a study on women empowering through microfinance …€¦ · i, mr. hiren prakashbhai mehta, hereby...

A STUDY ON WOMEN EMPOWERING

THROUGH MICROFINANCE IN GUJARAT

A Thesis submitted to Gujarat Technological University

for the Award of

Doctor of Philosophy in

Management

by

Hiren Prakashbhai Mehta

129990992013

under supervision of

Dr. Chinnam Reddy

GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD

November- 2019

A STUDY ON WOMEN EMPOWERING

THROUGH MICROFINANCE IN GUJARAT

A Thesis submitted to Gujarat Technological University

for the Award of

Doctor of Philosophy in

Management

by


129990992013

under supervision of

Dr. Chinnam Reddy


AHMEDABAD

November - 2019

DECLARATION

I declare that the thesis entitled A STUDY ON WOMEN EMPOWERING

THROUGH MICROFINANCE IN GUJARAT submitted by me for the degree of

Doctor of Philosophy is the record of research work carried out by me during the period

from JULY 2012 to DECEMBER 2018 under the supervision of Dr. Chinnam Reddy

and this has not formed the basis for the award of any degree, diploma, associateship,

fellowship, titles in this or any other University or other institution of higher learning.

I further declare that the material obtained from other sources has been duly

acknowledged in the thesis. I shall be solely responsible for any plagiarism or other

irregularities, if noticed in the thesis.

Signature of the Research Scholar : …………………………… Date : 27.12.2018

Name of Research Scholar : Hiren Prakashbhai Mehta

Place : Rajkot

CERTIFICATE

I certify that the work incorporated in the thesis A STUDY ON WOMEN

EMPOWERING THROUGH MICROFINANCE IN GUJARAT (Title) submitted by

Shri Hiren Prakashbhai Mehta was carried out by the candidate under my

supervision/guidance. To the best of my knowledge: (i) the candidate has not submitted the

same research work to any other institution for any degree/diploma, Associateship,

Fellowship or other similar titles (ii) the thesis submitted is a record of original research

work done by the Research Scholar during the period of study under my supervision, and

(iii) the thesis represents independent research work on the part of the Research Scholar.

Signature of Supervisor: ……………………………… Date: 27.12.2018

Dr. Chinnam Reddy

Director

National Institute of Tourism and Hospitality Management,

Hyderabad

Place : Hyderabad

COURSE-WORK COMPLETION CERTIFICATE

This is to certify that Mr. Hiren Prakashbhai Mehta enrolment no.

129990992013 is a PhD scholar enrolled for PhD program in the branch Management

of Gujarat Technological University, Ahmedabad.

(Please tick the relevant option(s))

He/She has been exempted from the course-work (successfully completed during

M.Phil Course)

He/She has been exempted from Research Methodology Course only (successfully

completed during M.Phil Course)

He/She has successfully completed the PhD course work for the partial requirement

for the award of PhD Degree. His/ Her performance in the course work is as

follows-

Grade Obtained in Research Methodology

(PH001)

Grade Obtained in Self Study Course

(Core Subject) (PH002)

BB BC

Supervisor’s Sign

Dr. Chinnam Reddy

Director


Hyderabad

ORIGINALITY REPORT CERTIFICATE

It is certified that PhD Thesis titled A STUDY ON WOMEN EMPOWERING

THROUGH MICROFINANCE IN GUJARAT by Hiren Prakashbhai Mehta has been

examined by us. We undertake the following:

a. Thesis has significant new work / knowledge as compared already published or are

under consideration to be published elsewhere. No sentence, equation, diagram,

table, paragraph or section has been copied verbatim from previous work unless it

is placed under quotation marks and duly referenced.

b. The work presented is original and own work of the author (i.e. there is no

plagiarism). No ideas, processes, results or words of others have been presented as

Author own work.

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d. There is no falsification by manipulating research materials, equipment or

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accurately represented in the research record.

e. The thesis has been checked using <name of any reputed plagiarism check

software> (copy of originality report attached) and found within limits as per GTU

Plagiarism Policy and instructions issued from time to time (i.e. permitted

similarity index <=25%).

Signature of the Research Scholar : …………………………… Date: 27.12.2018

Name of Research Scholar: Hiren Prakashbhai Mehta

Place : Rajkot

Signature of Supervisor: ……………………………… Date: 20.12.2018

Name of Supervisor: Dr. Chinnam Reddy

Director - National Institute of Tourism and Hospitality Management, Hyderabad

Place: Hyderabad

PhD THESIS Non-Exclusive License to


In consideration of being a PhD Research Scholar at GTU and in the interests of the

facilitation of research at GTU and elsewhere, I, Hiren Prakashbhai Mehta (Full Name

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Any abstract submitted with the thesis will be considered to form part of the thesis.

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conferred by this non-exclusive license.

g) If third party copyrighted material was included in my thesis for which, under the

terms of the Copyright Act, written permission from the copyright owners is

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copyright in my thesis, in any way consistent with rights granted by me to my

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i) I further promise to inform any person to whom I may hereafter assign or license

my copyright in my thesis of the rights granted by me to my University in this non-

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j) I am aware of and agree to accept the conditions and regulations of PhD including

all policy matters related to authorship and plagiarism.

Signature of the Research Scholar: _____________________________________

Name of Research Scholar: Hiren Prakashbhai Mehta

Date: 27.12.2018 Place: Rajkot

Signature of Supervisor:

Dr. Chinnam Reddy

Director


Hyderabad

Date: 20.12.2018 Place:Hyderabad

Seal:

(briefly specify the modifications suggested by the panel)

(The panel must give justifications for rejecting the research work)

THESIS APPROVAL FORM

The viva-voce of the PhD Thesis submitted by Shri Hiren Prakashbhai Mehta

(Enrollment No. 129990992013 entitled A STUDY ON WOMEN

EMPOWERING THROUGH MICROFINANCE IN GUJARAT was conducted

on 27.12.2018 - Thursday (day and date) at Gujarat Technological University.

(Please tick any one of the following option)

The performance of the candidate was satisfactory. We recommend that

he/she be awarded the PhD degree.

Any further modifications in research work recommended by the panel after 3

months from the date of first viva-voce upon request of the Supervisor or

request of Independent Research Scholar after which viva-voce can be re-

conducted by the same panel again.

The performance of the candidate was unsatisfactory. We recommend that

he/she should not be awarded the PhD degree.

----------------------------------------------------- -----------------------------------------------------

Name and Signature of Supervisor with Seal 1) (External Examiner 1) Name and Signature

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2) (External Examiner 2) Name and Signature 3) (External Examiner 3) Name and Signature

ABSTRACT

"Microfinance" is a phrase, concept & phenomena, used for bringing two

ends of society closer by providing funding to people who are hand to mouth with a

aim to bring social balance, happiness, reduction in social crime & sleeper cell of

terrorism.

Microfinance is emerging as a powerful instrument for poverty alleviation in

the new economy. In India, Microfinance scene is dominated by Self Help Group,

Commercial Bank Linkage Programme as a effective mechanism for providing

financial services to the “Un-reached Poor”. This has been successful not only in

meeting financial needs of the rural poor women but also strengthen collective self-

help capacities of the poor women, leading to their empowerment. Economic

empowerment results in women‟s ability to influence or make decision, increased

self-confidence, better status and role in household etc.

The present study comes at how micro finance has received extensive

recognition as a strategy for economic empowerment of women. This research

examined the role of Micro finance institutions with respect to economic

empowerment and poverty alleviation of rural women. An effort is also made to

suggest the ways to increase women empowerment.

ACKNOWLEDGEMENT AND / OR DEDICATION

I, Mr. Hiren Prakashbhai Mehta, hereby take this opportunity to thank all

those valuable people who have provided immense support to assist me in completing

my doctoral study. Firstly, I thank the Almighty God for providing continuous strength

and motivation to perceive this journey.

Secondly, I thank my Supervisor Dr. Chinnam Reddy Sir for his noteworthy

contribution to my research study. His immense wisdom and expertise in analyzing

various facets to design and shape my topic, understand it in-depth and providing

valuable inputs to present thesis in the best possible manner. Thank you lots Sir for your

each and every effort. It has indeed resulted in better quality of my work and truly

helped me to gain substantial knowledge from you.

I also extend my gratitude towards my Co-Supervisor Dr. Ratish Kakkad, for

his noteworthy inputs to all my research queries, as it helped me to focus better and

upgrade my work at various stages throughout the journey. I am also thankful to my

DPC Members Dr. S.O. Junare Sir for extending their valuable time and providing me

suggestions to improve and present my study in the best possible manner.

I would like to thank Prof. Nitin Popat and Dr. P.G.K Murthy for initiating and

helping me narrow down and finalize the research topic. The initial course work

sessions delivered by Dr. S.C. Reddy Sir and Dr. P.G.K. Murthy Sir helped in clearing

the basics of Research and gain understanding to several steps to reach destination

called Ph.D. degree. I also extend my sincere gratitude to Dr. S. O. Junare Sir and the

Ph.D. Department of GTU for their efforts in organizing Annual Research Week at

GTU. It gave an opportunity to interact with fellow Ph.D. students at GTU and various

insights to learn from eminent experts of Industry and Education from India and

Abroad. It proved a memorable learning experience. There were various significant

inputs shared by experts, which I have incorporated in my study and tried to make it

better.

I would like to specially acknowledge and thank Dr. Nehal Shukla and

Dr. Mehul Rupani for sharing their expertise on quantitative knowledge and research,

which was of great help in my doctoral work. I also extend gratitude towards

Ms. Shraddha Kalyani for her unconditional support and motivation. I also thank the

Ph.D. section at GTU office for their important co-ordination at various stages of

learning and submission.

Last but very significant gratitude is towards my Family, without whom I would

not have achieved this milestone in life.

I am especially grateful to parents Shree Prakashbhai Mehta and Smt. Hinaben

Prakashbhai Mehta, my for being very supportive in my endeavor and offering valuable

emotional support at each stage of the life. I always knew that you believed in me and

wanted the best for me. Thank you for teaching me that my job in life was to learn, to be

happy, and to know and understand myself, only then could I know and understand

others.

I am speechless to convey my heartfelt thanks to my best half Mrs. Mona Hiren

Mehta and my daughter Niva Hiren Mehta for being very co-operative and always

compromising in time, that is because of my professional commitments and research

work I was available little less to them.

My sister Ms. Chandni Prakashbhai Mehta, in-laws Aniruddhbhai Joshi &

Smt. Naliniben A. Joshi have continuously supported me in all my late night studies and

motivated me in research. I am truly indebted to them for their love and assistance.

Thank you all once again.


TABLE OF CONTENT

Sr. NO. Table Page No.

1 MANOVA and ANOVA Results for effect of social group of the

respondent on social empowerment of the respondent1

96

2 on social empowerment MANOVA and ANOVA Results for

difference between BPL and Non-BPL beneficiary

98

3 MANOVA and ANOVA Results for difference between women

of Hinduism and Islam on social empowerment

101

4 MANOVA and ANOVA Results for difference between SHG

Members and Leaders on social empowerment

104

5 MANOVA and ANOVA Results for difference between the

respondents of Jamnagar and Rajkot on social empowerment

106

6 MANOVA Results for difference between the respondents of

joint and nuclear family on social empowerment

109

7 MANOVA and ANOVA Results for difference between the

respondents who have taken loan and who have not taken loan on

social empowerment

110

8 MANOVA and ANOVA results for difference among experience

of the respondents on social empowerment

113

9 MANOVA and ANOVA results for difference between the

respondents who have taken training and have not taken training

on social empowerment

115

10 MANOVA Results among the age groups on social empowerment 118

11 MANOVA results for difference among education groups of the

respondents on social empowerment

119

12 ANOVA results for difference among education groups of the


119



121

14 MANOVA results for difference among occupation groups of the


122

15 ANOVA results for difference among occupation groups of

the respondents on social empowerment

122

16 MANOVA results for difference among banks of the respondents


125

17 ANOVA results for difference among banks of the respondents


128


18 MANOVA results for difference among blocks of the


128

19 ANOVA results for difference among blocks of the respondents


128

20 MANOVA and ANOVA results for effect of social group of the

respondent on economic empowerment of the respondent

131

21 MANOVA and ANOVA results for difference between BPL and

Non-BPL beneficiary on economic empowerment

134

22 MANOVA and ANOVA results for difference between women of

Hinduism and Islam on economic empowerment 136

23 MANOVA results for difference between SHG Members and

Leaders on economic empowerment

136

24 MANOVA results for difference between the respondents of joint

and nuclear family on economic empowerment

139

25 MANOVA results for difference between the respondents who

have taken loan and who have not taken loan on economic

empowerment

139

26 MANOVA and ANOVA results for difference among experience

of the respondents economic empowerment

143



on economic empowerment

145

28 MANOVA and ANOVA results for the difference among the

age groups on economic empowerment

147

30 MANOVA results for difference among education groups of the

respondents on economic empowerment

150



150

32 MANOVA results for difference among occupation groups of the


152

33 ANOVA results for difference among occupation groups of

the respondents on economic empowerment

152



155

35 MANOVA results for difference among blocks of the respondents


155



157

37 MANOVA results for difference among income group of the


159


38 ANOVA results for difference among income group of the


159

39 MANOVA and ANOVA results for effect of social group of the

respondent on satisfaction about services of bank

162

40 MANOVA and ANOVA results for difference between BPL and

Non-BPL beneficiary on satisfaction about services of bank

163

41 MANOVA and ANOVA results for difference between women of

Hinduism and Islam on satisfaction about services of bank

164

42 MANOVA and ANOVA results for difference between SHG

Members and Leaders on satisfaction about services of bank

165


respondents of Jamnagar and Rajkot on satisfaction about services

of bank

169

44 MANOVA results for difference between the respondents who

have taken loan and who have not taken loan on satisfaction about

services of bank

170

45 MANOVA and ANOVA results for difference among

experience of the respondents on satisfaction about services of

bank

172



on satisfaction about services of bank

174

47 ANOVA results for difference among education groups of

the respondents on satisfaction about services of bank

175


respondents on satisfaction about services of bank

175



178

50 ANOVA results for difference among banks of the respondents on

satisfaction about services of bank

178

51 MANOVA results for difference among blocks of the respondents


179



180

53 Correlation for Economic Indicators of the respondents 181

54 Rank correlation for rank given by women of Jamnagar and Rajkot

districts for various reasons of joining SHG

183

55 Rank correlation for rank given by women of Jamnagar and

Rajkot districts for purpose of saving

183


56 Rank correlation for rank given by women of Jamnagar and Rajkot

districts for different monthly expenditure components

184

58 Reasons to join the SHG by the Women 185

59 Reasons to join the SHG by BPL beneficiary 186

60 Reasons to join the SHG by Social group of the respondent 187

61 Reasons for saving by the respondents 187

62 Reasons for saving by the members and Leaders 188

63 Reasons for saving by women of Hinduism and Islam 188

64 Reasons for saving by BPL and Non- BPL beneficiary 189

65 Reasons for saving by women of Open, OBC and SC group 190

66 Ranking of various components of monthly expenditure pattern 191

67 Ranking for various monthly expenditure components 192

68 Ranking of monthly expenditure components 193

69 Chi-Square test results for level of understanding about group

process and activities and education of the respondent

194

70 Relationship for level of understanding about group process

and activities and Designation of the respondent

195


process and activities and Designation of the respondent

196


process and activities and Age of the respondent

198

73 KMO and Bartlett's Test 202

74 Total Variance Explained 203

75 Rotated Component Matrix

a

204

76 Factors of Social empowerment of Women as perceived by

Women respondents

206

77 Factors of Economic empowerment of Women as perceived by

Women respondents

207

78 Multiple Regression Analysis on Increment in Self Confidence 211

79 Pearson Regression of Correlation between dependent and

independent variables for multiple regression analysis on

increment in self confidence

212

80 Model Summary for multiple regression analysis on increment

in self confidence

213

81 ANOVA for multiple regression analysis on increment in self

confidence

214


82 Multiple regression analysis on increment in self confidence 215

83 Multiple Regression Analysis on development of entrepreneurship

skill

216



development of entrepreneurship skill

217

85 Model Summary for multiple regression analysis on


218

86 ANOVA for multiple regression analysis on development of

entrepreneurship skill

219

87 Multiple regression analysis on development of entrepreneurship

skill

219

88 Variables used in Multiple Regression for Poverty Reduction 220


independent variables for multiple regression analysis on reduction

of the poverty

221

90 Model Summary for multiple regression analysis on reduction

of the poverty

222

100 ANOVA results for multiple regression analysis on reduction of

the poverty

223

101 Multiple regression analysis on reduction of the poverty 224

102 Variables used in multiple regressions for standard of living of

women based on economic empowerment factors

225



improvement in standard of living of the women based on

economic empowerment factors

226


improvement in standard of living of the women based on

economic empowerment factors

228

105 ANOVA for multiple regression analysis on improvement in

standard of living of the women based on economic empowerment

factors

228

106 Multiple regression analysis on improvement in standard of living

of the women based on economic empowerment factors

229

107 Variables used in multiple regression for social status of women

members based on social empowerment factors

231




improvement of social status of the women based on social

empowerment factors

232


improvement of social status of the women based on social

empowerment factors

235

LIST OF ABBRIVIATION

1. BSY - Balika Samriddhi Yojana

2. CED-The Center for Entrepreneurship Development

3. CSWB - Central Social Welfare Board

4. CSWI - Committee on the Status of Women in India

5. CEDAW- convention on the elimination of All forms of Discriminations against

women

6. DWCD -Department of Women and Child Development

7. DWCRA - Development of Women and Children in Rural Areas

8. DGET- Directorate General of Employment and Training

9. EAP- Entrepreneurship Awareness Programmes

10. EDP - entrepreneurship development programme

11. GDI Gender-related Development Index

12. GDP Gross Domestic Product

13. GEM- Gender Empowerment Measure

14. GID Gender in Development

15. GIDC- Gujarat Industrial development Corporation

16. GSFC- Gujarat State Financial Corporation

17. GIDP Gender in Development Policy (UNDP)

18. IFAD - International Fund for Agricultural Development

19. IIX - Impact Investment Exchange

20. IMY - Indira MahilaYojna

21. ICDS - integrated Child development services

22. IFAD - International Funds for Agriculture Development

23. JRY - Jawahar Rozgar Yojana

24. MSY - Mahila Samirddhi Yojan

25. NAEP - National Ault Education Programme

26. NABARD - National Bank for Agricultural and Rural Development

27. NPE -National Policy on Education

28. NIP- New Industrial Policy

29. NORAD - Norwegian Agency for Development Cooperation

30. RGUMY-Rajiv Gandhi Udyami Mitra Yogna

31. RMK - Rashtriya Mahila Kosh

32. SEWA - Self Employed women’s Association in India

33. STEP - Support for Training and Employment Program

34. SGE-Training To Second Generation Entrepreneurs

35. SGSY - Swarna Jayanthi Gram Swarozgar Yojana Scheme

36. NCSW - The National Commission for Self-employed Women and Women in

the Informal Sector

37. TREAD - Trade-Related Entrepreneurship Assistance and Development

38. U.N – United nations

39. UNDP - United Nations Development Programme

40. USA – United state of America

41. VTPW - Vocational training programme for women

42. WPR - women Participation Rate

43. WDC - Women’s Development Corporations

44. WDP - Women’s development Project

INDEX

Sr. No. Details Page No.

1.0 General 2

1.1 The Origin of Micro Finance 3

1.2 Concept and Definition of Micro Finance 4

1.3 Characteristics of Micro Finance 5

1.4 Services / Activities in Micro Finance 5

1.5 Clients of Micro Finance 6

1.6 History of Micro Finance In India 7

1.7 Evolution / Journey of Micro Finance in India 9

1.8 Micro Finance Need in India 10

1.9 Legal Regulation of Micro Finance in India 10

1.10 Statement of the Problem 11

1.11 Objectives of the Study 13

1.12 Scope of the Study 14

1.13 Research Methodology 14

1.13.1 Research Design 14

1.13.2 Sampling Design 14

1.13.3 Data Collection 15

1.13.4 Statistical Tools Used 16

1.13.5 Period of the Study 16

1.13.6 Hypothesis 16

1.14 Working Definitions 17

1.15 Limitations of the Study 18

2 Review Of Literature 20

2.1 Introduction 20

2.2 Review on Savings and Micro Finance Loan 20

2.3 Review on Utilization and Repayment of Micro Finance Loan 27

2.4 Review on Problems of Availing Micro Finance Loan 32

2.5 Review on Satisfaction and Impact of Micro Finance Loan 38

2.6 Research Gap and Conclusion 53

3 Research Methodology 67


3.1 Overview 67

3.2 The Element 68

3.3 Research Design 68

3.4 Data Source 69

3.4.1 Primary Source 69

3.4.2 Secondary Source 69

3.5 Development of Questionnaire / Research Variables 70

3.6 Sampling Method 72

4 Data Analysis And Interpretation 74

4.1 Overview 74

4.2 Data Reliability 74

4.3 Paired-Samples T- Test 75

4.4 Independent- Samples T-test 85

4.5 One-way ANOVA 90

4.6 Rank and Correlation Analysis 191

4.7 Chi-square test 194

4.8 Exploratory Factor Analysis 202

4.9 Multiple Regression Analysis 211

4.10 Frequency for multiple choice type question 238

5 Conclusion - Major contributions & scope of future work 241

5.1 Major Findings 249

5.2 Policy Implications 248

5.3 Further Research 256

* Bibliography

* Appendices

* List of Publications

1

CHAPTER – 1 : INTRODUCTION

INDEX


1.0 General 2

1.1 The Origin of Micro Finance 3

1.2 Concept and Definition of Micro Finance 4

1.3 Characteristics of Micro Finance 5

1.4 Services / Activities in Micro Finance 5

1.5 Clients of Micro Finance 6

1.6 History of Micro Finance In India 7

1.7 Evolution / Journey of Micro Finance in India 9

1.8 Micro Finance Need in India 10

1.9 Legal Regulation of Micro Finance in India 10

1.10 Statement of the Problem 11

1.11 Objectives of the Study 13

1.12 Scope of the Study 14

1.13 Research Methodology 14

1.13.1 Research Design 14

1.13.2 Sampling Design 14

1.13.3 Data Collection 15

1.13.4 Statistical Tools Used 16

1.13.5 Period of the Study 16

1.13.6 Hypothesis 16

1.14 Working Definitions 17

1.15 Limitations of the Study 18

2

1.0. GENERAL

Economic Development of women has been recognised as a basic need for

national development and social welfare. In order to bring women into the main-

stream of economy and society, the Government of India has launched several

programmes for women. Economic & Social development Five Year Plans have

given special emphasis to employment and income generating activities for women

with an objective of making women economically independent and self reliant. In

spite of the efforts of the government, women’s needs are more and more

marginalized in their struggle for existence and excellence. The credit requirements

of the poor, particularly women, are not met by the formal banking sector despite

government policies, announcements & initiatives. The women, mother India on

many occasions, need emergency credit which the formal credit system and the

government schemes could not cater to. Abnahom Maslow speaks about needs

hierarchy. A women in a family never wish to earn for herself but wish to work for

basic needs of father - husband - son and lastly for herself. Denied access to credit,

which is one of the most productive of the resources, women are pushed to the

status of recipient, beneficiary and customer, despite their ability as a giver,

benefactor and producer. In these circumstances, the micro finance concept

evolved. Micro financing a women is always very productive as a women do not

wish to run away to escape from her financial responsibility.

Micro finance in the global context is commonly understood to refer to

programmes meant for providing credit for self-employment and other financial

and business services to very poor persons. Micro finance is an extension of small

loans to very poor for self-employment projects to generate incomes, to care for

themselves and for their families. In most cases, micro finance programmes offer a

combination of resources to their clients in addition to credit for self-employment.

These include savings facilities, training, networking and peer support for their

business. Micro finance targets rural and urban households, with an emphasis on

women borrowers, provisions of finance for creation of assets and their

maintenance and bringing in better quality of services. The beneficiaries are

identified by micro finance providers either independently or through non-

governmental organizations and self-help groups. Self-help group is a voluntary

3

association of a homogeneous set of people, either working together or living in the

neighborhood, engaged in similar line of activity, working with or without

registration, for the common goal of the members.

Self-help group mechanism is widely accepted as an integral part of micro finance.

Several directives from Reserve Bank of India (RBI) and National Bank for

Agriculture and Rural Development (NABARD) to the banking sector have clearly

mentioned need of self-help group as a potential tool of micro finance. The Reserve

Bank of India has launched the programme of linking self-help groups with lending

institutions like commercial banks so that the credit requirements of the self-help

groups can be properly attended to by the commercial banks. Along with the self-

help groups, private players aspirent a lead role in obtaining micro-credit by the

rural poor.

1.1 ORIGIN OF MICRO FINANCE

Microfinance & "micro credit" terms are in force after 1990 but the concept of

infrastructure / aspect of providing financial assistance to poor people for their

economic upliftment is very old.

Nigeria was pioneer in establishing first micro finance institution followed by Europe

when they felt need after European war (1618-1698). The famous writer Jonotnam swift

took lead in helping poor people in Ireland in 1780 & in Germany a special low enabling

charity organizations to become financial institutions passed in 1823.

It is also learnt from historical references that East India Company & Royal British Govt.

had adopted Germany model. While fighting with plaugue & other situations in India by

providing micro finance to poor & down trodden people of society.

The noble learned Prof. Yunus in 1974 by lending money to poor people / villagers

introduced concept of Microfinance for removal of poverty & women

empowerment.

As Prof. Yunus was rewarded with noble prize for this novel idea, credit to poor &

downtrodden became the world's preferred development idea.

4

Grameen Bank established by Prof. Yunus aimed to provide small loans was

extremely successful.

1.2 CONCEPT AND DEFINITION OF MICRO FINANCE

"The poor stay poor, not because they are lazy but because they have no access

to capital." - Milton Friedman.

According to International Labor Organization (ILO), “Microfinance is an

economic development approach that involves providing financial services

through institutions to low income clients”

In India, National Taskforce for micro finance (1999) terms micro credit as as

“provision of thrift, credit and other financial services and products of very

small amounts to the poor in rural, semi-urban or urban areas for enabling them

to raise their income levels and improve living standards”.

The basic & foremost idea of microfinance is to being families who are not

aware & new to formal banking & financial system to mainstream. The

another broad aspect of micro finance is to reduce the gap between poor & rich

class by providing option & opportunity to being change in life & livelihood

by using micro finance.

The principles of micro finance is based on Gandhian principles of co-

operation & working & achieving together.

Microfinance may be termed as a 'banch' of activities / options offered to

challenged people to be in main stream of society. A set of activity for the

poor to raise their level of income & standard of living.

In India, as Govt., Banks, NGOs & other non financial institutions are involved

in imparting micro finance, a clear cut understanding & education regarding

options which any provider offers & the basic parameters for a selecting them

may be developed in users of Micro Credit as the most essential & needed one.

5

1.3 CHARACTERISTICS OF MICRO FINANCE

The "Micro" finance which is expected to take minute care of respondent user's

financial needs. The features of micro finance may be termed as :

1. Activity of loans, savings, or insurance with small transactions and minimum

balances

2. Small loan for income generating activity

3. Loans without any collateral security

4. Lending in a group

5. Target poor female client

6. Provision of services to down-froden / poor communities of the society

7. Easy & simple procedure

1.4 SERVICES / ACTIVITIES IN MICRO FINANCE

The following are the main activities which are coming under microfinance

1.4.1 Micro Saving :

There is compulsory saving in most of the microfinance models. On the

basis of these savings, the clients get loan to meet unexpected expenses and

plan for future expenses. The small piggy banks and other daily saving

patterns leads to daily saving & its further use for micro finance.

1.4.2 Micro Credit :

Micro Finance / Micro Credit is offered to the members of special help

group by financial institutions / banks with / without collateral security to

an individual or through group lending.

6

1.4.3 Micro Insurance :

For mitigation of risk for unexpected events and businesses, the clients of

microfinance get micro insurance cover by nominal payment or

government. Access to insurance enables clients to concentrate more on

developing their businesses while mitigating other risks affecting property,

health or the ability to work.

1.4.4 Remittances :

There may be fluctuation in other capital with political and economical

environment but remittances are a relatively steady source of funds. The

users of microfinance can transfer their funds to the people in one place to

people in another, usually across borders to family and friends.

1.5 USERS OF MICRO FINANCE

The micro finance clients are low-income persons who are generally self-employed

and often small entrepreneurs that do not have access to formal financial

institutions. The small farmers and others who are engaged in small income-

generating activities such as animal husbandry, poultry, and food processing and

minor trade are the clients of microfinance in rural areas.

In urban areas, microfinance activities are more varied and include small grocery

shops, service providers, artisans, street vendors, etc. The clients of microfinance

are poor and vulnerable non-poor who have a relatively unstable source of income.

The poor people who donot get access formal financial institutions because their

income is low and not stable as they do not have any collateral also. Moreover,

informal arrangements may not suitably meet certain financial service needs or

may exclude the poor anyway. The individuals in this excluded and under-served

market segment are the clients of micro finance.

The potential market of micro finance clients expands with the addition of more

diversified range of financial services, which includes various types of savings

products, payment and remittance services, and various insurance products, but

expansion of services is depends on active participation of cooperatives, SHGs &

7

NGOs and support mechanism, political climate and local conditions. It may be

possible that many poor farmers would not like to take loan but they just want to

save their money for safety purpose. They may be interested in crop insurance

against threat of failure of monsoon. The government of India had established a

strong link among NABARD, Primary Agriculture & Marketing Societies at

national, state, district and village level, cooperative Banks, commercial banks and

regional rural banks.

1.6 HISTORY OF MICRO FINANCE IN INDIA : PAST AT A

GLANCE

After Nationalization of Banking Sector in 1969, the banking activities as was

aimed to expand from class banking to mass banking, witnessed large scale branch

expansion. It was, however, realized that, notwithstanding the wide spread of

formal financial institutions, these institutions were not able to cater completely to

the small and frequent credit needs of most of the poor. This led to a search for

alternative policies and reforms for reaching out to the poor to satisfy their credit

needs. The several pro-poor financial services, which included credit packages and

programs customized to the perceived needs of the poor supported by both the

State and Central governments, fail to reach the poor and this led to initiatives that

were institution driven that attempted to converge the existing strengths of rural

banking infrastructure and leverage this to better serve the poor.

The concept of microfinance in India came in the early 1970s when the Self

Employed Women's Association (“SEWA”) of the state of Gujarat formed an

urban cooperative bank, called the Shri Mahila SEWA Sahakari Bank, with the

objective of providing banking services to poor women employed in the

unorganized sector in Ahmedabad City of Gujarat. The foundation of the micro

finance movement in India could be traced to the self help group (SHG) - bank

linkage programme (SBLP) started as a pilot project in 1992 by National Bank for

Agricultural and Rural Development (NABARD). The National Bank for

Agriculture and Rural Development (NABARD) was given the tasks of framing

appropriate policy for rural credit, provision of technical assistance backed

liquidity support to banks, supervision of rural credit institutions and other

development initiatives before 1980. The GOI started Integrated Rural

8

Development Program (IRDP) for poverty alleviation through banks but it could

not reach to the poorest people. Before 1992, NABARD and MYRADA, a leading

non-governmental organization (NGO) from Southern India conducted a series of

research studies independently and found that the existing banking policies,

systems and procedures, and deposit and loan products were perhaps not well

suited to meet the most immediate needs of the poor and it has been proven that

what the poor really needed was better access to these services and products, rather

than cheap subsidized credit. The study of NABARD proved that despite having a

wide network of rural bank branches servicing the rural poor, a very large number

of the poorest of the poor continued to remain outside the fold of the formal

banking system and a need was felt for alternative policies, systems and

procedures, savings and loan products, other complementary services, and new

delivery mechanisms, which would fulfill the requirements of the poorest,

especially of the women members of such households. The Government of India

had started self help group (SHG) - bank linkage programme (SBLP) as a pilot

project in 1992 by National Bank for Agricultural and Rural Development

(NABARD) and the programme was emphasis on improving the access of the poor

to microfinance rather than just micro-credit. The SBLP programme was not only

proved to be very successful, but has also emerged as the most popular model of

micro finance in India. Other approaches like micro finance institutions (MFIs)

also emerged subsequently in the country.

In last two decades, various microfinance programs were launched and promoted

by the government and NGOs. These programs vary from regional rural banks with

a social mandate to MFIs. The GOI merged various credit programs and launched a

new programme called Swaranjayanti Gram Swarazagar Yojana (SGSY) in the

year 1999. The SGSY programme provided subsidized credit to the poor through

the banking sector to generate self-employment through a self-help group approach

and the program has grown to a huge size.

MFIs have also become popular throughout India as one form of financial

intermediary to the poor. MFIs exist in many forms including co-operatives,

Grameen-like initiatives and private sector MFIs. Private sector MFIs include

NGOs that act as financial services providers for the poor and include other support

services but are not technically a bank as they do not take deposits.

9

It is clear from the previous that the objectives of the bank sector nationalization

strategy have resulted into several offshoots, some of which have succeeded and

some have failed. Today, Self-Help Groups and MFIs are the two dominant model

of microfinance in India are two different user groups of Micro Finance in India.

1.7 EVOLUTION OF MICRO FINANCE IN INDIA

The microfinance sector in India has passed through four phases.

The first phase was for the period of 1900-1960. In the first phase,

subsidized credit was given to the villages by the credit cooperatives under

government sponsorship.

The second phase was for the period of 1960-1990. In the second phase,

because of failure of credit cooperatives, the government took steps like

nationalization of banks; expansion of rural branch networks etc. in this

period, the government had also established Regional Rural Banks (RRBs)

and various apex bodies like National Bank for Agriculture and Rural

Development (NABARD) and the Small Scale Industries Development

Bank of India (SIDBI). Integrated Rural Development Programme (IRDP)

was also launched to provide credit to the poor and it reached to huge rural

population. In the second stage, there was a misuse of the credit by the

borrowers, so there was negative perception of banks for the rural credit.

