IMPACT OF MICROFINANCE AND WOMEN EMPOWERMENT - AN ANALYSIS WITH REFERENCE TO BENGALURU RURAL DISTRICT Prof. F. Arockia Doss, Research Scholar, Bharathiar University, Coimbatore, Tamil Nadu, India Dr. Kalaivani K. N., Assistant Professor Dr. S. Gopalaraju Govt. First Grade College ANEKAL, Bangalore Rural District, Karnataka, India Abstract Microfinance programe is globally well accepted as powerful tool of attacking poverty. Indian microfinance sector dominated by SHGs addresses the untouched by any formal financial agencies and is benefitting them through eradication of poverty. Microfinance approach is accepted by World Bank and other financial institutions as an important powerful tool for poverty eradication and enhancemnt of living standards of women in the rural areas. The research studies clearly reveals huge demand which is increasing of day by day and supply of credit to the rural poor is not sufficient and there exist a wide gap in the provision of financial service to the poor. This scenario has to be addressed properly in order to raise income of the poor and to provide employment which in turn positively trigger savings mobilization. Keyboards: Empowerment, Employment, Eradication of poverty, Impact measurement. INTRODUCTION Microfinance programes are designed by planners in order to generate income and employment and alleviate poverty especially in the developing nations. Microfinance approach is well accepted by World Bank and other financial institutions as the strongest powerful tool of poverty alleviation and enhancement of women living standards. SHG linked credit programme in Karnataka is gaining momentum by promoting women by bringing them into main streams. Since many of the government sponsored programmes could not fetch much expected result and failed to touch target population of the country, microfinance programmes are becoming highly popular in India especially in the southern part of the country. On account of microfinance programmes millions of rural people have now access to regular savings through 74.02 lakh SHGs linked to different facilities, speaks about the tremendous progress at contribution of microfinance. Need for the study (1) Since all government sponsored programmes have failed in targeting the concerned, microfinance programme is a self help programme will be highly successful. (2) An SHG is a democratic form of organisation and peer member can exercise peer power and monitor loan utilisation. (3) It is an association of known people, known caste, known area, known relation and loan recoveries can not be a problem. (4) Women members can manage better the activities of SHG more effectively. (5) Women represent most of the world poor and their empowerment depends upon their own association. (6) Indias economic growth has failed to make a significant improvement in poverty figures with 400 + million more are still in the grip of absolute poverty (Padmalochana Mahanta et al.,) 1.
(7) NABARD, the apex government financial instituion provides micro finance to the poor and claims that 90% of the beneficiaries are women and impact measuremnt 2009 find that existence of significance of growth in assets (30%) and income levels (23%) of the beneficiaries (Chandrashekar, 2013) 2. (8) The precious research studies reveals that the programme reduce poverty through increase in income and enable the poor to build assets and thereby reduce vulnerability (Srinivas 2010) 3. REVIEW OF LITERATURE Srinivas (2010) 4 has stated that there is ample evidence that SHG programme reduces poverty through increase in income and enables the poor to build assets and thereby reduce their vulnerability. Amma and Panicker (2008) 5 have stated that the impact of SHGs have shown positive growth in addressing the socio economic characterstics of the members like income, saving, expenditure, employment and microenterprise development. Singh (2009) 6 in his research stated that microfinance through SHG has brought positive change in the field of literacy and migration. OBJECTIVES: (1) To measure the results of impactnes in terms of knowledge and awareness. (2) To study the level of income increase and savings of SHG members. (3) To study the level of women empowerment. HYPOTHESES (1) There exists no knowledge and awareness over related stated variables. (2) There exists no increase either in income or savings of SHG members. (3) The women SHG member in the study area do not possess empowerment. RESEARCH METHODOLOGY The quality of any impact measurement depends upon two factors. They are (1) sample size (2) reliability of indicators. Hence, maximum care was exercised while deciding methodology in order to gain maximum advantage and to ensure twin objectives of impact evaluation, and guidelines of Bakar (2000) 28 model was followed. In order to collect the data particularly in rural Bengaluru convenient sampling technique was used and a sample of 250 was thought fit for the purpose looking into geographical coverage. Since the present study is based on primary data suitable techniques were applied in addition to in depth interview of respondents with valid and clearly written questionnaire. Besides this informal discussions were held with Anganawadi workers, Branch Managers, and NGO facilitators. The data collection programme was commenced on October, 5 th 2014 and ended on 30 th October, 2014 and extensive use of percentages, chi-square and ANOVA techniques were used in order to give a scientific touch to the data. SURVEY FINDINGS Table-1 reveals valuable information about demographic variables under study. The socio-economic status of the respondents shows that they were within the age group between 30 and 60 and above and maximum between 30-40 years. About 79% were married and majority of the them are nucleus and 9% remained single on account of suffering miserable poverty shock. There are 90 respondents or 36% belonging to SC/ST, 49% belonging backward communities and 37 only belonging upper caste. These caste analysis stands similar to the Karnataka
