Women Empowerment Thorough Self Help Groups- A Case Study

Ananta Basudev Sahu* and Sandhya Rani Das**

Abstract
The present study is an attempt to analyse the role and performance
of SHGs in promoting women's empowerment in Gajapati District of
Orissa. The broad objective of the study is to analyses the operating
system of SHGs for mobilization of saving, delivery of credit to the
needy, management of group funds, repayment of loans, in building up
leadership, establishing linkage with banks and examine the social
benefits derived by the members. In order to collect and gather
primary data, field observation and structured questionnaire survey
methods were employed. In addition, information was also collected
through discussions and interviews with local NGOs and government's
grass roots level workers. There are 281 SHGs working in Gajapati
district. Here the researcher has chosen 10 SHGs from each block of
the district. In total the study covers 50 SHGs with 800 members. The
study reveals that SHGs had set a new agenda for financial
intermediation by banks in the form of micro-credit. By the formation
of SHGs, credits are demanded for various purposes (domestic,
health, festivals, repayment of old debts, investment, etc.). Similarly
different economic activities (collection, processing and marketing of
minor forest products, individual business, goatery, dairy etc.) are
undertaken by the SHG members after joining the group. Habits of
savings, economic independence, self confidence, social cohesion,
asset ownership, freedom from debt, additional employment, etc.
benefits are derived by the SHG members. Thus, SHGs have served
the cause of women empowerment, social solidarity and socioeconomic betterment of the poor for their consolidation.

Research Officer, International Institute For Population Sciences, Mumbai-88

Sr. Lecturer, Department of Economics, Berhampur University, Orissa- 07

**

Introduction
The concept of empowerment is defi ned as the process by which
women take control and ownership of their choices The core
elements of empowerment have been defi ned as agency (the
ability to defi ne ones goals and act upon them), awareness of
gendered power structures, self-esteem, and self-confi dence
(Kabeer,2001). Empowerment can take place at a hierarchy of
diff erent levels individual, household, community and societal
and is facilitated by providing encouraging factors (e.g. exposure
to new activities, which can build capacities) and removing
inhibiting factors (e.g. lack of resources and skills) . In this
connection Micro-fi nance with Self Help Groups play an eff ective
role for promoting women empowerment. It is not only an
eff icient tool to fi ght against poverty, but also as a means of
promoting the empowerment of the most marginalized sections of
the population, especially women. According to Ellie Bosch it is
just old wine in a new bottle (Bosch, 2002). It consists of a group
of people of three to eight persons on the condition that each of
them would be assuming responsibility for the development of
all. Micro Finance institution started in India in 1980s through
Self Help Groups (SHGs) model. It is the Grameen replication
model of Bangladesh. There is nearly 3,00,000 SHGs working
whole over India. It is true that the concept of microfi nance is
yet to spread its wings all over India, but at the rate in which it
is expanding its branches, very soon it would be reaching at the
doorsteps of the poor houses. The most successful region for
microfi nance is the Southern part of India; Andhra Pradesh has
become the example for the other states in this case. T h e
present study is an attempt in this direction to analyse the
i m p a c t o f m i c r o - c r e d i t o n p o o r w o m e n i n G a ja p a t i d i s t r i c t o f
Orissa.
Brief Profi le of the Study Area
Gajapati district is located in the southern part of Orissa. The
district of Gajapati was formed on the basis of 1981 census ,
taking the old Paralakhemundi Subdivision of Ganjam district and
the lowest level units for recognition of Ganjam into Ganjam and
Gajapati districts. The district of Gajapati comprises of one
subdivision, three tahasils and seven C.D. Blocks, two towns, one
Municipality, one NAC, one hundred and six Panchayats and
fourteen hundred sixty inhabited villages. This is one of the
backward districts of Orissa. It is a part of so to say KBK
districts known for underdevelopment and starvation deaths.
This is a tribal dominated district. About 30 per cent of the
inhabitants are tribal. Though they comprise 30 per cent out of
the total population, they are scattered over all the territories of

the district. It is needless to say that tribals are underdeveloped

and malnourished. So the economy of Gajapati district is
refl ected the same naked picture.