The third phase was for the period of 1990-2000. In this phase, because of

failure of subsidized social banking in delivery of rural credit, NABARD

initiated the Self Help Group (SHG) Bank Linkage Programme (SBLP),

aiming to link informal women's groups to formal banks. The SBLP help to

reach the unreached people and initiate a change in the bank's outlook

towards low-income families from "beneficiaries" to "customers". In this

era many MFI and private banks came in to existence and started

microfinance with NABARD under SBLP programme

The fourth phase is witnessed for commercialization of microfinance.

After liberalization and reforms in the financial sector, rural markets

emerged as the new growth drivers for banks and MFIs. Use untapped

10

market was open up for the banking sector by way of microfinance

services.

1.8 MICRO FINANCE NEED IN INDIA

As per Census 2011, one out of five (21.9% < 27 crore) Indian live below poverty

line & has no access to formal financial banking system. "Jandhan Yojana" started

by Narendra Modi Govt. was started to bring introduce the poor people to formal

banking system & to achieve millennium goal of alleviate poverty one should have

access to system & options.

1.9 LEGAL REGULATION OF MICRO FINANCE IN INDIA

There is no specific law in India which is exclusively for microfinance. There are

many organizations like banks, NGOs, trusts, MFIs etc are providing microfinance

services and they all are working under different law or act. The banks in India are

regulated and supervised by the Reserve Bank of India (RBI) under the RBI Act of

1934. There are other acts like Banking Regulation Act, Regional Rural Banks Act,

and the Cooperative Societies Acts which are applicable to different agencies or

organizations.

The attempt was made by the government in the year 2007 by presenting

microfinance bill in to the parliament but lapsed without becoming an Act. The bill

focused mainly to supervise only those institutions (trusts, charitable societies, non-

profits) that accepted deposits from microfinance clients. It did not include NBFCs

and MFIs.

The government of Andhra Pradesh closed down 57 branches of two largest MFIs

(SHARE and Spandana) as well as those of few smaller MFIs in March 2006

because of the allegations of unethical collections, illegal operational practices

such as taking savings, poor governance, and high interest rates. There was even a

claim that 10 borrowers of MFIs in Krishna district committed suicide because they

were unable to repay the loans taken from MFIs. The crisis forced to the

government of Andhra Pradesh to promulgate an ordinance in October, 2010 to

save the borrowers. The ordinance was enacted in December, 2010 as Andhra

Pradesh Microfinance Institutions (regulation of money lending) Act. Following

11

the Act, the growth of MFIs came down to 17 percent from 95 percent in the year

2010 in Andhra Pradesh. Leading up to the Andhra Pradesh crisis, microfinance

institutions were demanding common regulatory system in India and it leads to

formation of Malegam Committee by RBI for new guidelines and regulatory

structure for microfinance in India. The Malegam Committee released their

recommended regulations in January 2011 and was broadly accepted by RBI in

May 2011. Based on the recommendations of the Malegam Committee, the

government had presented the Micro Finance Institutions (Development and

Regulations) Bill 2011 in Parliament, but cannot become an act.

The Micro Finance Institutions Development and Regulation Bill, 2012 was

introduced in Lok Sabha on May 22, 2012. As per the bill, MFIs are defined as

organizations providing micro credit facilities up to Rs 5 lakh, thrift collection

services, pension or insurance services, or remittance services and the Reserve

Bank of India (RBI) shall regulate the micro finance sector; it may set an upper

limit on the lending rate and margins of Micro Finance Institutions (MFIs). The bill

also provides for the creation of councils and committees at central, state and

district level to monitor the sector. Finally, the bill was referred to the standing

committee, which submitted its final report on February 17, 2014 and the

Committee urged the government to have wider consultations with state

governments and stake-holders and bring forth a fresh legislation before

Parliament. The Bill lapsed due to dissolution of "Lok Sabha" and shall have to be

introduced fresh. Moreover, The RBI has issued regulatory guidelines on July 1,

2014 containing regulatory framework for NBFC-MFIs. Further, to safeguard the

interest of borrowers from NBFC-MFIs, RBI has issued detailed guidelines on Fair

Practices Code in 2008 and revised the same from time to time and the last such

revision was on February 18, 2013.

1.10 PROBLEM STATEMENT.

In India, numerous government schemes provide various subsidized services to the

poor in rural areas for their empowerment. The result of various studies indicate the

limitations of government programs showing lack of access of financial services

for the rural poor people and their over dependence on the local money lenders for

their requirements. A large number of rural poor people continue to remain outside

12

the fold of the formal banking system in India. Further, various studies report that

the government schemes do not meet the needs of the rural poor even though many

public sector banks extend their loans to the rural poor under various subsidized

schemes, the ultimate cost to the borrowers is very high due to payment of

commission to the middlemen and business loss due to time spent in getting the

loan approved (Task force 1999). Only 16 per cent of their requirement is met by

the formal banking sector, while the remaining 84 per cent is met by the local

money lenders (Task force 1999).

In this context, NABARD introduced a unique scheme “Micro finance” through its

bank –SHG linkage programmes for delivery of financial services to the rural poor.

Financing through SHGs reduces transaction costs for lenders and borrowers at the

same time (Sivakumar and Balbir 2009). Various studies have pointed out that

micro finance is not a magic wand that can automatically lift poor people out of

poverty and access to credit is only the first step (Suresh Nandi 2009). This model

(Bank – SHG linkage) faces multiple problems while offering financial services to

the poor individuals. Many of the women beneficiaries live in far off rural areas,

often remote villages. They have little formal education leading to lack of

knowledge about micro finance services and they have little access to micro

finance services offered by the banks under this model. Further, some beneficiaries

use micro finance loans for the purchase of durable consumer goods. It has failed

to empower women and it has not improved the income earning capacity of the

women beneficiaries. The lack of transport formalities for sanctioning loan by

banks and the prevalence of untrustworthy intermediates also affect the success of

micro finance operations (Hugh Sinclair 2012). In spite of various success stories

on micro finance, the women beneficiaries face numerous problems in availing

micro finance.

The Rajkot District rural poor women are incapacitated due to various reasons

because most of them are socially backward, illiterate, with low motivation and

poor economic base. Individually, a poor person is not only weak in socio-

economic term but also lacks access to the knowledge and information, which are

the most important components of today’s development process. However, in a

group, they are empowered to overcome many of these weaknesses. The micro

finance is only a tool to overcome the above drawbacks and which will help

13

empowerment of women but the management of finance is very difficult to the

women community and in some cases the fund is fully misutilized and at the same

time no authority or regulation controls the utilization of fund. Women as micro

and small entrepreneurs have increasingly become a key target group for micro

finance programmes. Providing access to micro finance is not only considered a

precondition for poverty alleviation, but also for women's empowerment. But

despite the proven positive impact on entrepreneurs in the informal sector, micro

finance among others to address the multiple causes of poverty, unemployment and

social exclusion. In order to study the management of micro finance, it is necessary

to assess the "PURPOSE OF MICRO FINANCE LOAN, UTILIZATION OF

MICRO FINANCE LOAN, PERFORMANCE IN REPAYMENT, PROBLEMS

IN AVAILING MICRO FINANCE LOAN, SATISFACTION LEVEL OF

WOMEN BENEFICIARIES AND THE IMPACT OF MICRO FINANCE". In this

context, the present study has been taken up.

1.11 OBJECTIVES OF THE STUDY

The overall objectives of the study are to outline the present status of management

of micro finance in Rajkot district and to identify the various problems and the

impact of micro finance among women SHGs in the study area. The specific

objectives of the study are listed below,

i) To study the socio-economic conditions of the sample women beneficiaries

of micro finance scheme in the study area.

ii) To analyse the purpose of micro finance of the sample women beneficiaries.

iii) To assess the amount of loan availed and repayment patterns of micro finance

in Rajkot district.

iv) To assess the extent of effective management of micro finance utilization in

the study area.

v) To analyze the problems in availing the micro finance in Rajkot district.

vi) To evaluate the impact of micro finance on women empowerment with

reference to the sample women beneficiaries.

14

vii) To offer suitable suggestions for the betterment of micro finance in the study

area.

1.12 SCOPE OF THE STUDY

The present study is mainly confined to the women SHGs in Rajkot district. It

includes an analysis of the profile of SHG members, their income and savings,

details about borrowing and repayment of micro finance, problems in getting the

micro finance loan and repayment of loan, satisfaction and impact of micro finance

in the study area on the basis of the opinions of SHG members collected.

1.13 RESEARCH METHODOLOGY

The validity of any research depends on the systematic method of collecting the

data and analyzing the same in a logical and sequential order. In the present study,

both primary and secondary data is made.

1.13.1 RESEARCH DESIGN

In the present study, both Exploratory Research and Descriptive Research have

been used in accomplishing the objectives of the study. Exploratory Research has

been used to gain insight into various problems faced by the women self help group

members while availing the micro finance loan in the study area. Descriptive

Research has been used to analyze the impact of micro finance loan on

empowerment of women self help group members.

1.13.2 SAMPLING DESIGN

In Gujarat, Rajkot district has been selected for the purpose of collecting the

primary data. In order to study Management of Micro Finance by Women Self

Help Groups in Rajkot District, the sample respondents have been selected from

various blocks of Rajkot district. The researcher visited the various blocks on

different dates and collected data from different self help groups.

15

1.13.3 DATA COLLECTION

The examples & illustrations are taken from national & international bases where

as secondary data is taken from published reference material. Primary data were

collected through a structured interview schedule from women self help group

members in the Rajkot district. Before undertaking the complete survey, a pre-test

was conducted and then the interview schedule was modified and restructured

suitably. The secondary data were collected from magazines, journals, internet

searches, NABARD statistical resources, RBI Bulletin and libraries etc.

1.13.4 STATISTICAL TOOLS USED

To analyse the primary data statistical tools such as Descriptive Analysis, Chi-

square test, ANOVA, Garret ranking technique, Discriminant Function Analysis,

Friedman Test Factor Analysis, Kendall's coefficient of concordance test, Kruskal-

Wallis test, Neural network and Structural Equation Modeling have been used.

Arithmetic mean and percentage analysis are used to describe the data. To analyse

the problem in getting micro finance loan, Garret Ranking technique has been

adopted.

A paired sample t test has been used to evaluate whether the respondents income

has increased after joining the SHG when compared to their income before joining

SHG. To analyse the association between Level of Impact of Micro finance and the

personal profile factors namely Taluka, Age, Education, Caste, Marital Status,

Occupation, Size of family, Type of Family and Number of Years in SHG, Chi-

square test has been used. To test the significant difference between the mean score

among the various talukas and impact of micro finance ANOVA test has been

used.

Kendall's coefficient of concordance for ranks (W) was used to calculate the

agreement among rankers as they rank a number of subjects according to the

priority for joining a SHG. A Kruskal-Wallis test was used to evaluate differences

among various occupations of the respondents on ranking priorities for joining a

SHG.

16

To identify the factors which influence the respondents to repay the loan, the

Friedman’s test analysis was used. Regarding the impact of micro finance, how do

respondents from one Taluka differ from those from other Taluka in the factors

influencing the impact of micro finance, Discriminate Function Analysis has been

applied.

Neural network model was developed to predict and classify the sample

respondents into default payers and regular payers of loan amount to SHG. The

factor analysis was used to identify the underlying factors that explain the pattern

of correlation within the set of observed variables regarding the impact of micro

finance.

1.13.5 PERIOD OF THE STUDY

The period of the study was confined to three years from 2013 to 2016. The sample

respondents were contacted through structured interview schedule to obtain the

primary data.

1.13.6 HYPOTHESIS

The following null hypotheses have been formulated and tested with appropriate

statistical tools.

There is no significant association between the family type of the

respondents and the impact of micro finance.

There is no significant association between the taluka of the respondents

and the overall satisfaction regarding micro finance.

There is no significant association between the age of the respondents and

the overall satisfaction regarding micro finance.

There is no significant association between the marital status of the

respondents and the overall satisfaction regarding micro finance

There is no significant association between the educational qualification of

the respondents and the overall satisfaction regarding micro finance.

17

There is no significant association between the occupation of the

respondents and the overall satisfaction regarding micro finance.

There is no significant association between the size of family of the

employees and the level of impact.

There is no significant association between the number of years in SHG of

the respondents and the overall satisfaction regarding micro finance.

There is no significant association between the family type of the

respondents and the overall satisfaction regarding micro finance.

There is no association between demographic variables and level of impact

of micro finance.

There is no association between demographic variables and level of impact

of micro finance.

1.14 WORKING DEFINITIONS

Micro Finance :

A type of banking service that is provided to unemployed or low-income

individuals or groups who would otherwise have no other means of gaining

financial services. Ultimately, the goal of micro finance is to give low income

people an opportunity to become self-sufficient by providing a means of saving

money, borrowing money and insurance.

Micro Credit :

Micro credit has been defined as the provision of thrift, credit and other financial

services and products of very small amount to the poor in rural, semi-urban and

urban areas for enabling them to raise their income levels and improve their living

standards. Micro credit institutions are those, which provide these facilities.

18

Self Help Group :

A SHG is a group of about 10 to 20 people, usually women, from a similar class

and region, who come together to form a savings and credit organization. They

pool financial resources to make small interest bearing loans to their members.

This process creates an ethic that focuses on savings first. The setting of terms and

conditions and accounting of the loan are done in the group by designated

members.

Grameen Model :

In such a model a group of 5 is formed in which 2 are lent loans. These two are

monitored for a specific time. If they conform to the rules of bank other members

of the group also become eligible to obtain loans. Due to substantial group

pressure, the individuals try to keep their records clear.

The Self Help Group (SHG) Bank Linkage Programme :

The SHGs linkage programme is treated as a normal business activity of the banks.

Accordingly, the banks are advised that they may consider lending to SHGs as part

of their mainstream credit operations both at the policy and implementation level.

They may include SHG linkage in their corporate strategy plan, training curriculum

of their officers and staff and implement it as a regular business activity and

monitor and review it periodically.

NGO :

NGOs have emerged as key players in field of micro finance. They act basically as

intermediary between donors and beneficiaries. Although they have been working

on development of various sectors. In micro finance, they have put substantial

effort in creating awareness about various micro finance activities.

1.15 LIMITATIONS OF THE STUDY

The present study is subjected to the following constraints and limitations:

i) The study has been conducted only among those SHGs formed under the

SHG-Bank linkage Programme by the NGOs and which have subsequently

19

been credit-linked to public sector banks and other type of SHGs are not

included.

ii) The main objective of this study is to carry out detailed assessment of

management of micro finance in Rajkot district only. Hence, state wide or

nationwide coverage has not been included.

iii) The results presented are based on the information provided and discussion

held with the sample women beneficiaries in the study area. Hence, the

accuracy of the consequent findings is subjected to the extent and reliability

of memory recall of these respondents.

iv) The study findings and recommendations given are limited to Rajkot district

women SHGs only and the present study does not cover the men SHGs in

the study area

20

CHAPTER - 2 : REVIEW OF LITERATURE

1.1 INTRODUCTION

A review of related literature helps the researcher gain a thorough knowledge

about the area of the study and enables him to get a clear picture of the various

aspects of the study. Various studies carried out elsewhere by other researchers on

the related aspects could also be reviewed and the researcher could understand the

various dimensions of the particular study undertaken. It would also help in filling

the gap in a particular research area and would also help the researcher to explore

the possibilities of further research on the related aspects of the subject of study.

The literature on self help groups and micro finance is relatively a new research

area where the available literature is very high. This chapter reviews the various

empirical and conceptual studies available on self help groups and micro finance

and its impact on the self help group members. Even though the literature available

is fairly large, the review is limited to the core issues to identify the major trends

related to the present study. This chapter consists of four major sections. The first

section outlines the review of literature covering the socioeconomic status of SHG

members, their savings habits. Section II reviews the purpose and utilization of

micro finance loan and repayment pattern. Section III reviews the problems on

availing of micro finance loan. Section IV outlines the review of literature covering

the impacts of micro finance loan on various aspects of empowerment of SHG

members.

1.2 REVIEW ON SAVINGS AND MICRO FINANCE LOAN

Hashemi et al (1996) in their paper entitled “Rural Credit Programmes and

Women Empowerment in Bangladesh” analyzed about 1300 married women under

the age of 50 who got loans through Grameen Bank and the Bangladesh Rural

Advancement Committee (BRAC). Four separate samples were drawn using a

random multi-stage cluster design to include messages from all the four geographic

divisions of Bangladesh. The four groups consisted of Grameen Bank members,

Bangladesh Rural Advancement Committee members, non-members residing in

21

Grameen bank villages and a comparison group who lived in villages with no

Grameen Bank or Bangladesh Rural Advancement Committee loans but would

have qualified to join the credit programmes.

Ariz (1999) in his article titled “Women empowerment: Self Help Groups”

discussed the experience of SHGs in Gossaigaon sub-division under Kokrajhar

district, Assam. In addition to the thrift and credit activities, the SHGs were

involved in community activities. The paper also points out that the SHGs are

involved in mid day meal distribution, overseeing execution and monitoring of

rural development work under District Rural Development Agency in the form of

vigilance committee at every gram Panchayat level. The paper also suggests that

future course of action for the SHGs in the areas like taking up the cause of

women’s rights, fight against corruption in the implementation of different

government schemes, involvement in the improvement of health and hygiene by

imparting health education, training in first aid, promoting health and nutrition etc,

and entrepreneurship development.

Todd (2000) in their paper entitled “Efficiency of Micro finance Institutions”

analysed the performances of 22 micro finance institutions in Latin America and

identified factors that contribute to and hinder efficient functioning of micro

finance. The various measures used to determine efficiency drives namely portfolio

size, loan size, lending methodology, the source of funds and the salary structure

are explained. The study concludes that the final objective of efficiency is to

remain both profitable and competitive.

Choudhury et al (2001) discussed the role of Self Help Groups in promoting micro

enterprises through micro credit intervention and the efficacy of SHG in promoting

institutions. The study was conducted based on case study cum survey method and

it examined the structural characteristic of Self Help Groups in the study area of

Tamilnadu, Karnataka, Andhra Pradesh and Maharashtra. It further analysed the

operating systems in Self Help Groups for mobilization of savings, delivery of

credit to the needy, management of group funds, recovery of loan overdue, and

linking process with banks. They recommended that the micro enterprises sprung

up through credit support from Self Help Groups and strategic role of Self Help

Groups in poverty reduction process.

22

Dadhich (2001) in his paper titled “Micro finance- A Panacea for Poverty

Alleviation: A Case Study of Oriental Grameen Project in India”, discussed the

importance of micro finance as an effective vehicle of alleviating poverty

especially in rural areas through the empowerment of women. The successful

experience of a public sector bank, without the involvement of either the

government or Non-Governmental Organization in India was discussed in the

paper. The Oriental Bank Grameen Project provided micro finance services in

eight villages. Of these, two villages were selected in Rajasthan and six villages in

Uttaranchal. The paper also recommended certain measures for further

improvement of the groups.

Datta et al (2001) in their paper entitled “Can Heterogeneity and Social Cohesion

Coexist in Self Help Groups?-An Evidence from Group Lending in Andhra

Pradesh in India” made an attempt to study the age and size of SHGs along with a

brief discussion on the socio-economic conditions of 355 members of 30 women

SHGs under Rastriya Seva Samithi at Tirupathy in the state of Andhra Pradesh,

and discussed the performance of SHGs in terms of savings mobilization, lending

operations, sources of finance, recovery etc. The paper also worked out two

regression models to find out the major determinants of (a) SHG net income per

member and (b) average monthly income of members in SHGs. The equations

were estimated with qualitative and quantitative variables.

Dwarakanath (2002) in his article “Rural Credit and Women Self Help Groups”

examined the Self Help Women Groups in Ranga Reddy district in Andhra

Pradesh, the total corpus fund available with the group which was advanced to the

group. The paper presents the effectiveness of these groups with linkage

programme and awareness among the rural folk about the significance of women

empowerment and rural credit.

Robert (2002) in their article titled “Financial Services for the Very Poor –

Thinking outside the Box”, surveyed very poor people (slum dwellers in Pura

Bastee slum in Kalyampur, Dhaka) examining what they value in micro finance

programmes and contrasting them with those of the not-so-poor clients. Dramatic

differences were not apparent but both groups placed great emphasis on the

security of the savings and on flexible options for loan terms and repayment

23

schedules. A further survey revealed that most micro finance institutions reached

the “upper poor” in greater numbers than the very poor. The final section discusses

why very poor people value particular characteristics in micro finance programmes

and how may be incorporated.

Tankha (2002) addressed three different issues like Efficiency, Effectiveness and

Sustainability of SHG promotion. He stated that SHG and Microfinance sector may

be considered in the development of standards for SHGs, loan products for

Microfinance Institutions and always continuous grant support for SHG promotion.

He concluded that leading NGOs should develop sustainable structures for the

delivery of financial and non-financial services through self help groups.

Fernandez and Prakash (2003) narrated the building of socio-economic

upliftment of the poor through MYRDA. They attempted to throw light on credit

management and its futures for institutional building. Further, they found that all

the Self Help Group members were empowered equally without any variations in

their socioeconomic status. And they also analysed the number, size and purpose of

loans which the ‘lower poor’ ‘middle poor’ and ‘upper poor’ had accessed.

Das and Mousumi (2004) in their article entitled “Micro finance through Self Help

Groups-A Boon for the Rural Poor” said that the easy access of credit to the poor is

the need of the hour rather than cheaper rate of interest. Micro finance provides an

opportunity to the poor for getting sufficient amount of credit easily to start any

income generating activity. The paper points out that micro credit ensures the right

to save and it is one of the most powerful weapons, which works for bringing the

poor rural people into the mainstream of development. The paper drives home the

point that in a country like India where millions of people are still below the

poverty line, the credit for income generation alone would not defeat the purpose

of poverty eradication. The paper concludes that no programme can ever get its

ultimate result unless and until there is co-ordination and co-operation between the

government and the people and that the poor follow-up, lack of proper

management and participation may end up with failure as in the earlier cases of

poverty alleviation like Integrated Rural Development Programme.

24

Titus (2004) report discussed the forms and structures of existing federations and

the role of federations in the development process of SHGs. The main objectives of

the report were to understand the SHGs Federation and their emerging practices of

different aspects. Totally 27 federations were taken as sample size in this research

report. Out of the 27 federations, 13 were from southern region, 5 from Northern, 3

from Eastern and 3 from the North Eastern part of the country. The report stated

that federation is not a spontaneous social institution emerging out of the people’s

initiative. It concluded that federation effectiveness will not only depend on

financial turnover but also quality of services provided by the members.

Ghosh (2005) in his article “Micro finance in India: A critique” discussed the

evolution of the micro finance revolution in India. He opined that micro finance is

a powerful tool for poverty alleviation and women empowerment. According to

him, the viability of micro finance institutions are under question mark and the

outreach is too small and there is a need for an all round effort to help develop the

fledgling micro finance Industry while tackling the tradeoff between outreach and

sustainability.

Malcom et al (2005) in their article entitled “SHG-Bank Linkage: A Tool for

Reforms in Cooperatives?” discussed that the SHG initiative was launched to

provide the poor with access to formal financial services and agricultural credit

societies and cooperative banks have thus played a limited role in the programme

of linking SHGs to formal financial institutions. The paper examined the spread of

the cooperative SHG linkage across states, the relationship between the

commercial success of cooperative banks, the extent of the linkage established and

the impact of such linkage on performance.

Basu and Srivastava (2005) in their article entitled “Exploring Possibilities- Micro

finance and rural credit access for the poor in India” has emphasized despite

substantial efforts and a vast network of rural banks, the rural poor still have very

little access to formal finance. Over the past decade, new micro finance approaches

designed to deliver finance to the poor have emerged and some have shown

promise. However, empirical assessments of their reach or impact are still

relatively few. Drawing on a recent rural access to finance survey of 6000

households conducted by the authors, the paper analyses the reach of the most

25

dominant micro finance initiative, the SHG-bank linkage model. Based on this and

international experience, the paper draws lessons for exploiting the potential of

micro finance in India and outlines areas of concern for government policy towards

this important sector and suggests ways to scale up access to finance for the poor.

Smita and Haripriya (2010) analysed Self Help Group bank linkage model and

financial inclusion in India. Their main objectives were to examine the role of SHG

bank linkage model in achieving financial inclusion across sixteen states for the

year 2008 and portrayed the status of financial inclusion. They adopted cross

sectional regression analysis to know the impact of selected independent variables

on financial inclusion. The results indicated that the financial inclusion created a

positive impact on SHG bank linkage model. They concluded that Self Help Group

linkage model was a highly successful operated model of microfinance in India and

it would reduce transaction costs which would facilitate proper monitoring of

funds.

Bhuiyan et al (2011) conducted an empirical study to measure the performance of

micro finance schemes of Islamic Bank Ltd in Bangladesh. The study found better

coverage efficiency in management of micro finance in Bangladesh. According to

them micro finance came with a revolutionary approach by providing the poor the

accessibility to credit to increase their productivity, for reducing vulnerability, and

to alleviate poverty through self employed economic activities. They further stated

that micro finance deal with the poor who were ignored by formal financial

institutions because of not having assets for collateral enough financial records and

credit history.

Devaraja (2011) investigated the evolution of the microfinance revolution in India.

He stated that there are three distinct aspects where government needs to play a

role. The first is to protect the rights of the micro borrower, the consumer of micro

financial services. The second is that of prudential oversight of risk taking by firms

operating in microfinance, since this could have systemic implications. The third is

a developmental role, emphasizing scale up of the microfinance industry where the

key issues are diversification of access to funds, innovations in distribution and

product structure, and the use of new technologies such as credit bureaus and the

User Identification (UID). He suggested that if India is to stand among the comity

26

of developed nations, there is no denying the fact that poverty alleviation and

reduction of income inequalities has to be the top most priority.

Kulkarni and Sonawane (2011) highlighted the role of micro finance for women

empowerment in India. They conducted a survey from 48,51,356 sample Women

SHG members from India. The study indicated that the progress of savings amount

of SHGs and the progress of loan disbursed to SHGs in India had decreased in

recent years. The study further reported that the loans outstanding of SHGs in India

had also decreased .They concluded that micro finance for the poor groups is not

possible from institutional structure of banking, but it becomes possible through

SHG movement. It is an effective tool for poverty alleviation and improving the

socio-economic status of the rural poor.

Vijay Kumar (2011) analysed the role of SHGs in women empowerment in

Warangal district of Andhra Pradesh. He stated that the members had joined the

group in order to earn more income, promote savings habits and to develop

collective, economic and social activities. The research findings reported that

among the 100 respondents 30 respondents had greater autonomy in house-hold

decision making and reduced domestic violence against the women. He

recommended that the government should provide market support to the products

of SHGs and to provide more loans through governmental agencies adopting easy

loan procedure.

Lakshmi and Vadivalagan (2012) analyzed the reasons for joining the SHGs in

Dharmapuri district of Tamilnadu. The reasons such as repaying old debts,

maintaining house expenditure, promoting savings, raising status in society,

promoting income generating activities and getting loan were analyzed. The Garret

ranking technique was used to analyse the reasons for joining the SHGs. The

research findings stated that among the above reasons, raising the status in the

society was the prime reason as stated by the respondents for joining the SHGs

followed by promoting income generating activities as the second reason. The third

rank was assigned to getting loan. Maintaining house expenditure was the last

reason for joining SHGs in the study area. They concluded that after joining the

SHGs, the women were economically and socially empowered.

27

Rai (2012) analysed the Financial Performance of Microfinance Institutions of

India and Bangladesh. He also analyzed the problem of poverty in these countries.

He collected a sample of 26 Microfinance Institutions (MFIs) from India and 26

microfinance institutions from Bangladesh. He pointed out that the absence of

access to credit was presumed to be the cause for the failure of the poor to come

out of poverty. He further stated that in the last five years, the Indian MFIs have

performed better as compared to the MFIs of Bangladesh in most of the financial

indicators. He recommended that for ensuring prudential management, banks in

India are expected by the RBI to maintain Capital Adequacy Ratios of 9 per cent

and NBFCs of 15 per cent which is much safer even when there is a economic

downturn.

Ravindra Satpute (2012), analyzed the socioeconomic profile of beneficiaries of

SHGs in Maharashtra. He made a survey of 400 respondents from Amravati

District in Andhra Pradesh state. He focused on the availability, credit

requirements and the problems faced by the tribal people in availing loans. He

revealed that the Self Help Groups touched upon lives of particularly poor women

who lived in rural areas. He further stated that there was a need to accept that

women's needs were not only for self-employment. The customer-contact-

programme, especially for women should be organized to disseminate information

about various schemes and the financial needs of women. He recommended that

they should be educated and trained on how their participation could be useful to

achieve some concrete results. There was an urgent need of cooperation from

public representative’s involvement in each and every movement of SHGs for the

upliftment of women. There should be timely release of funds and its

channelization to the departments concerned and agencies. He concluded that the

SHG members should be inculcated the feeling of collective development, social

harmony and active role in the development process and governance. The

motivational campaign may be conducted for inculcating the savings habit in the

minds of the members.

1.3 REVIEW ON UTILIZATION AND REPAYMENT OF MICRO

FINANCE LOAN

Goetz and Marie (1995) in their article entitled “Credit for Poor Rural Women in

28

Bangladesh - Who controls the Loan Use?” did research in 1995 in Bangladesh on

women’s patterns of loan investment. The findings were based on 275 detailed loan

use histories of which 22 were loans to men, 253 to women across the four

organisations. The study suggested that economic empowerment is not an

automatic consequence of the provisions of financial resources to women.

Gendered power relations within the household must be taken into account because

they affect the distribution and use of cash resources and in the case of Bangladesh,

may constrain women’s capacity to develop effective control over credit.

Baumann and Ted (2004) in their paper entitled “Impact Cost-effectiveness Study

of Small Enterprise Foundation, South Africa”, analysed in one of the poorest areas

of South Africa, Small Enterprise Foundation (SEF) which runs a micro finance

programme targeted at poor women. For about six years, SEF ran an impact

monitoring programme using in-depth interviews aimed at improving SEFs

performance as a developmental MFI. The emphasis was on predicting trends in

client well-being rather than objective indicators of client poverty levels. SEF used

on-going monitoring tools such as client-level indicators, drop out vulnerable

groups and centers, and management information system which readily identified

problems before they became serious. This article describes some of the client

impact results produced by this impact management programme and outlines how

the system works. It describes how SEF was stable when increased level of

dropouts were identified in 2002, and demonstrates that preventive action

stimulated by the programme more than covered the costs of the impact

management programme itself.

Marie (2004) in their article entitled “Micro finance Repayment Performance in

Bangladesh: How to improve the Allocation of loans by MFIs” produced a

comprehensive analysis of the performance of micro finance institutions (MFIs) in

terms of repayment. The article focused its analysis on the impact of group lending,

non-financial services and dynamic incentives on repayment performance. In the

second section of the paper, a comparative analysis of the determinants of the

repayment performance and of loan size was carried out in order to make policy

recommendations on the allocation of loans by MFIs.

29

Sowjanya (2007) analyzed the various activities undertaken by SHGs to know the

priority given by the members of successful and unsuccessful SHGs. The main

objectives were to study the fund utilization pattern and analyse the production and

marketing activities undertaken by successful and unsuccessful SHGs. Research

design adopted by the researcher was ex-post-facto in nature. She found that the

delay in sanctioning and disbursement of loan to Self-help groups, lack of co-

ordination between government agencies, bank and self-help groups. She suggested

that government agencies and banks need to build a positive impact in the minds of

the SHG members and in order to promote the products, proper marketing channels

should be established in the rural areas. She concluded that successful SHGs were

always engaged in the economic activities, close relationship and interaction with

the organization, held regular meetings, regular repayment of loan and

maintenance of the records in a consistent way.

Sherief and Sharief (2008) reviewed microfinance operations in Eastern and

Western Africa. They reported that one of the most intractable economic problems

for poor countries has been the high price or outright unavailability of credit in

rural communities. They further stated that over the past few years, several

microfinance organizations and practitioners have found setting up of sustainable

microfinance systems in rural Africa is a very challenging one. They concluded

that microfinance remains a powerful tool for development. It may be a drop in the

ocean, but it has made people self sufficient and the inculcation of financial

training and discipline amongst the poor which will undoubtedly have long-term

socioeconomic benefits.

Anandan and Jameela (2009) discussed the utilization of micro finance despite

the fact that micro finance has liberated the women from poverty and enhanced

their empowerment to some extent. Further they stated that many women are

unable to use the loan for income generating activities. Rather they are forced to

divert the use of their loans for other purposes. Finally, they concluded that chronic

poverty has a crippling effect on the mind and aspirations of the poor women, and

this chains them to lower levels of living. The consumption and social needs are so

pressing that any loan will be diverted from production requirements for satisfying

consumption needs. So, loans should be arranged by the NGOs to satisfy the

consumption and social needs of women.

30

Srinivasan (2009) in his report, “Micro finance India-State of the Sector Report

2009” listed the various challenges and risks faced by the micro finance institutions

in India. It includes, scarcity of funds, increasing resource cost, increase

competition and limited HR availability. He further stated that the high operating

cost of the micro finance institution will affect the growth of the MFIs.