Gazette publications about Bengaluru Rural district. There are 158 respondents who are landless and they work in agriculture seasonally and during unseasonal they move to near by city to work as laborers or work as assistant in informal service sector. There are only 18 government service employees who are recruited as assistants either in hospital, educational institution and getting insufficient income. The educational status data reveals that a great majority studied upto 10th Std. and hardly in about 20 respondents studied upto degree and remaining all are unemployed. The income reveals that 90 respondents or 36% monthly income is between Rs. 2000-2500 which is highly insufficient to lead an ordinary life. The chi-square calculated value as far as occupation is concerned is greater than the TV @ 5% level of significance. Therefore we may conclude there exists variations in occupation of SHG members. Table-2 highlights the information on the improvement of increased knowledge and awareness of SHG members which is highly essential to order to measure other impacts. The conclusions are grouped into three categories, basic level, understanding level and clarity level. The assessment results are grouped along different subjects varying from A to F and clustered into the different age groups. Generally the results indicate a gradual increase in level of clarity varying from 6% to 62%. The impact is well represented in the income generating activity and respondents have clarity over income generating activity. The decrease in the number of respondents can be seen by analyzing the data spread over differnt age in years of differnt indicators. We find in all cases the crease in the basic level as the age of SHG increases and move upto clearity level. Maximum awareness and knowledge can also be seen in the subject of health and sanitation. As far banking and savings are concerned still many of the respondents are still in Basic level over 3 years and needs immediate corection in order to go with national objective of opening of bank account by one and all. The null hypotheses is rejected and alternative hypotheses is accepted. Therefore we may conclude here women SHG mebers possess knowledge and awareness over cerntain indicators. Table-3 reveals information about increase in income and savings of the SHG members. Here two impacts the concerned and they are increased income on the one hand and there increased savings are on the other hand. However, these two impacts are interrelated since there cannot be any savings in the absence of income. The increase income can be viewed as an expression of an improvement in living conditions. Further Table-3 concludes about increase in non-basic income i.e., income minus food expenditure over the years. The income raise from Rs. 7800 to Rs. 13250 occurred betwen first and third year of existence of an SHG. Further, the table also shows about increase in savings annual Rs. 2200 to Rs. 3250. In all these groups savings in kind is greater than financial savings. Therefore the null hypotheses is rejected and alternative that there is increase in income and savings is accepted. Table-4 reveals data regarding decision making power of the SHG members. To measure decision making power of women six typical decisions usually made by them were selected. These decisions are the purpose of loans, buying and adopting infrastructures, buying households, cash management, property purchase and sale and jewelry purchase and savings. In the subject purpose of loan there is a shift from husband domination to wife dominating process over the years. An
increase from 22% to 33% in three years group was observed. The joint decisions over 6 decision drivers also reveals gradual decrease in general. In case of children education the husband domination in along with joint decision making decreases while decision making by wife increases. In the case of house hold buying we find there is an increase in wife decision making power enhances from 25% to 30% similarly we find an absolute rise in the decision maker power wife in all 6 variable or indicators of empowerment. Therfore the null hyptheses that women SHG members do not possess empowerment is rejcted and the alternative is accepted. Therefore we may conclude that women SHG members enjoy more empowerment in the study area. Table-5 speaks about perceived women empowerment. Perceived women empowerment is measured in terms of Likert 5 point scale varying from strongly agre to strongly disagre (5). 160 respondents or 64% strongly agreed that the stated indicators strongly influence women empowerment. Further, 60 or 24% have agreed that the stated empowerment drivers influences the empowerment of women only 8 respondents have strongly disagreed about indicators or variables influencing women empowerment. The ANOVA table reveals that the null hypotheses is rejected and alternative that women SHG members possess perception about women empowerment is accepted. IMPLICATIONS OF THE STUDY The analysis of impact on knowledge and awareness suggests that there has been a positive change among members of the older groups. There exists substaintial enhancemnt in the subject health and sanitation which tells about possession of awareness about he variable. The income genraiton activities are strong enough to support the SHG members. Bengaluru rural is semi industrial and agricultural area where many of the respondents prefer to work as agri labourers than searching job in nearby town and cities. The study finds that members save more in kind than in finacial terms. The reasons may be poor banking knowledge, meagree earnings in hard cash, more return on investment in kind and privacy to some extent. CONCLUSION The previous researchers held that SHG- BLP enabled about 97 million poor households to have access to sustainable financial resources from banking sytem at the end of March 2011 in India. It reveals that SHG-BLP in India is found to be an effective instrument by which very poor people can access hassle free formal credit without any collateral security and also proved that SHG members can also improve their savings formation habit. Microfinance cannot be a panacea for all the ills of SHG members. It is not end but beginning of a new era. The curse of poverty cannot be healed by overnight and it takes many years. The previous research suggests that since micro finance provides access, enhances income and savings, increases empowerment is going to be highly beneficial to the members. If all microfinance activities handled properly microfinance can create miracles in the area of poverty eradication. References: [1] Padma Lochana Mahanta. Gitanjali Pandya., and Sreekumar. (2012). Status of MF in India-A review. International Journal of Marketing, Financial and management Research. Vol. 1, issue 11, p. 142. [2] Chandrashekar, T.C. (2013). Impact of MF Enterprises through SHG linkage in India; under priority sector lending programme. A micro study Arth
Prabhand Journal of Economic and management, 2(a) P. 56. [3] Srinivas, S. (2012), SHG Bank Linkage Impact livelihoods of the poor. The Indian Journal of Social work 71(1) p.75. [4] Srinivas, S. (2010), SHG Bank Linkage Impact livelihoods of the poor. The Indian Journal of Social work 71(1) p.80. [5] Amma, K.P.S., and Panicker, K.S.M. (2008). Micro Credit and Women Empowerment. A study in India. International Journal of Global Business 1(1), 184-213. [6] Singh, (2009). MF - an innovation in Rural Credit System, Kurukshetra, 57(4), 3-6. ELK Asia Pacific Journals Special Issue
The above ANOVA table reveals that the calculated value being 41.7955 greater than TV = 2.76 at d.f. V1 = 4 and V2 = 25 at 5% level of significance rejects the null hypotheses and accepts the alternative. Therefore we may conclue that women SHG members in Bengaluru rural district possess perception about women empowerment. ELK Asia Pacific Journals Special Issue