Table

1.1
Total
Population,
Rural
and
Urban
Population by Sex in Diff erent Blocks and
Urban Areas of Gajapati District

S.No Block/Urban
.

Geograph Male
ical area
sq/km

Female Total

Sex
Ratio

Gumma

1048.94

3148
4

33801

65285

931.451
7

Kasinagar

477.99

2402
2

24603

48625

976.385

Mohana

655.1

5696
4

58089

11505
3

980.633
2

Nuagada

439.69

2276
1

24147

46908

942.601
6

Gosani

494.17

3398
6

34822

68808

975.992
2

R.Udayagiri

466.59

2735
6

27153

54509

1007.47
6

Rayagada

961.51

3130
8

33423

64731

936.720
2

10.36

4780

5002

9782

955.617
8

2174
8

21243

42991

1023.77
3

Urban
1

Kasinagar

Parlakhemundi 3.63
(M)

The population of the Gajapati district in the year 2001 was 518,448
(Table 1.1). The rural population was 465,675 and urban population was
52,873. It occupies 2.78 per cent of the total land area of Orissa. In 1991
census there were 40,000 inhabitants belonging to Scheduled Castes and
218,000 belonging to Scheduled Tribes. The sex ratio was found to be 1031
females per 1000 males as shown in Table 4.1. This is due to large number
of mobility of male workers into the neighbouring states like Andhra Pradesh
and Madhya Pradesh. The density of population of Gajapati district was 120.
The literacy rate of Gajapati district was 41.73 per cent in 2001 census. Out
of which 55.14 per cent males and 28.91 per cent are females. The literacy
rate of Scheduled Castes and Scheduled Tribes were 21.74% and 15.88 per
cent respectively (District Statistical Handbook, 2001). The workforce of
the district as obtained from 2001 census were 276,000, out of
which 180,000 were main workers, 96,000 were marginal
4

workers, 91,000 were cultivators and 125,000 were agricultural

labourers. About 16.50 per cent employment is generated under
SGRY, out of which 4.87 per cent were SCs, 8.85 per cent were
STs and 2.78 per cent were OB Cs. There are 2819 groups
working throughout the district of Gajapati and the number of
women participants was 37,032. Out of them 959 groups are
working under NGOs, 1821 groups are working under the ICDS
(Integrated Child Development Schemes), 22 in Block level and
80 groups are working independently.
Review of Literature
Few studies are available on SHG and micro-fi nance and women
empowerment. The researcher has tried to review the following:
Osman (2000) in his article remarked that micro-fi nance
schemes alone can not alleviate poverty. The battle for total
eradication of poverty requires combining micro-fi nance schemes
with parallel, complementary programmes addressing the social
and cultural dimensions of want, privation, impoverishment and
dispossession. Kapur (2001) in her study tried to discuss, analyse
and answer the challenging questions as to why despite all the
eff orts and progress made, still there continues to be so much of
gender discrimination and what strategies, actions and measures
to be undertaken to achieve the expected goal of empowerment.
She opined that womens empowerment is much more likely to be
achieved
if
women
have
total
control
over
their
own
organisations, which they can sustain both fi nancially and
managerially without direct dependence on others. Pattanaik
(2003) in her study reveals that SHGs are continuously striving
for a better future for tribal women as participants, decisionmakers and benefi ciaries in the domestic, economic, social and
cultural spheres of life. But due to certain constraints like
gender inequality, exploitation, women torture for which various
Self Help Groups are not organised properly and eff ectively.
Malhotra (2004) in her book has examined how women
entrepreneurs aff ect the global economy, why women start
business,
how
womens
business
associations
promote
entrepreneurs, and to what extent women contribute to
international trade. It explores potential of micro-fi nance
programmes for empowering and employing women and also
discusses the opportunities and challenges of using micro-fi nance
to tackle the feminisation of poverty. According to her, the microfi nance programmes are aimed to increase womens income
levels and control over income leading to greater levels of
economic independence. They enable womens access to
networks and markets, access to information and possibilities for
development of other social and political role. They also enhance
perceptions of womens contribution to household income and
family welfare, increasing womens participation in household