Devyani Parameshwar et al (2010) analysed the growth of old and new micro

finance institutions in India. They have sampled three major classes of micro

finance institutions from 29 MFIs in the country that constitute 80 per cent of the

market by portfolio outstanding. They found that the performance of non banking

finance corporations exhibit higher costs and profitability, lower leverage. They

further reported that there is an increase in interest yield of some NGO- MFIs over

the last three years. They concluded that a comparison between the Indian

microfinance industry and global markets shows that Indian MFIs have the lowest

yields, lowest operating costs, and the highest return on assets. This comparison

explains why Indian MFIs are increasingly becoming an attractive option for global

investors. Higher operating efficiency allows Indian MFIs to charge amongst the

lowest interest rates in the world, and still achieve high returns.

Sriram (2010) studied the growth and commercialization of microfinance in India.

He stated that most of the early microfinance in India happened through donor and

philanthropic funds. These funds came in to not-for-profit organizations. However,

as the activities scaled up, it was imperative to move to a commercial format. He

concluded that in any case for an industry that has grown at a scorching pace, it is

time to hit the pause button and look back a little bit before the next phase of

growth.

Subramanian (2010), attempted to analyze the performance of women Self Help

Groups and its socio economic impact on members as well as the perception of

members towards SHGs in Tirunelveli District. He took a sample from 144

members of Tirunelveli district. He stated that the utilization of common fund,

regularity in attendance in the meeting, repayment performance, regularity in

conducting the meeting and adequate training were the major contributions to

better performance of the SHGs. He suggested that the necessary skills with regard

to financial decision making may be inculcated to the members of the SHGs and

31

the SHG concept for men can be adopted in the study area. He concluded that the

youth, especially unemployed, can be benefitted and they can also involve

themselves in the process of poverty eradication.

Legatum Ventures (2011) a private investment group examined the problems

faced by microfinance institutions in Andhra Pradesh state. According to the

survey conducted by them, between 2008 and 2010, the number of clients of MFIs

grew by an average of 61 per cent each year, with loan portfolios growing 85 per

cent per year. They found that the Andhra Pradesh government-backed

microfinance SHG program, on the other hand, only grew its client base by 13.6

per cent during the same period and its loan portfolio by 28 per cent. They also

pointed out that millions of poor people across India are presently denied their

fundamental right to make their own financing choices and are without access to

basic financial services. They suggested that the RBI and the central government

should take immediate action to supersede, suspend or repeal the Act and introduce

sensible legislation on a federal level which allows the private sector to grow and

flourish.

Sangeetha (2011) examined the status of financial inclusion among fisher

households of the coastal region in Kerala. She observed that the main hurdle faced

by banks in financing the poor was the high transaction cost in reaching out to a

large number of people who required small amounts of credit at frequent intervals.

She surveyed twelve coastal fishing villages from four selected coastal districts in

Kerala. She found that one third of the households in marine fisheries sector were

still marginalized with limited or no access to basic financial services including

that of microfinance. She further stated that microfinance had played an important

role in financial inclusion of fisher households in coastal Kerala, with higher levels

of financial inclusion being associated with SHG membership. Informal

borrowings were found to be lower with increasing level of financial inclusion and

with having access to microfinance. She suggested that microfinance operators

should give more stress on thrift aspect so that individual savings should be

promoted with a view to reducing the inflexibility associated with the present form

of microcredit.

32

Raja Reddy and Reddy (2012) analysed the quality and sustainability of Self Help

Groups in India. The main objectives of the study were to know the quality of

SHGs, to access the credit point and issues under the SHG movement. The study

covered a sample of 1942 SHGs from 41 districts in 8 states. The researchers

indicated that there were wide disparities in SHGs credit linkage with banks. They

concluded that SHGs and their institutions were evolving an ecosystem to support

and realize the vision of poverty free India and SHGs needed sustained training and

capacity building support as well as self help promoting institutions.

2 REVIEW ON PROBLEMS OF AVAILING MICRO FINANCE

LOAN

Ghate (1992) in his article entitled “Interaction between the Formal and Informal

Financial Sector: The Asian Experience” discussed the nature of interaction

between the formal and informal financial sector in the developing countries which

is a subject with important policy implications. The pattern of the interaction

between the two sectors has important implications for the prospects of successes

of the two major policy approaches often advocated towards the informal sector

offering a stronger competition so as to induce it to improve its terms and

promoting linkages with it so as to take advantage of a large informal sector. This

paper draws on the experience of Asian countries to address these issues.

Hume and Montgomery (1995) in their article entitled “Cooperatives credit and

the Poor: Private Interest, Public Choice and Collective Action in Sri Lanka”

provides a counter argument to the proposition that cooperatives are not suitable

organizations for providing benefits to poor people. The study shows the weakness

in public choice theory one which is flawed when trying to understand local forms

of public actions. The paper details how the SANSA thrift and credit cooperative

societies in Sri Lanka have become progressively more focused on the poor,

including women and other particularly disadvantaged groups. Based on field work

and survey of members, data are presented in the study to show how SANSA has

brought real benefits to poorer members and there is evidence of some graduation

above the poverty line. Additionally, these thrift and credit societies provide a

safety net for poor people since they reduce household vulnerability when faced

with seasonal distress.

33

Guar (1996) in his article entitled “Empowerment of Rural Poor-An Indian

Experiment” describes the experience of State Bank of India in linkage banking

and analyses the pros and cons of linkage banking and highlights the view that

SHGs may eventually be the only viable route for rural lending as transaction cost

would get reduced and recovery would improve. The paper also cautions that as

these groups are informal in nature, the recovery of the bank dues through the legal

process may pose complications. Suit may have to be filed in individual capacity

against all the members of the group and in this process the members who either

have not taken the loan or are repaying their dues regularly in the group may get

unnecessarily penalized. Hence, the author highlights the need for suitable

legislation regarding liability of members of SHGs.

Morshed (2000) in their article entitled “Distant voices: Micro credit finance and

reviews of the NGO field workers in Bangladesh” listed the experiences of

implementing micro credit programme among the poor in Bangladesh through

NGOs based on what academics have written and what field workers of NGO have

conveyed to the researchers in the height of their experiences in different reigns of

Bangladesh and also the research covered micro credit in Bangladesh, what NGOs

say and what NGOs do, defining the target group, problems of repayment of

microcredit and pressure on the field workers. At last they concluded that a vast

majority of the poor are not yet covered by NGOs, field workers prefer the not so

poor and better educated clients, which is against the stated objectives of NGOs.

Microcredit is necessary for the poor to take up income generating activities but it

is no panacea. NGOs should provide microcredit with other services.

Peck (2001) in their article entitled “In search of credibility, transparency and the

micro finance industry” discussed in two parts aiming to clarify the different steps

in the financial evaluation process of micro finance industry. The first section

discusses the key elements involved in the financial disclosure and evaluation of

Micro Finance Institutions, while highlighting various transparency initiatives that

are taking place. The second section summarizes challenges and next step to be

taken towards building transparency in the micro finance industry.

Martin (2003) in their article titled “Poverty Reduction and Micro finance-

Assessing Performance” reviewed the various methodologies of assessing the

34

performance of micro finance. Major international partners and micro finance

network on the development of impact assessment tools that address specific

dimensions of poverty out reach. The paper also points out that CGAP has

developed and implemented a relative poverty targeting tool and synthesizing this

approach with absolute poverty measures. CGAP has been involved in developing

social performance indicators linked to millennium development goals to reflect

the double bottom line in micro finance. Building on these initiatives, the strategic

task for the industry now is to develop a common practical basis for accurately

assessing poverty outreach performance of the micro finance service providers.

Singh (2004) A study conducted by BL Centre for Development Research,

Lucknow reviewed the status of micro-finance and its implications, and to

institutional and non-institutional credit and problems faced by the SHGs and

finally analyzed the impact of micro-credit on the socioeconomic empowerment of

rural women especially in U.P. and Uttaranchal. The sample of 224 respondents

belong to SHGs in 143 Villages of 28 development blocks of the two states

included in the study. Apart from this, it also covered 1120 beneficiaries and 173

officials and non-officials in the areas of the sample. Major findings of the study

were NGOs and voluntary organizations were actively engaged in promoting SHGs

and microfinance. The research team suggested that there is an urgent need to

streamline all the procedures for applying, seeking and releasing of credit from

banks. They concluded that regulation of microfinance service was necessary and

SHGs need both marketing and institutional support to handle all the activities in

an independent manner.

Bharathi (2005) analysed the activities taken up by farm women SHGs and found

out the problems faced by the members of SHGs. The study was conducted in

Dharwad and Hubli talukass of Dharwad district and Gadag taluka of Gadag

district. She adopted a research design for this study which was ex-post facto in

nature. Both primary and secondary data were used. Total sample size constituted

120 respondents who were selected by using purposive sampling method. Data was

processed and analyzed using statistical techniques like frequency, percentage,

mean and standard deviation, mean rankings and paired t-test. She found that most

of the respondents were illiterate and had lesser participation in extension activity.

Based on the findings, she suggested that there was a need to educate women,

35

impart better skills and technical knowhow, enhance the confidence level as well as

improve their status by increasing the social awareness. She suggested introducing

a number of entrepreneurial activities for the economic empowerment of women in

agriculture.

Guerin and Palier (2005) examined challenges of microfinance institution in

Bangladesh, Indonesia and the Philippines. They found that certain experiments are

very positive and are connected with true success stories, while elsewhere the

results are very mixed and sometimes even worrying. This heterogeneity of results

is due as much to the diversity of the projects, their methods of action, the target

public, and the context of intervention as to the methodologies of evaluation. They

suggested that it is possible to guard against the risks of failures and perverse

effects through the concept of solidarity-based economy.

Gupta and Das (2005) in their article titled “Micro finance in India: Empirical

Evidence, Alternative Models and Policy Imperatives” analysed the reasons for

lacklustre performance of both public and private sector banks in extending credit

to weaker sections is which high level of Non Performing Assets (NPAs).

However, growth in SHG credit has been uneven. The southern states are seen as

SHG developed states while Bihar, Madhya Pradesh are among those characterized

as SHG backward. But besides the SHG model in extending credit to the weaker

sections, several models exist for extending micro credit to the poor and weaker

sections.

Thorat (2005) analyzed the sectoral issues and challenges faced by microfinance

institutions in India. He pointed out that the banking system was not able to

internalize lending to the poor as a viable activity but only as a social obligation.

He stated that loans to the poor were part of social sector lending and not

commercial lending; the poor were not borrowers, they were beneficiaries; poor

beneficiaries did not avail of loans, they availed of assistance. He further stated that

microfinance has reduced the incidence of poverty through increase in income, It

enabled households that have access to it to spend more on education than non

client households. It has empowered women by enhancing their contribution to

household income, increasing the value of their assets and generally by giving

them better control over decisions that affect their lives. He suggested that

36

microfinance institutions need to be challenged to make an increasing contribution

to “scale” consistent with cost, sustainability and efficiency of operations.

Herschel (2009) analyzed the impact of Self Help Groups in 800 villages covered

by Tata Steel Rural Development Services, as well as Strengths, Weaknesses,

Opportunities, and Threats (SWOT) of SHGs in Jharkhand. He particularly focused

on the issues of market linkages and development of collaborations between SHGs

working with bamboo and jute for retail. He found that some of the barriers

currently being encountered by SHGs and proposed a plan for future action using

the 5P’s marketing model and Porter’s 5 Forces. He observed that SHGs were

making a positive impact on the citizens of the 800 villages surrounding

Jamshedpur in as far as allowing groups to be formed and savings and inter-loaning

structures put in place and monitored. He concluded that there was a lot of room

for improvement in terms of converting SHGs into mechanisms for increasing rural

women’s incomes.

Anurag Priyadarshee and Ghalib (2011) in their paper “The Andhra Pradesh

micro finance crisis in India: manifestation, causal analysis, and regulatory

response” examined the problems of micro finance institutions in Andhra Pradesh.

The problem of a mishap occurred due to extensive lending which resulted in over-

indebtedness. They explored the reasons that led to such circumstances. They

described the policy implications of the various regulatory measures that the

Government subsequently took to harness and regulate micro-lending practices in

the State.

Sriram (2011) analyzed the microfinance industry in Andhra Pradesh state in

India. He pointed out that three significant problems of the microfinance

institutions are the allegation that the microfinance institutions are charging

usurious interest rates, the clients have borrowed from multiple microfinance

institutions and the microfinance institutions are resorting to coercive recovery

practices. He suggested that while the RBI could use the state governments as

instrumentality to carry out its inability to deal with the above regulator of

microfinance institutions. He concluded that it is important for RBI to play its role

rightfully and effectively.

37

Venkatesh and Kala (2011) analysed the empowerment of women through self

help bank linkage programme in India. According to their study, there are more

than 2000 NGOs included in the NABARD SHG-Bank linkage programme. They

found that apart from running families, the rural women bring income with

dynamic activities ranging from traditional work in the fields to working in

factories or running small and petty businesses. They further stated that they can be

improved entrepreneurs and progress managers in any kind of human development

activities. They suggested that micro finance programmes should offer women with

specific modified products through suitable methodologies, which can offer

competitiveness to their business but also well being to them and their families.

Yimer (2011) analysed the problems in repayment of micro finance loan in

Ethiopia. The primary data were collected from mainly 80 women beneficiaries

who have achieved in the past three years and over the years. He stated that the

respondents were unable to repay the loans due to relatively higher interest rate, no

regular loans, health and death of family members, small loan ceiling and short

repayment period. He further stated that the above problems have an adverse

implication on women’s involvement and utilization of micro finance program in

Ethiopia.

Alok and Joseph (2012) analysed the problem of regulating the commercialization

of microfinance institutions in Andhra Pradesh state in India. They revealed that

due to the controversies that have plagued the market, especially in Andhra

Pradesh, there have been a lot of calls for an independent regulator in the market.

The study further revealed that legally it is very difficult to regulate the

microfinance sector because there is a multitude of ways to incorporate the

microfinance institution. They recommended that there should be a division in the

regulatory mechanism on the basis of transactions and on the basis of ensuring

internal governance mechanisms that would ensure a semblance of uniformity for

the MFIs in the state.

Bidnur (2012) analysed the problems faced by women SHG members during their

entrepreneurial activities. She reported that the monthly income of majority of

sample respondents has increased after joining SHGs and the savings of sample

respondents has gone up after they became members of SHGs. She further pointed

38

out that the majority of sample respondents are satisfied after joining SHGs. She

recommended that it is necessary to empower more and more women in social,

cultural, economic, political and legal matters, for the interest of the family in

particular and the nation in general.

2.5 REVIEW ON SATISFACTION AND IMPACT OF MICRO

FINANCE LOAN

Back and Taylor (1976) in their article entitled “Self Help Groups: Tools or

Symbol” discussed the significant increase in the visibility of SHGs. One may

rightfully question whether these groups represent a social movement and if so,

what kind of social movement. In order to find their place within the society as

well as within a study of social movements, distinguishing of Self Help Groups

from other movements, and shows their unique characteristics in the present

day society, with reference to the work of several social anthropologists.

Carr et al (1996) listed the ample evidence that women’s empowerment and

noticeable impact on levels of poverty and well-being through micro finance.

They further pointed out that they have increased not only their earning

capacities, but also have overcome many barriers to women’s participation in

economic development. They documented the experiences of seven Non-

Governmental Organisations in India, Pakistan, Bangladesh and Sri Lanka who

have been successfully working with rural and urban poor women to evolve

strategies for bringing about women’s empowerment. They concluded that the

women going beyond the normal descriptive accounts, are also building

organisations, which are becoming ever more autonomous and self-reliant.

Bass and Rouse (1997) in their paper entitled “Poverty Alleviation: The role of

rural institutions and participation” stated that most of the approaches to

poverty alleviation focus on income and subsidy measures; however, there is a

growing realization that these measures alone are not sufficient. The growing

amount of literature on the important role that ‘Social Capital’ and institutions

play in the development process indicates that there is a social institutional

dimension as well. The article focuses on the institutional dimension of rural

poverty alleviation and outlines why institutions and capacity-building should

39

be fundamental elements of any strategy aiming at alleviating rural poverty.

The paper also highlights the potential role and function that rural institutions

and grassroots organisations can play in poverty alleviation efforts. The article

is based on normative analysis and field experiences in implementing anti-

poverty programmes not organized by the rural institutions.

Eric and Deardan (1998) in their article entitled “Comprehensive Impact

Assessment Systems for Non-Governmental Organization Micro Enterprise

Development Programmes”, reviewed the monitoring and evaluation systems

of four Non-Governmental organizations providing business development

services to micro enterprises in developing countries.

Cheria et al (2000) described the micro finance practitioner-led evaluation

process and findings. According to them, the programme needs improvement

for the client’s satisfaction about their lives. In their assessment, 350 members

of Self Help Group members were interviewed from six Gram Vidial branches

of Kovilpatty, Kallupatty, Manikandan, Viralimalai, Keeranoor and

Annavassal. They recommended that the NGO needs further improvement in

satisfying the customers in their well being.

Bandyopadhyay et al (2002) in their article titled “Convergence of

Programmes by Empowering Self Help Groups and PRIs” revealed that the

effectiveness of SHGs would be considerably enhanced if a symbiosis could be

worked out between them and Panchayat Raj institutions. The paper advocates

that the key to this is the integration of SHGs with the democratically elected

and empowered Panchayat when the requisite devolution of powers, functions

and authority to the later takes place. The author suggests a scheme, which will

allow SHG and panchayati Raj institutions to work in tandem and reinforce

others work. The paper suggests that unless there is some compelling force,

instead of being responsive they might turn out to be a sterile elected

bureaucracy as has happened in some states. To enhance their responsiveness,

accountability and transparency, there should be an institutional and functional

linkage with the Self Help Groups.

40

Banerjee (2002) in his article titled “Evaluation Study of Self Help Groups”

focused on the impact of SHG in terms of achievement of expected benefits

such as access of poor to institutional credit, undertaking income generating

activities, employment generation, increase in income level, repayment

performance, overall socio economic development etc. A sample of 70 groups

proportionately distributed among the identified NGOs based on their number

of groups linked with the banks, was selected at random for the purpose of the

study. The study reviewed the progress of SHG bank linkage programme,

discussed the experience of banks on credit outreach, recovery performance,

transaction costs and group members on their handling of savings and credit

products and related norms under the self help groups bank linkage program on

income, employment generation and social development of SHG members.

Burjorjee et al (2002) in their book explained the rationale for taking gender

considerations in micro finance programmes and examines women’s

productive role. They described that how micro finance enhanced the

effectiveness of women on household risk management, and highlights the

methods that they have proven successfully. They concluded that micro finance

plays an important role not only in financing women’s income generating

activities but also in helping to reduce the vulnerability of their families by

supplying the resources that can be invested, borrowed against to mitigate

economic risk.

Hunt and Kasynathan (2002) reviewed the reflections of micro finance on

women’s empowerment in Bangladesh. He stated that different loan packages

designed to meet the needs of women from different socioeconomic groups,

including interest-free loans, group loans, loans at 5 per cent interest rates, and

loans with long grace periods before repayments are due were given to the rural

women in Bangladesh. He further states that the women have received enough

training and gained enough regular income to be able to repay the loan. He

concluded that micro finance loan must also be re-assessed in the light of

evidence that the poorest families and the poorest women are not able to access

credit. A range of micro finance packages is required to meet the needs of the

poorest, both women and men.

41

Mayoux (2002) examined the best practice implemented by the MIFs in India

for women Empowerment. She stated that women need a diversity of provision,

both in view of their own individual needs for different types of savings, loans,

insurance, and pensions and so on, and in view of the differences in needs

between women and men. She further stated that the potential contribution of

microfinance programmes to women’s empowerment, realizing this

contribution is dependent on, rather than a substitute for, adequate welfare

provision and feminist mobilization and it therefore inevitably requires a more

comprehensive framework for women’s participation at all levels, rather than

imposition of particular models depending on the particular donor fashion

extant at the time.

Cohen and Wright (2003) in their article entitled “How micro finance

organisations become more client led?: Lessons from Latin America” which is

concerned with documenting the processes that take place within organisations

when they become more client-responsive. In particular, it uses the framework

was used to examine how the market-led micro finance agenda can be

institutionalized at the level of the MFO. Attention was focused on how

training in client assessment can build capacity in MFOs to gather client

information and that using this data effectively can lead to improvements in the

delivery of products and services. This analysis was made at two levels: the

MFOs and a network organization. The two approaches offer viable

alternatives for building capacity within MFOs.

D’Silva and Pai (2003) in their article entitled “Social Capital and Collective

Action”, examined whether social capital is important for successful

development outcome at the grassroots in forest protection and watershed

development. Three villages of Adilabad district in Andhra Pradesh are the

focus of the study. The article develops indicators of social capital to determine

the extent of collective action elsewhere in the country. The study has a larger

theoretical purpose of identifying the conditions under which social capital can

be formed and sustained at the village level to enable collective action. The

study reveals that selection of women headed self help groups has provided

women an opportunity to play a role in decision making while also promoting

gender equality with little resistance from men.

42

Halder and Shanthana (2003) in their article entitled “Poverty Outreach and

BRAC’s Micro finance Interventions: Programme Impact and Sustainability”

based on the experience and evolution of a large micro finance organization,

BRAC, which is working in Bangladesh. It is stressed that poverty is not

homogeneous but is manifested in different ways and in different contexts. The

study goes on to discusses impact assessment studies conducted on BRAC’s

initial programme-rural development programme – that provided significant

data to substantiate BRAC’s positive effect on poverty alleviation as well as

providing information that led to subsequent programmatic shift in emphasis.

Harper and Malcolm (2003) in their paper entitled “Grameen Bank Groups

and Self Help Groups-What are the differences?” attempted to describe the

Grameen Bank groups and SHGs and compare their sustainability, their

outreach and impact on the poor and their institutional feasibility. The paper

concludes that it is unnecessary to introduce the Grameen system in India since

the banking network already exists. What is needed is a system for reaching the

poor, which demands the minimum of institutional change and the SHG system

to serve the purpose.

Vijayalakshmi (2003) suggested that an aggressive campaign should be

undertaken to create awareness among the rural housewives about the benefit

of micro finance schemes and benefit of micro finance schemes and motivate

them to join SHGs in large numbers. She further suggested that the government

should consider granting concessions and relief in export SHGs products.

Basu and Srivastava (2005) highlighted the inadequacies in rural access to

formal finance in the states of Andhra Pradesh and Uttar Pradesh in India. They

conducted a survey from 6000 sample rural households from two Indian states-

Andhra Pradesh and Uttar Pradesh. The study indicated that rural banks serve

primarily the needs of the richer rural borrowers and the rural poor faced severe

difficulties in accessing savings and credit from the formal sector. The study

further reported that the main source of informal borrowing is from

moneylenders followed by friends and relatives. The largest uses of informal

loans are for meeting family emergencies and social expenditures arising from

events such as births, marriages, deaths. They concluded that private sector

43

micro financiers need to acquire greater professionalism, and the government

can help by creating a flexible architecture for micro finance innovations need

to fulfill the demands of the rural poor.

Beatriz and Morduch (2005) stated that an overview of a range of issues

including informal marketers, savings and insurance, the role of women, place

of subsidies, impact measurement and management incentives. They integrate

theory with empirical data citing studies from Asia, Africa and Latin America.

They concluded that the conventional assumptions about how poor households

save and build assets and how institutions can overcome market failures.

Holvoet and Nathalie (2005) in their article titled “The Impact of Micro

finance on Decision Making Agency: Evidence from South India” analysed the

evaluations of the effects of Micro finance programmes on women’s

empowerment which generated mixed results. While some are supportive of

micro finance’s ability to induce a process of economic, social and political

empowerment, others are more skeptical and even point to a deterioration of

women’s overall well-being. This article formally tests the impact of some of

the suggested changes in programme features on one particular dimension of

empowerment: decision making agency. Using household survey data from

South India, the author explores the importance of the borrower’s gender and

the lending technology for intra-household decision-making process. It is

shown that direct bank-borrower credit delivery does not challenge the existing

decision making patterns, regardless of whether men or women receive the

credit. These findings change when credit is combined with financial and social

group intermediation. Women’s group members seriously shift overall decision

making patterns from norm-guided behavior and male decision making patterns

to more joint and female decision making. Longer term group membership and

more intensive training and group meetings strengthen these patterns.

Kabeer (2005) examined the impact of microfinance with respect to poverty

reduction and empowerment of poor women. He stated that while access to

financial services does make vital contributions to the economic productivity

and social well-being of poor women and their households, it does not

“automatically” empower women, just as with other interventions, such as

44

education, political quotas, etc, that seeks to bring about a radical structural

transformation that ensures the true empowerment of women. He concluded

that microfinance offers an important and effective means to achieving change

on a number of different fronts, economic, social and perhaps also political.

Holvoet and Nathalie (2006) studied the impact of microfinance programs on

women’s empowerment from rural South India. He stated that there is a

differential impact on gender relations of ‘Transformatory’ and

‘Instrumentalist’ Women’s Group Intermediation in Microfinance Schemes, He

selected a sample of 100 members from two different groups. He explored

whether schemes that appear to be very similar on the surface may actually

hide deeper differences that can help explain their diverging outcomes. He

suggested that by acknowledging the higher costs incurred by programs that

invest in social intermediation, group capacity building and networking,

policymakers may wish to consider the appropriateness of financially

rewarding individual lending organizations for the beneficial spill-over effects

generated.

Lakwo (2006) explored the impacts of microfinance on the empowerment of

married rural women in Nebbi district, in Uganda. He found that married

women who have the ‘money advantage’ are engaging in daily income-

generating activities without losing track of their positions as wives, mothers,

aunties, mothers-in-law, and grandmothers. As such they have gained ‘power

to’ do things that social norms previously denied them like engaging in male

gender enclosed activities. He recommended that a policy that engenders

microfinance industry and an integrated approach to build client-MFI

sustainability should be adopted; impact assessment to hold MFIs gender-

accountable should be institutionalized.

Samuel (2006) analyzed the impact of Self Help Groups on the socio-economic

empowerment of members in Dindigul district of Tamilnadu. The specific

objectives were to study the structure, purpose and functioning of SHGs and

the income generating activities of the group. A total of 30 groups from 6

villages were selected. For the data collection three members from each self-

help group were selected randomly. The total sample size was 90 for the study.

45

The used sources of data were primary and collected through the personal

interview method with the help of a structured schedule. He found that lack of

training or skill up-gradation problem was a moderate one and government

rules and regulations were relaxed. He suggested taking-up income generating

activities to promote employment opportunities. He concluded that the

members were empowered after joining the SHGs in terms of both social as

well as economical aspects and they helped in the overall development of their

families.

Bhuvan (2007) analysed the role of micro finance to improve the rural poor

women’s lives in Karnataka. The main objective is to study the growth and

pattern of Micro finance and evaluated the business performance of the micro

finance providers. Out of 27 Districts in Karnataka 9 district were chosen for

the study. The results indicated that there was a positive impact of the NGO’s

on the SHGs. She suggested that major steps taken in the direction of impart

proper education to both the staff as well as the members of the SHGs. She

concluded that micro finance may be easily possible through refinance support

provided by the reputed institutions who involved in micro finance.

Geethamma (2007) studied the bank linkages to know the impact of MFIs on

the socioeconomic empowerment of the rural poor in Kolar district. She stated

that majority of the SHG members were linked four to six times to Pragathi

Grameena Bank and easily availed loan also and the overall index of socio

economic empowerment of women increased after joining SHG. She suggested

that there was a need to impart literacy, technical knowhow by the institutions

because most of the SHG members were illiterate. She concluded that members

were empowered both socially and economically, which helped in the overall

development of their families.

Somavia (2007) has analysed the changes happening in women through

microfinance in Tanzania. He pointed out that small and big change which

happen to women by the microcredit. He observed gender equality and decent

work through microfinance in Tanzania. He stated that the strategies for

advancing gender equality through microfinance through internal and external

sources. He concluded that works to enhance economic opportunities for

46

women by developing tools and strategies specific to the needs of women

entrepreneurs and by working to ensure gender is mainstreamed throughout the

programme.

Swain and Wallentin (2007) examined whether microfinance empowered

women in India. She revealed the microfinance empowered the women with

respect to the control of resources, changes in behavior and decision-making

made in the right direction and women are in the process of empowering

themselves. She suggested that a lot needs to change to make women truly

empowered and if women empowerment is to be pursued as a serious objective

by SHG programmes in particular and the larger micro finance community in

general, greater emphasis needs to be placed on training, education and creating

awareness in order to achieve a larger and more lasting empowerment.

Armendariz and Roome (2010) studied the promotion of women through

microfinance initiatives in Bangladesh. They pointed out that the promotion of

women in microfinance initiatives and the bias against men is taking place in

the absence of solid empirical evidence on the effects of this approach on the

balance of power in households and on the health, education and well-being of

all household members. They suggested that empowering women via an

additional tool, namely by giving them the possibility voluntarily to invite their

partners into the group, might help to accelerate the process for change in those

social and institutional norms.

Ruby (2008), examined the role of Kudumbashree Project in women

empowerment through micro financing in Kerala. She stated that the majority

of the respondents were running micro enterprises as a means of their

livelihood. Kudumbashree has been successful in generating self employment

opportunities by enabling members to start micro enterprises. The results

indicated that among the five dimensions of empowerment attained by the

respondents through Kudumbashree, social/cultural empowerment stood first

followed by familial empowerment and then personal empowerment.

Interestingly economic empowerment achieved got only the fourth position.

Political empowerment was found to have the last position. She suggested that

effort should be made to enhance them by winning the confidence of the urban

47

poor people and the authorities should explore new areas related to micro

enterprises and the information should be communicated to the women

entrepreneurs. They should be provided with the necessary assistance for

introducing such innovations. He concluded that the local self governments

should create necessary avenues for imparting proper and adequate training to

the micro entrepreneurs to run their enterprises on a cost effective basis and

awareness classes must be arranged for them at the local level.

Tejmani Singh (2009) stated that microfinance tries to assist the communities

of economically excluded for achieving greater levels of asset creation and

income security of the household and community level through five key players

viz. National Bank for Agricultural and Rural Development (NABARD),

Reserve Bank of India (RBI), Self Help Groups (SHGs), Micro Finance

Institutions, Non-Government Organizations.

Zakir Husain (2009) stated that participation in SHGs reduces women’s

tolerance of domestic violence not only by empowering her economically but

also by increasing her awareness. They further stated that after joining the

SHGs, the respondents reported that they were treated with greater respect and

accorded more importance by their household members, increase in status

within the household and increase in self respect of the respondents.

Bansal (2010), studied the impact of microfinance on poverty, employment

and women empowerment in rural Punjab, India. She stated that these poor

people are malnourished and most of them are unemployed. And the poverty

alleviation has remained the major focus for development practitioners since

the independence of India. She collected data from 190 people as the sample

size for her survey. She found that that the micro-loans provided under the

programme were mainly utilized for unproductive purposes, and it had a

limited impact on employment and income generation. She recommended that

there was a need to make occupational training an integral part of microfinance

programme. She concluded that the programme participants must be motivated

and assisted to utilize the group loans for productive purposes only.

48

Dabali (2010) analysed the impact of women self help groups on the socio-

economic status of its members. He stated that women self help groups had a

positive impact on the economic and social status of its members. He utilized

both primary and secondary data for his study. The study comprised of 12

northern districts of Karnataka. Total sample size was 12 self help groups and

the sampling technique used was random sampling method. The results

indicated that the members acquired more skills during the interaction like

dealing in banks, post offices etc., He recommended that the appropriate policy

measures to be taken and prompt service ensured to SHGs only through the

credit linkages which may be shifted from one bank to another within the

locality. He concluded that awareness, perception and involvement were more

in SHGs so that the socioeconomic status of its members developed very well.

Getaneh (2010) studied the impact of micro finance on empowerment of rural

women in Amhara region of Ethiopia. He stated that the women has proven to

increase the positive impact of micro finance programs since women are more

likely than men to spend their income on household and family needs. He

observed that the micro finance has played a major role in many gender and

development strategies because of its direct relationship to both poverty

alleviation and to the empowerment of women. He opined that increasing

women’s access to micro finance services will enable women to make a greater

contribution to household income and improving standards of living. He

concluded that providing access to micro finance loans for income-generating

activities can significantly increase the women economic resources, thereby

reducing her overall vulnerability.

Rajendran and Raya (2010) observed poverty eradication and the

Effectiveness of Micro finance in Sustainable Rural Development in Vellore.

For sampling he had selected a total of 450 respondents for the study. He found

that there was improved credit availability through the banking network to the

rural women, who so far remained out of the institutional credit delivery. Most

of the respondents informed that they started micro enterprises or income

generating activities in agriculture and allied activities such as rearing sheep. A

considerable number of respondents started diversified income generating

49

activities in non-farm sector. Majority of the respondents’ income increased as

a result of the income generating activities which supplemented their family

income. He suggested that the bank managers should be motivated or trained

and they should feel comfortable in financing SHGs. All books and registers

such as minute book, savings ledger, members pass book and cash book should

be maintained only by SHGs. Motivational training for IGA/micro enterprises

should be organized to develop the entrepreneurial capabilities and to access

improved production technologies. Women should actively participate in

protests against social problems such as child marriage, dowry, domestic

violence and alcoholism. Welfare and development programmes of the

government may be implemented through SHGs.

Rathod (2012) analysed the empowerment of women through Microfinance in

Maharashtra state in India. He pointed out that SHG have created positive

impact in Maharashtra state. He further stated that women’s empowerment has

acquired an important place in government policy, non-government-advocacy

and academic research. He opined that to make microfinance more effective,

insurance and cash transfer services have to be strengthened in rural areas and

massive capacity building efforts by all stake holders e.g. banks, NGOs,

Panchayat, NABARD and government departments. He suggested that

guidance to balance family and work responsibilities, social and political

issues, such as, women’s rights and community problems. Training in decision

making, planning women’s ownership, control and participatory governance in

microfinance programme will enhance the empowerment of women in rural

areas in the state.

