INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW A STUDY ON THE WOMEN DEVELOPMENT AND THE GROWTH OF MICROFINANCE IN TIRUPUR CITY U. GOMATHI 1 Dr. RACHEL NANC PHILIP 2 1 Associate Professor in Commerce, Tirupur Kumaran College for Women, Tirupur. 2 Principal, Tirupur Kumaran College for Women, Tirupur. ABSTRACT Self Help Groups are playing an important role in the economic development of the nation. Particularly in India most of the people are living below the poverty line. Self Help Groups are the effective tool to eradicate poverty as well as empower the women. The status of the Women is socially and in economically. This study focus on the Women development and the growth of microfinance in Tirupur city. Key Words: Self Help Groups (SHGs), Microfinance, National Bank for Agricultural and Rural Development (NABARD), Non-Government Organisation(NGO). Introduction: The small group of 10-20 members. In India, almost 90 per cent of the groups comprise of only women. The SHG provides the poor with alternative means of obtaining economic and social entitlement to resources through their active participation. SHGs are formed on voluntary basis, perceived appropriately as people's institution, providing the poor with the space and support necessary to take effective steps towards greater control over their lives in private and in society. Each group acts like a bank, and decides the internal operations of the group in the distribution of loans, monitors the utilisation of loan amount and enforces repayment. Generally, the group disburses the loan amount among the members according to the criteria arrived at by the members. As the group attains maturity in due course of time and the common pool of resources of the group, i.e., savings become insufficient for meeting the varied credit demands of the members, the group applies for external assistance mostly from banks under NABARD the bank linkage programme although other avenues are also emerging of late. Microfinance in India: Poverty alleviation has been one of the guiding principles of the planning process in India. Government has considerably enhanced allocation for the provision of education, health, sanitation and other facilities which promote capacity building and well-being of the poor. The Indian Government puts emphasis on providing financial services to the poor and underprivileged since independence. The commercial banks were nationalised in 1969 and were directed to lend 40 per cent of their loan at concessional rate to priority sector. Statement of the problem: Most of the studies have been undertaken by many of the researchers about SHGs in Erode and Coimbatore. This study was concentrate on the city named as kutty Japan that is in Tirupur and thegrowth of microfinance through banks is also taken into considered. Self Help Groups members are involved in many activities to know their improvement through microfinance is attempted in this study. www.icmrr.org 17 icmrrjournal@gmail.com
Objectives: INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW 1.To study the socio-economic status of Women Self Help Group members. 2. To know the growth of microfinance towards Women Self Help Groups in Tirupur. Research Methodology: Data collection: Both primary and secondary data have been collected for this research work.. Primary data have been collected through interview schedule and secondary data have been collected from newspaper, journal and the information from collector office. Sampling method: In this research work respondents were selected through convenient sampling method. Sampling size: sample size has been taken for this study from total population 400 respondents was selected through convenient sampling method. Period of the study: The research work was carried out for the period of six months starting from June to December 2014. Statistical tools used: To make the research effective and find the result the following test was used. Frequency analysis and chi-square test were also applied. Review of Literature: Brian Greaney, Joseph P.Keboski, Eva Van Leemput(2013) examined an innovation to the provision of NGO Sponsored Microfinance services in East Africa by conducting an empirical survey of 100000 members across11 districts in Kenya, Tanzania and