decisions about expenditure and other issues leading to greater

expenditure on womens welfare. Narasaiah (2004) in her study
mentioned that the change in womens contribution to society is
one of the striking phenomena of the late twentieth century.
According to him micro-credit plays an important role in
empowering women. Giving women the opportunity to realise
their potential in all spheres of society is increasingly important.
Cheston & Kuhn (2004) in their study concluded that microfi nance programmes have been very successful in reaching
women. This gives micro-fi nance institutions an extraordinary
opportunity to act intentionally to empower poor women and to
minimise
the
potentially
negative
impacts
some
women
experiences.
Manimekalai (2004) in his article commented
that to run the income generating activities successfully the
SHGs must get the help of NGOs. The bank off icials should
counsel and guide the women in selecting and implementing
profi table income generating activities. He remarked that the
formation of SHGs have boosted the self-image and confi dence of
rural women. Sahu and Tripathy (2005) in their edited book
views that 70 per cent of worlds poor are women. Access to poor
to banking services is important not only for poverty alleviation
but also for optimising their contribution to the growth of
regional as well as the national economy. Self Help Groups
(SHGs) have emerged as the most vital instrument in the process
of participatory development and women empowerment. The
rural women are the marginalized groups in the society because
of socio-economic constraints. They remain backward and lower
position of the social hierarchical ladder. They can lift
themselves from the morass of poverty and stagnation through
micro fi nance and formation of Self-Help Groups.Das Gupta
(2005) in his article commented that a paradigm shift is required
from fi nancial sector reform to micro-fi nance reform. While
the priority sector needs to be made lean, mandatory micro
credit must be monitored rigorously. Simultaneously space and
scope have to be properly designed for providing competitive
environment to micro-fi nance services. Extensive database needs
to be created by the RBI for understanding micro-fi nance. Sinha
(2005) in his study has observed that micro-fi nance is making a
signifi cant contribution to both the savings and borrowing of the
poor in the country. According to him the main use of microcredit is for direct investment. There is of course some
fungibility, depending on household credit requirements at the
time of loan disbursement. Some studies reveal that microfi nance programmes have had positive as well as negative
impacts on women. Some researchers have questioned how far
micro-fi nance benefi ts women (Goetz and Sen Gupta, 1996).
Some argue that micro-fi nance programmes divert the attention
of women from other more eff ective strategies for empowerment
(Ebdon, 1995), and the attention and the resources of donors
from alternative, and possibly more eff ective means of alleviating

poverty (Rogaly, 1996).

In some cases womens increased
autonomy has been temporary. It only benefi ts women who are
already better off . But in most cases the poorest women are least
able to benefi t because of their low initial resources base, lack of
skill and market contact.
Objectives of the Study
The broad objective of the study is to examine the role and
performance of SHGs in promoting womens empowerment in the
study area. However, the study has some specifi c objectives. They
are:
1. To analyse the economic gains derived by the members
after joining the SHGs.
2. To examine the social benefi ts derived by the members.
3. To analyse the operating system of SHGs for the
mobilization of saving, delivery of credit to the needy,
management of group funds, repayment of loans, in
building up leadership, and establishing linkage with banks
4. To suggest appropriate policy intervention for the eff ective
performance of SHGs.
Methodology
Selection of Study Area and Sample Units: The study
was carried out in selective clusters spread over fi ve blocks of
Gajapati district in Orissa.
It is noteworthy to mention here that the Self-Help Groups
in Gajapati district are promoted by NGOs as well as Government
agencies. Due to time constraint the researcher has selected the
SHGs promoted by a particular NGO i.e., Centre for Community
Development (CCD). At present CCD is working in 5 community
development blocks namely Gumma, R ayagada, Nuagada, Gosani
and Kasinagar. There are 281 Self-Help Groups promoted by CCD
in the fi ve blocks (Appendix 2). The researcher has chosen 10
SHGs each from Gumma, R ayagada, Gosani and Kasinagar
depending upon location-specifi c condition . As Nuagada block
has only 9 SHGs promoted by CCD, all these 9 SHGs were taken
for study. In total the study covers 49 SHGs with 800 members.

