions has
been prepared to collect information relating to the topic of the study. In this study a
structured questionnaire has been used with different types of questions such as closed
ended and open ended. Special case has been taken to select the scales for the questions
for collection of responses very effectively.

Telephone, Mobile Phone and Facsimile

Telephone and other devices can be used for collecting data verbally and written on fax
from respondents located away from the researcher and having these facilities plus the
researcher having their contact numbers. Use of interviewers encourages sample persons
to respond, leading to higher response rates. Interviewers can increase comprehension of
questions by answering respondents' questions. It is fairly cost efficient, depending on
local call charge structure. It is good for large national or international respondents and
gives wider coverage. It cannot be used for non-audio information (graphics,
demonstrations, taste/smell samples) this instrument is not suitable for the respondents
where the telephone facility is not available.

Mail
For collection of data from the respondents who are located at a long distance and do not
have any communication facility. They can be contacted through mailed questionnaire.
Only thing is required that the researcher should have the postal addresses of the
respondents. The questionnaire may be handed to the respondents or mailed to them, but
in all cases they are returned to the researcher via mail. The cost involved is very less but
no clarification can be given to the respondents if required. Respondents can answer at
their own convenience. The respondents cannot be biased by the researchers and the detail
information can be collected 12 for the research purpose. Only one disadvantage this
instrument gives is that the response rate is very less due to lack of interest in the topic of
respondents and low literacy rate.
Interview
In this method the interviewer personally meets the informants and asks necessary
questions to them regarding the subject of enquiry. Usually a set of questions or a
questionnaire is carried by him and questions are also asked according to that. The
interviewer efficiently collects the data from the informants by cross examining them. The
interviewer must be very efficient and tactful to get the accurate and relevant data from
the informants. Interviews like personal interview/depth interview or telephone interview
can be conducted as per the need of the study.

Advantages of primary data:

Advantages of primary data are as follows:

• The primary data are original and relevant to the topic of the research study so the degree
of accuracy is very high.

• Primary data is that it can be collected from a number of ways like interviews, telephone
surveys, focus groups etc. It can be also collected across the national borders through
emails and posts. It can include a large population and wide geographical coverage.

• Moreover, primary data is current and it can better give a realistic view to the researcher
about the topic under consideration.

• Reliability of primary data is very high because these are collected by the concerned and
reliable party.
 Disadvatages of primary data:

Following are the disadvantages of primary data

• For collection of primary data where interview is to be conducted the coverage is limited
and for wider coverage a more number of researchers are required.

• A lot of time and efforts are required for data collection. By the time the data collected,
analysed and report is ready the problem of the research becomes very serious or out dated.
So the purpose of the research may be defeated

• It has design problems like how to design the surveys. The questions must be simple to
understand and respond.

• Some respondents do not give timely responses. Sometimes, the respondents may give
fake, socially acceptable and sweet answers and try to cover up the realities.

• With more people, time and efforts involvement the cost of the data collection goes high.
The importance of the research may go down.

• In some primary data collection methods there is no control over the data collection.
Incomplete questionnaire always give a negative impact on research

. • Trained persons are required for data collection. In experienced person in data collection
may give inadequate data of the research.

SECONDARY DATA

Secondary data are the data collected by a party not related to the research study but
collected these data for some other purpose and at different time in the past. If the
researcher uses these data then these become secondary data for the current users. These
may be available in written, typed or in electronic forms. A variety of secondary
information sources is available to the researcher gathering data on an industry, potential
product applications and the market place. Secondary data is also used to gain initial
insight into the research problem. Secondary data is classified in terms of its source –
either internal or external. Internal, or in-house data, is secondary information acquired
within the organization where research is being carried out. External secondary data is
obtained from outside sources.

There are various advantages and disadvantages of using secondary data

Advantages of Secondary Data:

Advantages of secondary data are following:

• The primary advantage of secondary data is that it is cheaper and faster to access.

• Secondly, it provides a way to access the work of the best scholars all over the world.

• Thirdly, secondary data gives a frame of mind to the researcher that in which direction
he/she should go for the specific research.