Seetha Devi (2010) analyzed the impact of bank finance on the members of

Self-Help Groups in Salem District, Tamilnadu. A sample of 484 members was

included for the study. She stated that there was a need to promote women's

access to income generating activities by developing and supporting small-

decentralized enterprises. As women's mobility is limited, they are not exposed

to the outside world and have low self-esteem, which inhibits their participation

in any entrepreneurial activity. She further stated that women should organize

themselves as a group by which they get the benefits of collective perception,

50

collective decision-making and collective implementation of programmes for

common benefits. She suggested that SHGs can take a step further and start a

campaign to impart functional literacy to their members. At the village level,

they can run a special centre with a team of volunteers to promote literacy

among its members.

Aruna and Jyothirmayi (2011) analyzed the relationship between SHG- bank

linkage program participation and women empowerment. They investigated on

the SHG bank linkage program in Hyderabad in Andhra Pradesh state. He

further stated among the six factors microfinance seems to be having

significantly greater influence on women empowerment. They concluded that

women’s empowerment became a critical pre requisite of the socio-economic

development of any community.

Ali Khan and Noreen (2012) attempted to explore the socioeconomic

determinants of women empowerment, focusing on the women who have

availed the micro-credit at Bahawalpur district in India. They selected 600

female clients of Bahawalpur microfinance institutions randomly. They found

that females using loan by themselves have better effects of microfinance on

empowerment as compared to the loans utilized by other members of the

household and microfinance as a major explanatory variable of the study has

shown positive effect on empowerment of women but not as much as it was

expected. They suggested that along with provision of education and family

protection the enlarged volume of microfinance and its utilization by the

women must be ensured. Microfinance institutions should strengthen and

expand their support to women for their empowerment.

Sadighi (2011) stated that micro finance is a useful tool to fight against poverty

and starvation. These tools have ability to change and improve human’s life,

especially the poor people. He further stated that the applicants for micro

finance mostly include family women, pensioners, homeless people, frugal

workers, small farmers and micro entrepreneurs. He concluded that micro

finance has proven that supplying financial services to poor people is a

powerful tool to decrease poverty so as to make them able to establish finance,

increase income and decrease vulnerability against economic pressures.

51

Sarumathi and Mohan (2011) analyzed performance of women SHGs in

Pondicherry. They stated that the role of microfinance in women’s

empowerment have three dimensions namely psychological, social and

economical. The study further revealed that women are economically and

socially empowered after joining SHG and getting micro finance more than 92

per cent of SHG members reported that poverty level reduced by participating

in micro finance program. The SHG members don’t face any type of problems

or compulsions from leaders or from other members in the group. The members

are given full freedom to express their opinions. The study further had pointed

out that most of the women are not aware of the trainings organized by the

NGO. The NGO shall actively take part in various training sessions provided to

all women members wherein they can gain more knowledge about the various

income generating activities. They concluded that women are performing well

nowadays but all they need is a way to develop their skills and talents by

participating in various training programs.

Das (2012) analyzed whether socio-economic empowerment of women

through SHG-Banking Linkage Programme is a boon for development. He

highlighted the role of SHG as a financial intermediary for enhancing women

empowerment in India. He conducted a survey from Nagaon Districts of Assam

and most particularly in the Lumding Development Block, Dhalpukuri

Development Block and Udali Development Block. He found that micro

finance related loan and its productive utilization were found to be causing

significant differences in women empowerment levels. He suggested that SHG-

Bank Linkage of micro finance programme has a profound influence on the

economic status, decision making power, knowledge and self worthiness of

women participants of SHG linkage programme in Assam.

Honnurswamy and Dandgund (2012) analysed the problem of poverty in

India. They stated that poverty reduction in rural India would be possible only

through microfinance. They concluded that India is always depending on rural

area for development. If the rural area will develop automatically nation will

grow faster. With the help of establishment of the microfinance, it is possible to

remove poverty in villages.

52

Jagadish (2012) He highlighted the role of SHG programmes in the eradication

of poverty in Anantapur district of Andhra Pradesh. The main objectives were

to study the poverty levels by various agencies at all India level and, to study

the relationship between poverty and SHG and its development and to find out

the positive and negative impacts of the SHG Program. For the purpose of

analysis he took the entire district of Anantapur. Altogether 53,470 SHGs were

working in the district. Both primary and secondary sources were collected. He

suggested that the rural women SHGs should encourage democratic

participation and some changes in economic structures to make them provide

public services, resources and opportunities. He concluded the effectiveness of

SHG in poverty reduction, particularly the assessment of strategies adopted by

the members.

Lokhande (2012) investigated whether micro finance really contributed to the

socioeconomic empowerment of group members in Konkan region of

Maharashtra. He stated that the there was significant growth in average

monthly income of the respondents after joining the groups and starting their

own economic activities. He further reported that after joining the groups,

majority of the respondents felt respected by family members and expressed

feeling more secured because of financial and social support extended by the

groups. He suggested that there is a need of employing long term policy

measures to empower women in its true sense. Some key issues such as

training, awareness and viability of the group activities need to be addressed in

order to strengthen women empowerment process through micro financing

Rajendran (2012) reviewed the various empirical studies carried out in India.

He observed the positive effect of microfinance through SHG on economic,

social, political and psychological empowerment, increase income and

employment opportunities, development of leadership qualities, enhanced

participation in community activities and high degree of participation in

domestic as well as in the society. He concluded that studies carried out in

India, as evident from the above literature review, indicated that micro finance

and Self Help Groups, by and large, contributed to the development of core

poor in terms of economic well being, alleviating poverty and empowerment

leading to over all development of the rural poor.

53

Sharma (2012) addressed the micro finance problems and challenges for micro

entrepreneurs in India. He stated that the micro entrepreneurs are facing various

problems on availing micro finance loan due to inability to offer marketable

collateral for loans, poor institutional viability of micro enterprises, lack of

knowledge about micro finance services, shortage of financial capital, inability

to exploit growth opportunities, few organizational resources and poor

governance, low bargaining power and vulnerability to economic shocks. He

suggested that the MFIs provide multipurpose loan, consumption loan or

composite credit to the micro entrepreneurs for income generation, housing

improvement and consumption support. He concluded that the women

entrepreneurs must develop the capacity to generate and maintain their means

of livelihood and produce excess that will eventually lead to savings.

Lakshmisha and Suresh (2013), examined the contribution of microfinance

and microfinance programme to empower the rural women in India. They

stated that microfinance has proved to be successful in empowerment of

women reducing dependency on money lenders, easy access to credit to their

members and savings and moderate economic benefits. There has been

tremendous growth in the progress of SHG Bank linkage. NABARD's SHG

Bank linkage programme has been a major effort to connect thousands of

SHGs across the country with formal banking system. They concluded that

microfinance programmes have confined themselves to distribution of loan to

women but receipt of a loan and utilization of loan guarantees improving the

economic status of women.

2.6 RESEARCH GAP AND CONCLUSION

The forgoing review of literature show that many studies have been conducted on

analyzing the impact of micro finance loan. Further few studies also focused on

problems of micro finance institutions. But it is very difficult to trace the studies on

management of microfinance in general and especially savings of SHGs,

distribution of micro finance loan, effective utilization of micro finance loan,

problems in obtaining loan and repayment of loan and satisfaction on

implementation of micro finance program have not been analysed so far. Hence,

the present study has been undertaken to cover the above research gap in the micro

finance sector.

54

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CHAPTER - 3 : RESEARCH METHODOLOGY

Sr.No. Name Page No.

3.1 Overview 67

3.2 The Element 68

3.3 Research Design 68

3.4 Data Source 69

3.4.1 Primary Data 69

3.4.2 Secondary Data 69

3.5 Development of Questionnaire / Research Variables 70

3.6 Sampling Method 72

68

3.1 OVERVIEW

The chapter starts with the rationale for selection of women respondent as an

element to study the impact of microfinance on women empowerment. It also talks

about research design, data source, questionnaire development, sampling

techniques and sample size calculation. It explains the rationale behind each of

these selections. It also deals with the required sample size for performing various

statistical tests and finally ends with the bifurcation of samples.

3.2 THE ELEMENT

An element is the object about which or from which the information is desired

(Malhotra & Dash, 2009). The element is the person or object from which the

researcher collects data (Cooper, 2001). Such data can be describe the specific unit

from which data is collected, but when combined with similar data collected from a

group of similar units, provides an accurate picture of the group to which that unit

belongs (Cooper, 2001). The element provides the basis for analysis according to a

well defined procedure. It is important that these should be well defined and it is

possible to identify them physically. This study is conducted to examine the socio-

economic impacts of micro finance on the women who are associated with the

microfinance in two districts of North Gujarat region. The question relating to

impact of micro finance on the household performance like effect on income

generation, savings, loan amount, life style, social status, income generating

activities etc has been asked to women members of SHGs. The questions have been

asked to women members of bank linked SHGs those who had been joined the

SHGs for at least two years. So in this research, women members who are directly

associated with the SHG and bank and beneficiaries of microfinance considered as

an element

3.3 RESEARCH DESIGN

A research design as framework or blueprint for conducting the marketing research

project, detailed the procedures necessary for obtaining the information needed to

structure or solve marketing research problems (Malhotra & Dash 2009).

Descriptive research is undertaken when the researcher desires to know the

69

characteristics of certain groups such as age, sex, occupation, income or education.

Descriptive research is based on clear understanding of a problem, certain

hypotheses already formulated, knowledge about the nature of information that is

to be collected during the research, and also on large representative samples. The

results of descriptive market research are used in order to obtain general

conclusions about some customer group or the whole market.

Cross-sectional research is a type of descriptive research, with which data is

collected at one point in time on several variables. Descriptive Research relies

heavily on interview of respondents and data available in secondary data sources.

The descriptive and cross-sectional research design is used in this study. The

method is ideal because the study involved collecting data from rural women

members of SHGs linked with bank with a view to determine whether or not

microfinance contribute to socioeconomic empowerment and poverty reduction.

3.4 DATA SOURCE

The study is based on collection of data from both primary and secondary sources.

3.4.1 PRIMARY SOURCE :

Primary data is data that has not been previously published, i.e. the data is derived

from a new or original research study and collected at the source, e.g., in

marketing, it is information that is obtained directly from first-hand sources by

means of surveys, observation or experimentation (Malhotra & Dash 2009).

Primary data is collected through well structured questionnaire having close-ended

questions. It is observed that the most of the respondents were illiterate or having

low education so questionnaire was mostly filled up by the researcher by asking

them.

3.4.2 SECONDARY SOURCE :

Even though the result of the research is highly dependent on the primary sources

that the researcher have gathered from the structured interview, but it also required

some secondary sources to understand the concepts, definitions, theories and

empirical results. Secondary data are data that were collected by persons or

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agencies for purposes other than solving the problem at hand (Malhotra & Dash,

2009). The researcher has used several books, research literatures, articles, journals

and thesis, as secondary sources for this study.

Most of the sources, the researcher tried to use, are reliable and are acceptable

almost everywhere. Further, the researcher also used the handbooks and annual

reports of the NABARD and SIDBI in India

Many studies have been conducted on microfinance over the last few decades.

Nevertheless, from them the researcher had to choose the most appropriate

literature for the study. These materials includes previous research work, articles,

industry reports etc and it was mainly collected from the different university

libraries including IIMA. Besides these, Google Scholars, journal on microfinance,

E-journal packages like Emerald Management Extra, Proquest, Delnet and Centre

for microfinance research (CMFR) were also used to find the suitable research

material. The keywords used when searching for scientific articles and literatures

were; microfinance, microfinance and India, poverty reduction and microfinance,

Muhammad Yunus and microfinance, microfinance and women empowerment,

Savings mobilization etc.

Development of Questionnaire / Research Variables

Questionnaire is a structured technique for data collection that consist of a series of

question, written or verbal, that a respondent answers (Malhotra & Dash, 2009). A

good questionnaire accomplishes the research's objectives. Surveys must be

custom- built to the specification of given research purposes, and they are much

more than a collection of unambiguous questions. A number of constraints are

imposed on the development of an appropriate questionnaire. For example, the

number, form, and ordering of the specific questions are partly determined by the

data collection method. The respondent's willingness and ability to answer also

influences the final questionnaire format. The wording and sequence of questions

can facilitate recall and motivate more accurate responses.

The terms and statements embodied in the questionnaire are related to the

objectives and hypothesis of the study. The questionnaire contained background

71

information of the respondents and information to measure the perception of

respondent about impact of microfinance or SHG on socio-economic empowerment

and poverty reduction in North Gujarat region.

The questionnaire comprised of background questions about age, education, caste,

religion and living standards, and questions related to income, saving, expenditures

etc. Structured questions and some dichotomous questions were asked to collect the

information from the respondents. Questions are very specific with a fixed range of

answers. The structured questionnaire has also multiple-choice questions in which

the researcher provided a choice of answers and respondents asked to select one or

more of the alternatives, and dichotomous questions that have only two response

alternatives, yes or no. The researcher also used Likert Scale (considered on 1-5

points scale) to measure the respondents perceptions based on few statements or

variables to perceive the impact of microfinance or SHGs on their socio-economic

empowerment and poverty reduction. The points of the scale indicate the degree of

satisfaction or agreement level of the women member of the SHG before and after

joining the SHG. „1‟ represents the lowest level of satisfaction or high

disagreement, whereas „5‟ represents the highest level of satisfaction or high

agreement.

Measurement in research consists of assigning numbers to empirical events in

compliance with a set of rules (Cooper & Schindler, 2001). In other words, by

assigning numbers to variables, people can observe what is otherwise invisible. The

level of measurement reflect the correspondence numbers assigned to the

observations in question and the meaningfulness of performing mathematical

operations on the numbers assigned.

Quantitative study was conducted with the methods of non comparative scaling,

type of scaling in which each stimulus object is scaled independently of other

object in the stimulus set (Malhotra & Dash, 2009). The variables or statements for

the socio-economic empowerment have been taken from the past available

literature and were measured with a Likert scale; a measurement scale with

response categories ranging from “strongly disagree” to “strongly agree”, and

„highly dissatisfied‟ to „highly satisfied‟ which requires the respondents to

72

indicate a degree of agreement or disagreement and satisfied or dissatisfied with

each of a series of statement related to the stimulus objects with a range 1- 5.

The questionnaire (Annexure-I) has been finalized after interaction with experts

from academic and industry like NABARD, Officers of Mission Mangalam

Programme of Government of Gujarat etc.

Sampling Method

For most researchers, however, collecting data from an entire population is almost

impossible because of the amount of people, places, or things within the

population. Taking a census involves much time and money; something to which

most researchers are not accustomed. To collect data on a smaller scale, researchers

gather data from a portion or sample of the population (Malhotra & Dash 2009).

Often it is impossible or impractical to create a sampling frame of a target

population, and/or the target population is widely dispersed geographically, making

data collection costs relatively high. Such situations are ideal for cluster or multi

stage random sampling.

The four methods - simple, stratified, systematic and cluster - are the simplest

random sampling strategies. In most real applied social research, researcher would

use sampling methods that are considerably more complex than these simple

variations. The most important principle here is that the researcher can combine the

simple methods in a variety of useful ways that help to address sampling needs in

the most efficient and effective manner possible. When researcher combines

sampling methods, it is said multi-stage sampling (Kothari 2009)

Multi-stage sampling is like cluster sampling, but involves selecting a sample

within each chosen cluster, rather than including all units in the cluster. Thus,

multi-stage sampling involves selecting a sample in at least two stages. In the first

stage, large groups or clusters are selected. These clusters are designed to contain

more population units than are required for the final sample. In the second stage,

population units are chosen from selected clusters to derive a final sample. If more

than two stages are used, the process of choosing population units within clusters

continues until the final sample is achieved. Using all the sample elements in all the

selected clusters may be prohibitively expensive or not necessary. Under these

73

circumstances, multistage cluster sampling becomes useful. Instead of using all the

elements contained in the selected clusters, the technique is used frequently when a

complete list of all members of the population does not exist and is inappropriate

(Kothari 2009).

The advantages of multi-stage sampling are convenience, economy and efficiency.

Multistage sampling does not require a complete list of members in the target

population, which greatly reduces sample preparation cost. The list of members is

required only for those clusters used in the final stage (Kothari 2009).

The population comprised all women members of bank linked SHGs and listed

under Mission Mangalam Programme of Government of Gujarat before two years

(The women must have joined the group before 31st December 2011). The multi

stage simple random sampling method has been used to select samples from Rajkot

and Jamnagar district, Gujarat, India.

The sample women members have been selected randomly in three stages. In first

stage, five Talukas as a block have been selected randomly form the each district.

In second stage, three villages have been selected randomly from the each block. In

third stage, women members have been selected randomly form the list of members

of each village. Multistage approach needs a list of members in a few villages, a list

of villages in a few blocks, a list of blocks in a few districts. The sample women

members include only bank linked SHGs which had joined SHGs before two years

from the each block. (The sample is from the list of members who had joined the

group before 31st December 2011). The respondents have been selected block

wise.

In first stage, five Talukas as a block have been selected randomly form the each

district. In second stage, three villages have been selected randomly from the each

block. In third stage, 17 women members have been selected randomly form the list

of members of each village. Total 3101 women members have been selected from

the two districts of Saurashtra for this study. Primary data on different socio-

economic aspects of the women members and details of micro-financial services

availed by the SHGs were collected directly from the respondents who had been

joined for at least two years through the structured questionnaire and personal

interview.

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CHAPTER - 4 : DATA ANALYSIS AND INTERPRETATION

Overview

Present study on women empowerment through Micro Finance can answer the following aspects

associated with socio-economic upliftment of womens. The present study should examine the

changes / effects of socio-economic aspects / indications of women covered under study before &

other joining self help group. To analyse this aspect & test has been used by scholar in this case.

To understand difference between various category of respondents an independent t-test has been

used. The satisfaction of users regarding quality of banking services, reasons for joining self help

group reason for saving & loan has been studied with one way Anona. The effects of Micro

Finance on social status, level on steps & happiness has been partly studied & has been kept open

for other & further researches.

Data Reliability

"Data" a set of facts collected / gathered for t purpose of conducting research & primary and

secondary data is used for proving any theory. The 'data' collected through questionnaire, schedule

is tested with the help of measures of central tendency & other statistical tools.

Reliable data is dependable, trustworthy, unfailing, sure, authentic, genuine, reputable.

Reliability refers to the consistency of a measure. A test is considered reliable if the

researcher gets the same result repeatedly. For example, if a test is designed to measure a

trait (such as introversion), then each time the test is administered to a subject, the results

should be approximately the same. Consistency is the main measure of reliability. Internal

consistency reliability defines the consistency of the results delivered in a test, ensuring

that the various items measuring the different constructs deliver consistent scores.

Cronbach's alpha is the most common measure of internal consistency ("reliability"). It

is most commonly used when multiple Likert questions in a survey/questionnaire that

form a scale, and the researchers wish to determine if the scale is reliable. The coefficient

alpha, or Cronbach's alpha, is the average of all possible split-half coefficients resulting

from different ways of splitting the scale items. This coefficient varies from 0 to 1, and a

value of 0.6 or less (Malhotra, 2004) generally indicates unsatisfactory internal consistency

reliability. An important property of coefficient alpha is that its value tends to increase

with an increase in the number of scale items.

75

In order to analyze economic upliftment, questions regarding income, saving, family income &

expenditure before & after following joining / getting Micro Finance was / we asked & were

analyzed through Corn Bach's Alpha.

A question was asked to the respondents to respond to the statements related to the social

empowerment before and after joining the SHG using a five-point Likert scale ranging

from 1 (Strongly Disagree) to 5 (Strongly Agree). A Cronbach's alpha was run on a twenty

variables of social empowerment statements and it was 0.947, in this scale question which

indicates a high level of internal consistency for the scale.

A question was asked to the respondents to respond to the statements related to the

economic empowerment before and after joining the SHG using a five-point Likert scale

ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). A Cronbach's alpha was run on

a thirteen variables of economic empowerment statements and it was 0.880, in this

scale question which indicates a high level of internal consistency for the scale.

A question was asked to the respondents to respond to the variables related to the services

of bank after joining the SHG using a five-point Likert scale ranging from 1 (Highly

Dissatisfied) to 5 (Highly Satisfied). A Cronbach's alpha was run on thirteen variables

of services of banks and it was 0.858, in this scale question which indicates a high level of

internal consistency for the scale.

A question was asked to the respondents to respond to the variables related to the group

process and activities using a three-point scale ranging from 1 (Thorough Understanding)

to 3 (No Understanding). A Cronbach's alpha was run on a nine variables of group process

and activities and it was 0.921, in this scale question which indicates a high level of

internal consistency for the scale.

Paired-Samples T- Test

One of the objectives is to see the impact or change in various socio-economic indicators

of the respondents before and after joining the SHG. To check the post change in these

variables, a paired-samples t-test has been run on various variables or statements by

testing the different hypothesis.

A paired-samples t-test was conducted to compare income of respondents before and after

joining the SHG. There was a statistically significant difference in the income before

76

(M=707.54, SD=2209.94) and income after (M=1396.70, SD=2680.97) conditions; t (509)

= -12.52, p = 0.000. These results do not support the H0 (1.1) and suggest that the

respondents income has increased after joining SHG.

A paired-samples t-test was conducted to compare family income of respondents before

and after joining the SHG. There was a statistically significant difference in the family

income before (M=7950.78, SD=5488.63) and family income after (M=10039.31,

SD=6016.35) conditions; t (509) =-21.32, p = 0.000. These results do not support the H0

(1.2) and suggest that the respondents family income has increased after joining SHG.

A paired-samples t-test was conducted to compare monthly savings of respondents before

and after joining the SHG. There was a statistically significant difference in the monthly

savings before (M=176.44, SD=734.83) and monthly savings after (M=456.31,


(1.3) and suggest that the respondents monthly savings have increased after joining SHG.

A paired-samples t-test was conducted to compare loan amount taken by the respondents

before and after joining the SHG. There was a statistically significant difference in the

loan amount taken before (M=283.33, SD=2137.83) and loan amount taken after

(M=7045.09, SD=10615.94) conditions; t (509) =-14.53, p = 0.000. These results do not

support the H0 (1.4) and suggest that the loan amount taken by the respondents has

increased after joining SHG.

A paired-samples t-test was conducted to compare monthly family expenditure of

respondents before and after joining the SHG. There was a statistically significant

difference in the monthly family expenditure before (M=5921.18, SD=3986.44) and

monthly family expenditure after (M=7420.20, SD=3956.65) conditions; t (509) =-12.65, p

= 0.000. These results do not support the H0 (1.5) and suggest that the respondents

monthly family expenditure has increased after joining SHG.

A paired-samples t-test was conducted to compare difference in the discussion ability of

women members before and after joining the SHG. There was a statistically significant

difference in the discussion ability of women before (M=2.38, SD=0.98) and after

(M=3.72, SD=0.97) conditions; t (509) =-29.54, p = 0.000. These results do not support the

77

H0 (1.6) and suggest that the respondents are able to discuss freely with official people

after joining SHG.

A paired-samples t-test was conducted to compare difference in the improvement in

communication skill of women members before and after joining the SHG. There was a

statistically significant difference in the improvement in communication skill of women

before (M=2.27, SD=1.31) and after (M=3.50, SD=1.07) conditions; t (509) =-19.09, p

= 0.000. These results do not support the H0 (1.7) and suggest that there is an

improvement in communication skill of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the physical mobility of

women members before and after joining the SHG. There was a statistically significant

difference in the physical mobility of women before (M=2.53, SD=1.03) and after


H0 (1.8) and suggest that the physical mobility of women have increased after joining

SHG.

A paired-samples t-test was conducted to compare difference in the decision ability of

women members on household expenditure, savings, and child education before and after

joining the SHG. There was a statistically significant difference in the decision ability of

women members on household expenditure, savings, and child education before (M=2.53,

SD=0.99) and after (M=3.96, SD=0.77) conditions; t (500) =-33.83, p = 0.000. These

results do not support the H0 (1.9) and suggest that the women are able to take decision on

household expenditure, savings, and child education after joining SHG.


women members on taking or use of loan before and after joining the SHG. There was a

statistically significant difference in the decision ability of women members on taking or

use of loan before (M=2.27, SD=0.99) and after (M=4.03, SD=0.82) conditions; t (506) =-

34.46, p = 0.000. These results do not support the H0 (1.10) and suggest that the women

are able to take decision on taking or use of loan after joining SHG.


women members on family matters or problems before and after joining the SHG. There

was a statistically significant difference in the decision ability of women members on

78

family matters or problems before (M=2.44, SD=1.01) and after (M=3.81, SD=0.92)

conditions; t (504) =-27.29, p = 0.000. These results do not support the H0 (1.11)

and suggest that the women are able to take decision on family matters or problems after

joining SHG.

A paired-samples t-test was conducted to compare difference in attendance of social,

village or panchayat meetings by the women members before and after joining the SHG.

There was a statistically significant difference in attendance of social, village or

panchayat meetings by the women members before (M=1.96, SD=0.99) and after

(M=2.93, SD=1.34) conditions; t (496) =-19.701, p = 0.000. These results do not support

the H0 (1.12) and suggest that the attendance of social, village or panchayat meetings by

the women members have increased after joining SHG.

A paired-samples t-test was conducted to compare difference in improvement in social

status of women members before and after joining the SHG. There was a statistically

significant difference in improvement in social status of women members before

(M=2.42, SD=0.98) and after (M=3.93, SD=0.87) conditions; t (504) =-30.50, p = 0.000.

These results do not support the H0 (1.13) and suggest that there is an improvement in

social status of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in increment in social

awareness of women members before and after joining the SHG. There was a statistically

significant difference in increment in social awareness of women members before


These results do not support the H0 (1.14) and suggest that there is an increment in social

awareness of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the ability of women

members to take up social issues before and after joining the SHG. There was a statistically

significant difference in the ability of women members to take up social issues before


These results do not support the H0 (1.15) and suggest that the women are able to take up

social issues after joining SHG.

79

A paired-samples t-test was conducted to compare difference in the development of

leadership skills of women members before and after joining the SHG. There was a

statistically significant difference in the development of leadership skills of women

members before (M=2.09, SD=0.96) and after (M=3.31, SD=1.27) conditions; t (504)

=-23.65, p = 0.000. These results do not support the H0 (1.16) and suggest that there is

development of leadership skills of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the development of

entrepreneurial skills of women members before and after joining the SHG. There was a

statistically significant difference in the development of entrepreneurial skills of

women members before (M=2.04, SD=0.94) and after (M=3.10, SD=1.31) conditions;

t (500) = -20.75, p = 0.000. These results do not support the H0 (1.17) and suggest that

there is development of entrepreneurial skills of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the development of book

keeping and administrative skills of women members before and after joining the SHG.

There was a statistically significant difference in the development of Book keeping and

administrative skills of women members before (M=2.32, SD=1.09) and after (M=3.59,

SD=1.20) conditions; t (486) =-22.91, p = 0.000. These results do not support the H0 (1.18)

and suggest that there is development of book keeping and administrative skills of women

members after joining SHG.

A paired-samples t-test was conducted to compare difference in the awareness level of

health, sanitation and children education of women members before and after joining

the SHG. There was a statistically significant difference in the awareness level of health,

sanitation and children education of women members before (M=2.53, SD=1.05) and after


H0 (1.19) and suggest that the awareness level of health, sanitation and children education

of women members have increased after joining SHG.

A paired-samples t-test was conducted to compare difference in the improvement of

market knowledge of women members before and after joining the SHG. There was a

statistically significant difference in the improvement of market knowledge of women

members before (M=2.31, SD=0.90) and after (M=3.79, SD=0.98) conditions; t (503) =-

80

31.85, p = 0.000. These results do not support the H0 (1.20) and suggest that there is an

improvement of market knowledge of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the improvement in self-

spending of women members before and after joining the SHG. There was a statistically

significant difference in the improvement in self-spending of women members before


These results do not support the H0 (1.21) and suggest that there is improvement in

self- spending of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the improvement in

literacy level of women members before and after joining the SHG. There was a

statistically significant difference in the improvement in literacy level of women members

before (M=2.43, SD=1.14) and after (M=3.62, SD=1.14) conditions; t (502) =-22.72, p =

0.000. These results do not support the H0 (1.22) and suggest that there is an improvement

in literacy level of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the awareness level of

food and nutrition of women members before and after joining the SHG. There was a

statistically significant difference in the awareness level of food and nutrition of women

members before (M=2.42, SD=1.08) and after (M=3.90, SD=0.86) conditions; t (504) =-

29.87, p = 0.000. These results do not support the H0 (1.23) and suggest that the awareness

level of food and nutrition of women members have increased after joining SHG.

A paired-samples t-test was conducted to compare difference in the ability of women

members to express views in family as well as in groups freely before and after joining the

SHG. There was a statistically significant difference in the ability of women members to

express views in family as well as in groups freely before (M=2.39, SD=1.01) and after


the H0 (1.24) and suggest that the women are able to express views in family as well as in

groups freely after joining SHG.

A paired-samples t-test was conducted to compare difference in the increment in self

confidence of women members before and after joining the SHG. There was a statistically

significant difference in the increment in self confidence of women members before

81


These results do not support the H0 (1.25) and suggest that there is an increment in

self confidence of women members after joining SHG.

A paired-samples t-test was conducted to compare difference in the agreement level of

women about enhancement in personal or family income before and after joining the SHG.

There was a statistically significant difference in the agreement level of women about

enhancement in personal or family income before (M=2.23, SD=0.81) and after (M=3.90,


and suggest that the women have agreed that there is enhancement in personal or family

income after joining SHG.


women about reduction of poverty in the family income before and after joining the SHG.


reduction of poverty in the family before (M=2.18, SD=0.84) and after (M=3.79,


(1.27) and suggest that the women have agreed that there is reduction of poverty in the

family after joining SHG.


women about reduction of dependency on money lenders before and after joining the

SHG. There was a statistically significant difference in the agreement level of women

about reduction of dependency on money lenders before (M=2.06, SD=0.91) and after


H0 (1.28) and suggest that the women have agreed that there is reduction of dependency

on money lenders after joining SHG.


women about asset creation before and after joining the SHG. There was a statistically

significant difference in the agreement level of women about asset creation before


These results do not support the H0 (1.29) and suggest that the women have agreed that

there is creation of asset after joining SHG.

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women about commencement of income generating activities before and after joining the


about commencement of income generating activities before (M=1.96, SD=0.81) and after


the H0(1.30) and suggest that the women have agreed that there is commencement of

income generating activities after joining SHG.


women about ability to meet financial crisis in the family before and after joining the


about ability to meet financial crisis in the family before (M=2.13, SD=0.86) and after


H0 (1.31) and suggest that the women have agreed that they are able to meet financial

crisis in the family after joining SHG.


women about change in nature of employment before and after joining the SHG. There

was a statistically significant difference in the agreement level of women about change in

nature of employment before (M=2.07, SD=0.85) and after (M=3.44, SD=1.22)

conditions; t (507) =-26.56, p = 0.000. These results do not support the H0 (1.32) and

suggest that the women have agreed that there is a change in nature of employment after

joining SHG.


women about increment in consumption level of family before and after joining the SHG.


increment in consumption level of family before (M=2.18, SD=0.85) and after (M=3.88,


and suggest that the women have agreed that there is an increment in consumption level of

family after joining SHG.


women about improvement in standard of living before and after joining the SHG. There

was a statistically significant difference in the agreement level of women about

83

improvement in standard of living before (M=2.26, SD=0.89) and after (M=4.10,


(1.34) and suggest that the women have agreed that there is an improvement in standard

of living after joining SHG.


women about better utilization of available resources before and after joining the SHG.


better utilization of available resources before (M=2.05, SD=0.90) and after (M=3.33,


(1.35) and suggest that the women have agreed that there is a better utilization of

available resources after joining SHG.


women about development of entrepreneurship skill before and after joining the SHG.


development of entrepreneurship skill before (M=1.97, SD=0.85) and after (M=3.04,


(1.36) and suggest that the women have agreed that there is a development of

entrepreneurship skill after joining SHG.


women about increase in purchasing power before and after joining the SHG. There was a

statistically significant difference in the agreement level of women about increase in

purchasing power before (M=2.13, SD=0.85) and after (M=3.83, SD=0.94) conditions;

t (501) =-35.75, p = 0.000. These results do not support the H0 (1.37) and suggest that

the women have agreed that there is an increase in purchasing power after joining SHG.


women about increase in savings before and after joining the SHG. There was a

statistically significant difference in the agreement level of women about increase in

savings before (M=2.00, SD=0.86) and after (M=4.26, SD=0.80) conditions; t (504) =-

44.47, p = 0.000. These results do not support the H0 (1.38) and suggest that the women

have agreed that there is an increment in savings after joining SHG.

84

A paired-samples t-test was conducted to compare income of women of BPL beneficiary

before and after joining the SHG. There was a statistically significant difference in

the income before (M=305.77, SD=701.16) and income after (M=993.03, SD=1399.16)

conditions; t (121) =-6.51, p = 0.000. These results do not support the H0 (1.39) and

suggest that the income of women of BPL beneficiary have increased after joining SHG.

A paired-samples t-test was conducted to compare monthly family income of BPL

beneficiary before and after joining the SHG. There was a statistically significant

difference in the monthly family income before (M=5727.05, SD=3006.47) and family

income after (M=6942.62, SD=3165.75) conditions; t (121) =-10.92, p = 0.000. These

results do not support the H0 (1.40) and suggest that the monthly family income of BPL

beneficiary have increased after joining SHG.

A paired-samples t-test was conducted to compare monthly savings of women of BPL


difference in the monthly savings before (M=44.51, SD=136.49) and monthly savings

after (M=322.54, SD=481.09) conditions; t (121) =-6.67, p = 0.000. These results do not

support the H0 (1.41) and suggest that the monthly savings of women of BPL beneficiary

have increased after joining SHG.

