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A Comparative Study on the Structure and Functioning of SHG’s Promoted by Various Institutions

Ajith B. Jagadeeswary V. Satyanarayan K.
Vol 7(5), 162-167
DOI- http://dx.doi.org/10.5455/ijlr.20170405050239

Self help groups represent a form of intervention and is considered as an effective strategy for poverty alleviation, women development and social empowerment. Adopting exploratory research design, SHGs promoted by various institutions in Tumkur district of Karnataka were studied. Madhugiri and Tiptur Taluks were selected from Tumkur district and two hoblies from each Taluk and a cluster of villages covering three neighbouring villages in each hobli were selected for the study. A sum total of 48 SHGs were covered under the study and 240 members were randomly selected and data were collected. Majority of the SHGs were 5 to 10 years old, conducted meetings once a week and maintained all the registers upto date. Majority had individual savings up to Rs 4000/- and availed loan for cattle or buffalo purchase to undertake dairying as their major income generating activity and all the members were benefited after joining the SHGs promoted by all institutions.


Keywords : Self Help Groups Institutions Women development Empowerment

Introduction

Empowerment in the context of women’s development is a way of defining, challenging and overcoming barriers in a woman’s life through which she increases her ability to shape her life and environment. It is an active, multidimensional process which should enable women to realize their full identity and power in all spheres of life. SHGs gain strength, power and influence by collective action taken on behalf of overcoming oppressive social conditions. SHGs are an effective way of ensuring credit or loans to the poor and serves as financial security in the form of collateral, repayment assurance through ‘peer pressures’ tactics, and a standing record of an almost 100 percent loan repayment rate. This also installs a sense of community, because a Self -Help group is a collective endeavor and the credit standing of the group depends on the fiscal responsibility of its members (Samanta and Dutt, 2006). The success of the rural development depends upon the active participation and willing co-operation of the rural people through Self-Help organizations and voluntary agencies. In recent years, the voluntary agencies have acquired greater importance and significance than before in reaching the people, especially the poor and weaker sections. They have been able to make their presence felt from the local to the national level and now at the international level also. In Karnataka SHG’s are promoted by various institutions like government agencies, NGO’s and cooperative banks (District Central Cooperative bank). The self help movement is deep-rooted in southern states of the country and Karnataka has been among the top three states in the country in SHG-bank linkage. The present study is aimed at comparing the structure and function of SHGs promoted by various institutions.

Materials and Methods

The exploratory research design was adopted to formulate this problem for more precise investigation and to develop working hypothesis from an operational point of view. The Tumkur district was selected purposively for the study as it had a large number of SHG’s (Anitha and Kavitha, 2008) promoted by various institutions like Children Development Programme Office (CDPO), Dharmastala Grameenabhivruddi Yojane (DGY), District Central Cooperative bank (DCC) and Bharatiya Agro Industrial Federation (BAIF) and were functioning effectively in the district for the welfare of the rural poor through these SHG’s.

In Tumkur district, Madhugiri and Tiptur taluks were selected for the study as in these taluks, the SHGs were effectively formed in large numbers with active participation of many voluntary organisations. From these selected taluks, two hoblis were selected randomly from each taluk in order to collect the data for the present study and from these two hoblies in each taluk, a cluster of villages each containing three neighbouring villages was selected in accordance with the study. In each village the SHGs promoted by four institutions were selected and 5 members from each SHG promoted by these four institutions were selected randomly and totally 20 respondents were studied from each village. A sum total of 120 respondents from each taluk were interviewed at different villages for collecting the data. Thus the present study covered 48 SHGs and 240 members, belonging to 12 villages, 4 hoblis and 2 taluks.

To collect the information on the structure and functioning of the SHG’s, interview schedule was developed which consisted of various factors pertaining to the structure and functioning of the SHG’s and the information was collected by personally interviewing the members. The structure and functioning of the SHG’s were studied with respect to many factors like the composition of the group, age of the SHG, number of meetings conducted per month, number of members attending the meeting actively and regularly, registers maintained by the members, information on the individual savings, group savings, benefits got by the members after joining the SHG’s, loan provided by the SHG’s, mode of payment and the purpose of internal loan. The data obtained were subjected to suitable statistical tools like frequencies and percentages.