• Fourthly secondary data save time, efforts and money and add to the value of the research
study.

Disadvantages of Secondary data:

Following are the disadvantage of secondary data:

• The data collected by the third party may not be a reliable party so the reliability and
accuracy of data go down.

• Data collected in one location may not be suitable for the other one due variable
environmental factor.

• With the passage of time the data becomes obsolete and very old

• Secondary data collected can distort the results of the research. For using secondary data
a special care is required to amend or modify for use.
• Secondary data can also raise issues of authenticity and copyright. Keeping in view the
advantages and disadvantages of sources of data requirement of the research study and
time factor, both sources of data i.e. primary and secondary data have been selected.
These are used in combination to give proper coverage to the topic

SOURCES OF SECONDARY DATA

Published Sources:
The sources of published data are as below:
i. Official publications of Central and local governments.
For example: CBS, NRB, different Ministries, etc.
ii. Official publications of semi government statistical organization. For example:
Tribhuvan University, Nepal Bank Ltd., NIDC, Nepal Telecom Ltd, NEA etc.
iii. Official publication of foreign government or international bodies like the UNO,
World Bank, ADB, WTO, UNESCO, etc.
iv. Reports and publications of Trade union, Chamber of Commerce, Commercial Banks,
Co-operatives, Stock Exchange etc.
v. Report submitted to economists, re-search scholars, universities and various
educational and research institutions.
vi. Reports of various committees and commissions appointed by government.
vii. Newspaper and Periodicals.
Some of them may be continuous or regular and others are periodical and irregular.
 Unpublished Sources:
The statistical data needn’t always be published. There are various sources of unpublished
statistical material such as the records maintained by private firms, business enterprises,
scholars, research workers, etc. They may not like to release their data to any outside
agency.
 LITERATUTE REVIEW

Roshan Singh et al. (1978), studied the design pattern of credit flow in Bichpuri
development block of Agra district in Uttar Pradesh. They found that the pattern of
financing agriculture was similar both at the national and district level. Theproportion of
bank finance to agricultural showed a stable but slow increase over a period of four years.
The overall share of large farmers in total finance to agriculture was much higher as
compared to the small and medium farmers in all the years (1972 to 1977). The share of
small farmers showed an increasing trend mainly during the years 1976 and 1977 when
deliberate efforts were made to direct the flow of bank credit in favour of small farmer.

Ramlingam et al (1987) in their study entitled “Socio economic impact of IRDP on weaker
section: A comparative analysis” showed that the social status of the respondents had
increased considerably from low status to higher status.
.

Mahabub Hussain, while assessing the performance of the Garmeena Bank in Bangladesh
laid the hypothesis that “If the poor are supplied with the working capital, they can
generate productive self employment without additional external assistance”, and the
results showed that the Garmeena bank has reached 6 percent of villages and 4 percent
target households (1987).

Ramdass measured the institutional credit flow in Pondicherry and observed that the short
term credit advance by the institutions had grown gigantic, while the long term credit
lagged behind. He suggested the need for institution to come forward to provide long term
credit and utilize the saving mobilized in rural areas exclusively for rural investment

Molly, found that there is lion’s share of NGOs programmes in the selected organizations
related to the factory type employment such as readymade garments, Khadi and Village
industry, candle making etc. The major production schemes especially on house hold
basis, which occupied 24 percent of total schemes, were animal husbandry, poultry,
sericulture, fodder cultivation, kitchen garden and others.
Pathak , reported that SHG is being comprised a group of persons, who gets empowered
to solve most of their problems of non- financial nature like raw materials, inputs supply,
marketing, better adoption of technology, education and training for realizing the human
potential for development.

Reddy and Gupta , studied the credit management in Self Help Groups(SHGs) under South
Asia Poverty Alleviation Programme (SAPAP) revealed that the data on purpose wise
allocation of credit showed that sample groups allocated 34 percent, 22 percent and 22
percent of the total credit to small businesses, animal husbandry and agriculture
respectively. Under animal husbandry, members take loan to purchase milk animals, sheep
and goats, under agriculture, members take crop loan to purchase, plough and bullock
carts. The other major purposes include domestic consumption (13 percent), and clearing
of old debts (7 percent) and share of health and education is only three per cent. Thus, the
members in the sample groups have taken credit mainly (78 percent) for productive
income generating activities during the study period.