Table 1.2 Sampling Frame of the Study

Block
Gumma

SHGs
10

SHG Members
150

Gosani
Kasinagar
R ayagada
Nuagada
Total:

10
10
10
09
49

170
170
160
150
800

Data Collection and Analysis:

In order to collect and gather primary data, field observation and structured
questionnaire survey methods were employed. In addition, information was
also collected through discussions and interviews with local NGOs and
governments grass roots level workers. Secondary data gathered from the
records of SHGs and NGOs and government offices were supplemented by
the primary data collected from the group. A wide range of information such
as composition of membership, savings mobilised, loan disbursed, interest
rates, recovery procedures, assets created, external assistance received etc.
were ascertained from the SHGs and their members. Besides, different
books, newspapers, articles, journals, magazines and web sites were also
referred for the purpose. The data collected from each block
regarding the structure and profi le of SHG members, savings and
loans of SHGs, economic and social benefi ts derived by SHG
members, etc. has been processed separately and averages of
each block are being taken. The analyses obtained from diff erent
blocks are compiled and compared to draw the inferences about
the performance of the SHGs in the study area.
DATA ANALYSIS
Structure of SHGs
T h e s t r u c t ur e a n d c h a r a c t e r i s t i c s o f S e l f- H e l p G r o u p s i n
t h e s t u d y a r ea i s p r e s e n t e d i n Ta b l e 2 . 1 . I t i s n o t e d t h a t t h e
a v e r a g e m e m b e r s h i p p e r S H G wa s 1 6 . 2 6 . T h e s t u d y r e v ea l s t h a t
i n t h e K a s i n a g a r b l o c k , t h e a v e r a g e m e m b e r s h i p o f t h e S e l fHelp Group is highest (17) and Gumma block had lowest
m e m b e r s h i p ( 1 5 ) . M o s t o f t h e m e m b e r s a gr e e d t h a t t h e i r
motives in joining SHGs were to save. Some said they joined
t h e S H G t o g e t c r e d i t t o m e e t t h e u n e x p e c t e d c a s h d e m a n d f or
c o n s u m p t i o n a n d o t h e r p u r p o s e s . Fe w o p i n e d t h a t i t l e d t o
social empowerment.
T h e a v er a g e s a v i n g s p e r S H G wa s R s .
10,693. It varied from Rs. 2097 in Nuagada to Rs. 16125 in
G o s a n i b l o c k . T h e p e r m e m b e r s a v i n g s wa s a r o u n d R s . 6 6 7 .
The frequency of group meeting by SHG indicated that
fortnightly meetings were the most common followed by monthly
and weekly. Meetings are arranged regularly by NGO and Groups.
It is held in the middle of the street. The absentee member has to
pay a fi ne of Rs. 2. The average amount of loans per SHG was Rs.

12345. The highest being Rs.19752 in Gumma block and the

lowest of Rs. 8758 in Nuagada block.

Table 2.1 Structure of SHGs in the Study Area

Item
Membership
average
(No.)
Savings per
SHG (in Rs.)
Loan (Avg.)
(in Rs.)
Frequency of
Weekly:
Fortnightly
Monthly

Gumm
a

Gosan
i

Kasinag
ar

Rayaga
da

Nuagad
a

Overall

15.00

16.78

17.00

15.86

16.66

16.26

14517

16125

13633

7093

2097

10693

19752

17177

16040

8758

group meeting (percentage):

25
15
13
65
68
72
10
17
15

0
35
65

12345
0
28
72

10.6
53.6
35.8

Source: Compiled by the author.

Profi le of SHG Members
The average age of SHG members in the study area is
presented in Table 2.2 it is observed that the average age of SHG
members was 34.2 years, lowest being 32 years in Gosani block
and highest being 37 years in Nuagada block. Regarding the
caste profi le of SHG members, the table shows that majority of
members belong to tribal community. In R ayagada block it is 97
per cent, followed by 90 per cent in Gumma. Educational
background of the SHG members shows that most of them are
illiterate. Only 7 per cent of them have studied up to primary
level. So far as the occupation of the members are concerned,
majority of them are engaged in agricultural activities. As
regards to average income per SHG, it was around Rs. 7918. It
was highest in Kasinagar block (Rs.10057) followed by Gosani
block (Rs. 9223) and lowest in Nuagada block (Rs. 5861).
Table 2.2 Profi le of SHG Members
Item