Results and Discussion

Among all the SHGs promoted by various institutions majority (36.25%) fall in the age group of 5 to 10 years. The introducers for the members to join SHGs were the NGO staff in all the institutions except in government agencies where anganwadi workers were involved in the process. The strength of the SHGs was in the range of 10 to 15 with women as the major composition of the group. The reason might be due to the fact that the women were found to be more creditworthy than men, had free time and were interested in micro savings to meet the day today family requirements. All the institutions were conducting 4 meetings per month on weekly basis and majority (89.58%) of the members were attending the meeting regularly and actively. It was observed that weekly meetings were conducted which were indispensable to maintain frequent contacts with members, to discuss about activities, carryout transactions and to contribute to their savings. Similar findings were expressed by Sushant et al., 2011. Minimal (10.41%) members remained as absentees for the meeting and the members were updating all type of records and registers up to date. Findings were similar to the results of Fernandez 2006. (Table 1)

Table 1: Structure and function of SHGs promoted by various institutions

Age of the SHG CDPO DGY BAIF DCC Total
F % F % F % F % F %
< 1 year

1-5 years

5-10 years

> 10 years

15

25

20

25.00

41.67

48.33

60

100.00

30

25

5

50.00

41.67

8.33

23

37

38.33

61.67

60

25.00

28.33

36.25

10.41

Introducer Anganawadi Workers NGO Staff NGO Staff NGO Staff
Members at present

5-10

10-15

15-20

29

31

48.33

51.67

30

30

50.00

50.00

10

45

5

16.67

75.00

8.33

10

48

2

16.67

80.00

3.33

50

152

38

20.83

63.33

15.83

Composition of the group

Women

Men

60

100.00

45

15

75.00

25.00

50

10

83.33

16.67

60

100.00

215

25

89.58

10.41

Meetings per month 4 100.00 4 100.00 4 100.00 4 100.00
Regular members attending meeting 50 83.33 60 100.00 50 83.33 55 91.66 215 89.58
Active members participating in meeting 50 83.33 60 100.00 50 83.33 55 91.66 215 89.58
Registers maintained 60 100.00 60 100.00 60 100.00 60 100.00 240 100.00
Absent for meeting 10 16.67 10 16.67 5 8.33 25 10.41
Books update 60 100.00 60 100.00 60 100.00 60 100.00 240 100.00

Most of the SHGs promoted by CDPO, DCC and BAIF had individual savings in the range of Rs. 4000 – Rs. 8000 and DGY promoted SHGs had less than Rs. 4000/- as their individual savings (Table 2).

Table 2: Distribution of members based on the individual savings

Individual savings CDPO DGY BAIF DCC Total
F % F % F % F % F %
1-4000 10 16.67 60 100.00 25 41.67 23 38.33 118 49.16
4000-8000 45 75.00 35 58.33 35 58.33 115 47.91
>8000 5 8.33 2 3.33 7 2.91

Majority (61.67%) had Rs.13000 – Rs. 26000 as their group savings while the others had less than Rs.13000/- rupees as their group savings. All the SHGs promoted by NGOs and cooperatives had the group savings of less than Rs. 130000/- but the SHGs promoted by government body has group savings in the range of Rs. 130000 – Rs. 260000 (Table 3).

Table 3: Distribution of members based on group savings

Group savings CDPO DGY BAIF DCC Total
F % F % F % F % F %
<130000 18 30.00 60 100.00 55 91.67 48 80.00 181 75.41
130000-260000 37 61.67 5 8.33 12 20.00 54 22.50
>260000 5 8.33 5 2.08

All the members in SHGs promoted by all institutions were benefited in terms of doing bank transactions, improvement in communication skill, learnt to do signature, helped to improve the quality of life, availability of loans whenever required, attending various extension programs and imbibed more confidence to take up risks and opportunities in life (Table 4).