A paired-samples t-test was conducted to compare loan amount taken by the BPL


difference in the loan amount taken before (M=180.33, SD=1113.53) and loan amount

taken after (M=6315.58, SD=8786.78) conditions; t (121) =-7.76, p = 0.000. These results

do not support the H0 (1.42) and suggest that the loan amount taken by the BPL

beneficiary have increased after joining SHG.

A paired-samples t-test was conducted to compare monthly family expenditure of BPL


difference in the monthly family expenditure before (M=4459.84, SD=2410.58) and

monthly family expenditure after (M=5259.84, SD=2564.14) conditions; t (121) =-9.60, p

= 0.000. These results do not support the H0 (1.43) and suggest that the monthly family

expenditure of BPL beneficiary have increased after joining SHG.

85

A paired-samples t-test was conducted to compare social empowerment of BPL


difference in the social empowerment, conditions; t (121), p = 0.000 for all variables.

These results do not support the H0 (1.44) and suggest that the BPL beneficiary have

socially empowered after joining SHG.

Independent- Samples T-test

To test the mean difference between different variables or statements, an independent -

samples t-test has been run on various variables.

An independent-samples t-test was conducted to compare differences between members

and leaders in relation to satisfaction about group. There was a significant difference in the

satisfaction level for members (M=4, SD=0.63) and Leaders (M=4.32, SD=0.60)

conditions; t (508) = 4.88, p = 0.00. These results do not support the H0 (2.1) and suggest

that leaders are more satisfied than members

An independent-samples t-test was conducted to compare differences between mean of

satisfaction level about group of BPL beneficiary and non- beneficiary. There was a no

significant difference in the satisfaction level of BPL beneficiary (M=4.06, SD=0.66)

and non- beneficiary (M=4.08, SD=0.63) conditions; t (508) = -0.33, p = 0.74. These

results support the H0 (2.2) and suggest that there is no significant difference between

mean of satisfaction level about group of BPL and non-BPL beneficiary.

An independent-samples t-test was conducted to compare differences mean of satisfaction

level of recipient and non- recipient of loan from SHG. There was a significant difference

in the satisfaction level of recipient of loan (M=4.23, SD=0.59) and non- recipient

(M=3.94, SD=0.65) conditions; t (508) = 4.27, p = 0.00. These results do not support the

H0 (2.3) and suggest that loan recipients are more satisfied than non- recipient of loan.

An independent-samples t-test was conducted to compare differences in mean of

satisfaction level of Rajkot and Jamnagar districts. There was no significant difference in

mean of the satisfaction level for Rajkot district (M=4.05, SD=0.63) and Jamnagar district

(M=4.11, SD=0.65) conditions; t (508) = 4.76, p = 0.269. These results support the H0

(2.4) and suggest that there is no significant difference in mean of satisfaction level

about group of Rajkot and Jamnagar districts.

86

An independent-samples t-test was conducted to compare difference in mean of monthly

income of the respondents between religious groups of the respondents. There was no

significant difference in mean of the religious group "Hinduism" (M=1382.68,

SD=2760.60) and "Islam" (M=1522.94, SD=1828.78), conditions; t (508) = 0.542, p =

0.723. These results support the H0 (2.5) and suggest that there is no significant

difference in mean of monthly income of the respondents between religious group of the

respondents.


income of the member and leader of the SHG. There was a significant difference in mean

of the member (M=1221.35, SD=2463.71) and leader (M=1936.80, SD=3212.09),

conditions; t (508) = -7.06, p = 0.024. These results do not support the H0 (2.6) and

suggest that the monthly income of the leaders is more than the members.

An independent-samples t-test was conducted to compare difference in mean of the

monthly income of BPL beneficiary and Non- beneficiary. There was a significant

difference in mean of the BPL beneficiary (M=993.03, SD=1399.16) and Non- beneficiary

(M=1523.63, SD=2962.08), conditions; t (508) = 12.92, p = 0.007. These results do not

support the H0 (2.7) and suggest that the monthly income of the Non- beneficiary is more

than the BPL beneficiary.

An independent-samples t-test was conducted to compare differences in mean of monthly

income of the recipient and non- recipient of loan from SHG. There was a significant

difference in the monthly income of the recipient of loan (M=1940.56, SD=2695.13)

and non- recipient of loan (M=885.93, SD=2569.61) conditions; t (508) = 9.95, p = 0.00.

These results do not support the H0 (2.8) and suggest that the monthly income of loan

recipients is more than the non- recipient of loan.


saving of the respondents between religious groups of the respondents. There was

significant difference in mean of the religious group "Hinduism" (M=480.52, SD=1044.34)

and "Islam" (M=238.43, SD=355.34), conditions; t (508) = 7.67, p = 0.001. These results

do not support the H0 (2.9) and suggest that the monthly saving of Hindu women are

more than the Muslim women.

87


saving of the member and leader of the SHG. There was a significant difference in mean

of the member (M=382.43, SD=780.26) and leader (M=683.88, SD=1465.09),

conditions; t (508) = -18.23, p = 0.029. These results do not support the H0 (2.10) and

suggest that the monthly saving of group leaders are more than the group members.


monthly saving of BPL beneficiary and Non- beneficiary. There was a significant

difference in mean of the BPL beneficiary (M=322.54, SD=481.09) and Non- beneficiary

(M=498.38, SD=1110.96), conditions; t (508) = 9.033, p = 0.014. These results do not

support the H0 (2.11) and suggest that the monthly saving of the Non- beneficiary is more

than the BPL beneficiary.


saving of the recipient and non- recipient of loan from SHG. There was a significant

difference in the monthly saving of the recipient of loan (M=565.38, SD=916.80) and non-

recipient of loan (M=353.88, SD=1063) conditions; t (508) = 5.701, p = 0.016. These

results do not support the H0 (2.12) and suggest that the monthly saving of loan recipients

is more than the non- recipient of loan.

An independent-samples t-test was conducted to compare difference in mean of loan

amount taken by the women between religious groups of the women. There was significant

difference in mean of the religious group "Hinduism" (M=6289.76, SD=9319.41) and

"Islam" (M=13843.14, SD=17301.30), conditions; t (508) = 17.10, p = 0.003. These results

do not support the H0 (2.13) and suggest that the loan amount taken by the Muslim

women are more than the Hindu women.


amount taken by the member and leader of the SHG. There was a significant difference

in mean of the member (M=5990.91, SD=8202.23) and leader (M=10292, SD=15498.08),

conditions; t (508) = 30.53, p = 0.003. These results do not support the H0 (2.14) and

suggest that the loan amount taken by the group leaders are more than the members.


amount taken by the BPL beneficiary and Non- beneficiary. There was no significant

88

difference in mean of the BPL beneficiary (M=6315.57, SD=8786.78) and Non-

beneficiary (M=7274.48, SD=11129.50), conditions; t (508) = 4.13, p = 0.327. These

results support the H0 (2.15) and suggest that there is no significant difference in mean of

loan amount taken by the BPL beneficiary and Non- beneficiary.


amount taken by women of joint or extended family and women of nuclear family. There

was no significant difference in mean of the women of joint or extended family

(M=6921.62, SD=11259.29) and women of nuclear family (M=7371.43, SD=8717.87),

conditions; t (508) = 0.735, p = 0.670. These results support the H0 (2.16) and suggest

that there is no significant difference in mean of loan amount taken by women of joint or

extended family and women of nuclear family.


family income of the respondents between religious groups of the respondents. There was

significant difference in mean of the religious group "Hinduism" (M=10278.98,


0.000. These results do not support the H0 (2.17) and suggest that the monthly family

income of Hinduism families is more than the Islam families.


family income of the member and leader of the SHG. There was a significant difference in

mean of the member (M=9704.81, SD=5913.97) and leader (M=11069.60, SD=6233.29),


suggest that the monthly family income of the group leaders is more than the members.


family income of the recipient and non- recipient of loan from SHG. There was no

significant difference in the monthly family income of the recipient of loan (M=10548.98,

SD=6427.38) and non- recipient of loan (M=6560.65, SD=5572.93) conditions; t (508) =

1.61, p = 0.064. These results support the H0 (2.19) and suggest that there is no

significant difference in mean of monthly family income of the recipient and non- recipient

of loan from SHG.

89


family expenditure of the respondents between religious groups of the respondents.

There was significant difference in mean of the religious group "Hinduism" (M=7521.35,


0.017. These results do not support the H0 (2.20) and suggest that the monthly family

expenditure of Hinduism families is more than the Islam families.


family expenditure of the member and leader of the SHG. There was no significant

difference in mean of the member (M=7258.18, SD=3942.88) and leader (M=7919.22,

SD=3973.12), conditions; t (508) = 1.22, p = 0.105. These results support the H0 (2.21)

and suggest that there is no significant difference in mean of monthly family expenditure

of the member and leader of the SHG.


monthly family expenditure of BPL beneficiary and Non- beneficiary. There was a

significant difference in mean of the BPL beneficiary (M=5259.84, SD=2564.14) and

Non- beneficiary (M=8099.49, SD=4074.39), conditions; t (508) = 11.40, p = 0.000. These

results do not support the H0 (2.22) and suggest that the monthly family expenditure

of the Non-BPL beneficiary is more than the BPL beneficiary.


family expenditure of the recipient and non- recipient of loan from SHG. There was

significant difference in the monthly family expenditure of the recipient of loan

(M=7842.11, SD=4329.81) and non- recipient of loan (M=7023.95, SD=3533.56)


suggest that the monthly family expenditure of the recipients of loan is more than the non-

recipients of loan.


income of the respondents of Rajkot and Jamnagar district. There was a significant

difference in mean of the respondents of Rajkot district (M=2310.27, SD=2953.85) and

Jamnagar district (M=483.14, SD=2000.65), conditions; t (508) = 54.46, p = 0.000.

These results do not support the H0 (2.24) and suggest that the monthly income of the

respondents of Rajkot district is more than the members of Jamnagar district.

90


saving of the respondents of Rajkot and Jamnagar district. There was a significant

difference in mean of the respondents of Rajkot district (M=776.12, SD=1179.53) and

Jamnagar district (M=136.51, SD=636.72), conditions; t (508) = 83.32, p = 0.000. These

results do not support the H0 (2.25) and suggest that the monthly saving of the

respondents of Rajkot district is more than the members of Jamnagar district.


amount taken by the respondents of Rajkot and Jamnagar district. There was no

significant difference in mean of the members of Rajkot district (M=7596.08,

SD=10805.89) and Jamnagar district (M=6494.12, SD=10414.58), conditions; t (508) =

0.938, p = 0.242. These results support the H0 (2.26) and suggest that there is no

significant difference in mean of loan amount taken by the respondents of Rajkot and

Jamnagar district.

One-way ANOVA

To check the mean difference among various categories for various variables or

statements, a one-way ANOVA test has been run on various statements and variables.

A one-way ANOVA was conducted to examine whether there were statistically significant

differences among education of women in relation to their satisfaction with the SHG. The

results do not support the H0 (3.1) and revealed statistically significant differences among

the education groups, F (7, 502) = 4.75, P = 0.00. Post-hoc Scheffe tests revealed

statistically significant differences between the education group "Up to 5th Std" (M =

3.95, SD = 0.63), and "Up to Graduation" (M = 4.48, SD = 0.58). There were no other

significant differences between the other education groups.


differences among social status of women in relation to their satisfaction with the SHG.

The result supports the H0 (3.2) and revealed no statistically significant differences

among the social status, F (2, 507) = 2.34, P = 0.098.


differences between religious groups of women in relation to their satisfaction with the

91

SHG. The result supports the H0 (3.3) and revealed no statistically significant differences

between religious groups, F (1, 507) = 0.17, P = 0.68.


differences in mean of satisfaction level about group among occupation of the members.

The results do not support the H0 (3.4) and revealed statistically significant differences

among the occupation of the members, F(9, 500) = 2.033, P = 0.034. Post-hoc Tukey

HSD tests revealed statistically significant differences between the occupation "House

wife" (M = 4.03, SD = 0.63), and "Service" (M = 4.37, SD = 0.70). There were no other

significant differences between the other occupation groups.


differences in mean of satisfaction level about group among marital status groups. The

result supports the H0 (3.5) and revealed no statistically significant differences among

marital status groups, F (3, 506) = 1.19, P = 0.31.


differences in mean of satisfaction level about group among age group of the

respondents. The results do not support the H0 (3.6) and revealed statistically significant

differences among the age group of the respondents, F (4, 505) = 2.83, P = 0.024. Post-hoc

Tukey HSD tests revealed statistically significant differences between the age group

">60" (M = 4.83, SD = 0.41), and "19-35", "36-45", "46-60" (M = 4.10, SD = 0.66), (M

= 4.02, SD = 0.58), (M = 4.08, SD = 0.72). There were no other significant differences

between the other age groups.


differences in mean of monthly income of the member among education of the member.

The results do not support the H0 (3.7) and revealed statistically significant differences

among the education of the respondents, F (7, 502) = 20.57, P = 0.000. Post-hoc Tukey

HSD tests revealed statistically significant differences between the education group

" illiterate" (M = 551.89, SD = 1443.54), and "Upto Graduation" (M = 2759.25, SD =

3145.11), "illiterate" (M = 551.89, SD = 1443.54), and "Other" (M = 14000, SD =

11430.95), "Can sign only" (M = 839.70, SD = 1398.09), and "Up to Graduation" (M =

2759.25, SD = 3145.11), "Up to 5th

Std" = 982.24, SD = 1734.82), and "Up to

92

Graduation" (M = 2759.25, SD = 3145.11), "Up to 5th

Std" (M = 982.24, SD = 1734.82),

and "Other" (M = 14000, SD = 11430.95). There were no other significant differences

between the other groups.


differences in mean of monthly income of the respondents among social group of the

respondents. The results do not support the H0 (3.8) and revealed statistically

significant differences among the social group of the respondents, F (2, 507) = 5.88, P =

0.003. Post-hoc Tukey HSD tests revealed statistically significant differences between the

social group "Open/General" (M = 1880.61, SD = 3415.24), and "OBC" (M = 1027.13,

SD = 2058.30).

There were no significant differences between the other social groups.


differences in mean of monthly income of the respondents among age groups. The result

supports the H0 (3.9) and revealed no statistically significant differences among age

groups, F (4, 505) = 1.12, P = 0.345.


differences in mean of monthly saving of the respondents among education of the

respondents. The results do not support the H0 (3.10) and revealed statistically

significant differences in the monthly saving of the respondents, F (7, 502) = 28.12, P =

0.000. Post-hoc Tukey HSD tests revealed statistically significant differences between

the education group "illiterate" (M = 195.44, SD = 587.43), and "Up to Graduation" (M =

1307.59, SD = 1735.71), "lliterate" (M = 195.44, SD = 587.43), and "Other" (M = 5775,

SD = 4305), "Can sign only" (M = 287.28, SD = 381.54), and "Up to Graduation" (M =

1307.59, SD = 1735.71), "Up to 5th

Std" (M = 353.55, SD = 694.41), and "Up to

Graduation" (M = 1307.59, SD = 1735.71), "Up to 5th

Std" (M = 353.55, SD = 694.41),

and "Other" (M = 5775, SD = 4305), "Up to 6th

to 7th

Std" (M = 342.44, SD = 625.08),

and "Up to Graduation" (M = 1307.59, SD = 1735.71). There were no other significant

differences between the other groups.

93


differences in mean of monthly saving of the respondents among social group of the

respondents. The result supports the H0 (3.11) and revealed there is no statistically

significant differences in mean among the social group of the respondents, F (2, 507) =

1.40, P = 0.248.


differences in mean of monthly saving of the respondents among age groups. The result

supports the H0 (3.12) and revealed no statistically significant differences among age

groups, F (4, 505) = 0.755, P = 0.555.


differences in mean of loan amount taken by the women among social group of the

women. The results do not support the H0 (3.13) and revealed there is statistically

significant differences in mean among the social group of the women, F (2, 507) =

15.04, P = 0.000. Post-hoc Tukey HSD tests revealed statistically significant differences

between the social group "Open/General" (M = 10215.38, SD = 13430.42), and "OBC"

(M = 4936.80, SD = 8000.33), "Open/General" (M = 10215.38, SD = 13430.42), and

"SC" (M = 5934.78, SD = 6674.67). These results suggest that loan taken by open

category women are more than the OBC and SC women.


differences in mean of loan amount taken by the women. The result supports the H0 (3.14)

and revealed no statistically significant differences among age groups, F (4, 505) =

1.07, P = 0.372.


differences in mean of monthly family income of the respondents among social group of

the respondents. The results do not support the H0 (3.15) and revealed statistically

significant differences among the social group of the member, F (2, 507) = 14.42, P =


social group "Open/General" (M = 11735.89, SD = 6923), and "OBC" (M = 9201.30,

SD = 5191.81), "Open/General" (M = 11735.89, SD = 6923), and "SC" (M = 7747.83, SD

= 4497.54). There were no significant differences between the other social groups.

94


differences in mean of monthly family expenditure of the respondents among social group

of the respondents. The results do not support the H0 (3.16) and revealed statistically

significant differences among the social group of the member, F (2, 507) = 14.93, P =


social group "Open/General" (M = 8558.46, SD = 4289.85), and "OBC" (M = 6852.43,

SD = 3669.16), "Open/General" (M = 8558.46, SD = 4289.85), and "SC" (M = 5915.22, SD

= 2775.77). There were no significant differences between the other social groups.


differences in mean of loan amount taken by the members of different banks. The results

do not support the H0 (3.17) and revealed statistically significant differences among

members of different banks, F (8, 501) = 4.48, P = 0.000.

A one-way ANOVA was conducted to compare difference in mean of saving amount of

the members of different banks. The results do not support the H0 (3.18) and revealed

statistically significant difference in mean of saving amount of the members of different

banks, F (8, 501) = 5.73, P = 0.000.


differences in mean of satisfaction level about group of respondents of different banks. The

results do not support the H0 (3.19) and revealed statistically significant differences

among respondents of different banks, F (8, 501) = 4.04, P = 0.000.

MANOVA test for mean difference in various socio-economic variables

One of the objectives of this research is to see the impact of microfinance activities on

socio- economic empowerment of women. Considering this, various categorical variables

are taken as independent variable while various socio-economic empowerment statements

are dependent variable. For this, MANOVA is administered because MANOVA is a

multivariate extension of the univariate techniques used for measuring the differences

between group means. As stated by Hair et al. (1998, p.14), MANOVA ‘…is a statistical

technique that can be used to simultaneously explore the relationship between several

categorical independent variables (usually referred to as treatments) and two or more

metric variables’.

95

Effect of social group of the women on social empowerment of the women

To measure significant difference between the social groups of the respondents for the

social empowerment, one Multivariate Analysis of Variance (MANOVA) test with

repeated measures was conducted. The MANOVA and subsequent ANOVA results are

shown in table 6.5.1, and the results do not support the H0 (4.1) and revealed that

there is statistically significant difference between social group of the respondents (i.e.

Open / General, OBC and SC) for the twenty dependent variables of social

empowerment as shown in table 6.5.1 (Wilk's Lamda = 0.79; F=2.75, Significance : p

=0.000< 0.05).

As indicated in table 6.5.1, the univariate F-ratios were also significant for the eleven

dependent variables i.e. for "able to discuss freely with official people" (F=5.54, Sign. =

0.004), for " Improvement in Communication skill" (F=11.35, Sign. = 0.000), for

"Physical mobility" (F=3.46, Sign. = 0.032), for "Ability to take decision on taking / use of

loan" (F=3.31, Sign. = 0.037), for "Attending social, Village or Panchayat meetings"

(F=5.47, Sign. = 0.004), for "Development of Leadership skills" (F=8.44, Sign. =0.000),

for "Development of Entrepreneurial skills" (F=8.21, Sign. =0.00), for "Development of

Book keeping and administrative skills" (F=4.41, Sign. =0.013), for "Increased Market

Knowledge" (F=7.29, Sign. = 0.001), for " Improvement in literacy level" (F=5.81, Sign.

=0.003), for " Increased self confidence" (F=6.90, Sign. =0.001), but statistically for other

factors was non-significant. The mean score of the Open/General, OBC and SC group have

shown that there is statistically difference between the Open/ General and SC and also for

OBC and SC category for the social empowerment. As most of the group mean score are

generally more than three, it can be safely assumed that all the respondents of three social

groups believe that they have socially empowered after joining SHGs.

96

Table 4.5.1 MANOVA and ANOVA Results for effect of social group of

the respondent on social empowerment of the respondent

Source Social Group

Effect Value F Sign. Open

(n=178

)

OBC

(n=242)

SC

(n=44)

Multivariate Tests

Social Group of the

respondent

Pillai's

Trace 0.22 2.751 0.000*

Wilks'

Lambda 0.79 2.749 0.000*

Hotelling's

Trace 0.25 2.746 0.000*

Roy's

Largest

Root

0.14 3.167 0.000*

ANOVA tests : Social Empowerment…. Group Mean

By Able to discuss freely

with official people

5.54 0.004* 3.77 3.723 3.227

By Improvement in

Communication skill

11.35 0.00* 3.5 3.587 2.75

By Physical mobility /

Moving to other places

independently without the

support of male members

3.456 0.032* 4.034 3.934 3.636

By Ability to take decision

on household expenditure,

savings, and child education

1.663 0.191 3.888 4.021 4


on taking / use of loan

3.308 0.037* 4.084 3.983 4.318


on family matters / problems

1.783 0.169 3.736 3.905 3.818

By Attending social /

Village / Panchayat meetings

5.474 0.004* 2.949 3.07 2.341

By Recognition or respect

in the society or family /

Improvement in social status

0.593 0.553 3.955 3.942 4.091

97

Increment in Social

awareness (AIDS. Family

planning, govt. schemes etc)

0.213 0.808 3.826 3.884 3.841

By Ability to take up

social issues like abuse,

violence, drugs, alcoholism

etc

0.971 0.380 3.933 3.814 3.795

By Development of

Leadership skills

8.444 0.00* 3.421 3.364 2.568

By Development of

Entrepreneurial skills

8.206 0.00* 3.202 3.14 2.341

By Development of Book

keeping and administrative

skills

4.407 0.013* 3.685 3.599 3.091

By Awareness of health,

sanitation and children

education

0.63 0.533 3.994 3.992 4.136

By Increased market

Knowledge

7.286 0.001* 3.955 3.711 3.364

By Increase in self-Spending 2.611 0.075 3.949 3.789 3.682

By Improvement in literacy

Level

5.811 0.003* 3.702 3.62 3.045

Awareness of food and

Nutrition

0.668 0.513 3.955 3.855 3.909

By Expressing views in

family as well as in

groups freely

2.854 0.059 3.933 3.864 3.568

By Increased self confidence 6.901 0.001* 4.326 4.012 4.205

Source : SPSS Output, *P <0.05

4.5.2 Difference between BPL and Non-BPL beneficiary on social

empowerment

To determine whether significant differences exist regarding social empowerment between

BPL and Non-BPL beneficiary, a Multivariate Analysis of Variance (MANOVA) test with

repeated measures was conducted. BPL and Non-BPL beneficiary is taken as independent

variable while various social empowerment statements are taken as dependent variables.

98

The MANOVA and subsequent ANOVA results are shown in table 4.5.2 and the results do

not support the H0 (4.2) and revealed statistically significant difference between BPL and

Non- BPL beneficiary for the twenty dependent variables of social empowerment as shown

in table 4.5.2 (Wilk's Lamda = 0.87; F=3.25, Significance : p =0.000< 0.05).

As indicated in table 4.5.2, the univariate F-ratios were also significant for the twelve

dependent variables i.e. for "Able to discuss freely with official people" (F=22.61, Sign.

= 0.000), for " Improvement in Communication skill" (F=21.62, Sign. = 0.000), for

"Physical mobility" (F=12.10, Sign. = 0.001), for " Increment in Social awareness"

(F=5.07, Sign. = 0.025), for "Ability to take up social issues" (F=6.30, Sign. = 0.012), for

"Development of Leadership skills" (F=7.74, Sign. =0.006), for "Development of

Entrepreneurial skills" (F=5.74, Sign. =0.017), for "Development of Book keeping and

administrative skills" (F=18.15, Sign. =0.000), for "Increased Market Knowledge"

(F=12.65, Sign. = 0.000), for "Increase in self-Spending" (F=12.86, Sign. = 0.000), for

"Improvement in literacy level" (F=18.06, Sign. =0.000), for "Expressing views in family

as well as in groups freely" (F=12.73, Sign. =0.000), but statistically for other factors

was non-significant. The mean score of the BPL and Non-BPL beneficiary have shown

that there is statistically difference between the BPL and Non-BPL beneficiary for the

social empowerment. As most of the group mean score are generally more than three, it

can be safely assumed that most of the respondents of BPL and Non-BPL beneficiary

believe that they have socially empowered after joining SHGs.

Table 4.5.2 : MANOVA and ANOVA Results for difference between

BPL and Non-BPL beneficiary on social empowerment

Source Beneficiary

Effect Value F Sign. BPL

(n=112)

Non-BPL

(n=352)

Multivariate Tests

BPL & Non-BPL

Beneficiary

Pillai's

Trace 0.128 3.251 0.000*

Wilks'

Lambda 0.872 3.251 0.000*

Hotelling's

Trace 0.147 3.251 0.000*

99

Roy's

Largest

Root

0.147 3.251 0.000*




22.607 0.000* 3.313 3.815

By Improvement in

Communication skill

21.62 0.000* 3.062 3.605





12.098 0.001* 3.687 4.026


on household

expenditure, savings, and

child education

2.719 0.100 3.866 4.000



0.000 0.996 4.054 4.054


on family matters /

problems

0.247 0.619 3.795 3.844


Village / Panchayat

meetings

2.543 0.111 2.777 3.011


in the society or family

/ Improvement in social

status

1.564 0.212 3.875 3.989

By Increment in Social

awareness (AIDS.

Family planning, govt.

schemes etc)

5.065 0.025* 3.688 3.912




etc

6.296 0.012* 3.670 3.918

By Development of

Leadership skills

7.732 0.006* 3.018 3.403

100

By Development of


5.736 0.017* 2.830 3.170


keeping and

administrative skills

18.150 0.000* 3.170 3.716



education

0.713 0.399 4.062 3.989

By Increased market

knowledge

12.656 0.000* 3.482 3.864

By Increase in self-

spending

12.856 0.000* 3.589 3.920

By Improvement in

literacy Level

18.060 0.000* 3.196 3.724


Nutrition

2.880 0.090 3.777 3.938



groups freely

12.734 0.000* 3.598 3.946

By Increased self

confidence

3.007 0.084 4.027 4.190


4.5.3 Difference between women of Hinduism and Islam on social

empowerment


women of Hinduism and Islam, a Multivariate Analysis of Variance (MANOVA) test with

repeated measures was conducted. Religion of the respondents is taken as independent


The MANOVA and subsequent ANOVA results are shown in table 4.5.3 and the results do

not support the H0 (4.3) and revealed statistically significant difference between women of

Hinduism and Islam for the twenty dependent variables of social empowerment as shown

in table 4.5.3 (Wilk's Lamda = 0.87; F=3.37, Significance : p =0.000< 0.05).

As indicated in table 4.5.3, the univariate F-ratios were also significant for the seven

dependent variables i.e. for "Ability to take decision on taking or use of loan" (F=11.61,

101

Sign. = 0.001), for "Attending social, Village or Panchayat meetings" (F=7.09, Sign. =

0.008), for "Ability to take up social issues" (F=3.92, Sign. = 0.048), for "Awareness of

health, sanitation and children education" (F=4.83, Sign. = 0.028), for "Increased Market

Knowledge" (F=10.44, Sign. = 0.001), for " Increase in self-spending" (F=8.83, Sign. =

0.003), for "Increased self confidence" (F=18.91, Sign. =0.000), but statistically for other

factors was non-significant. The mean score of the women of Hinduism and Islam

have shown that there is statistically difference between the women of Hinduism and Islam

for the social empowerment. As most of the group mean score are generally more than

three, it can be safely assumed that most of the respondents of Hinduism and Islam believe

that they have socially empowered after joining SHGs.


women of Hinduism and Islam on social empowerment

Source Religion

Effect Value F Sign. Hinduism

(n=415)

Islam

(n=49)

Multivariate Tests

Religion of the

respondents

Pillai's

Trace 0.132 3.374 0.000*

Wilks'

Lambda 0.868 3.374 0.000*

Hotelling's

Trace 0.152 3.374 0.000*

Roy's

Largest

Root

0.152 3.374 0.000*




0.023 0.879 3.696 3.673

By Improvement in

Communication skill

3.322 0.069 3.506 3.204





3.221 0.073 3.918 4.163

102



savings, and child

education

0.236 0.627 3.973 3.918



11.614 0.001* 4.010 4.429


on family matters /

problems

0.002 0.969 3.831 3.837


Village / Panchayat

meetings

7.088 0.008* 3.012 2.469



Improvement in social

status

1.131 0.288 3.947 4.082


awareness (AIDS.


schemes etc)

2.671 0.103 3.834 4.061

By Ability to take up social

issues like abuse, violence,

drugs, alcoholism etc

3.920 0.048* 3.829 4.102

By Development of

Leadership skills

1.436 0.231 3.335 3.102

By Development of


0.006 0.939 3.087 3.102



skills

0.690 0.407 3.600 3.449



education

4.831 0.028* 3.978 4.245

By Increased market

knowledge

10.441 0.001* 3.720 4.204


Spending

8.825 0.003* 3.800 4.184

By Improvement in

literacy level

0.462 0.497 3.610 3.490

103


nutrition

0.734 0.392 3.887 4.000



groups freely

1.662 0.198 3.843 4.020

By Increased self

confidence

18.907 0.000* 4.092 4.653


4.5.4 Difference between SHG Member and Leader on social

empowerment


SHG Members and Leaders, a Multivariate Analysis of Variance (MANOVA) test with

repeated measures was conducted. Designation of the respondents is taken as an

independent variable while various social empowerment statements are taken as dependent

variables. The MANOVA and subsequent ANOVA results are shown in table 6.5.4, and

the results do not support the H0 (4.4) and revealed statistically significant difference

between SHG Members and Leaders for the twenty dependent variables of social


=0.000< 0.05).

As indicated in table 4.5.4, the univariate F-ratios were also significant for the nine

dependent variables i.e. for "Able to discuss freely with official people" (F=10.26, Sign. =

0.001), for "Improvement in Communication skill" (F=4.22, Sign. = 0.040), for

"Physical mobility" (F=5.94, Sign. = 0.015), for "Ability to take decision on household

expenditure, savings, and child education" (F=13.92, Sign. = 0.000), for "Ability to take

decision on taking or use of loan" (F=11.51, Sign. = 0.001), for "Ability to take decision

on family matters or problems" (F=4.80, Sign. = 0.029), for "Improvement in social status"

(F=14.66, Sign. = 0.000), for "Development of Book keeping and administrative skills"

(F=13.19, Sign. =0.000), for "Awareness of health, sanitation and children education"

(F=8.90, Sign. = 0.003), but statistically for other factors was non-significant. The mean

score of the SHG members and leaders have shown that there is statistically difference

between the SHG Members and leaders for the social empowerment. As most of the

group mean score are generally more than three, it can be safely assumed that all the

104

SHG members and leaders believe that they have socially empowered after joining SHGs.

Moreover, the mean score of leaders are more than mean score of the members in most of

the factors shows that leaders are more empowered than members.


SHG Members and Leaders on social empowerment

Source Designation

Effect Value F Sign. Member

(n=348)

Leader

(n=116)

Multivariate Tests

Designation of the respondents

Pillai's

Trace 0.106 2.614 0.000*

Wilks'

Lambda 0.894 2.614 0.000*

Hotelling's

Trace 0.118 2.614 0.000*

Roy's

Largest

Root

0.118 2.614 0.000*


By Able to discuss freely with

official people

10.257 0.001* 3.609 3.948

By Improvement in

Communication skill

4.222 0.040* 3.414 3.655

By Physical mobility / Moving to

other places independently without

the support of male members

5.940 0.015* 3.885 4.121

By Ability to take decision on

household expenditure, savings,

and child education

13.923 0.000* 3.894 4.190


taking / use of loan

11.506 0.001* 3.980 4.276


family matters / problems

4.796 0.029* 3.779 3.991

By Attending social / Village /

Panchayat meetings

0.003 0.953 2.957 2.948

105

By Recognition or respect in the

society or family / Improvement in

social status

14.657 0.000* 3.876 4.216

Increment in Social awareness

(AIDS. Family planning, govt.

schemes etc)

1.488 0.223 3.828 3.948

By Ability to take up social issues

like abuse, violence, drugs,

alcoholism etc

1.814 0.179 3.825 3.957

By Development of Leadership

skills

0.007 0.934 3.307 3.319

By Development of


0.259 0.611 3.106 3.034

By Development of Book keeping

and administrative skills

13.193 0.000* 3.468 3.931

By Awareness of health , sanitation

and children education

8.903 0.003* 3.943 4.198

By Increased market knowledge 0.072 0.789 3.764 3.793

By Increase in self-Spending 0.869 0.352 3.819 3.905

By Improvement in literacy level 2.102 0.148 3.552 3.733

Awareness of food and nutrition 1.429 0.232 3.871 3.983

By Expressing views in family as

well as in groups freely

0.680 0.410 3.842 3.922

By Increased self confidence 1.672 0.197 4.121 .241


4.5.5 Difference between the respondents of Jamnagar and Rajkot on

social empowerment

To determine whether significant differences exist regarding social empowerment

between the respondents of Jamnagar and Rajkot, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. District of the respondents is

taken as independent variable while various social empowerment statements are taken as

dependent variables. The MANOVA and subsequent ANOVA results are shown in table

6.5.5, and the results do not support the H0 (4.5) and revealed statistically significant

difference between the respondents of Jamnagar and Rajkot for the twenty dependent

106

variables of social empowerment as shown in table 4.5.5 (Wilk's Lamda = 0.90; F=2.55,

Significance : p =0.000< 0.05).