Uganda. Two models of microfinance delivery viz. the status quo and the private entrepreneur innovation were tested empirically. The results were in favour of the latter. The Program represents an example of successful privatization program- cost effective in terms of enabling NGO resources to stretch further and reaching greater numbers of people. Dr. H RamaKrishna, KhajaMohinuddeen J(2013), elaborates the importance and performance of SHGs in women empowerment. Major findings of the study are that SHG members have been empowered through micro finance activities and they have engaged themselves in self employment activities like papad and pickles making, dairy activities, agricultural activities etc. which has enhanced the quality and standard of their life. Microfinance can be synergetic if exercise through SHG and may result in eradication of poverty and family problems. SaugatoSenDr.Shilpa&Suman Gill,(2014) Women Empowerment Through Self Help Group- Western zone of Haryana, that the SHGs have benefited the women members as their income and saving levels have risen after joining SHSs. Women have become ore skilful and capable as their skills like self-confidence, knowledge and entrepreneurial skills have sharpened, many of their problems have been resolved after joining SHG. Thus, it can be concluded that although SHGs have put positive influence on socio-economic conditions of women members, yet there is a lot of space to do more for better result in social empowerment. THE HINDU 2015,DHARMAPURI, November 2, DHARMAPURI, Stalin interacts with women self-help group members M.K. Stalin interacted with women self-help groups (SHGs) in Harur. He took a swipe at the alleged claims that SHGs were first introduced by the AIADMK in the State. It www.icmrr.org 18 icmrrjournal@gmail.com
was the DMK that introduced women SHGs for the first time in the country, in Dharmapuri in July 1990. THE HINDU 2016,, February 28 CHENNAI, SHG trainers to get AmmaMobiles,Over 20,000 trainers would be given the phones in the first phase of the scheme Chief Minister Jayalalithaa launched the Amma Mobile Phone Scheme by handing over the phones to three Community Self Help Groups (SHG).In the first phase of the scheme, over 20,000 community SHG trainers would be given mobile phones at a total cost of Rs. 15 crore, an official release stated. The SIM cards to operate these phones would be given free of cost to the trainers and the monthly cost for operating the phones would be borne by the Tamil Nadu Corporation for Development of Women. The phones, which would help the trainers make calls, text messages and help them with GPRS facility and internet connection, is aimed at benefiting over 6.08 lakh women SHGs which have over 92 lakh members across the State. Every SHG group with 15 to 20 members is led by a Community SHG Trainer. There are over 20,000 Community SHG trainers in the State. An Analysis: INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW This study has been analysed that the development of Self-help Groups and the growth of microfinance through the following tables. Age of the respondents: Table 1.1 - Age of the respondents Age of the respondents Frequency Percentage Below 25 years 96 24 25-35 years 184 46 36-45 years 108 27 Above 45 years 12 3 Source: computed. Out of 830 respondents, a maximum of 46 per cent of the respondents were in the age group of 25 to 35 years followed by 27 per cent in the age group of 36 to 45 years. 24 per cent of the respondents were under the category of below 25 years and only 3 per cent were above 45 years categories. Hence, the age groups of 25-35 years were urging to do the business in SHG and earn more money. Marital status of the respondents: Table 1.2 - Marital status of the respondents Marital status Frequency Percentage Married 250 62.5 Unmarried 42 10.5 Divorced 48 12 Widow 60 15 Source: computed. www.icmrr.org 19 icmrrjournal@gmail.com
INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW It is specified that the SHG members should preferably be married women. Table 4.2 indicates that 62.5 per cent of the respondents were married followed by 15 per cent respondents were under the category of widow. 12 per cent of respondents were under the divorced category and only 10.5 per cent were unmarried category. It has been inferred that the married women category constitute more than half of the sample respondents. It has an effect on women empowerment. Family income per year: Table 1.3 - Family income per year Family income Frequency Percentage Upto Rs.30000 106 26.5 30001-40000 180 45 40001-50000 84 21 Above Rs.50000 30 7.5 Source: computed It has been inferred from the table No. 4.10, 45 per cent of the respondents family income were Rs. 30001 to Rs. 40000, followed by uptors. 30000 category 21 per cent of the respondents Rs. 40001 to 50000 and only 7.5 per cent of the respondents were above Rs.50000 category. Hence, majority of the WSHGs family income has been 30001 to 40000. Monthly savings of the respondent before joining in WSHG: Table 1.4 - Monthly savings of the respondent before joining in WSHG Monthly savings Frequency Percentage Nil 320 80 Below Rs.500 72 18 Rs.501-1000 8 02 Above 1000 --- ---- Source: computed Table 4.11 presents the monthly savings of the respondent before joining in WSHG. 320 (80 %) of the respondents have nil savings before joining in SHGs. 18 per cent of the respondents were saved below Rs.500 and only 2 per cent respondents were saved Rs.501 to 1000. There were no respondents in the category of above Rs. 1000. Hence, it is inferred that maximum of the WSHGs does not have any savings before the joining of WSHG. Pattern of utilization of loan: Table 1.5 - Pattern of utilization of loan Source: computed Pattern of utilization of loan Frequency Percentage Micro enterprises 152 38.0 Cottage industry 76 19.0 Live stock 40 10.0 Agriculture 132 33.0 www.icmrr.org 20 icmrrjournal@gmail.com
INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW The above table exhibit that the pattern of utilisation of loan. 38 per cent of the respondents have been under the micro enterprises category, 33 per cent of the respondents has been in agriculture category, 19 per cent of the respondents has been in the category of cottage industry and only 10 per cent of the respondents were in livestock category. Hence, majority of the respondents were doing micro enterprises in WSHG. Growth of Microfinance In Tirupur District: Table 1.6 - Revolving fund distribution S.No. Year No. of SHGs Revolving fund Assistance Amount in lakhs. 1. 2010-2011 1368 825.80 2. 2011-2012 1834 1652.79 3. 2012-2013 952 624.78 Source: Project Officer, MahalirThittam, Tirupur. The above table indicates that the revolving fund assistance, it shows the increased trend in the year 2010-2011 and 2011-2012 but in the following year it has been decreased to 624.78 lakhs. Then the government of Tamilnadu has stopped the revolving fund assistance to Self Help Groups due to non-payment of the loan amount. Credit linkage target for financing SHGs: Table 1.7 - District credit linkage target as followed up: S.No. Year No. of SHGs Assistance Amount in lakhs. 1. 2010-2011 4024 3587.31 2. 2011-2012 3657 3463.27 3. 2012-2013 2636 4475.52 4. 2013-2014 3845 9692.79 5. 2014-2015 4452 10681.00 Source: Project Officer, MahalirThittam, Tirupur. The above table depicts that the credit linkage target for financing of Self Help Groups. It is clear that the loan has been disbursed to Self Help Groups are gradually increased from the year 2010-2011 to 2014-2015 except the year 2011-2012. The target of the Tamilnadu Government is to reach the high level of loan disbursement to the Self Help Groups in order to achieve their policy of eradicate or minimise the poverty through engage of Self Help Groups in various productive activities. CHI-SQUARE: The following null hypothesis was framed. HO: There has been no association between the demographic variable of the self-help group members and the amount of loan availed. www.icmrr.org 21 icmrrjournal@gmail.com
INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW Table No. 1.8 Demographic variable of the self-help group members and the Amount of loan availed. Amount of loan availed Below Rs.300000 3,0001-5,00,000 5,00,001-7,00,000 Above 7,00,000 Total Chi-square value Sig No. % No. % No. % No. % No. Demograpic variables Agriculture labour 40 17.4 18 20 14 33.3 3 10.7 75 Occupation Other than 122 50.8 42 46.7 16 38.2 18 64.3 198 Agriculture labour Self-employed 20 8.6 12 13.3 4 9.5 2 7.1 38 Housewife 58 25.2 18 20 8 19 5 17.9 89 Total 240 100 90 100 42 100 28 100 400 Type of house Hut 60 25 22 24.4 10 23.8 6 21.4 98 Cement sheet 92 38.3 34 37.8 12 28.6 8 28.6 146 Thatched 58 24.2 18 20.0 14 33.4 8 28.6 98 Tiled 30 12.5 16 17.8 6 14.2 6 21.4 58 Total 240 100 90 100 42 100 28 100 400 Family income Up to 30,000 64 26.7 22 24.4 8 19 7 25 101 30,001-40,000 112 46.7 44 48.8 24 57.1 12 42.9 192 40,001-50,000 42 17.5 16 17.8 8 19 6 21.4 72 Above 50,000 22 9.1 18 20.0 2 4.9 3 10.7 35 Total 240 100 90 100 42 100 28 100 400 Monthly saving Nil 182 75.6 72 80 36 85.7 24 85.7 314 Below 500 48 20.0 16 17.8 6 14.3 3 10.7 73 501-1000 10 4.4 2 0.2 0 0 1 3.6 13 Above 1000 --- -- -- -- -- -- -- -- -- Total 240 100 90 100 42 100 28 100 400.425 NS.576 NS.649 NS.843 NS www.icmrr.org 22 icmrrjournal@gmail.com
The table No.1.8 depicts that the association between the demographic variables with the amount of loan availed. It was clear that the there has been a significant relationship between all the demographic variables with the amount of loan availed. Because the pearson chi-square value has been higherthan the 5 % level of significant. Hence, the null hypothesis has been rejected. Findings: There has been a significant association between the occupation and the amount of loan availed. There has been a significant association between the types of house and the amount of loan availed. There has been a significant association between the family income and the amount of loan availed. There has been a significant association between the monthly saving of the Self help Group before joining the group and the amount of loan availed. Out of 400 respondents, a maximum of 46 per cent of the respondents were in the age group of 25 to 35 years It is specified that the SHG members should preferably be married women. Table 4.2 indicates that 62.5 per cent of the respondents were married It has been inferred from the table No. 4.10, 45 per cent of the respondents family income were Rs. 30001 to Rs. 40000 The above table exhibit that the pattern of utilisation of loan. 38 per cent of the respondents have been under the micro enterprises category In the revolving fund distribution the year 2011-2012 has the highest coverage of 1834 groups and the loan amount of Rupees 1652.9 lakhs. It is clear that the loan has been disbursed to Self Help Groups are gradually increased from the year 2010-2011 to 2014-2015 except the year 2011-2012. It was clear that the there has been a significant relationship between all the demographic variables with the amount of loan availed. Because the pearson chi-square value has been lower than the 5 % level of significant. Hence, the null hypothesis has been rejected. Suggestion: Tamilnadu Government has to concentrate on the training facility in order to develop the status of the Self Help Groups in socially as well as economically. The amount of loan disbursed to the Self Help Groups may be increased by the banks. Conclusion: INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW Tirupur was announced as s District in the year 2011-2012. This study was concluded that the growth of microfinance to Self Help Groups has been increased from year to year. Nowadays the Self Help Groups members are actively participated in their group activities in turn they increased in their family income and it leads to improve their status in bothsocially as well as economically. www.icmrr.org 23 icmrrjournal@gmail.com
References: INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW 1. Brian Greaney, Joseph P Kaboski, Eva Van Leemput (Apr 2013) Can Self- Help Groups Really BeSelf- Help? FEDERAL RESERVE BANK OF ST.LOUIS Research Division Working Paper Series. 2. Dr. H Ramakrishna, KhajaMohinuddeen J (Nov 2013)women empowerment through micro finance: anempirical study of women self help groups inbellary district, karnataka acme internationaljournal of Multidisciplinary Research 11.1 3. SaugatoSenDr.Shilpa&Suman Gill, Women Empowerment Through Self Help Group- Western zone of Haryana, Indian cooperative review, January 2014,Vol.51,No.3, P 225-238. 4. THE HINDU 2015,DHARMAPURI, November 2, DHARMAPURI, Stalin interacts with women self-help group members. 5. THE HINDU 2016,, February 28 CHENNAI, SHG trainers to get Amma Mobiles. www.icmrr.org 24 icmrrjournal@gmail.com