Table 4: Benefits after joining SHGs

Benefits CDPO DGY BAIF DCC Total
F % F % F % F % F %
Learnt bank transactions 60 100.00 60 100.00 60 100.00 60 100.00 240 100
Improvement in communication skill 60 100.00 60 100.00 60 100.00 60 100.00 240 100
Learnt to do signature 60 100.00 60 100.00 60 100.00 60 100.00 240 100
Helped to improve the quality of life 60 100.00 60 100.00 60 100.00 60 100.00 240 100
Availability of loans whenever required 60 100.00 60 100.00 60 100.00 60 100.00 240 100
Attending various extension programs 60 100.00 60 100.00 60 100.00 60 100.00 240 100
Imbibed more confidence to take up risks and opportunities in life 60 100.00 60 100.00 60 100.00 60 100.00 240 100

Majority of the members in all institutions had availed loan and most of them had invested on purchasing cattle or buffalo (39.16%) to take up the animal husbandry activity (dairying) as their major income generating activity (Table 5 & 6). Similar results were expressed by Chaithra, 2008. Since they had traditional knowledge about rearing cows, there was a regular cash flow and existence of organised market facilities for the livestock products, might have resulted in availing loan for the dairy activity by the members (Table 6).

Table 5: Distribution of members based on the purpose of the internal loan

Purpose of loan availed CDPO DGY BAIF DCC Total
F % F % F % F % F %
Cattle or buffalo purchase 9 15.00 29 48.33 35 58.33 21 35.00 94 39.16
Small ruminants purchase 18 30.00 5 8.33 20 33.33 43 17.91
House construction 15 25.00 3 5.00 8.33 5.00 5 8.33 23 9.58
Educational purpose 16 26.67 5 5.00 2 3.33 8 13.33 31 12.91
Personal problems 20 33.33 5 5.00 3 5.00 6 10.00 34 14.16

Table 6: Income generating activity after joining SHGs

Income generating activity CDPO DGY BAIF DCC Total
F % F % F % F % F %
Cattle rearing 9 15.00 29 48.33 35 58.33 21 35.00 94 39.16
Small ruminants rearing 18 30.00 5 8.33 20 33.33 43 17.91

Conclusion

Majority of SHGs were 5 to 10 years old, with 10 to 15 members with the major composition of female, conducting 4 meetings in a month regularly, time and date was fixed depending on their leisure time in a week. Majority of the members attended the meeting regularly and participated actively. All the SHGs maintained and updated the registers regularly, had individual savings up to Rs. 4000/- and group savings, less than Rs. 130000/-. All the members benefited after joining the SHGs and availed loan for cattle purchase to take up the dairying as their major income generating activity. The implications with respect to the structure and functioning of the SHGs is that, there were no major differences observed between government, NGOs and cooperative promoted SHGs. Members of SHGs were involved in only few income generating activities (cattle and small ruminants rearing) and some of the members had not undertaken any economic activity. Hence, it is important to encourage them to undertake more income generating activities like poultry farming, piggery farming and rabbit farming to earn more income. Women in the SHGs have become more self confident, economically independent and socially empowered. So it is very much essential to establish and encourage SHG’s in all rural areas for the economic and social empowerment of women.

References

  1. Anitha HS and Kavitha S. 2008. Working of SHGs in Davangere city – A Pioneering Study. http://www.nabard.org/pdf/stmt8.pdf.
  2. Chaithra KM. 2008. Performance of stree shakti groups in mandya district – an economic analysis. M. Sc. Thesis. UAS, Dharwad
  3. Fernandez AP. 2006. The role of self help affinity groups in promoting financial inclusion of landless and marginal/small farmer’s families. Myrada
  4. Samanta G and Dutt KL. 2006. Constructing social capital: SHGs and rural women’s development in India. Geographical research, 44 (3): 285-295
  5. Sushant H, Veeranna KC, Shivanand Kumbar and Gopala GT. 2011. Promotion of goat rearer groups and study of its structure and function. Veterinary science Research Journal, 2 (1-2):1-5.
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