Chapter IX SWOT ANALYSIS OF THE SAMPLE RESPONDENTS

Chapter IX SWOT ANALYSIS OF THE SAMPLE RESPONDENTS

An attempt is made in the present study to examine the strengths, weaknesses, threats and opportunities of sample SHGs so as to analyze the prospects of SHGs in microfinance management. This Chapter presents the SWOT analysis of the sample respondents SHGs. SWOT analysis is a qualitative tool which by identifying the strengths, weakness, opportunities and threats to the SHGs makes an overall assessment of the performance of the groups. 9.1 Strengths The study has identified various aspects of group functioning as their strengths. Strengths of the sample respondents are shown in Table 9.1. Graphical presentation is made in Graph IX.1. Proper rationale behind joining SHGs is found to be their strength since all the members under study joined SHGs with various reasons like saving money, getting loan at low rate of interest, earning money, benefitting from the government programme and availing of credit for emergencies. Small group size is also found to be strength of the sample SHGs as management of the group is easy with small number of members. Selection of Group Leader, who is acceptable to all members, is also the strength of the group as members have the option to select their leader at their cause. It is found from the field survey that a member, who is literate and acceptable to all the members, was selected as the group leader. However, it is also observed from the study that some of the groups preferred to select a member as a group leader, who is acceptable to all the 323

group members, even though she is not a well educated. The study shows unity among the sample respondents, which results in fewer conflicts among the group members. As regards credit plus activities as strength, it can be said that a large number of sample SHGs have taken up many issues relevant to social or community life, going much beyond the saving and credit function of SHGs. This has clearly contributed to the visibility of the SHGs in the village community and their ability to influence community decisions. This is bound to have a beneficial effect on the long-term sustainability of groups. It is evident from the study that conducting of meetings regularly, holding of meetings whenever necessary, recording of minutes regularly, unanimous decisions and providing chance to every member to raise voice in the meetings are also the strengths of the sample SHGs. Conducting of meetings in such manner enables the sustainability of the groups and gives a chance to discuss and overcome their problems. This provision is also their strength. Of the sample surveyed, 72 per cent of the sample respondents regularly attend to the group meetings. Of the sample surveyed, 98 per cent of the members under study knew rules and regulations of SHGs. This is also the strength of sample SHGs. In case the Group Leader is unable to solve the problems of the 324

Table 9.1 STRENGTHS OF SAMPLE RESPONDENTS Sl. % of Strengths No. respondents 1. Proper rationale behind joining SHGs 100% 2. Selection of Group Leader, who is acceptable to all members 100% 3. Credit plus activities 100% 4. Regular conducting of meetings 100% 5. Holding of meetings whenever necessary 100% 6. Recording of minutes regularly 100% 7. Unanimous decisions 100% 8. Providing chance to every member to raise their voice 100% 9. Involvement of Grama Samaikya (Village SHG leaders) in the conflicts of the group members 100% 10. No drop out of members in the group 100% 11. Flexibility in group management in terms of amount of savings 100% 12. Flexibility in group management in terms of, norms for internal 100% group loan 13. Flexibility in group management in terms of disbursement of 100% bank loan etc. 14. Regular payment of thrift amount 100% 15. Proper utilization of interest accrued on savings amount 100% 16. No record of losses 100% 17. Having awareness about rules and regulations to all the 98% members 18. Running of IGA individually 97% 19. Regular updating of books of accounts 96% 20. Regular updating of member s passbooks 96% 21. Regular updating of SHG passbook 95% 22. Regular repayment of bank loan installment amount 89% 23. Regular repayment of internal group loan installment amount 87% 24. Selection of Income Generating Activity 87% 25. Periodical appraisal of performance of the group 84% 26. Unity among group members 76% 27. Regular attendance of the members to the group meetings 72% 28. Marketing on own 55% 29. Support from the family members to provide capital in case loan 12% amount is not sufficient Source: Computed from the Primary Data. 325

Graph IX.1 STRENGTHS OF THE SAMPLE RESPONDENTS Support from the family members to provide capital in case loan amount is not sufficient Regular attendance of the members to the group meetings % of respondents Periodical appraisal of performance of the group Regular repayment of internal group loan installment amount Regular updating of SHG passbook Regular updating of books of accounts Having awareness about rules and regulations to all the members Proper utilization of interest accrued on savings amount Flexibility in group management in terms of disbursement of bank loan etc. Flexibility in group management in terms of amount of savings Involvement of Grama Samaikya (Village SHG leaders) in the conflicts of the group members Unanimous decisions Holding of meetings whenever necessary Credit plus activities Proper rationale behind joining SHGs 0% 20% 40% 60% 80% 100% 120% Source: Table 9.1. 326