Joseph and Easwaran (2006), stated that in all parts of the country, self-help groups are
organized by governmental and non-governmental organizations (NGOs). The
government, banks and nongovernmental organizations facilitate them by providing
revolving fund, organizational and training, credit etc.

Subbiah and Navaneetha (2006), reported that there are three models under the SHG-bank
linkage programme, about 72 percent of the SHGs are formed byNGOs/government
agencies and the like financed by banks. They stated that the programme has been
advantageous not only to members of SHG but also to the banks.

Savita Shankar (2006), conducted Studies on efficient credit models in micro finance, in
Tamil Nadu; the most popular model for the dispensation of micro credit in India is the
group-lending model. As per Sa-Dhan (Industry Association of Community Development
Finance Institutions in India) data, group loans account for 93% of the microfinance in
India.
Dasaratharamaiah et al. , reported that 10.0 percent of beneficiaries had income between
Rs.7, 201 and above, 20.67 percent have income between Rs.4,801 to 7,200 and 31.33
percent have income Rs.3, 601 to 4,800 and 38 percent have income below Rs.3, 600 per
annum after implementation of DWCRA. And it was found that there are no persons
without any income. And it was also found that 50 percent of beneficiaries have less than
100 man days of employment, 21.67 percent of the beneficiaries have employment
between 101 to 180 man days, 20.00 percent of the beneficiaries have employment
between 181 to 240 man days as against 8.33 percent of the beneficiaries who have
employment between 241 and above man days of employment per annum
 DATA ANALYSIS
The study is conducted in Kannad Block of Aurangabad district, covering about17
villages. 115 Women SHGs promoted byNGOs and operating in Kannad block are
selected randomly. One member from each sample SHG totaling 115 are
selecteddeliberately. The study attempts to review the resource management of SHG
operating in Kannad, theirfunctioning, working,contribution, development and
improvement in one-self and group. The present study is based on primary data. The
primarydata is collected from the sample respondents by adopting the method of Interview
schedules, Personal InterviewandObservations. To elicit the required information a well
structured schedule was designed with probing questions
Table No..1: Age wise Distribution of group
Sr.no Age (years Percentag
1 25-35 43.4
2 36-46 34.7
3 47-57 13.9
4 58 & ABOVE 7.8
TOTAL 100

115 Women respondents were selected and distributed according to their age. Table No.1
reveals the distribution of womenrespondents as per their age, in the age group of 25 years
to 58 years and above. 50 respondents (43.48%) of the total were inthe age group of 25
years to 35 years. 40 respondents (34.78%) of the total were in the age group of 36 years
to 46 years. them (13.91%) were in the age group of47 years to 57 years and only 9 of
them (7.83%) were in the age group of 58 yearsand above.
table No.2: Education wise Distribution of Women of SHG
Sr. Education No of %
No respondents
1 illetrate 26 22.6
2 5-10 47 40.8
3 HSC 35 21.7
4 Graduation 13 11.3
5 Post Graduation 4 3.48
115 100
Eucation plays a key role in all the sectors in today’s world. Literacy factor has also been
considered for the distributionof women of SHG. Table No.2 distributes the Women
respondents as per their education. Out of 115 Women respondents, 26respondents
(22.61%) were illiterate. 47 respondents (40.87%) of the total lies in the range of 5thstd to
10thstd. 25 of them(21.74%) of the total were HSC passed. 13 ofthem (11.30%) were
Graduate and only 4 Women respondents (3.48%) were

Table No. 3: Distribution of the Respondents as per their Marital Status

Sr. No. Marital status No of %
respondent
1 married 88 76.5
2 divorced 8 6.9
3 widow 19 16.5
115 100