As indicated in table 4.5.5, the univariate F-ratios were also significant for the ten

dependent variables i.e. for "Able to discuss freely with official people" (F=23.95, Sign. =

0.000), for "Improvement in Communication skill" (F=11.47, Sign. = 0.001), for "Ability

to take decision on household expenditure, savings, and child education" (F=6.34, Sign. =

0.012), for "Ability to take decision on family matters or problems" (F=7.40, Sign. =

0.007), for "Attending social, village or panchayat meetings" (F=16.02, Sign. =

0.000), for "Development of leadership skills" (F=15.65, Sign. = 0.000), for "Development

of Entrepreneurial skills" (F=12.73, Sign. = 0.000), for "Development of Book keeping and

administrative skills" (F=18.71, Sign. =0.000), for "Improvement in literacy level"

(F=5.26, Sign. = 0.022), for "Expressing views in family as well as in groups freely"


score of the respondents of Jamnagar and Rajkot have shown that there is statistically

difference between the respondents of Jamnagar and Rajkot for the social empowerment.

As most of the group mean score are generally more than three, it can be safely assumed

that all the respondents of Jamnagar and Rajkot believe that they have socially empowered

after joining SHGs. Moreover, the mean score of Rajkot are more than mean score of

the Jamnagar in most of the factors shows that Members of Rajkot are more empowered

than members of Jamnagar.

Table 4.5.5 : MANOVA and ANOVA Results for difference between the

respondents of Jamnagar and Rajkot on social empowerment

Source District

Effect Value F Sign. Mehsana

(n=252)

Patan

(n=212)

Multivariate Tests

District of the

respondents

Pillai's

Trace 0.103 2.551 0.000*

Wilks'

Lambda 0.897 2.551 0.000*

Hotelling's

Trace 0.115 2.551 0.000*

107

Roy's

Largest

Root

0.115 2.551 0.000*




23.949 0.000* 3.897 3.453

By Improvement in

Communication skill

11.474 0.001* 3.631 3.288





3.112 0.078 4.012 3.863

By Ability to take

decision on household

expenditure, savings, and

child education

6.337 0.012* 4.048 3.873

By Ability to take

decision on taking / use of

loan

0.909 0.341 4.087 4.014

By Ability to take

decision on family matters

/ problems

7.400 0.007* 3.937 3.708


Village / Panchayat

meetings

16.019 0.000* 3.183 2.684




status

3.090 0.079 4.024 3.887


awareness (AIDS.


schemes etc)

0.854 0.356 3.821 3.901



violence, drugs,

alcoholism etc

0.809 0.369 3.893 3.816

By Development of

Leadership skills

15.645 0.000* 3.524 3.057

108

By Development of


12.725 0.000* 3.286 2.854


keeping and


18.706 0.000* 3.802 3.325

By Awareness of health ,


education

1.438 0.231 4.048 3.958

By Increased market

knowledge

2.686 0.102 3.841 3.689


Spending

0.447 0.504 3.865 3.811

By Improvement in

literacy level

5.257 0.022* 3.710 3.462


nutrition

0.825 0.364 3.933 3.858



groups freely

5.012 0.026* 3.948 3.759

By Increased self

confidence

0.045 0.832 4.159 4.142


4.5.6 Difference between the respondents of joint and nuclear family on

social empowerment


between the respondents of joint and nuclear family, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. Type of the family of the

respondents is taken as independent variable while various social empowerment statements

are taken as dependent variables. The MANOVA results are shown in table 6.5.6, and the

results support the H0 (4.6) and revealed there is no statistically significant difference

between the respondents of joint and nuclear family for the twenty dependent variables of

social empowerment as shown in table 4.5.6 (Wilk's Lamda = 0.93; F=1.56, Significance :

p =0.059> 0.05).

109

Table 4.5.6: MANOVA Results for difference between the respondents

of joint and nuclear family on social empowerment

Source

Effect Value F Sign.

Multivariate Tests

Type of the family of the

respondents

Pillai's Trace 0.066 1.559 0.059**

Wilks' Lambda 0.934 1.559 0.059**

Hotelling's Trace 0.070 1.559 0.059**

Roy's Largest Root 0.070 1.559 0.059**

Source : SPSS Output, **P >0.05

6.5.7 Effect of availability of loan to the women on social empowerment of

the women


between the respondents who have taken loan and who don't, a Multivariate Analysis of

Variance (MANOVA) test with repeated measures was conducted. Availability of loan is

taken as independent variable while various social empowerment statements are taken as



difference between the respondents who have taken loan and who have not taken loan for

the twenty dependent variables of social empowerment as shown in table 6.5.7 (Wilk's

Lamda = 0.90; F=2.55, Significance : p =0.000< 0.05).

As indicated in table 4.5.7, the univariate F-ratios were also significant for the three

dependent variables i.e. for "Ability to take decision on taking or use of loan" (F=5.46,

Sign. = 0.020), for "Attending social, village or panchayat meetings" (F=9.46, Sign. =

0.002), for "Development of leadership skills" (F=5.17, Sign. = 0.023), but statistically for

other factors was non-significant. Most of the group mean score are generally more than

three, it can be safely assumed that all the respondents believe that they have socially

empowered after joining SHGs.

110


the respondents who have taken loan and who have not taken loan on

social empowerment

Source Loan Availability

Effect Value F Sign. Yes

(n=230)

No

n=234)

Multivariate Tests

Loan availability of the

respondents

Pillai's

Trace 0.094 2.303 0.001*

Wilks'

Lambda 0.906 2.303 0.001*

Hotelling's

Trace 0.104 2.303 0.001*

Roy's

Largest

Root

0.104 2.303 0.001*




0.059 0.808 3.683 3.705

By Improvement in

Communication skill

2.879 0.090 3.387 3.560





0.690 0.407 3.909 3.979



savings, and child

education

0.452 0.502 3.991 3.944



5.457 0.020* 4.143 3.966


on family matters /

problems

2.460 0.117 3.765 3.897

111


Village / Panchayat

meetings

9.463 0.002* 2.761 3.145




status

1.209 0.272 4.004

3.919

Increment in Social

awareness (AIDS.


schemes etc)

3.399 0.066 3.778 3.936




etc

2.101 0.148 3.796 3.919

By Development of

Leadership skills

5.168 0.023* 3.174 3.444

By Development of


0.638 0.425 3.039 3.137


keeping and


1.791 0.181 3.509 3.658



education

1.467 0.226 4.052 3.962

By Increased market

knowledge

2.338 0.127 3.700 3.842


Spending

1.487 0.223 3.791 3.889

By Improvement in

literacy level

3.768 0.053 3.491 3.701


nutrition

1.061 0.304 3.857 3.940



groups freely

1.572 0.211 3.809 3.915

By Increased self

confidence

0.155 0.694 4.135 4.167

Source : SPSS Output, *P < 0.05

112

4.5.8 Effect of experience of the respondent with SHG on social

empowerment of the respondent


among experience of the respondents, a Multivariate Analysis of Variance (MANOVA)

test with repeated measures was conducted. Experience with SHG is taken as independent


The MANOVA and subsequent ANOVA results are shown in table 4.5.8, and the results

do not support the H0 (4.8) and revealed statistically significant difference among

experience of the respondents for the twenty dependent variables of social


=0.039< 0.05).

As indicated in table 4.5.8, the univariate F-ratios were also significant for the

fourteen dependent variables i.e. for " Able to discuss freely with official people"

(F=4.32, Sign. = 0.005), for " Improvement in Communication skill" (F=3.32, Sign. =

0.020), for "Physical mobility" (F=9.09, Sign. = 0.000), for "Ability to take decision on

household expenditure, savings, and child education" (F=3.76, Sign. = 0.011), for "Ability

to take decision on taking or use of loan" (F=4.03, Sign. = 0.008), for "Ability to take

decision on family matters or problems" (F=3.01, Sign. = 0.030), for " Increment in

Social awareness" (F=3.06, Sign. = 0.028), for "Ability to take up social issues" (F=6.34,

Sign. = 0.000), for "Development of Book keeping and administrative skills" (F=3.74,

Sign. =0.011), for "Awareness of health, sanitation and children education" (F=4.65,

Sign. = 0.003), for "Increased market knowledge" (F=2.98, Sign. = 0.031), for "Increase

in self-Spending" (F=6.08, Sign. = 0.000), for "Expressing views in family as well as in

groups freely" (F=3.14, Sign. = 0.029), for "Increased self confidence" (F=5.81, Sign. =

0.001), but statistically for other factors was non-significant. The mean score of the

different experience groups have shown that there is statistically difference among the

groups for the social empowerment. As most of the group mean score are generally more

than three, it can be safely assumed that all the respondents believe that they have

socially empowered after joining SHGs. Moreover, the mean score of group "7-9" and ">9"

are more than mean score of the other groups shows that the women who had joined the

SHG before seven years are more empowered than the others.

113

Table 4.5.8 : MANOVA and ANOVA results for difference among

experience of the respondents on social empowerment

Source Experience

Effect Value F Sign. <4

(n=146)

4-6

(n=221)

7-9

(n=76)

>9

(n=21)

Multivariate Tests

Experience of the

respondent with SHG

Pillai's

Trace 0.172 1.345 0.043*

Wilks'

Lambda 0.836 1.356 0.039*

Hotelling's

Trace 0.187 1.367 0.035*

Roy's

Largest

Root

0.118 2.617c 0.000*


By Able to discuss

freely with official

people

4.317 0.005* 3.479 3.760 3.789 4.143

By Improvement in

Communication skill

3.318 0.020* 3.260 3.534 3.605 3.857



independently without

the support of male

members

9.093 0.000* 3.644 4.050 4.092 4.381

By Ability to take

decision on household

expenditure, savings,

and child education

3.755 0.011* 3.849 3.959 4.132 4.286

By Ability to take

decision on taking / use

of loan

4.028 0.008* 3.890 4.072 4.250 4.286

By Ability to take

decision on family

matters / problems

3.007 0.030* 3.664 3.887 4.013 3.762

114


Village / Panchayat

meetings

0.569 0.635 2.918 3.027 2.803 3.000

By Recognition or

respect in the society or

family / Improvement in

social status

1.819 0.143 3.863 3.959 4.092 4.190

Increment in Social

awareness (AIDS.


schemes etc)

3.057 0.028* 3.671 3.923 3.987 4.000



violence, drugs,

alcoholism etc

6.337 0.000* 3.610 3.919 4.066 4.190

By Development of

Leadership skills

1.995 0.114 3.164 3.398 3.211 3.762

By Development of


1.072 0.361 2.938 3.136 3.171 3.333

By Development of

Book keeping and


3.735 0.011* 3.329 3.656 3.763 3.952



education

4.651 0.003* 3.822 4.045 4.211 4.143

By Increased market

knowledge

2.979 0.031* 3.568 3.873 3.842 3.857


Spending

6.078 0.000* 3.610 3.900 4.026 4.143

By Improvement in

literacy level

2.075 0.103 3.425 3.692 3.566 3.905

By Awareness of food

and nutrition

2.112 0.098 3.774 3.914 4.026 4.143



groups freely

3.136 0.025* 3.692 3.896 4.026 4.095

By Increased self

confidence

5.807 0.001* 3.959 4.167 4.342 4.619


115

4.5.9 Effect of basic training to the women on social empowerment of the

women


between the respondents who have taken training and have not taken training, a

Multivariate Analysis of Variance (MANOVA) test with repeated measures was

conducted. Basic training is taken as independent variable while various social

empowerment statements are taken as dependent variables. The MANOVA and subsequent

ANOVA results are shown in table 4.5.9, and the results do not support the H0 (4.9) and

revealed statistically significant difference between the respondents who have taken

training and have not taken training for the twenty dependent variables of social


=0.000< 0.05).

As indicated in table 4.5.9 the univariate F-ratios were also significant for the all dependent

variables Moreover, the mean score for most of the statements are more for the

respondents who have taken training compared to those who have not taken training. It

reveals that the women who have taken training are more empowered than the women who

have not taken training.

Table 4.5.9 : MANOVA and ANOVA results for difference between the

respondents who have taken training and have not taken training on

social empowerment

Source Training taken?


(n=213)

No

(n=251)

Multivariate Tests

Basic training of the

respondents

Pillai's

Trace 0.167 4.425 0.000*

Wilks'

Lambda 0.833 4.425 0.000*

Hotelling's

Trace 0.200 4.425 0.000*

116

Roy's

Largest

Root

0.200 4.425 0.000*




36.314 0.000* 3.986 3.446

By Improvement in

Communication skill

35.695 0.000* 3.793 3.203





6.646 0.010* 4.061 3.845



savings, and child

education

30.155 0.000* 4.169 3.797



3.517 0.061 4.131 3.988


on family matters /

problems

28.711 0.000* 4.070 3.629


Village / Panchayat

meetings

47.345 0.000* 3.404 2.574




status

8.003 0.005* 4.080 3.861

Increment in Social

awareness (AIDS.


schemes etc)

11.547 0.001* 4.014 3.725

By Ability to take up social

issues like abuse, violence,

drugs, alcoholism etc

9.669 0.002* 4.000 3.737

By Development of

Leadership skills

44.238 0.000* 3.723 2.960

By Development of


56.337 0.000* 3.559 2.689

117



skills

17.836 0.000* 3.836 3.371

By Awareness of health ,


education

17.547 0.000* 4.174 3.865

By Increased market

knowledge

28.432 0.000* 4.033 3.550


Spending

21.474 0.000* 4.038 3.673

By Improvement in

literacy level

26.597 0.000* 3.892 3.347


nutrition

10.830 0.001* 4.042 3.777



groups freely

19.591 0.000* 4.061 3.693

By Increased self

confidence

9.033 0.003* 4.282 4.040


4.5.10 Difference among the age groups on social empowerment

To determine whether significant differences exist regarding social empowerment among

the age groups, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Age group of the respondents is taken as independent variable

while various social empowerment statements are taken as dependent variables. The

MANOVA results are shown in table 4.5.10, and the results support the H0 (4.10) and

revealed there is no statistically significant difference among the age groups for the twenty

dependent variables of social empowerment as shown in table 4.5.10 (Wilk's Lamda =

0.93; F=1.56, Significance : p =0.059> 0.05).

118

Table 4.5.10 : MANOVA Results among the age groups on social

empowerment

Source


Multivariate Tests

Age group of the

respondents

Pillai's Trace 0.182 1.053 0.355**

Wilks' Lambda 0.830 1.053 0.356**


Roy's Largest Root 0.073 1.606 0.047


4.5.11 Effect of education of the respondents on social empowerment


education groups, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Education group is taken as independent variable while various

social empowerment statements are taken as dependent variables. The MANOVA and

subsequent ANOVA results are shown in table 4.5.11 & 4.5.12, and the results do not

support the H0 (4.11) and revealed statistically significant difference among education

groups for the twenty dependent variables of social empowerment as shown in table

4.5.11 (Wilk's Lamda = 0.83; F=4.43, Significance : p =0.000< 0.05).

As indicated in table 4.5.12 the univariate F-ratios were also significant for the all

dependent variables Moreover, the mean score for most of the statements are more for the

respondents who have taken more education compared to those who have not taken more

education. It reveals that the women who have taken more education are more empowered

than the women who have taken less education.

119

Table 4.5.11 : MANOVA results for difference among education groups


Source


Multivariate Tests

Education group of the

respondents

Pillai's Trace 0.519 1.775 0.000*

Wilks' Lambda 0.571 1.830 0.000*

Hotelling's Trace 0.606 1.885 0.000*

Roy's Largest Root 0.288 6.383 0.000*


Table 4.5.12 : ANOVA results for difference among education groups of

the respondents on social empowerment

ANOVA tests : Social

Empowerment….

Education of the Member

F Sign. Illite

rate

Can

sign only

Upto

5th std

6th to

7th std

8th to

10th std

11th to

12th std

Up to

Gradua

tion

Other

By Able to

discuss freely with

official people

10.573 0.000* 3.014 3.59 3.667 3.688 3.857 4.135 4.478 4.75

By Improvement in

Communication

skill

7.691 0.000* 2.93 3.393 3.465 3.377 3.532 3.846 4.522 4.5

By Physical

mobility/ Moving

to other places

independently

without the

support of male

members

7.346 0.000* 3.479 3.803 3.899 4.013 4.065 4.115 4.783 4.75

By Ability to take

decision on

household

expenditure,

savings, and child

education

9.911 0.000* 3.606 3.885 3.909 3.844 4.091 4.269 4.826 4.25

120

By Ability to take

decision on taking /

use of loan

4.108 0.000* 3.69

3

.

9

4.192 4.026 4.078 4.173 4.565 4

By Ability to take

decision on family

matters / problems

3.309 0.002* 3.676 3.557 3.98 3.74 3.896 3.827 4.435 4.25

By Attending

social / Village

/Panchayat

meetings

2.953 0.005* 2.62 2.885 2.828 2.883 3.026 3.365 3.826 2.75

By Recognition or

respect in the

society or family /

Improvement in

social status

4.997 0.000* 3.563 3.869 3.98 4.013 3.974 4.192 4.522 4.5

Increment in

Social awareness

(AIDS. Family

planning, govt.

schemes etc)

3.973 0.000* 3.479 3.803 3.919 3.857 3.805 4.115 4.435 4.25

By Ability to take

up social issues

like abuse,

violence, drugs,

alcoholism etc

2.666 0.010* 3.535 3.754 3.939 3.87 3.909 3.923 4.348 4.25

By Development of

Leadership skills 2.843 0.007* 2.859 3.213 3.364 3.234 3.416 3.577 3.826 4.5

By Development of

Entrepreneurial

skills

3.340 0.002* 2.535 2.967 3.232 3.091 3.091 3.423 3.696 3.25

By Development of

Book keeping and

administrative

skills

11.476 0.000* 2.606 3.574 3.545 3.636 3.987 4.019 4.174 4.25

By Awareness of

health, sanitation

and children

education

4.127 0.000* 3.606 3.984 4.01 4.026 4.143 4.192 4.217 4.75

By Increased

market knowledge 4.762 0.000* 3.268 3.574 3.848 3.818 3.922 4.019 4.217 4.25

By Increase in

self-Spending 4.229 0.000* 3.437 3.656 4.01 3.883 3.87 4.019 4.13 4.25

By Improvement

in literacy level 6.160 0.000* 2.901 3.459 3.717 3.61 3.74 3.962 4.217 3.75

Awareness of

food and

nutrition

3.395 0.002* 3.535 3.836 3.96 3.896 3.922 4.154 4.13 4.75

121

By Expressing

views in family as

well as in groups

freely

6.311 0.000* 3.394 3.705 3.818 3.922 3.961 4.288 4.304 4.5

By Increased self

confidence 3.658 0.001* 3.817 4 4.111 4.195 4.286 4.442 4.522 4


4.5.12 Effect of Occupation of the respondents on social empowerment


Occupation groups, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Occupation of the respondent is taken as independent


The MANOVA and subsequent ANOVA results are shown in table 4.5.13 & 4.5.14,

and the results do not support the H0 (4.12) and revealed statistically significant

difference among occupation groups for the twenty dependent variables of social


=0.000< 0.05).


dependent variables except one Moreover, the mean score for most of the statements for

the respondents who have started income generating activities are more compared to

others. It reveals that the women who have started income generating activities are more

empowered than the others

Table 4.5.13 : MANOVA results for difference among occupation groups


Source


Multivariate Tests

Occupation of the

respondents

Pillai's Trace 0.641 1.698 0.000*

Wilks' Lambda 0.508 1.715 0.000*


Roy's Largest Root 0.202 4.468c 0.000*


122

Table 4.5.14 : ANOVA results for difference among occupation

groups of the respondents on social empowerment


Empowerment….

Occupation of the Member

F Sign House

Wife

Sivan

Kam

Agricul

ture

Animal

Husban

dary

Gruh

Udyog Service

Labour

Work

Small

Gross

ary Shop

Educa

tion Other

By Able to

discuss freely

with official

people

4.789 .000* 3.538 4.091 2.667 3.909 4 4.34 3.385 4 3.846 3.588

By

Improvement

in Communic

ation skill

5.310 .000* 3.316 3.455 3 3.709 4.053 4.128 2.949 4 4 3.294

By Physical

mobility /

Moving to

other places

independently

without the

support of

male members

3.875 .000* 3.862 4.182 2.667 4.109 4.316 4.383 3.538 4 4.077 3.882

By Ability to

take decision

on household

expenditure,

savings, and

child

education

4.853 .000* 3.834 4.364 3.667 4.055 4.316 4.362 3.795 4.571 4.385 3.824

By Ability to

take decision

on taking /

use of loan

1.438 .169 3.988 4.091 4 4 4.368 4.191 4.077 4.857 4

4.118

By Ability to

take decision

on family

matters /

problems

2.934 .002* 3.668 4 3 4.055 3.842 4.149 4.103 4.286 3.923 3.824

By Attending

social/Village

/ Panchayat

meetings

5.346 .000* 2.688 3.909 2.667 3.6 3.316 3.553 2.872 3.143 3.154 2.176

123

By

Recognition

or respect in

the society or

family /

Improvement

in social status

2.906 .002* 3.877 4 3 3.855 4.211 4.404 3.949 4.429 4.154 3.882

Increment in

Social

awareness

(AIDS.

Family

planning,

govt.schemes

etc)

2.317 .015* 3.862 3.636 2.667 3.836 4.105 4.043 3.513 4.571 4.154 3.706

By Ability to

take up social

issues like

abuse,

violence,

drugs,

alcoholism etc

2.168 .023* 3.794 3.909 2 3.891 4 4.128 3.846 3.857 4.077 3.941

By

Development

of Leadership

skills

3.725 .000* 3.123 3.455 2.667 3.891 3.684 3.702 2.872 3.857 3.846 3.118

By

Development

of

Entrepreneuri

al skills

4.081 .000* 2.85 3.364 2.667 3.582 3.947 3.468 2.744 3.857 3.154 3.353

By

Development

of Book

keeping and

administrative

skills

3.528 .000* 3.411 4 2.667 3.745 4.158 4.106 3.205 3.571 4.154 3.882

By Awareness

of health,

sanitation and

children

education

4.832 .000* 3.929 3.636 2 4.145 4.158 4.362 4 4.714 4 3.882

By Increased

market

knowledge 3.386 .000*

3.684 4 3.333 4.091 4.158 4 3.231

4.429

4

3.7

06

By Increase

in self-

Spending

2.631 .006* 3.806 3.727 3 4.018 4.053 4.085 3.385 4.143 4 3.882

124

By

Improvement

in literacy

level

3.001 .002* 3.466 3.636 2.667 3.855 4.105 4.021 3.231 4 4.154 3.353

Awareness of

food and

nutrition

2.852 .003* 3.783 3.818 3 4.236 4.053 4.234 3.744 4 3.923 3.941

ByExpressing

views in

family as well

as in groups

freely

3.476 .000* 3.775 4.091 3 4 4.053 4.362 3.564 4.143 4.077 3.529

By Increased

self

confidence

3.242 .001* 4.075 4.273 3 4.164 4.579 4.532 3.846 4.429 4.154 4.412


4.5.13 Difference among the respondents of different banks on social

empowerment


banks, a Multivariate Analysis of Variance (MANOVA) test with repeated measures was

conducted. Bank of the respondent is taken as independent variable while various social

empowerment statements are taken as dependent variables. The MANOVA and subsequent

ANOVA results are shown in table 4.5.15 & 4.5.16, and the results do not support the H0

(4.13) and revealed statistically significant difference among banks for the twenty


0.33; F=3.30, Significance : p =0.000< 0.05).


dependent variables. Moreover, the mean score for most of the statements for the

respondents of SBI and Dena compared to other banks. It reveals that the women who

have bank account in SBI and Dena bank are more empowered than the others.

125

Table 4.5.15 : MANOVA results for difference among banks of the


Source


Multivariate Tests

Banks of the respondents

Pillai's Trace 0.990 3.130 0.000*

Wilks' Lambda 0.327 3.296 0.000*




Table 4.5.16 : ANOVA results for difference among banks of the



Empowerment….

Bank of the respondent

F Sign.

State

Bank of

India

Dena

Bank

Mehsana

District

co- op

rative

Bank

Bank of

India

Bank of

Baroda

Corporat

ion Bank

Patan

Nagarik

Bank

Banas

Bank

Union

Bank

By Able to

discuss freely

with official

people

13.706 0.000* 4 3.86 3.186 3.875 2.25 1 2.588 3.333 2

By Improvement

in Communicat

ion skill

11.212 0.000* 3.953 3.541 2.763 3.875 2.75 1.667 2.471 3.222 2

By Physical

mobility / Moving

to other places

independently

without the

support of male

Members

9.832 0.000* 4.178 3.973 3.746 4.208 2.75 1.333 2.882 4.111 4

126

By Ability to take

decision on

household

expenditure,

savings, and

child education

6.168 0.000* 4.103 4.014 3.678 3.958 3.75 3.667 3.059 4.333 4

By Ability to take

decision on taking

/ use of loan

4.563 0.000* 4.121 4.086 3.932 3.958 3.5 3.667 3.176 4.519 5

By Ability to take

decision on family

matters / problems

3.693 0.000* 4.028 3.829 3.525 4.042 4 4.667 3.059 3.926 4

By Attending

social / Village

/ Panchayat

meetings

11.166 0.000* 3.533 2.937 1.881 3.833 2 1.333 2.412 3.074 2

By Recognition or

respect in the

society or family

/ Improvement in

social status

10.951 0.000* 4.121 4.036 3.644 3.917 3.5 2.667 2.647 4.481 4

Increment in

Social awareness

(AIDS. Family

planning, govt.

schemes etc)

7.519 0.000* 4.019 3.901 3.661 3.708 2.25 1.333 3.294 4.296 4

By Ability to take

up social issues

like abuse,

violence, drugs,

alcoholism etc

9.984 0.000* 3.972 3.851 3.864 4.167 2.25 1 2.941 4.296 4

By Development

of Leadership

skills

13.000 0.000* 3.879 3.306 2.508 4.333 2.25 1 2.176 3.111 2

By Development

of Entrepreneurial

skills

11.076 0.000* 3.645 3.032 2.39 4.208 1.75 1 2.118 2.963 2

By Development

of Book keeping

and administrative

skills

10.369 0.000* 3.935 3.703 3.051 4.167 2 1 2.294 3.222 3

By Awareness of

health, sanitation

and children

education

8.349 0.000* 4.047 4.095 3.983 3.875 4 3 2.647 4.259 4

By Increased

market knowledge 11.809 0.000* 4.047 3.833 3.441 4.042 2.25 1.667 2.294 4 5

127

By Increase in

self- Spending 16.499 0.000* 4.112 3.847 3.847 3.833 2.25 1 2.471 4.148 3

By Improvement

in literacy level 8.854 0.000* 3.944 3.658 3.339 4.042 2.25 1 2.235 3.259 3

Awareness of food

and nutrition 5.797 0.000* 4.093 3.923 3.78 3.833 4.25 3 2.706 4.037 4

By Expressing

views in family as

well as in groups

freely

8.530 0.000* 4 3.923 3.797 4.042 2.75 2 2.529 4 4

By Increased self

confidence 9.534 0.000* 4.196 4.18 4.339 4.25 3.75 2.667 2.647 4.37 5


4.5.14 Difference among the respondents of different blocks (Taluka) on

social empowerment


blocks, a Multivariate Analysis of Variance (MANOVA) test with repeated measures was

conducted. Block (Taluka) of the respondent is taken as independent variable while various

social empowerment statements are taken as dependent variables. The MANOVA and

subsequent ANOVA results are shown in table 4.5.17 & 4.5.18, and the results do

not support the H0 (4.14) and revealed statistically significant difference among blocks

for the twenty dependent variables of social empowerment as shown in table 4.5.17

(Wilk's Lamda = 0.20; F=4.30, Significance : p =0.000< 0.05).


dependent variables. Moreover, the mean score for most of the statements for the

respondents of Rajkot, Vijapur and Radhanpur are more compared to other blocks. It

reveals that the women of Rajkot, Vijapur and Radhanpur are more empowered than the

others.

128

Table 4.5.17 : MANOVA results for difference among blocks of the


Source


Multivariate Tests

Blocks (Taluka) of the

respondents

Pillai's Trace 1.367 3.968 0.000*

Wilks' Lambda 0.201 4.302 0.000*




Table 4.5.18 : ANOVA results for difference among blocks of the



Empowerment….

Block of the Member

F Sign. Mehs

ana

Kadi Vijapur Becha

raji

Visna

gar

Patan Radha

npur

Chana

sma

Harij Sami

By Able to

discuss

freely with

official

people

8.680 0.000* 4.294 3.686 4.373 3.64 3.469 3.432 3.489 3.872 3.308 3.186

By

Improveme

nt in

Communi

cation skill

10.248 0.000* 3.941 3.647 4.157 3.62 2.755 3.341 3.277 3.872 3.205 2.791

By Physical

mobility /

Moving to

other places

independent

ly without

the support

of male

members

4.974 0.000* 3.961 3.882 4.471 3.92 3.816 3.682 4.149 4.154 3.385 3.907

129

By Ability

to take

decision on

household

expenditure,

savings, and

child

education

6.121 0.000* 4.333 3.922 4.353 3.78 3.837 3.955 4.106 4.026

3.564

3.674

By Ability

to take

decision on

taking / use

of loan

7.120 0.000* 4.275 3.824 4.431 3.72 4.184 3.886 4.447 4.077 3.513 4.07

By Ability

to take

decision on

family

matters /

problems

6.174 0.000* 4.216 3.882 4.255 3.7 3.612 4.023 3.872 3.923 3.359 3.326

By

Attending

social/

Village /

Panchayat

meetings

23.050 0.000* 3.922 3.255 3.961 3.08 1.633 3.341 2.915 2.872 2.513 1.744

By

Recognition

or respect

in the

society or

family /

Improveme

nt in

social status

7.142 0.000* 4.157 3.804 4.196 3.82 4.143 3.705 4.468 4.103 3.385 3.698

Increment

in Social

awareness

(AIDS.

Family

planning,

govt.

schemes

etc)

7.219 0.000* 4.176 3.804 4.255 3.32 3.531 3.477 4.213 4.154 3.744 3.907

By Ability

to take up

social issues

like abuse,

violence,

drugs,

alcoholism

etc

6.939 0.000* 4.137 3.647 4.314 3.5 3.857 3.295 4.149 4.077 3.564 3.977

130

By

Developme

nt of

Leadership

skills

18.019 0.000* 4.098 3.588 4.176 3.56 2.143 3.341 3.085 3.769 2.538 2.558

By

Developme

nt of

Entrepren

eurial skills

16.131 0.000* 3.843 3.373 3.863 3.4 1.898 3.227 2.894 3.487 2.308 2.349

By

Developme

nt of

Book

keeping and

administrati

ve skills

3.749 0.000* 3.725 4.02 4.098 3.72 3.429 3.432 3.191 3.615 3.256 3.163

By

Awareness

of health,

sanitation

and children

education

7.198 0.000* 4.471 3.882 4.216 3.76 3.898 3.841 4.149 4.231 3.385 4.14

By

Increased

market

knowledge

8.973 0.000* 4.412 3.765 4.059 3.86 3.082 3.568 3.851 4.179 3.231 3.605

By Increase

in self-

Spending

7.493 0.000* 4.118 3.784 4.275 3.78 3.347 3.5 4.064 4.026 3.385 4.047

By

Improveme

nt in

literacy

level

6.901 0.000* 4.098 3.686 4.098 3.86 2.776 3.386 3.213 3.846 3.385 3.535

Awareness

of food and

nutrition

5.940 0.000* 4.235 3.882 4.314 3.74 3.469 3.773 4.064 4.128 3.436 3.86

By

Expressing

views in

family as

well as in

groups

freely

7.867 0.000* 4.392 4 4.196 3.72 3.408 3.591 3.979 4.051 3.256 3.884

By

Increased

self

confidence

9.243 0.000* 4.275 4.255 4.373 3.88 4 3.75 4.383 4.205 3.487 4.814


131

4.5.15 Effect of social group of the respondents on economic

empowerment of the respondents

To measure significant difference among the social group for economic empowerment,

one Multivariate Analysis of Variance (MANOVA) test with repeated measures was

conducted. The MANOVA and subsequent ANOVA results are shown in table 4.5.19, and


among social group of the respondents (i.e. Open/ General, OBC and SC) for the thirteen

dependent variables of economic empowerment as shown in table 6.5.19 (Wilk's Lamda

= 0.89; F=2.14, Significance : p =0.001< 0.05).

As indicated in table 6.5.19, the univariate F-ratios were also significant for the eight

dependent variables i.e. for "Reduction of Poverty in the Family" (F=3.56, Sign. = 0.029),

for" Asset creation" (F=12.04, Sign. = 0.000), for "Commencement of Income generating

activities" (F=5.50, Sign. = 0.004), for "Change in nature of employment" (F=6.13, Sign.

=0.002), for "Improvement in standard of living" (F=3.35, Sign. = 0.036), for "Better

utilization of available resources" (F=8.72, Sign. =0.000), for "Development of

entrepreneurship skill" (F=7.20, Sign. =0.001), for"Increase in Purchasing Power" (F=3.68,

Sign. =0.026), but statistically for other factors was non-significant. The mean score of the

Open/General, OBC and SC group have shown that there is statistically difference

between the Open/ General and SC and also for OBC and SC category for the economic

empowerment. As most of the group mean score are generally more than three, it can

be safely assumed that all the respondents of three social groups believe that they have

economically empowered after joining SHGs.