group, village level SHG Leaders are involving in the matters of the group and they are resolving the problems. This is also said to be their strength. Periodical appraisal of the performance of the group is found to be other strength of the sample SHGs. Of the sample surveyed, 84 per cent of the respondents are appraising the performance of the group periodically. It is also found from the study that sample respondents are updating the books of accounts regularly. They also update the passbook of the group as well as the members regularly. This is also their strength in the functioning of their group. It is interesting to note from the study that no drop out of a member is reported in the study area. Though there are conflicts among the group members sometimes, they are not permanent. May be these conflicts are of functional nature, but not personal. As a result, no member in the sample groups is dropped out. Group cohesiveness per se is observed in the present study. This shows the good organizational sustainability of the sample SHGs. This is also the one of the strengths of the sample SHGs as drop out of members from the group may lead to certain problems in the sustainability of the groups. Sample respondents reported that they determine the amount of savings. If they desire, they enhance the amount of thrift. In the study area, amount of thrift is enhanced from Rs.30/- to Rs.100/-. They also have the right to determine the norms for internal group lending as well as disbursement of bank loan. Thus, they have the flexibility to this extent in 327

managing their group. This flexibility in management is also one of their strength in managing the group. The payment of thrift amount regularly is found to be one of the strength of the sample SHGs. The bank credits the interest amount on the savings of the SHGs into their accounts as per the bank interest rates for savings. This interest amount is not a big amount. It is noteworthy to observe from the field survey that sample groups are meeting these expenses from the interest accrued in the banks on their monthly savings. A small percentage of the sample groups, who hired persons for book keeping, are paying remuneration to them meeting the expenditure from this interest amount. Thus, there is a proper utilization of interest accrued on the savings of the group and it is found to be one of the strength. As regards financial sustainability of the sample SHGs, regular repayment of internal group loan installment full amount as well as bank loan installment full amount are found in the case of huge percentage of the sample respondents. This kind of repayment performance is one of the strength of the sample SHGs. Of the sample surveyed, 87 per cent of the sample respondents had chosen income generating activity based on certain criteria like availability of raw materials (43 per cent); market demand (26 per cent); training & skill in the field (11 per cent); and Others (7 per cent). This is also their strength as they have selected the activity after appraising the availability of raw material, market demand, etc. 328

Majority of the sample respondents are running the income generating activities individually. Although running the activity individually posses personal liability, it is said to be one of their strength as the profits or losses in the activity have to bear by the individual only and it can t affect the group as a whole. Some of the members stated that they are depending on the income of the family members in case the loan amount is not sufficient to run their activity and the family members are also supporting them. This financial support from the family is also their strength. No sample respondent reported loss in the study area. All the members under study reported profits ranging from below INR 5000 to above INR 10000. Thus running the activity without losses is also their strength. Of the sample surveyed, 55 per cent of the respondents are selling their products in their own market. Hence, marketing is also strength in the case of these 55 per cent of the sample respondents. 9.2 Weaknesses There are certain attributes in which the sample SHGs assessed to be weak or deficient. Weaknesses are shown in Table 9.2. Graphical presentation is made in Graph IX.2. Inadequate capital is found to be one of the major weaknesses of the sample members. It is found from the study that sample respondents are not intimating in advance about their absence 329

to the group meetings. This is found to be weakness in the functioning of the group. Another weakness found in the functioning of the sample SHGs is lack of regular rotation of the group leader. It is noted from the study that sample groups are changing their group leader for each new loan they received from the bank. Other than this, they are not following any rotation for the group leader. They stated that changing of group leader is a complex process. Though they can easily change the Group Leader in the Grama Samaikya easily, they are facing serious problems in the bank to change the group leader. Hence, the sample groups are not resorting to changing group leader frequently on rotation basis. They are continuing the present Group Leader till the successful repayment of the present loan and they are changing their Group Leaders by the time of receiving of the new loan if necessary. Another weakness reported is inadequate capital. They reported that loan amount is not sufficient to meet their expenses. Certain other weakness like irregular attendance of the members to the group meeting (28 per cent), lack of periodical appraisal of the performance of the group (16 per cent), poor performance in the repayment of internal group loan (13 per cent), selection of Income Generating Activity without any reason (13 per cent), poor performance in the repayment of bank loan (11 per cent), irregular updating of SHG passbook (5 per cent), irregular updating of books of accounts (4 per cent), irregular updating of SHG passbook (4 per cent) and not having awareness about rules and regulations (2 per cent) are much less prominent. 330

Sl. No. Table 9.2 WEAKNESSES OF SAMPLE RESPONDENTS SHGs Weaknesses % of respondents 1. Non-intimation of absence to the group meetings in case it is not possible to attend the meeting 100% 2. Lack of rotation of group leaders 100% 3. Lack of adequate capital 65% 4. Irregular attendance of the members to the group meeting 28% 5. Lack of periodical appraisal of the performance of the group 16% 6. Poor performance in the repayment of internal group loan 13% 7. Selection of Income Generating Activity without any reason 13% 8. Poor performance in the repayment of bank loan 11% 9. Irregular updating of SHG passbook 5% 10. Irregular updating of books of accounts 4% 11. Irregular updating of SHG passbook 4% 12. Not having awareness about rules and regulations 2% Source: Computed from the Primary Data 331