Table No.3 gives the distribution of Women respondents as per their marital status. It was
found that mostly married womenwere involved in SHG. Out of 115 Women respondents,
88 respondents(76.52%) were Married. 8 respondents (6.96%) wereDivorcee and 19 of
them (16.52%) were Widow and involved in various SHG
 CONCLUSION AND SUGGESTION
FINDINGS
Member From the study, it is found that individual member’s contribution for saving
ranges Showered to the tune of Rs. 29, 520, against this loan disbursed amounted to
Rs. 10, 500.
 Overall if we look at the income point of view 75 members out of the 143 members whoare
involved in Income Generating Activity falls in the range 5,000 to 7, 000 rupees.
 12 SHG’s of the total 38 sampled groups (i.e. 32%) have received a maximum loan amount
of rupees five lakhs.
 In Mamallapalli village most of the SHG’s are doing the activities of dairy and crop
production by taking the land for lease from landlords but due to the impact of inflationand
rise in prices for all the commodities, lease rate were also increased thus making itdifficult
for the groups to adjust with the present TFI limit of rupees 5 lakhs.
 30% of the SHG’s i.e. 11 groups out off total 38 sampled groups interviewed during the
study have availed financial assistance from the SHG federation. And all the
sampledgroups (100%) are the members of the SHG federation in their respective villages.
 Beneficiaries were facing problems in order to graduate themselves into
microenterprise,majorly due to reasons of Lack of group cohesiveness (15.6%), Dual
responsibility(13.8%), in the field of Marketing (12.5%), Lack of entrepreneurship (12%),
Risk(11.3%), Technology (10.6%), Value chain & Awareness both (8.1%), Skill
andknowledge (4.4%) and Finance (3.8%).
 The activities taken up with the loan by the members are as follows :

a.To meet their self needs

b.Purchase of inputs for agriculture crops
c.Construction of house/Indiramma housing/Individual toilets
d.Purchase of buffalows/miltch animal.
e.Business like grocery shops, cloth shop, auto rickshaw , fruit shop, dairy,tailoring, pickle
making, used plastic bags conversion to cloth for drying/covering agriculture produce etc.
 Bapatla, Nizampatnam, Repalle the sea coast villages where SHG’s are doing wet and dry
fish procurement and marketing.
 Major activities taken up by the Self Help Group members in Guntur district are Majorcrop
production, Milch animal, pit looms, tailoring, pickle making, small grocery shops,fruit
and vegetables shops etc.
 Most of the activities taken up the SHG’s are those activities which are traditionally
followed from their ancestors.
 At the time of the study, training is been given by ABIRD, on the activities like
Fabric painting, soft toy making, pottery works, bouque making etc in komaripudi and
pratipaduvillages of Narasaraopeta division.
 The SHG’s haveutilized the bank loans in rotating among the members at 24 % interestand
were able to increase group savings.
 Women empowerment, not only includes the psychological and behavioral changes,
butalso the cognitive development like getting new ideas, sharing knowledge and
opinion,transformation of knowledge into responsible roles like leadership etc..
Likewiseeconomic score, the knowledge score of loan availed found that groups who
availed morelinkages with the bank (6th link groups) are high compared to the groups who
availed loanonly thrice, as they are more responsible and exposed more to group
practices and procedures of loan availement.
 All the groups interrogated are prompt in repayment of loan without default .This
isevidenced through continuous sanction of loans by bankers and over the years the SHG’s
have advanced from the first spell amount of rupees 20000 to present spell
amountincreased to rupees 5 lakhs.
 Out of the total 38 SHG’s interviewed, 31 SHG’s are been trained in orientation
programme given by banks and out of the total 175 members, only 49 members haveatte
nded the Income Generating Activity like soft toy making, fabric painting, potterymaking
and bouque making etc in komaripudi and pratipadu villages by ABIR
 CONCLUSION