Table 4.5.19 : MANOVA and ANOVA results for effect of social group of

the respondent on economic empowerment of the respondent

Source Social Group


(n=190)

OBC

(n=253)

SC

(n=43)

Multivariate Tests

Pillai's

Trace 0.110 2.108 0.001*

132

Social Group of the

respondent

Wilks'

Lambda 0.892 2.136 0.001*

Hotelling's

Trace 0.120 2.163 0.001*

Roy's

Largest

Root

0.103 3.752 0.000*

ANOVA tests : Economic Empowerment…. Group Mean

Enhancement in

Personal or Family

Income : After Joining

SHG

0.336 0.715 3.984 3.842 3.791

Reduction of Poverty

in the Family : After

Joining SHG

3.559 0.029* 3.874 3.708 4.023

Reduction of

dependency on Money

lenders : After Joining

SHG

1.180 0.308 4.089 3.976 4.163

Asset creation : After

Joining SHG

12.036 0.000* 3.174 3.253 2.256

Commencement of

Income generating

activities : After

Joining SHG

5.498 0.004* 3.342 3.51 2.814

Ability to meet

Financial crisis in the

Family : After Joining

SHG

1.472 0.230 4.142 4.02 3.977

Change in nature

of employment :

After Joining SHG

6.127 0.002* 3.463 3.538 2.837

Increment in

consumption level of

family : After Joining

SHG

1.863 0.156 3.953 3.874 3.674

Improvement in

standard of living :

After Joining SHG

3.352 0.036* 4.174 4.032 4.302

133

Better utilization of

available resources :

After Joining SHG

8.719 0.000* 3.289 3.447 2.558

Development

of entrepreneurship

skill : After Joining

SHG

7.200 0.001* 3.047 3.154 2.326

Increase in Purchasing

Power : After Joining

SHG

3.684 0.026* 3.895 3.846 3.465

Increase in Savings :

After Joining SHG

1.815 0.164 4.284 4.19 4.419


4.5.16 Difference between BPL and Non-BPL beneficiary on economic

empowerment

To determine whether significant differences exist regarding economic empowerment

between BPL and Non-BPL beneficiary, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. BPL and Non-BPL beneficiary

is taken as independent variable while various economic empowerment statements are

taken as dependent variables. The MANOVA and subsequent ANOVA results are

shown in table 6.5.20, and the results do not support the H0 (4.16) and revealed

statistically significant difference between BPL and Non-BPL beneficiary for the thirteen


= 0.94; F=2.44, Significance : p =0.003< 0.05).

As indicated in table 4.5.20, the univariate F-ratios were also significant for the four

dependent variables i.e. for "Asset creation" (F=6.10, Sign. = 0.014), for "Ability to meet

Financial crisis in the Family :" (F=5.72, Sign. = 0.017), for " Better utilization of

available resources" (F=5.38, Sign. = 0.021), for " Increase in Purchasing Power"


score of the BPL and Non-BPL beneficiary have shown that there is statistically difference

between the BPL and Non-BPL beneficiary for the economic empowerment. As most of

the group mean score are generally more than three, it can be safely assumed that most of

134

the respondents of BPL and Non-BPL beneficiary believe that they have economically


Table 4.5.20 : MANOVA and ANOVA results for difference between

BPL and Non-BPL beneficiary on economic empowerment

Source Beneficiary


(n=111)

Non-BPL

(n=375)

Multivariate Tests

BPL & Non-BPL

Beneficiary

Pillai's

Trace 0.063 2.444 0.003*

Wilks'

Lambda 0.937 2.444 0.003*

Hotelling's

Trace 0.067 2.444 0.003*

Roy's

Largest

Root

0.067 2.444 0.003*


Enhancement in Personal or

Family Income : After

Joining SHG

1.183 0.277 3.712 3.947

Reduction of Poverty in the

Family : After Joining SHG

1.292 0.256 3.883 3.776

Reduction of dependency

on Money lenders : After

Joining SHG

0.046 0.830 4.054 4.032


Joining SHG

6.102 0.014* 2.874 3.211

Commencement of Income

generating activities : After

Joining SHG

0.618 0.432 3.297 3.408

Ability to meet Financial

crisis in the Family :

After Joining SHG

5.716 0.017* 3.901 4.112

135

Change in nature of

employment : After

Joining SHG

0.239 0.625 3.396 3.461

Increment in consumption

level of family : After

Joining SHG

2.024 0.155 3.784 3.917

Improvement in standard of

living : After Joining SHG

0.880 0.349 4.171 4.093


available resources : After

Joining SHG

5.375 0.021* 3.054 3.381

Development of

entrepreneurship skill :

After Joining SHG

2.435 0.119 2.865 3.091


Power : After Joining SHG

8.379 0.004* 3.604 3.899

Increase in Savings : After

Joining SHG

1.032 0.310 4.315 4.227


4.5.17 Difference between women of Hinduism and Islam on economic

empowerment


between women of Hinduism and Islam, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. Religion of the respondents is

taken as independent variable while various economic empowerment statements are taken

as dependent variables. The MANOVA and subsequent ANOVA results are shown in

table 4.5.21, and the results do not support the H0 (4.17) and revealed statistically

significant difference between women of Hinduism and Islam for the thirteen dependent

variables of economic empowerment as shown in table 4.5.21 (Wilk's Lamda = 0.89;

F=4.50, Significance : p =0.000< 0.05).



for "Reduction of dependency on Money lenders" (F=13.24, Sign. = 0.000), for "Asset

creation" (F=12.39, Sign. = 0.000), for "Ability to meet Financial crisis in the Family"

136

(F=14.37, Sign. = 0.000), for " Improvement in standard of living" (F=8.88, Sign. =

0.003), for " Better utilization of available resources" (F=8.49, Sign. = 0.004), for

"Development of entrepreneurship skill" (F=3.97, Sign. =0.047), for " Increase in

Savings" (F=17.43, Sign. =0.000), but statistically for other factors was non-significant.

The mean score of the women of Hinduism and Islam have shown that there is statistically

difference between the women of Hinduism and Islam for the economic empowerment. As

most of the group mean score are generally more than three, it can be safely assumed that

most of the respondents of Hinduism and Islam believe that they have economically



women of Hinduism and Islam on economic empowerment

Source Religion


(n=435)

Islam

(n=51)

Multivariate Tests

Religion of the

respondents

Pillai's

Trace 0.110 4.501 0.000*

Wilks'

Lambda 0.890 4.501 0.000*

Hotelling's

Trace 0.124 4.501 0.000*

Roy's

Largest

Root

0.124 4.501 0.000*


Enhancement in Personal

or Family Income : After

Joining SHG

0.033 0.856 3.887 3.941


Family : After Joining SHG

7.669 0.006* 3.763 4.118



Joining SHG

13.243 0.000* 3.984 4.490

137


Joining SHG

12.393 0.000* 3.202 2.549

Commencement of

Income generating

activities : After Joining

SHG

0.079 0.778 3.377 3.431


crisis in the Family : After

Joining SHG

14.370 0.000* 4.016 4.471

Change in nature of

employment : After

Joining SHG

0.396 0.529 3.434 3.549



Joining SHG

3.378 0.067 3.862 4.098



8.876 0.003* 4.076 4.412



Joining SHG

8.488 0.004* 3.366 2.804

Development of


After Joining SHG

3.968 0.047* 3.080 2.686



2.737 0.099 3.807 4.039


After Joining SHG

17.433 0.000* 4.195 4.686


4.5.18 Difference between SHG Member and Leader on economic

empowerment


between SHG Members and Leaders, a Multivariate Analysis of Variance (MANOVA) test

with repeated measures was conducted. Designation of the respondents is taken as

independent variable while various economic empowerment statements are taken as

dependent variables. The MANOVA results are shown in table 4.5.22, and the results

support the H0 (4.18) and revealed that there is no statistically significant difference

138

between SHG Members and Leaders for the thirteen dependent variables of economic


=0.239< 0.05).

Table 4.5.22 : MANOVA results for difference between SHG Members

and Leaders on economic empowerment

Source


Multivariate Tests

Designation of the

respondents

Pillai's Trace 0.033 1.252 0.239**

Wilks' Lambda 0.967 1.252 0.239**



Source : SPSS Output, **P > 0.05


economic empowerment


between the respondents of Jamnagar and Rajkot, a Multivariate Analysis of Variance




table 4.5.23, and the results do not support the H0 (4.19) and revealed statistically

significant difference between the respondents of Jamnagar and Rajkot for the thirteen


= 0.92; F=3.19, Significance : p =0.000< 0.05).


dependent variables i.e. for " Commencement of Income generating activities"

(F=13.24, Sign. = 0.000), for "Improvement in standard of living" (F=5.64, Sign. = 0.018),

for "Development of entrepreneurship skill" (F=7.11, Sign. = 0.008), for" Increase in

Savings" (F=6.90, Sign. = 0.009), but statistically for other factors was non-

139

significant. The mean score of the respondents of Jamnagar and Rajkot have shown that

there is statistically difference between the respondents of Jamnagar and Rajkot for the

economic empowerment. As most of the group mean score are generally more than three,

it can be safely assumed that all the respondents of Jamnagar and Rajkot believe that they

have economically empowered after joining SHGs. Moreover, the mean score of Rajkot

are more than mean score of the Jamnagar in most of the factors shows that respondents of

Rajkot are more empowered than respondents of Jamnagar.


respondents of Jamnagar and Rajkot on economic empowerment

Source District


(n=252)

Patan

(n=234)

Multivariate Tests

District of the

respondents

Pillai's

Trace 0.081 3.188 0.000*

Wilks'

Lambda 0.919 3.188 0.000*

Hotelling's

Trace 0.088 3.188 0.000*

Roy's

Largest

Root

0.088 3.188

0.000*


Enhancement in Personal

or Family Income :

After Joining SHG

0.052 0.819 3.873 3.915

Reduction of Poverty in

the Family : After

Joining SHG

3.660 0.056 3.873 3.722



Joining SHG

1.385 0.240 3.988 4.090


Joining SHG

0.009 0.926 3.139 3.128

140

Commencement of

Income generating

activities : After Joining

SHG

13.238 0.000* 3.587 3.162



After Joining SHG

1.006 0.316 4.028 4.103

Change in nature of

employment : After

Joining SHG

2.770 0.097 3.536 3.350

Increment in



SHG

0.003 0.960 3.885 3.889

Improvement in standard

of living : After Joining

SHG

5.644 0.018* 4.032 4.197



After Joining SHG

0.903 0.342 3.361 3.248

Development of


After Joining SHG

7.112 0.008* 3.194 2.872


Power : After Joining

SHG

0.277 0.599 3.853 3.808


After Joining SHG

6.896 0.009* 4.155 4.346


4.5.20 Difference between the respondents of joint and nuclear family on



between the respondents of joint and nuclear family, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. Type of the family of the

respondents is taken as independent variable while various economic empowerment

statements are taken as dependent variables. The MANOVA results are shown in table

6.5.24, and the results support the H0 (4.20) and revealed that there is no statistically

141

significant difference between the respondents of joint and nuclear family for the thirteen


0.98; F=0.91, Significance : p =0.548> 0.05).

Table 4.5.24 : MANOVA results for difference between the respondents

of joint and nuclear family on economic empowerment

Source


Multivariate Tests

Type of the family of the

respondents

Pillai's Trace 0.024 0.905 0.548**

Wilks' Lambda 0.976 0.905 0.548**




4.5.21 Effect of availability of loan to the respondents on economic

empowerment of the respondents


between the respondents who have taken loan and who don't, a Multivariate Analysis of

Variance (MANOVA) test with repeated measures was conducted. Availability of loan is



table 4.5.25, and the results support the H0 (4.21) and revealed that there is no statistically

significant difference between the respondents who have taken loan and who have not

taken loan for the thirteen dependent variables of economic empowerment as shown in

table 4.5.25 (Wilk's Lamda = 0.96; F=1.61, Significance : p =0.079 > 0.05).


who have taken loan and who have not taken loan on economic

empowerment

142

Source


Multivariate Tests


respondents

Pillai's Trace 0.042 1.607 0.079**

Wilks' Lambda 0.958 1.607 0.079**




4.5.22 Effect of experience of the respondent with SHG on economic

empowerment


among experience of the respondents, a Multivariate Analysis of Variance (MANOVA)

test with repeated measures was conducted. Experience with SHG is taken as independent

variable while various economic empowerment statements are taken as dependent

variables. The MANOVA and subsequent ANOVA results are shown in table 4.5.26, and


among experience of the respondents for the thirteen dependent variables of economic


=0.000< 0.05).

As indicated in table 4.5.26, the univariate F-ratios were also significant for the six

dependent variables i.e. for"Reduction of dependency on Money lenders" (F=4.08, Sign. =

0.007), for"Ability to meet Financial crisis in the Family" (F=6.81, Sign. = 0.000),

for" Change in nature of employment" (F=2.75, Sign. = 0.042), for" Improvement in

standard of living" (F=7.21, Sign. = 0.000), for"Increase in Purchasing Power" (F=3.21,

Sign. = 0.023), for"Increase in Savings" (F=2.62, Sign. = 0.050), but statistically for other

factors was non- significant. The mean score of the different experience groups have

shown that there is statistically difference among the groups for the economic

empowerment. As most of the group mean score are generally more than three, it can be

safely assumed that all the respondents believe that they have economically empowered

after joining SHGs. Moreover, the mean score of group "7-9" and ">9" are more than mean

143

score of the other groups shows that the women who had joined the SHG before seven

years are more empowered than the others.


experience of the respondents on economic empowerment

Source Experience

Effect Value F Sign. <4 (n =

148)

4-6

(n=236)

7-9

(n=79)

>9

(n=23)

Multivariate Tests

Experience of the

respondent with SHG

Pillai's

Trace 0.128 1.613 0.000*

Wilks'

Lambda 0.877 1.619 0.000*

Hotelling'

s Trace

0.135 1.624 0.000*

Roy's

Largest

Root

0.078 2.824 0.000*


Enhancement in

Personal or Family

Income : After Joining

SHG

0.895 0.444 3.669 3.983 4.013 4



Joining SHG

1.115 0.342 3.736 3.814 3.797 4.087

Reduction of

dependency on Money

lenders : After Joining

SHG

4.082 0.007* 3.858 4.059 4.177 4.478

Asset creation :

After Joining SHG

2.083 0.102 3 3.191 3.063 3.652

Commencement of

Income generating

activities : After

Joining SHG

1.717 0.163 3.284 3.335 3.62 3.696

144

Ability to meet

Financial crisis in

the Family : After

Joining SHG

6.812 0.000* 3.878 4.059 4.316 4.435

Change in nature

of employment :

After Joining SHG

2.748 0.042* 3.372 3.36 3.747 3.783

Increment in



SHG

2.309 0.076 3.777 3.877 4.076 4.043

Improvement in


After Joining SHG

7.210 0.000* 3.986 4.059 4.392 4.478



After Joining SHG

2.139 0.094 3.088 3.403 3.354 3.565

Development of

entrepreneurship


SHG

0.398 0.755 2.973 3.072 3 3.261

Increase in

Purchasing Power :

After Joining SHG

3.214 0.023* 3.689 3.852 3.899 4.304

Increase in Savings

: After Joining SHG

2.617 0.050* 4.155 4.225 4.405 4.522


4.5.23 Effect of basic training to the respondents on economic

empowerment of the women


between the respondents who have taken training and have not taken training, a


conducted. Basic training is taken as independent variable while various economic

empowerment statements are taken as dependent variables. The MANOVA and

subsequent ANOVA results are shown in table 4.5.27, and the results do not support

the H0 (4.23) and revealed statistically significant difference between the respondents

who have taken training and have not taken training for the thirteen dependent variables

145

of economic empowerment as shown in table 4.5.27 (Wilk's Lamda = 0.90; F=3.87,

Significance : p =0.000< 0.05).



for "Asset creation" (F=19.57, Sign. = 0.000), for "Commencement of Income generating

activities" (F=39.43, Sign. = 0.000), for "Change in nature of employment" (F=12.07, Sign.

= 0.001), for "Increment in consumption level of family" (F=6.40, Sign. = 0.012), for

"Better utilization of available resources" (F=18.73, Sign. = 0.000), for "Development of

entrepreneurship skill" (F=28.43, Sign. = 0.000), "Increase in Purchasing Power" (F=4.60,

Sign. = 0.033), but statistically for other factors was non-significant. Moreover, the

mean score for most of the statements are more for the respondents who have taken

training compared to those who have not taken training. It reveals that the women who

have taken training are more empowered than the women who have not taken training.






(n=221)

No

(n=265)

Multivariate Tests


respondents

Pillai's

Trace 0.096 3.870 0.000*

Wilks'

Lambda

0.904

3.870

0.000*

Hotelling's

Trace

0.107

3.870

0.000*

Roy's

Largest

Root

0.107

3.870

0.000*

146




Joining SHG

0.316 0.574 3.837 3.940


Family : After Joining

SHG

5.905 0.015* 3.905 3.713



Joining SHG

0.044 0.835 4.027 4.045


Joining SHG

19.565 0.000* 3.407 2.906


generating activities :

After Joining SHG

39.425 0.000* 3.774 3.057



After Joining SHG

0.118 0.732 4.050 4.075

Change in nature of

employment : After

Joining SHG

12.066 0.001* 3.656 3.272



Joining SHG

6.396 0.012* 3.995 3.796



0.029 0.864 4.118 4.106



Joining SHG

18.734 0.000* 3.584 3.075

Development of


After Joining SHG

8.426 0.000* 3.385 2.751



4.597 0.033* 3.932 3.747


Joining SHG

0.150 0.699 4.262 4.234

147

4.5.24 Difference among the age groups on economic empowerment


among the age groups, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Age group of the respondents is taken as independent variable

while various economic empowerment statements are taken as dependent variables. The

MANOVA results are shown in table 4.5.28, and the results do not support the H0 (4.24)

and revealed statistically significant difference among the age groups for the thirteen

dependent variables of economic empowerment as shown in table 4.5.28 (Wilk's

Lamda = 0.85; F=1.52, Significance : p=0.011< 0.05).

As indicated in table 6.5.28, the univariate F-ratios were also significant for the three

dependent variables i.e. for "Ability to meet Financial crisis in the Family" (F=2.90, Sign.

= 0.022), for "Better utilization of available resources" (F=2.49, Sign. = 0.043), for

"Increase in Savings" (F=2.46, Sign. = 0.045), but statistically for other factors was non-

significant. As most of the group mean score are generally more than three, it can be

safely assumed that all the respondents believe that they have economically empowered

after joining SHGs.

Table 4.5.28 : MANOVA and ANOVA results for the difference among

the age groups on economic empowerment

Source Age Group

Effect Value F Sign. 19-35

(n = 5)

36-45

(n=199

)

46-60

(n=66)

>60

(n=5)

Multivariate Tests

Age group of the

respondents

Pillai's

Trace 0.160 1.514 0.011*

Wilks'

Lambda 0.849 1.515 0.0110*

Hotelling' s

Trace 0.169 1.516 0.011*

Roy's

Largest

Root

0.076 2.760 0.001*

148


Enhancement in

Personal or Family

Income : After

Joining SHG

1.566 0.182 3.4 3.773 3.844 4.439 4.2



Joining SHG

1.653 0.160 3.2 3.716 3.874 3.894 3.8

Reduction of

dependency on

Money lenders :

After Joining SHG

0.425 0.790 4.4 4.047 4.025 3.985 4.4


Joining SHG

1.184 0.317 2.4 3.246 3.09 2.97 3

Commencement of

Income generating

activities : After

Joining SHG

1.881 0.112 2.2 3.417 3.412 3.212 4.2

Ability to meet

Financial crisis in the

Family : After

Joining SHG

2.902 0.022* 4.6 4.095 4.09 3.803 4.6

Change in nature of

employment : After

Joining SHG

1.829 0.122 2.4 3.479 3.523 3.197 3.4

Increment in



SHG

1.481 0.207 4.2 3.967 3.839 3.727 4.2

Improvement in


After Joining SHG

1.027 0.393 4.4 4.137 4.055 4.136 4.6



After Joining SHG

2.489 0.043* 2.2 3.45 3.236 3.091 4

Development of


: After Joining SHG

1.702 0.148 2.2 3.133 3.04 2.758 3.6

149

Increase in

Purchasing Power :

After Joining SHG

1.223 0.300 4 3.877 3.789 3.742 4.6

Increase in Savings

After Joining SHG

2.457 0.045* 4.8 4.336 4.136 4.227 4.6


4.5.25 Effect of education of the respondents on economic empowerment

of the women


among education groups, a Multivariate Analysis of Variance (MANOVA) test with

repeated measures was conducted. Education group is taken as independent variable


MANOVA and subsequent ANOVA results are shown in table 4.5.29 & 4.5.30, and the

results do not support the H0 (4.25) and revealed statistically significant difference

among education groups for the thirteen dependent variables of economic empowerment

as shown in table 4.5.29 (Wilk's Lamda = 0.76; F=1.43, Significance : p =0.005< 0.05).

As indicated in table 4.5.30, the univariate F-ratios were also significant for the ten


for "Reduction of dependency on Money lenders" (F=2.13, Sign. = 0.040), for "Asset

creation" (F=2.57, Sign. = 0.013), for "Commencement of Income generating activities"

(F=2.67, Sign. = 0.010), for "Ability to meet Financial crisis in the Family" (F=2.78, Sign.

= 0.008), for "Change in nature of employment" (F=5.22, Sign. = 0.000), for "Increment

in consumption level of family" (F=3.79, Sign. = 0.001), for "Better utilization of available

resources" (F=3.83, Sign. = 0.000), for "Development of entrepreneurship skill" (F=2.28,

Sign. = 0.027), "Increase in Purchasing Power" (F=4.11, Sign. = 0.000), but statistically for

other factors was non-significant. Moreover, the mean score for most of the statements are

more for the respondents who have taken more education compared to those who have not

taken more education. It reveals that the women who have taken more education are more

empowered than the women who have taken less education.

150

Table 4.5.29 : MANOVA results for difference among education groups

of the respondents on economic empowerment

Source


Multivariate Tests


respondents

Pillai's Trace 0.263 1.418 0.006*

Wilks' Lambda 0.761 1.433 0.005*






ANOVA tests : Economic

Empowerment….

Education of the Member

F

Sign. Illiterate

Can

sign

only

Upto

5th std

6th to

7th std

8th to

10th std

11th to

12th std

Up to

Gradu

ation

Other

Enhancement in

Personal or Family

Income : After

Joining SHG

0.326 0.942 3.903 3.875 4.02 3.667 3.854 3.895 4.167 4.5

Reduction of

Poverty in the

Family : After

Joining SHG

2.284 0.027* 3.542 3.875 3.931 3.827 3.817 3.614 4 4.5

Reduction of

dependency on

Money lenders :

After Joining SHG

2.125 0.040* 3.736 4.094 4.167 4.074 4 3.947 4.333 4.75

Asset creation :

After Joining

SHG

2.572 0.013* 2.708 3.156 3.225 3.049 3.159 3.228 3.833 3.75

Commencement of

Income generating

activities : After

Joining SHG

2.666 0.010* 2.903 3.437 3.588 3.42 3.305 3.368 4 3.25

151

Ability to meet

Financial crisis in

the Family : After

Joining SHG

2.780 0.008* 3.708 4.063 4.157 4.086 4.098 4.14 4.375 4

Change in nature

of employment :

After Joining SHG

5.219 0.000* 2.75 3.547 3.667 3.272 3.707 3.544 3.792 3.5

Increment in

consumption level

of family : After

Joining SHG

3.778 0.001* 3.514 3.859 4.029 3.79 3.915 4.175 4.083 3.5

Improvement in


After Joining SHG

1.860 0.074 3.903 4.172 4.108 4.037 4.11 4.316 4.292 4.5

Better utilization

of available

resources : After

Joining SHG

3.826 0.000* 2.736 3.359 3.569 3.185 3.256 3.439 3.875 4.25

Development of

entrepreneurship

skill : After

Joining SHG

2.280 0.027* 2.569 3.031 3.235 3 2.976 3.211 3.542 3.25

Increase in

Purchasing Power :

After Joining SHG

4.105 0.000* 3.319 3.766 3.912 3.914 3.963 4.018 4.042 3.75

Increase in

Savings : After

Joining SHG

1.311 0.243 4.014 4.25 4.294 4.259 4.232 4.404 4.375 4.25


4.5.26 Effect of occupation of the respondents on economic empowerment

of the women


among Occupation groups, a Multivariate Analysis of Variance (MANOVA) test with

repeated measures was conducted. Occupation of the respondent is taken as


dependent variables. The MANOVA and subsequent ANOVA results are shown in

table 4.5.31 & 4.5.32, and the results do not support the H0 (4.26) and revealed

statistically significant difference among Occupation groups for the thirteen dependent

variables of economic empowerment as shown in table 4.5.31 (Wilk's Lamda = 0.64;

F=1.83, Significance : p =0.000< 0.05).

152

As indicated in table 4.5.32, the univariate F-ratios were also significant for the nine

dependent variables i.e. for "Asset creation" (F=2.85, Sign. = 0.003), for "Commencement

of Income generating activities" (F=7.07, Sign. = 0.000), for "Change in nature of

employment" (F=5.47, Sign. = 0.000), for " Increment in consumption level of family"

(F=3.86, Sign. = 0.000), for "Improvement in standard of living" (F=2.33, Sign. = 0.014),

for" for "Better utilization of available resources" (F=5.24, Sign. = 0.000), for

"Development of entrepreneurship skill" (F=4.04, Sign. = 0.000), for "Increase in

Purchasing Power" (F=4.49, Sign. = 0.000), for "Increase in Savings" (F=2.25, Sign. =

0.018), but statistically for other factors was non-significant. Moreover, the mean score for

most of the statements for the respondents who have started income generating activities

are more compared to others. It reveals that the women who have started income

generating activities are more empowered than the others.

Table 4.5.31 : MANOVA results for difference among occupation groups

of the respondents on economic empowerment

Source


Multivariate Tests

Occupation of the respondents

Pillai's Trace 0.423 1.792 0.000*

Wilks' Lambda 0.640 1.833 0.000*




Table 4.5.32 : ANOVA results for difference among occupation

groups of the respondents on economic empowerment

ANOVA tests :

Economic

Empowerment….

Occupation of the Member

F Sign. House

Wife

Weave

work

Agricul

ture

Animal

Husban

dary

Cottage

industry Service

Labour

Work

Small

Gross

ary Shop

Educa

tion Other

153

Enhancement

in Personal or

Family

Income : After

Joining SHG

0.261 0.984 3.845 3.846 3.667 3.945 4.25 4.125 3.625 4 3.882 4.059

Reduction of

Poverty in

the Family :

After Joining

SHG

1.217 0.282 3.743 3.615 3.333 3.927 4.2 3.917 3.725 4.125 3.647 3.882

Reduction of

dependency

on Money

lenders : After

Joining SHG

1.725 0.081 3.996 4.077 3.667 4.2 4.35 4.146 3.65 3.75 4.353 4.235

Asset creation

: After Joining

SHG

2.851 0.003* 3.075 3.075 3.075 3.075 3.075 3.075 3.075 3.075 3.075 3.075

Commenceme

nt of Income

generating

activities :

After Joining

SHG

7.070 0.000* 3.121 3.121 3.121 3.121 3.121 3.121 3.121 3.121 3.121 3.121

Ability to

meet Financial

crisis in the

Family : After

Joining SHG

1.485 0.150 4.026 4.026 4.026 4.026 4.026 4.026 4.026 4.026 4.026 4.026

Change in

nature of

employment :

After Joining

SHG

5.4 0.000* 3.249 3.249 3.249 3.249 3.249 3.249 3.249 3.249 3.249 3.249

Increment in

consumption

level of family

: After Joining

SHG

3.855 0.000* 3.879 3.879 3.879 3.879 3.879 3.879 3.879 3.879 3.879 3.879

Improvement

in standard of

living : After

Joining SHG

2.333 0.014* 4.030 4.030 4.030 4.030 4.030 4.030 4.030 4.030 4.030 4.030

154

Better

utilization of

available

resources :

After Joining

SHG

5.238 0.000* 3.181 3.181 3.181 3.181 3.181 3.181 3.181 3.181 3.181 3.181

Development

of entreprene

urship skill :

After Joining

SHG

4.039 0.000* 2.868 2.868 2.868 2.868 2.868 2.868 2.868 2.868 2.868 2.868

Increase in

Purchasing

Power : After

Joining SHG

4.494 0.000* 3.762 3.762 3.762 3.762 3.762 3.762 3.762 3.762 3.762 3.762

Increase in

Savings :

After Joining

SHG

2.247 0.018* 4.242 4.242 4.242 4.242 4.242 4.242 4.242 4.242 4.242 4.242


4.5.27 Difference among the respondents of different banks on economic

empowerment


among the respondents of banks, a Multivariate Analysis of Variance (MANOVA) test

with repeated measures was conducted. Bank of the respondent is taken as



4.5.33 & 4.5.34, and the results do not support the H0 (4.27) and revealed statistically

significant difference among banks for the thirteen dependent variables of economic


=0.000< 0.05).


dependent variables except one. Moreover, the mean score for most of the statements for

the respondents of SBI and Dena are more compared to other banks. It reveals that the

women who have bank account in SBI and Dena bank are more empowered than the

others.

155



Source


Multivariate Tests


Pillai's Trace 0.784 3.944 0.000*

Wilks' Lambda 0.414 4.227 0.000*







Empowerment….

Bank of the Member

F Sign.

State

Bank

of India

Dena

Bank

Rajkot

Dist.

Co.Op.

Bank

Bank of

India

Bank of

Baroda

Corpora

tion

Bank

Bandhan

Bank

Jan

laxmi

Bank

Union

Bank

Enhancement in

Personal or Family

Income : After

Joining SHG

1.852 0.066 3.991 4.076 3.409 3.963 2.667 3 2.647 4.037 4

Reduction of

Poverty in the

Family : After

Joining SHG

8.006 0.000* 4.104 3.703 3.742 3.926 4 3 2.647 4.222 5

Reduction of

dependency on

Money lenders :

After Joining SHG

4.238 0.000* 4.132 4.034 3.985 3.963 4.333 4 2.941 4.519 5

Asset creation :

After Joining SHG 8.457 0.000* 3.755 3.047 2.515 3.778 3 2 2.412 3 1

Commencement of

Income generating

activities : After

Joining SHG

10.238 0.000* 3.991 3.369 2.576 4 4 3 2.294 3.222 1

156

Ability to meet

Financial crisis in

the Family : After

Joining SHG

6.937 0.000* 4.085 4.119 4.076 4.185 2.667 2.667 3 4.333 4

Change in nature

of employment :

After Joining SHG

5.115 0.000* 3.925 3.415 2.924 3.889 3 2.667 3.059 3.111 2

Increment in

consumption level

of family : After

Joining SHG

11.502 0.000* 4.075 3.919 3.742 4.037 1.667 1 3.059 4.148 4

Improvement in


After Joining SHG

5.777 0.000* 4.113 4.11 4.091 4.074 4.667 5 3.176 4.593 5



After Joining SHG

10.894 0.000* 3.934 3.288 2.485 4.111 2.667 1.667 2.647 2.963 1

Development of

entrepreneurship


SHG

12.082 0.000* 3.689 2.958 2.288 4.074 2.333 1 2.059 3 1

Increase in

Purchasing Power

: After Joining SHG

13.534 0.000* 4.066 3.856 3.773 3.889 3.333 1 2.176 4.185 4

Increase in

Savings : After

Joining SHG

10.708 0.000* 4.123 4.297 4.591 3.889 4 4 2.941 4.667 5





among blocks, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Block (Taluka) of the respondent is taken as independent variable


MANOVA and subsequent ANOVA results are shown in table 4.5.35 & 4.5.36, and


among blocks for the thirteen dependent variables of economic empowerment as shown in

table 4.5.35 (Wilk's Lamda = 0.30; F=5.29, Significance : p =0.000< 0.05).

157



the respondents of Rajkot, Vijapur and Radhanpur are more compared to other

blocks. It reveals that the women of Rajkot, Vijapur and Radhanpur are more empowered

than the others.



Source


Multivariate Tests


respondents

Pillai's Trace 1.041 4.750 0.000*

Wilks' Lambda 0.295 5.286 0.000*







Empowerment….