Gumm
a

Gosan
i

Kasinag
ar

Rayaga
da

Nuagad
a

Overall

Age (years)

34

32

33

35

37

34.2

Percentage
of STs

90

07

46

97

77

62.2

Percentage
of SCs

10

39

03

03

17

14.4

Percentage
of
Other
Castes

54

48

12

22.8

Literacy (%)

5.11

11.23

13.26

3.69

3.88

7.43

71.89

36.55

38.89

69.89

62.57

47.41

28.11

63.45

61.11

30.11

37.43

53.59

7867

9223

10057

6582

5861

7918

Occupation

Agriculture
(percentage
)
Others
Income
(Average)

Source: Compiled by the author.

Purpose of Credit Demanded and Utilised
Generally, after six months operation of savings account,
the saving is pooled and used for internal lending among the
members. The amount of loan and number of loans are decided
by the members themselves depending on their need and
urgency.
Table 2.3 Purpose-wise Credit Demanded by SHG Members
Purpose

Gumm
a

Gosan
i

Kasinag
ar

Rayaga
da

Nuagad
a

Overall

Domestic
consumptio
n

57.66

12.91

15.57

66.54

47.89

30.53

Health

3.22

6.87

9.50

--

2.27

4.37

Festivals

6.11

9.78

8.71

2.39

2.18

5.83

Repayment
of old debts

15.67

10.66

11.52

5.68

10.59

10.82

Investment

10.89

12.57

11.66

14.05

8.67

11.56

Others

6.45

47.21

43.04

11.34

28.4

27.28

Note: Figures in the table indicate percentages.

Source: Compiled by the author.
The purpose-wise credit demanded by the SHG members
from the SHGs is given in Table 2.3. It is observed that most of
the members have demanded credit for domestic consumption
purposes. It is highest in R ayagada block (67%) followed by
Gumma (57.66%). Reasonable proportion of SHG members have

10

demanded credit for other purposes. This percentage is highest

in Kasinagar (43.04%) and lowest in Gumma block (6.45%). About
11.56 percentage of credit is demanded for investment purposes.
A proportion of credit was demanded by the SHG members for
payment of old debts. A less proportion of loan is demanded for
festival and health purposes. From the table it is clear that a
larger share of credit demanded by SHG members is being
utilised
for
domestic
consumption
purposes
followed
by
repayment of debts and others.
Economic Activities Covered by SHG Members
Table 2.4 revels that most of the SHG members are engaged
in the collection and processing of minor forest products. These
products include broom making, cashew, mahul, turmeric,
tamarind, khalli (leaf plates), raw broom, amla, etc. Some of the
members are engaged in individual businesses like preparing
pickle, bodi , papad, haldi powder, wax, making bags, vegetable
business, tailoring, pan shop, etc. They are also engaged in
poultry, dairy and goatery business. Some are engaged in other
activities. As there is a good demand for milk products, they are
preparing sweets with milk, ghee, etc. and are getting good
price. They earn about Rs. 600 to Rs. 1000 per month through
these activities.

11

Table 2.4Economic Activities Covered by the SHG Members

Item

Gumm
a

Gosan
i

Kasinag
ar

Rayaga
da

Nuagad
a

Overall

Collection
75
and
marketing
of
Minor
Forest
Products

55

40

70

60

60.00

Individual
business

10

25

10

11.00

Goatery

10

12

10

15

15

12.4

Dairy

10

18

10

15

12.6

Others

15

7.00

Note:
Figures
in
the
table
Source: Compiled by the author.

indicate

percentages.

Loan Support to SHGs by Banks

There is a bank linkage programme established to SHGs.
The SHG members opened their accounts in various nationalised
banks such as State Bank of India, Indian Bank, Bank of Baroda,
Union Bank of India, Andhra Bank, etc. and also some local banks
like Rushikulya Gramya Bank and Cooperative Banks.
SHG members are getting both internal loans and external
loans under the security of NGOs. They are paying Rs. 2 as
interest per Rs. 100. They are also maintaining cashbook,
membership register, loan register, individual passbook register,
etc. They are taking loans for both production and consumption
purposes. Rushikulya Gram Bank has advanced loans of Rs.
2,96,428 to Gumma Block, followed by Rs. 2,66,611 to Gosani
block (Table 2.5).
So far as loan repayment is concerned, the
SHG members of Gumma Block have repaid 80 per cent of their
loans followed by R ayagada block with 74 per cent. But in Gosani
and Kasinagar blocks, though they are urban based, the
repayment position is not encouraging. In these two blocks the
members repaid only 50 per cent of their loans.
Table 2.5Loan Support to SHGs from Rushikulya Gramya
Bank
Name of the Block
Gumma
Gosani
Kasinagar
Rayagada