1. SHGs is now about 20 years old, it is observed that every third year one of the earlier
SHGs get closed down and a new one is established. Some members of the earlier SHG
join the new SHG, and the other discontinue. That is why it can be said that the process of
women’s empowerment is started; but the pace is very slow.
2. There are many good results of the business run by self help group, such as:
a) The women have started coming together to think about their problems on a scale larger
than before.
b) At some places women have begun to consider solving their problems unitedly.
c) The women have acquiring courage to stand before the society.
d) Their confidence level is obviously increasing.
e) They are acquiring knowledge of day-to-day worldly affairs.
f) Their decision-making ability is on increase.
g) The woman has acquired somewhat elevated status in her family.
h) Women have started to come out of their homes to take part in social activities.
i) There occurs greater participation of the women in political activities where there is a
woman Sarpanch.
j) The women, however, desire that the SHGs should continue. With these good results
certain things are there, which are not yet achieved. They area:-
a) The women still believe the same traditional thinking on issues of dowry, inter-caste
marriage, female education etc.
b) Many women have the bad habits of chewing tobacco or applying misri.
c) It is, however, observed that there is no sufficient awareness regarding women’s
problems. d) Women’s issues are equated with problems regarding roads, electricity, water
and health etc.
e) The efforts to solve the problems are going on, but not on big scale.
f) It is observed that some bad elements have crept in this movement. If the institutions
and their coordinators remain vigilant, the bad elements can be kept in check.
 SUGGESTIONS

 Raw material banks need to be established by federations/SHGs/NGOs/Rural marts at sub

-divisional level to facilitate timely supply of quality raw materials at affordable cost. Help
from Microfinance Innovation Fund with NABARD should be provided for establishing
rawmaterial banks.
 For about 22% of the sampled beneficiariesare involved in the Animal husbandryactivity
in Guntur district and most of themare engaged in dairy activities, thus scope fordairy is
high and Government, DRDA officials and NGO’s should facilitate these
 SHG to be motivated and support to be givento them to establish a dairy plants, collection
centers and chilling units. Milk units can beestablished by solar hybrid milk chiller which
enables food suppliers to store and preserve perishable food items such as milk, fruits and
vegetables without the need for expensivediesel-powered generators. Still furthers studies
need to be done to know the exact benefits to the SHG’s.
 SHGs should be organized into federation for collecting the products from beneficiaries
and to tag them to corporate house, wholesaler, retailer, rural Mart etc. Interlinking of
Rural Mart need to be attempted for supply chain management.
 One suggestion for better marketing is to promote the products of one SHG among
other SHG members.
 Product of one SHG should be distributed to other SHG members through federation in
the beginning, which later can be widened to all SHG members of district/State.]Thus, it
should be ensured that the product of SHGs would have wider demand and market ability
 Capacity building for micro-entrepreneurship development through interaction with
successful entrepreneurs, field visits to the successful units, organizing training on regular
interval ,identification of good NGOs for hand holding support, scotting services by NGOs
etc, would help in micro-entrepreneurship development.
 In order to make full use of the microfinance and ensure the success of micro-enterprises,
the project management should understand that all SHG members need not/cannot start a
micro-enterprise at the outset. Some, who are able to take risks , should start first
 and offer wage employment to other SHG members. Entrepreneurs need to have some
behavioural competencies liketaking initiative, having vision, planning, seizing
opportunities, takingrisks, making decisions, solving problems, collecting information,
perseverance, time andquality consciousness, etc.
 SHG members often shy away at the beginning but are able todevelop these competencies
over a period.
 Groups to graduate into microenterprise, members in the group who has the skills
ofentrepreneur should take the initiative to take the risks and startup the business and
the others assleeping partners should provide them with financial assistance to run
the business, few othermembers can also do the work of marketing their products. Thus,
in this way group membersshould divide their responsibility in which they are good at.
 Additionally, the SHG members must be given guidance on the opportunities available in
theirsurroundings. Let us assume that an SHG member shortlists five business
opportunities. TheSHG member may thereafter be asked to conduct a mar ket survey,
wherein the customers’needs or expectations and the competitors’ weaknesses are mapped
and looked into.
 This process helps us to further zero in on the options.
 Active intervention by district administration, professional bodies and voluntary
organisations is precondition for the successful conception of micro enterprises in terms
of skill training,designing products, providing new technology and access to marke
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