Graph IX.2 WEAKNESSES OF THE SAMPLE RESPONDENTS % of respondents Not having awareness about rules and regulations Irregular updating of SHG passbook Irregular updating of books of accounts Irregular updating of SHG passbook Poor performance in the repayment of bank loan Selection of Income Generating Activity without any reason Poor performance in the repayment of internal group loan Lack of periodical appraisal of the performance of the group Irregular attendance of the members to the group meeting Lack of adequate capital Lack of rotation of group leaders Non-intimation of absence to the group meetings in case it is not possible to attend the meeting 0% 20% 40% 60% 80% 100% 120% Source: Table 9.2 332

9.3 Opportunities Most of the SHGs are conscious of opportunities available to consolidate strengths and overcome weaknesses. There are certain opportunities. Table 9.3 presents the opportunities of the sample respondents. Graphical presentation is made in Graph IX.3. Topping the list are the opportunity to participate in social activities and earning of profits through IGAs, increase in the income, increase in the savings and providing employment opportunities. Sample respondents also reported creation of more than 300 days of man days after joining SHGs. This is also another opportunity due to SHGs. Other opportunities include capacity to spend more on food as well as non food expenditure; creating confidence to face problems; increasing of decision-making power in the family; improving literacy and communication skill; giving social status; creates better awareness about health; increase in the value of assets; creating awareness about self-reliance; improving leadership skill; inducing social responsibility and creating of more than 300 man days in a year 333

Sl. No. Table 9.3 OPPORTUNITIES OF SAMPLE RESPONDENTS Opportunities % of respondents 1. Participation in social activities 100% 2. Earning of profits 100% 3. Increases the income 100% 4. Increases the savings 100% 5. Provides employment opportunities 100% 6. Capacity to spend more on food as well as non food expenditure 98% 7. Creates confidence to face problems 97% 8. Increases decision-making power in the family 94% 9. Improves literacy and communication skill 92% 10. Gives social status 91% 11. Creates better awareness about health 86% 12. Increase in the value of assets 83% 13. Creates awareness about self-reliance 83% 14. Improves leadership skill 81% 15. Induces social responsibility 79% 16. Creation of more than 300 man days in a year 76% Source: Computed from the Primary Data. 334

Graph 9.3 OPPORTUNITIES OF THE SAMPLE RESPONDENTS % of respondents Induces social responsibility Creates awareness about self-reliance Creates better awareness about health Improves literacy and communication skill Creates confidence to face problems Provides employment opportunities Increases the income Participation in social activities 0% 20% 40% 60% 80% 100% 120% Source: Table 9.3. 335

9.4 Threats For any collective entity or organization to survive, it is necessary for the members of the collective or organization to have the capacity to identify threat factors and take steps to ensure that these threats do not affect sustainability. In the SWOT exercise, 6 threats have identified. Threats of the sample respondents are shown in Table 9.4. Graphical presentation is made in Graph IV.4. It is evident from the table that lack of training to the SHGs on conflict management is found to be major threat. Depending on others for marketing is also reported to be one of the threat in the case of 45 per cent of the sample respondents. At the next level, dependence on money lenders for insufficient capital amount is found to be threat in the case of 44 per cent of the sample respondents. Although the government provides financial support to the women through SHGs, due to insufficient amount of assistance they are still depending on the money lenders. Hence, this needs to be addressed. Less prominent threats are group conflicts (24 per cent), lack of support from the family members to group members (24 per cent) and problem of Raw materials (17 per cent). 336

Sl. No. Table 9.4 THREATS OF SAMPLE RESPONDENTS Threats % of respondents 1. Lack of training to the SHGs on conflict management 100% 2. Dependence on others for marketing 45% 3. Dependence on money lenders for insufficient capital amount 44% 4. Group Conflicts 24% 5. Lack of support from the family members to group members 24% 6. Problem of Raw materials 17% Source: Computed from the Primary Data 337

Graph IX.4 THREATS OF THE SAMPLE RESPONDENTS % of respondents Problem of Raw materials Lack of support from the family members to group members Group Conflicts Dependence on money lenders for insufficient capital amount Dependence on others for marketing Lack of training to the SHGs on conflict management 0% 20% 40% 60% 80% 100% 120% Source: Table 9.4. 338

To sum-up, it can be said that SWOT analysis of sample SHGs shows that strengths and opportunities are found to be higher in degree when compared to weakness and threats. This is the ample evidence of the fact that women in the Self Help Groups are confident of overcoming the minor weaknesses and threats utilizing the major strengths and opportunities that they possess. * * * 339