Total SHGs
10
10
10
10

Loan availed
Rs. 2,96,428
Rs. 2,66,611
Rs. 2,00,000
Rs. 1,30,000

Loan Repayment
79.80 %
58.91%
52.28%
73.50%

12

Source: Annual Report of CCD, 2003-04.

Benefi ts Derived by SHG Members
Variety of benefi ts are derived by the members of SHGs as
presented in Table 2.6.

13

Table 2.6 Benefi ts

Responses)
Benefits
Habit
of
Savings
Economic
independence
Selfconfidence
Social
cohesion
Asset
ownership
Freedom
from debt
Additional
employment

Derived

Gumm
a
75.44

Gosani

by

SHG

Members

(Multiple

Rayagad
a
76.66

Nuagada

Overall

79.11

Kasinaga
r
68.22

80.66

76.00

70.00

70.00

65.00

66.80

65.00

67.36

81.00

85.86

82.88

78.00

80.00

81.54

70.00

80.88

71.11

68.88

85.00

75.17

48.33

52.34

24.40

54.99

58.22

47.65

49.00

66.00

75.08

67.00

59.76

63.36

21.11

32.80

41.80

38.40

58.90

38.60

Note: Figures in the

Compiled by the author.)

table

indicate

percentages.(Source:

One of the outstanding benefi ts reported by all the

members is the development of self-confi dence (81.54%) ranked
fi rst, followed by savings habit (76%), economic independence
(67.36%), social cohesion (75.17%), freedom from debt (63.36%),
asset ownership (47.65%), additional employment (38.60%).
Findings of the Study
Based on the interviews and discussions with the group
members, fi eld workers of the local NGO and group questionnaire
survey results, the following fi ndings emerged.
The social profi le of SHG members indicates that majority
of members are tribal, i.e., their overall average is 66.2 per cent.
The overall literacy rate is only 7.43 per cent as against the
district tribal female literacy rate of 15.88 per cent.
It is found that the operational eff iciency and group
dynamics of the SHG is not same in all blocks. This could be
attributed to several factors like background of SHG formation,
internal problem, support provided by the promoters, eff ective
leadership, etc.
It is observed that the average membership in SHG was
around 16.26. Membership is highest in Kasinagar block and
lowest in Gumma block. This may be due to the urban-base of
Kasinagar in contrast to Gumma, where 90 per cent of members
are tribals.
The members had joined the group in order to earn more
income, promote savings habits and to develop collective
economic and social activities.

14

So far as the frequency of group meetings are concerned, it

is observed that fortnightly meetings were the most common. In
Gumma, Gosani and Kasinagar block the SHG members arrange
their meetings twice in a month. But in R ayagada and Nuagada,
the meetings are held once in a month.
The Groups maintain cashbooks, passbooks and attendance
registers. The members in-charge of accounts are being given
training in bookkeeping by the CCD. But the member who looks
after all these secretarial work is not paid any fi nancial
incentive.
From the study, it is found that individual members
contribute Rs. 10 to Rs. 50 per month. 70 per cent of SHG
circulated thrift and their period of circulation was monthly.
Accumulated savings by members to group funds per SHG were
to the tune of Rs. 10,693, against this loan disbursed amounted
to Rs. 12,345.
The SHG disbursed loans both for consumption and
production purposes. Purpose-wise disbursement of credit by
SHG indicates that, domestic consumption received maximum
share of 30.33 per cent, followed by others (27.28%). It is found
that credit demanded for investment purpose is very low.
As far as external loan is concerned, the Rushikulya Gramya
Bank has advanced loans to the tune of Rs. 2.96 lakh to Gumma
block followed by Rs. 2.66 lakh to Gosani block. The members
have invested the loan in diff erent economic activities like broom
making, khalli stitching (leaf-plates), preparing eatables like
bodi , papad, etc. They are also engaged in poultry, dairy and
goatery business. In Gosani block, the members are preparing milk
products like sweets, ghee, khoa, etc. and getting good price. They
earn about Rs. 600 to Rs. 1000 per month through these activities.
The study reveals that the members are not skilled enough to run
various units.
Members
perceived
several
benefi ts
through
their
membership in SHGs such as economic independence and selfconfi dence (81.54%), promotion of savings habits (76%), social
cohesion (75.17%) and freedom from debt (63.36%).
The study also reveals that SHGs had set a new agenda for
fi nancial intermediation by banks in the form of micro-credit. It
has infused dynamism among its members to climb up socioeconomic ladder in the development process. Thus, SHGs have
served the cause of women empowerment, social solidarity and
socio-economic betterment of the poor for their consolidation.
Conclusion and suggestions
Considering the fi ndings
suggestions were prescribed.

of

the

study,

the

following

15

Literacy and numeric training is needed for the poor women

to benefi t from the micro-credit schemes.

Training in legal literacy, rights and gender awareness are

important
complements
to
micro-credit
for
the
empowerment of women. The members should be given
necessary training and guidance for the successful
operation of the group.

The members of the SHG should be more active,

enthusiastic and dynamic to mobilise their savings by group
actions. In this process NGOs should act as a facilitator and
motivator.

The off ice bearers managing the group should be given

nominal fi nancial benefi ts, which will enable them to be
more involved in the activities of the Group.

The bank should advance

according to their needs.

Uniformity should be maintained in formation and extension

of fi nancial assistance to them by banks in all blocks.

The procedure of the banks in sanctioning credit to SHG

should be simple and quick.

Marketing facilities for the sale of products of SHG may be

created.

Periodical exhibitions at block-level may be

where the products of SHG can be displayed.

Meetings and Seminars may be organised where the

members will get a chance to exchange their views and be
able to develop their group strength by interactions.

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 market.

adequate

credit

to

the

SHG

organised

Policy Implications
In this twenty-fi rst century, we must take along an active
people- centred and growth-oriented poverty alleviation strategy
a strategy which seem to incorporate womens aspirations,
dynamism and involvement. It is envisaged that self-help groups
will play a vital role in such strategy. But there is a need for
structural orientation of the groups to suit the requirements of
new business.
Micro credit movement has to be viewed from a long-term
perspective under SHG framework, which underlines the need for
a deliberate policy implications in favour of assurance in terms

16

of technology back-up, product market and human resource

development. Hence, there is a need for the development of an
innovative and diversifi ed micro-fi nance sector, which will make
a real contribution to women empowerment.

References
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Bosch, Ellie (2002), Micro-finance: New Wine in a New Bottle, A

Supplementing Role for Cordaid and IICO, March.
Censuses of India, C series, RGI, New Delhi, 2001.
Cheston, Susy and Lisa Kuhn (2002), Empowering Women Through
Microfinance, Unpublished Background Paper for the Micro-credit
Summit
15,
New
York,
10-13
November
(www.microcreditsummit.org).
Dasgupta, Rajaram (2005). Microfinance in India: Empirical
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District Statistical Handbook, Gajapati (2000).
Kabeer, N. (2001), Resources Agency Achievements: Reflections on
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Kapoor, Pramilla (2001), Empowering the Indian Women, Publications
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Malhotra, Meenakshi (2004), Empowerment of Women, Isha Books,
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Manimekalai, K. (2004), Economic Empowerment of Women Through
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Narasiah, M.L. (2004),
Publications, New Delhi.

Women

and

Microcredit ,

Sonali

Osman, Khalil, Microfinance Institutions: Effective Weapon in the

War against Rural Poverty, www.muslimedia.com.
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Pattanaik, Sunanda, Smaranika, 2003, Empowerment through SHG:
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Sahu and Tripathy (2005), Self-Help Groups and
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Women

17

Sinha, Frances (2005), Access, Use and Contribution of Micro-Finance in India: Findings from a National
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