Block of the Member

F Sign. Mehs

ana

Kadi Vijapur Becha

raji

Visna

gar

Patan Radha

npur

Chana

sma

Harij Sami

Enhancement

in Personal or

Family Income :

After Joining

SHG

1.269 0.251 3.86 3.922 4.353 3.551 3.667 3.696 4.14 3.977 3.378 4.32

Reduction of

Poverty in the

Family : After

Joining SHG

9.283 0.000* 3.900 3.900 3.900 3.900 3.900 3.900 3.900 3.900 3.900 3.900

Reduction of

dependency

on Money

lenders : After

Joining SHG

6.992 0.000* 3.620 3.620 3.620 3.620 3.620 3.620 3.620 3.620 3.620 3.620

158

Asset creation :

After Joining

SHG

19.288 0.000* 3.420 3.420 3.420 3.420 3.420 3.420 3.420 3.420 3.420 3.420

Commencement

of Income

generating

activities : After

Joining SHG

21.577 0.000* 3.960 3.960 3.960 3.960 3.960 3.960 3.960 3.960 3.960 3.960

Ability to meet

Financial crisis

in the Family :

After Joining

SHG

7.152 0.000* 4.02 4.176 4.353 3.694 3.882 3.804 4.36 4.186 3.622 4.48

Change in

nature of

employment :

After Joining

SHG

13.061 0.000* 3.72 3.961 4.216 3.51 2.275 3.696 3.06 3.837 3.089 3.14

Increment in

consumption

level of family :

After Joining

SHG

6.527 0.000* 3.98 3.941 4.333 3.776 3.392 3.478 4.14 4.14 3.667 4

Improvement

in standard of

living : After

Joining SHG

7.973 0.000* 4.14 4 4.333 3.816 3.863 4.174 4.5 4.093 3.622 4.52

Better

utilization of

available

resources : After

Joining SHG

19.721 0.000* 3.92 3.706 4.098 3.347 1.745 3.543 2.94 3.93 3.222 2.72

Development

of entrepren

eurship skill :

After Joining

SHG

26.473 0.000* 3.76 3.373 3.98 3.449 1.431 3.37 2.74 3.558 2.778 2.04

Increase in

Purchasing

Power : After

Joining SHG

8.146 0.000* 3.94 4 4.353 3.776 3.196 3.543 4.12 4.023 3.333 3.98

Increase in

Savings : After

Joining SHG

12.355 0.000* 4.26 4 4.392 3.918 4.196 4.022 4.64 4.233 3.733 5


159

4.5.29 Difference among the respondents of different income group on



among income group, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Own income group of the respondent is taken as independent

variable while various economic empowerment statements are taken as dependent

variables. The MANOVA and subsequent ANOVA results are shown in table 4.5.37 &


difference among blocks for the thirteen dependent variables of economic empowerment as

shown in table 4.5.37 (Wilk's Lamda = 0.77; F=1.92, Significance : p =0.000< 0.05).


dependent variables i.e. for "Commencement of Income generating activities" (F=8.93,

Sign. = 0.000), for " Ability to meet Financial crisis in the Family" (F=2.97, Sign. =

0.012), for "Change in nature of employment" (F=4.26, Sign. = 0.001), for "Improvement

in standard of living" (F=3.90, Sign. = 0.002), for "Better utilization of available

resources" (F=3.45, Sign. = 0.005), for "Development of entrepreneurship skill" (F=4.65,

Sign. = 0.000), for "Increase in Purchasing Power" (F=3.63, Sign. = 0.003), but statistically

for other factors was non-significant. Moreover, the mean score for most of the statements

for the respondents who have more income are more compared to others. It reveals that the

women who have more income are more empowered than the others

Table 4.5.37 : MANOVA results for difference among income group of


Source


Multivariate Tests

Income group of the

respondents

Pillai's Trace 0.247 1.885 0.000*

Wilks' Lambda 0.772 1.922 0.000*




160

Table 4.5.38 : ANOVA results for difference among income group of the


ANOVA tests : Economic Empowerment…. Income group of the respondents

F Sign. < = 1000

1000-

2000

2001-

3000

3001-

4000

4001-

5000 >5000



Joining SHG

0.357 0.878 3.807 4.077 4.116 4.043 3.962 4


Family : After Joining SHG 1.405 0.221 3.728 3.962 3.977 3.957 3.808 3.923

Reduction of dependency on

Money lenders : After Joining

SHG

1.559 0.170 3.972 4.115 4.349 4.13 4.192 3.923

Asset creation : After Joining

SHG 1.568 0.168 3.066 3.058 3.07 3.478 3.462 3.577


generating activities : After

Joining SHG

8.926 0.000* 3.12 3.615 4.14 4.043 3.731 3.923


crisis in the Family : After

Joining SHG

2.967 0.012* 3.987 4.192 4.372 4.13 4.346 3.885

Change in nature of

employment : After Joining

SHG

4.262 0.001* 3.275 3.635 3.977 3.913 3.769 3.538



Joining SHG

2.173 0.056 3.81 3.962 4.07 4.217 4.154 3.808


living : After Joining SHG 3.904 0.002* 4.022 4.192 4.395 4.478 4.346 4

Better utilization of available

resources : After Joining

SHG

3.446 0.005* 3.187 3.154 3.605 4.043 3.423 3.808

Development of

entrepreneurship skill : After

Joining SHG

4.650 0.000* 2.845 3.288 3.419 3.565 3.115 3.731

Increase in Purchasing Power

: After Joining SHG 3.631 0.003* 3.715 3.923 3.953 4 4.269 4.269


Joining SHG 0.807 0.545 4.212 4.269 4.465 4.261 4.308 4.192


161

4.6 MANOVA-test for satisfaction level of the respondents about services

of Banks

One of the objectives of this research is to evaluate the role of banks in promoting self-

help groups and there by empowering rural women. Considering this, various categorical

variables are taken as independent variable while various statements related to services of

banks are dependent variable. For this, MANOVA is administered because MANOVA is a

multivariate extension of the univariate techniques used for measuring the differences

between group means. As stated by Hair et al. (1998, p.14), MANOVA ‘…is a statistical

technique that can be used to simultaneously explore the relationship between several

categorical independent variables (usually referred to as treatments) and two or more

metric variables’

4.6.1 Effect of social group of the respondents on satisfaction about

services of bank

To measure the significant difference in mean of the satisfaction about services of

bank among the social group of the respondents, one Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. The MANOVA and subsequent

ANOVA results are shown in table 4.6.1, and the results do not support the H0 (5.1)

and revealed statistically significant difference among social group of the respondents (i.e.

Open/ General, OBC and SC) for the thirteen dependent variables related to services of

bank as shown in table 4.6.1 (Wilk' Lamda = 0.89; F=2.33, Significance : p =0.000< 0.05).


dependent variables i.e. for "Loan amount" (F=4.42, Sign. = 0.013), for "Transportation

cost to visit a bank branch" (F=7.33, Sign. = 0.001), for "Loan Repayment policy"

(F=4.36, Sign. = 0.013), for "Consequences of non repayment of loan" (F=4.06, Sign. =


Open/General, OBC and SC group have shown that there is statistically difference

between the Open/ General and SC and also for OBC and SC category for the variables

related to services of bank. As most of the group mean score are generally more than three,

it can be safely assumed that all the respondents of three social groups are satisfied with

the services of bank.

162

Table 4.6.1 : MANOVA and ANOVA results for effect of social group of

the respondent on satisfaction about services of bank

Source Social Group


(n=189)

OBC

(n=266)

SC

(n=46)

Multivariate Tests

Social Group of the

Respondent

Pillai's Trace 0.117 2.323 0.000*

Wilks' Lambda 0.886 2.334 0.000*


Roy's Largest

Root

0.093 3.493 0.000*

ANOVA tests : Satisfaction about…. Group Mean

Loan amount 4.417 0.013* 4.042 3.853 3.674

Loan Maturity or loan

repayment period

2.023 0.133 3.894 3.808 3.652

Transportation cost to visit a

bank branch

7.327 0.001* 2.624 3.079 3.022

Information provided by the

bank officials

0.072 0.931 3.878 3.846 3.870

Terms & conditions of loan 0.429 0.652 3.677 3.718 3.609

Convenience in loan

procedure

0.602 0.548 3.741 3.707 3.587

Loan Repayment policy 4.361 0.013* 3.751 3.699 3.391

Time taken to get the loan

sanctioned

0.948 0.388 3.889 3.767 3.739

Behavior of the bank staff 1.983 0.139 4.000 3.820 3.848

Resolving of Complaints /

problems

1.556 0.212 3.587 3.590 3.326

Loan File charges including

stamp duty exp. etc

0.789 0.455 3.317 3.383 3.196

Consequences of non

repayment of loan

4.057 0.018* 3.529 3.282 3.326

Rate of interest on loan 0.461 0.631 3.614 3.556 3.500


163

4.6.2 Difference between BPL and Non-BPL beneficiary on satisfaction

about services of bank

To determine whether significant differences exist regarding satisfaction about services of

bank between BPL and Non-BPL beneficiary, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. BPL and Non-BPL beneficiary is

taken as independent variable while various variables related to services of banks are taken

as dependent variable. The MANOVA and subsequent ANOVA results are shown in table


difference between BPL and Non-BPL beneficiary for the thirteen dependent variables

related to bank service as shown in table 6.6.2 (Wilk's Lamda = 0.90; F=4.31, Significance

: p =0.000< 0.05). As indicated in table 6.6.2, the univariate F-ratios were also significant

for the six dependent variables i.e. for "Information provided by the bank officials"

(F=12.24, Sign. = 0.001), for "Convenience in loan procedure" (F=6.74, Sign. = 0.010), for

"Behavior of the bank staff" (F=24.69, Sign. = 0.000), for "Resolving of Complaints"

(F=30.94, Sign. = 0.000), for "Loan File charges" (F=6.45, Sign. = 0.011), for

"Consequences of non repayment of loan" (F=7.13, Sign. = 0.008), but statistically for

other factors was non-significant. The mean score of the BPL and Non-BPL beneficiary

have shown that there is statistically difference between the BPL and Non-BPL beneficiary

for the satisfaction about services of bank. As most of the group mean score are generally

more than three, it can be safely assumed that most of the respondents of BPL and Non-

BPL beneficiary believe that they are satisfied with the services of bank.

Table 4.6.2 : MANOVA and ANOVA results for difference between BPL

and Non-BPL beneficiary on satisfaction about services of bank

Source Beneficiary


(n=120)

Non-BPL

(n=381)

Multivariate Tests

Pillai's Trace 0.103 4.311 0.000*

Wilks' Lambda 0.897 4.311 0.000*

Hotelling's

Trace 0.115 4.311 0.000*

164

BPL & Non-BPL Beneficiary Roy's Largest

Root 0.115 4.311 0.000*


Loan amount 2.400 0.122 3.800 3.942


repayment period

0.187 0.665 3.800 3.835


bank branch

1.445 0.230 3.025 2.864


bank officials

12.244 0.001* 3.608 3.940

Terms & conditions of loan 0.000 0.988 3.692 3.693

Convenience in loan

procedure

6.744 0.010* 3.533 3.764

Loan Repayment policy 2.311 0.129 3.600 3.719


sanctioned

3.660 0.056 3.658 3.858

Behavior of the bank staff 24.694 0.000* 3.517 4.008


problems

30.943 0.000* 3.150 3.696


stamp duty exp. Etc

6.453 0.011* 3.142 3.404

Consequences of non

repayment of loan

7.129 0.008* 3.183 3.441

Rate of interest on loan 0.009 0.925 3.567 3.575


4.6.3 Difference between women of Hinduism and Islam on satisfaction


To determine whether significant differences exist regarding satisfaction about services

of bank between women of Hinduism and Islam, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. Religion of the respondents is



table 4.6.3, and the results do not support the H0 (5.3) and revealed statistically significant

difference between women of Hinduism and Islam for the thirteen dependent variables of

165

satisfaction about services of bank as shown in table 4.6.3 (Wilk's Lamda = 0.94;

F=2.26, Significance : p =0.007< 0.05).


dependent variables i.e. for "Loan amount" (F=11.28, Sign. = 0.001), for "Loan Maturity

or loan repayment period" (F=8.33, Sign. = 0.004), for "Transportation cost to visit a bank

branch" (F=5.50, Sign. = 0.019), for "Information provided by the bank officials" (F=4.51,

Sign. = 0.034), but statistically for other factors was non-significant. The mean score of

the women of Hinduism and Islam have shown that there is statistically difference between

the women of Hinduism and Islam for the satisfaction about services of bank.

Moreover, the mean score of the Islam group are more in most of the variables compared

to women of Hinduism shows that Women of Islam are more satisfied with the bank. As

most of the group mean score are generally more than three, it can be safely assumed that

most of the respondents of Hinduism and Islam believe that they are satisfied with the

services of bank.


women of Hinduism and Islam on satisfaction about services of bank

Source Religion


(n=451)

Islam

(n=50)

Multivariate Tests

Religion of the respondents

Pillai's Trace 0.057 2.264 0.007*

Wilks' Lambda 0.943 2.264 0.007*

Hotelling's

Trace 0.060 2.264 0.007*

Roy's Largest

Root 0.060 2.264 0.007*


Loan amount 11.279 0.001* 3.865 4.300


repayment period

8.325 0.004* 3.794 4.120


bank branch

5.500 0.019* 2.947 2.500


bank officials

4.511 0.034* 3.831 4.120

166


Convenience in loan

procedure

2.251 0.134 3.690 3.880



sanctioned

2.443 0.119 3.787 4.020

Behavior of the bank staff 2.147 0.143 3.869 4.080


Problems

0.120 0.729 3.570 3.520


stamp duty exp. etc

0.794 0.373 3.328 3.460

Consequences of non

repayment of loan

1.281 0.258 3.364 3.520



4.6.4 Difference between SHG Member and Leader on satisfaction about

services of bank


bank between SHG Members and Leaders, a Multivariate Analysis of Variance

(MANOVA) test with repeated measures was conducted. Designation of the respondents is


as dependent variables. The MANOVA and ANOVA results are shown in table 4.6.4, and


between SHG Members and Leaders for the thirteen dependent variables of satisfaction

about services of bank as shown in table 4.6.4 (Wilk's Lamda = 0.95; F=1.82,

Significance : p =0.037 < 0.05).

As indicated in table 4.6.4, the univariate F-ratios were also significant for the all

dependent variables except three. The mean score of the women members and leaders have

shown that there is statistically difference between the members and leaders for the

satisfaction about services of bank. Moreover, the mean score of the leaders are more than

the members in most of the variables, shows that leaders are more satisfied with the

services provided by the bank compared to members.

167


SHG Members and Leaders on satisfaction about services of bank

Source Designation

Effect Value F Sign. Member

(n=378)

Leader

(n=123)

Multivariate Tests

Designation of the respondents

Pillai's Trace 0.046 1.820 0.037*

Wilks' Lambda 0.954 1.820 0.037*

Hotelling's

Trace 0.049 1.820 0.037*

Roy's Largest

Root 0.049 1.820 0.037*


Loan amount 7.679 0.006* 3.847 4.098


repayment period

6.287 0.012* 3.778 3.976


bank branch

2.902 0.089 2.847 3.073


bank officials

5.294 0.022* 3.807 4.024

Terms & conditions of loan 4.875 0.028* 3.648 3.829

Convenience in loan

procedure

10.081 0.002* 3.640 3.919

Loan Repayment policy 4.374 0.037* 3.651 3.813


sanctioned

0.935 0.334 3.786 3.886



problems

10.282 0.001* 3.487 3.805


stamp duty exp. etc

3.979 0.047* 3.291 3.496

Consequences of non

repayment of loan

5.768 0.017* 3.323 3.553



168




bank between the respondents of Jamnagar and Rajkot, a Multivariate Analysis of Variance




table 4.6.5, and the results do not support the H0 (5.5) and revealed statistically significant

difference between the respondents of Jamnagar and Rajkot for the thirteen dependent

variables of satisfaction about services of bank as shown in table 4.6.5 (Wilk's Lamda =

0.85; F=6.45, Significance : p =0.000< 0.05).


dependent variables i.e. for " Transportation cost to visit a bank branch" (F=6.98, Sign.

= 0.008), for "Information provided by the bank officials" (F=37.29, Sign. = 0.000), for

"Convenience in loan procedure" (F=21.88, Sign. = 0.000), for "Loan Repayment policy"

(F=4.78, Sign. = 0.029), for "Time taken to get the loan sanctioned" (F=8.80, Sign. =

0.003), for "Behavior of the bank staff" (F=30.21, Sign. = 0.000), for "Loan File charges"

(F=11.73, Sign. = 0.001), for "Consequences of non repayment of loan" (F=48.48, Sign. =


respondents of Jamnagar and Rajkot have shown that there is statistically difference

between the respondents of Jamnagar and Rajkot for the satisfaction level. As most of the

group mean score are generally more than three, it can be safely assumed that all the

respondents of Jamnagar and Rajkot are satisfied with the services provided by the bank.

Moreover, the mean score of Rajkot are more than mean score of the Jamnagar in most

of the factors shows that respondents of Rajkot are more satisfied than respondents of

Jamnagar.

169


respondents of Jamnagar and Rajkot on satisfaction about services of

bank

Source District


(n=253)

Patan

(n=248)

Multivariate Tests

District of the respondents

Pillai's Trace 0.147 6.447 0.000*

Wilks' Lambda 0.853 6.447 0.000*

Hotelling's

Trace

0.172 6.447 0.000*

Roy's Largest

Root

0.172

6.447

0.000*


Loan amount 1.550 0.214 3.957 3.859


repayment period

2.294 0.131 3.877 3.774


bank branch

6.983 0.008* 3.051 2.750


bank officials

37.291 0.000* 4.099 3.617


Convenience in loan procedure 21.882 0.000* 3.881 3.532



sanctioned

8.800 0.003* 3.941

3.677



problems

40.446 0.000 3.826 3.298


stamp duty exp. Etc

11.732 0.001* 3.490 .190

Consequences of non

repayment of loan

48.481 0.000* 3.652 3.101



170

4.6.6 Difference between the women who have and have not taken loan on satisfaction



of bank between the respondents who have taken loan and who don't, a Multivariate

Analysis of Variance (MANOVA) test with repeated measures was conducted. Availability

of loan is taken as independent variable while various variables related to services of banks

are taken as dependent variables. The MANOVA and subsequent ANOVA results are

shown in table 4.6.6, and the results do not support the H0 (5.6) and revealed

statistically significant difference between the respondents who have taken loan and who

have not taken loan for the thirteen dependent variables as shown in table 6.6.6 (Wilk's

Lamda = 0.89; F=4.68, Significance : p =0.000 < 0.05).


dependent variables i.e. for "Loan amount" (F=32.47, Sign. = 0.000), for "Loan Maturity

or loan repayment period" (F=18.57, Sign. = 0.000), for "Transportation cost to visit a bank

branch" (F=7.56, Sign. = 0.006), for "Information provided by the bank officials" (F=5.53,

Sign. = 0.019), for "Convenience in loan procedure" (F=6.85, Sign. = 0.009), for "Loan

Repayment policy" (F=4.22, Sign. = 0.040), for "Time taken to get the loan sanctioned"

(F=5.91, Sign. = 0.015), for "Rate of interest on loan" (F=4.60, Sign. =0.032) but

statistically for other factors was non-significant. As most of the group mean score are

generally more than three, it can be safely assumed that most of the respondents who have

taken loan are satisfied with the services provided by the bank. Moreover, the mean score

of women who have taken loan are more than mean score of the women who have not

taken loan in most of the factors shows that respondents who have taken loan are more

satisfied than the others.


who have taken loan and who have not taken loan on satisfaction about

services of bank

171

Source Loan Availability


(n=243)

No

(n=258)

Multivariate Tests


respondents

Pillai's Trace 0.111 4.675 0.000*

Wilks' Lambda 0.889 4.675 0.000*

Hotelling's

Trace 0.125 4.675 0.000*

Roy's Largest

Root 0.125 4.675 0.000*


Loan amount 32.474 0.000* 4.132 3.698


repayment period

18.566 0.000* 3.975 3.686


bank branch

7.560 0.006* 2.741 3.054


bank officials

5.531 0.019* 3.959 3.767


Convenience in loan

procedure

6.848 0.009* 3.811 3.612



sanctioned

5.905 0.015* 3.922 3.705



problems

0.044 0.834 3.556 3.574


stamp duty exp. Etc

0.076 0.783 3.354 3.329

Consequences of non

repayment of loan

2.645 0.104 3.449 3.314

Rate of interest on loan 4.604 0.032* 3.654 3.496


4.6.7 Difference among experience group of the respondent on



of bank among experience of the respondents, a Multivariate Analysis of Variance

172

(MANOVA) test with repeated measures was conducted. Experience with SHG is taken

as independent variable while various variables related to services of banks are taken as



difference among experience of the respondents for the thirteen dependent variables as

shown in table 4.6.7 (Wilk's Lamda = 0.85; F=2.11, Significance : p =0.000< 0.05).


dependent variables i.e. for "Transportation cost to visit a bank branch" (F=5.61, Sign. =

0.001), for "Time taken to get the loan sanctioned" (F=4.80, Sign. = 0.003), for "Loan File

charges" (F=5.31, Sign. = 0.001), for "Rate of interest on loan" (F=2.72, Sign. = 0.044), but

statistically for other factors was non-significant. The mean score of the different

experience groups have shown that there is statistically difference among the groups for

the satisfaction about services of bank. As most of the group mean score are generally

more than three, it can be safely assumed that most of the respondents are satisfied with

services of bank. Moreover, the mean score of group "7-9" and ">9" are more than mean

score of the other groups shows that the women who had joined the SHG before seven

years are more satisfied than the others.


experience of the respondents on satisfaction about services of bank

Source Experience

Effect Value F Sign. <4

(n=152)

4-6

(n=241)

7-9

(n=85)

>9

(n=23)

Multivariate Tests

Experience of the respondent

with SHG

Pillai's Trace 0.160 2.110 0.000*

Wilks'

Lambda

0.848 2.110 0.000*

Hotelling"s

Trace

0.170 2.109 0.000*

Roy's Largest

Root

0.081 3.030 0.000*


Loan amount 0.684 0.562 3.836 3.946 3.894 4.043


repayment period

2.193 0.088 3.724 3.888 3.776 4.043

173


bank branch

5.612 0.001* 3.112 2.921 2.706 2.043


bank officials

0.261 0.854 3.829 3.892 3.812 3.913

Terms & conditions of loan 1.039 0.375 3.717 3.710 3.565 3.826

Convenience in loan

procedure

0.988 0.398 3.671 3.759 3.600 3.826

Loan Repayment policy 1.877 0.133 3.651 3.751 3.553 3.826


sanctioned

4.800 0.003* 3.901 3.797 3.541 4.348

Behavior of the bank staff 1.265 0.286 3.800 4.130 3.625 3.598


problems

2.421 0.065 3.318 3.739 3.395 3.452

Loan File charges

including stamp duty exp. etc

5.311 0.001* 3.059 2.870 3.454 3.407

Consequences of non

repayment of loan

2.373 0.070 3.141 3.478 3.974 3.846

Rate of interest on loan 2.720 0.044* 3.836 3.946 3.894 4.043


4.6.8 Difference between the respondents who have taken training and

have not taken training on satisfaction about services of bank


of bank between the respondents who have taken training and have not taken training, a


conducted. Basic training is taken as independent variable while various variables related

to services of banks are taken as dependent variables. The MANOVA and subsequent

ANOVA results are shown in table 4.6.8, and the results do not support the H0 (5.8) and

revealed statistically significant difference between the respondents who have taken

training and have not taken training for the thirteen dependent variables of satisfaction

about services of bank as shown in table 4.6.8 (Wilk's Lamda = 0.95; F=1.90, Significance :

p =0.028< 0.05).

As indicated in table 4.6.8, the univariate F-ratios were also significant for the two

dependent variables i.e. for "Transportation cost to visit a bank branch" (F=3.96, Sign. =

0.047), for "Resolving of Complaints" (F=4.87, Sign. = 0.028), but statistically for

174

other factors was non-significant. Moreover, the mean score for most of the statements are

more for the respondents who have taken training compared to those who have not

taken training. It reveals that the women who have taken training are more satisfied than

the women who have not taken training.






(n=229)

No

(n=272)

Multivariate Tests


respondents

Pillai's Trace 0.048 1.897 0.028*

Wilks' Lambda 0.952 1.897 0.028*

Hotelling's

Trace

0.051 1.897 0.028*

Roy's Largest

Root

0.051 1.897 0.028*


Loan amount 3.795 0.052 3.991 3.838


repayment period

1.599 0.207 3.873 3.787


bank branch

3.958 0.047* 3.026 2.798


bank officials

1.887 0.170 3.921 3.809


Convenience in loan

procedure

3.498 0.062 3.786 3.643



sanctioned

0.590 0.443 3.773 3.842



problems

4.871 0.028* 3.668 3.478


stamp duty exp. Etc

3.563 0.060 3.432 3.265

175

Consequences of non

repayment of loan

2.448 0.118 3.450 3.320



4.6.9 Difference among education group of the respondents on satisfaction about

services of bank


bank among education groups, a Multivariate Analysis of Variance (MANOVA) test with

repeated measure was conducted. Education group is taken as independent variable while

various variables related to services of banks are taken as dependent variables. The

MANOVA and subsequent ANOVA results are shown in table 4.6.9 & 4.6.10, and the

results do not support the H0 (5.9) and revealed statistically significant difference among

education groups for the thirteen dependent variables as shown in table 4.6.9 (Wilk's

Lamda = 0.75; F=1.56, Significance : p =0.001< 0.05).


dependent variables i.e. for " Information provided by the bank officials" (F=3.62, Sign.

= 0.001), for "Convenience in loan procedure" (F=3.94, Sign. = 0.000), for "Loan

Repayment policy" (F=2.40, Sign. = 0.020), for "Time taken to get the loan sanctioned"

(F=3.53, Sign. = 0.001), for "Behavior of the bank staff" (F=4.89, Sign. = 0.000), for

"Resolving of Complaints" (F=4.59, Sign. = 0.000), for "Consequences of non repayment

of loan" (F=2.09, Sign. = 0.043), but statistically for other factors was non-significant.

Moreover, the mean score for most of the variables are more for the respondents who have

taken more education compared to those who have not taken more education. It reveals that

the women who have taken more education are more satisfied than the women who have

taken less education.

Table 4.6.9 : MANOVA results for difference among education

groups of the respondents on satisfaction about services of bank

Source


Multivariate Tests

176


respondents

Pillai's Trace 0.278 1.551 0.001*

Wilks' Lambda 0.750 1.561 0.001*





the respondents on satisfaction about services of bank

ANOVA tests : Satisfaction about…. Education of the Member

F Sign. Illiterate

Can

sign

only

Upto

5th std

6th to

7th std

8th to

10th std

11th to

12th std

Up to

Gradu

ation

Other

Loan amount 1.989 0.055 3.679 3.909 3.781 4.024 3.988 4.125 3.963 4.250

Loan Maturity or

loan repayment period 1.052 0.394 3.718 3.712 3.914 3.805 3.892 3.786 3.963 4.250

Transportation cost to

visit a bank branch 0.301 0.953 2.936 2.864 2.971 2.756 2.916 2.982 2.815 3.250

Information provided by

the bank officials 3.621 0.001* 3.449 3.803 3.867 3.939 3.988 4.161 3.889 4.000

Terms & conditions of

loan 1.307 0.245 3.641 3.500 3.686 3.646 3.855 3.786 3.778 3.750

Convenience in loan

procedure 3.935 0.000* 3.372 3.545 3.829 3.695 3.843 3.929 3.889 3.000

Loan Repayment policy 2.395 0.020* 3.577 3.424 3.743 3.720 3.831 3.732 3.778 4.250

Time taken to get the

loan sanctioned 3.526 0.001* 3.423 3.848 3.981 3.646 4.024 3.982 3.741 3.250

Behavior of the bank

staff 4.888 0.000* 3.346 3.894 3.962 3.963 4.096 4.036 4.074 3.500

Resolving of

Complaints / problems 4.593 0.000* 3.128 3.333 3.657 3.695 3.711 3.839 3.704 3.000

Loan File charges

including stamp duty

exp. Etc

1.871 0.072 3.115 3.121 3.552 3.402 3.349 3.429 3.296 3.500

Consequences of

non repayment of loan 2.090 0.043* 3.038 3.348 3.419 3.415 3.506 3.482 3.519 3.750

Rate of interest on loan 0.949 0.468 3.462 3.439 3.676 3.549 3.651 3.571 3.593 4.000


177

4.6.10 Difference among the respondents of different banks on



bank among banks, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Bank of the respondent is taken as independent variable while

various variables related to services of banks are taken as dependent variables. The



among banks for the thirteen dependent variables as shown in table 6.6.11 (Wilk's Lamda

= 0.52; F=3.21, Significance : p =0.000< 0.05).


dependent variables. Moreover, the mean score for most of the variables for the

respondents of SBI and Dena are more compared to other banks. It reveals that the women

who have bank account in SBI and Dena bank are more satisfied than the others.



Source


Multivariate Tests


Pillai's Trace 0.602 3.047 0.000*

Wilks' Lambda 0.517 3.209 0.000*




178



ANOVA tests : Satisfaction

about….

Bank of the Member

F Sign.

State

Bank

of India

Dena

Bank

Mehsan

a District

co-

operativ

e Bank

Bank

of

India

Bank

of

Baroda

Corpo

ration

Bank

Jamna

gar

Nagarik

Bank

Banas

Bank

Union

Bank

Loan amount 10.207 0.000* 3.743 4.110 4.046 3.100 4.000 4.000 2.824 4.000 3.000

Loan Maturity or

loan repayment

period

4.615 0.000* 3.761 3.918 3.954 3.533 3.750 3.667 2.941 3.889 3.000

Transportation cost

to visit a bank

branch

6.137 0.000* 3.248 2.947 2.138 3.067 1.750 1.000 2.882 3.222 1.000

Information

provided by the

bank officials

11.469 0.000* 3.679 4.069 3.708 4.000 2.000 1.333 2.941 4.074 3.000

Terms &

conditions of loan 2.489 0.012* 3.596 3.792 3.662 3.400 3.000 3.667 3.294 3.926 4.000

Convenience in

loan procedure 5.980 0.000* 3.688 3.861 3.631 3.433 2.000 2.333 3.118 3.704 3.000

Loan Repayment

policy 2.155 0.030* 3.661 3.763 3.738 3.500 3.000 3.667 3.176 3.704 3.000

Time taken to get

the loan sanctioned 8.495 0.000* 3.752 3.988 3.785 3.533 1.500 1.333 3.059 3.926 3.000

Behavior of the

bank staff 11.477 0.000* 3.633 4.127 3.831 4.000 1.500 1.333 3.176 3.926 3.000

Resolving of

Complaints /

Problems

11.899 0.000* 3.431 3.767 3.400 3.867 1.000 1.000 2.706 3.556 3.000

Loan File charges

including stamp

duty exp. Etc

9.475 0.000* 3.248 3.539 3.154 3.133 1.000 1.000 2.588 3.704 3.000

Consequences of

non repayment of

loan

4.282 0.000* 3.413 3.482 3.185 3.433 3.000 2.333 2.353 3.556 3.000

Rate of interest

on loan 2.911 0.004* 3.633 3.604 3.677 3.167 3.750 4.000 2.882 3.630 3.000


179




of bank among blocks, a Multivariate Analysis of Variance (MANOVA) test with repeated

measures was conducted. Block (Taluka) of the respondent is taken as independent variable

while various variables related to services of banks are taken as dependent variables. The



among blocks for the thirteen dependent variables as shown in table 4.6.13 (Wilk's Lamda

= 0.30; F=5.29, Significance : p =0.000< 0.05).



the respondents of Rajkot, Visnagar and Harij are more compared to other blocks. It

reveals that the women of Rajkot, Visnagar and Harij are more satisfied than the others.



Source


Multivariate Tests


respondents

Pillai's Trace 0.984 4.599 0.000*

Wilks' Lambda 0.332 4.890 0.000*




180



ANOVA tests :

Satisfaction about….

Block of the Member

F

Sig

n.

Mehs

ana

Kad

i

Vija

pur

Becha

raji

Visna

gar

Pat

an

Radhan

pur

Chana

sma

Har

ij

Sam

i

Loan amount 5.768 .000* 4.2941 3.3529 4.0588 4.0784 4.0000 3.7255 4.0588 3.7917 3.6000 4.1250

Loan Maturity or

loan repayment

period

4.067 .000* 3.9082 3.9608 3.6078 4.0392 3.8824 3.8980 3.6078 4.0588 3.7292 3.4600

Transportation

cost to visit a

bank branch

16.638 .000* 4.0208 3.8263 3.4510 2.4902 3.4510 2.4902 3.3878 2.9608 3.2353 3.5208

Information

provided by the

bank officials

10.286 .000* 2.5600 1.4375 2.9022 4.1961 4.0196 3.8824 3.9804 4.4286 3.2549 4.0784

Terms &

conditions of loan 1.776 .070 3.9375 3.5200 3.2917 3.8603 3.8627 3.6275 3.7647 3.8235 3.6327 3.5490

Convenience in

loan procedure 5.857 .000* 3.8627 3.7708 3.4200 3.6042 3.6926 4.0196 3.5490 3.8235 4.0000 4.0204

Loan Repayment

policy 3.736 .000* 3.2941 3.6863 3.8750 3.4600 3.3542 3.7086 3.9608 3.6667 3.7451 3.9020

Time taken to get

the loan

sanctioned

5.395 .000* 3.5306 3.4902 3.7647 3.7708 3.3000 3.7708 3.6906 3.9804 3.4706 4.0784

Behavior of the

bank staff 5.864 .000* 4.1373 4.0408 3.1373 3.9216 3.7917 3.9200 3.6250 3.8104 4.1373 4.1176

Resolving of

Complaints /

problems

6.176 .000* 3.8431 4.1373 4.3673 3.2941 3.8235 3.6042 3.9200 3.6458 3.8902 3.9608

Loan File charges

including stamp

duty exp. Etc

11.776 .000* 3.7451 3.6667 3.8431 3.9184 3.1373 3.5098 3.4583 3.3800 3.0000 3.5649

Consequences of

non repayment of

loan

12.473 .000* 3.8824 2.6471 3.5098 3.6667 3.7551 3.0392 3.6471 3.3958 3.1800 2.6667

Rate of interest on

loan 2.750 .004* 3.3725 3.7843 3.7843 3.3673 3.7647 3.5882 3.2917 3.4200 3.6875 3.5729


181

4.7 Rank and Correlation Analysis

The respondents of the study are from different caste, religions, regions etc, so it is

necessary to know the preference of various respondents for different aspects like

objectives to join the group, objectives of saving and loan etc. Moreover, the effect or

relationship of one variable or factors may be on other variables and to check such effect

or relationship, Correlation and rank analysis has been done in this study.

4.7.1 :- Correlation for Economic Indicators of the respondents

The Pearson correlations were found to see the correlation between different economic

indicators like income, expenditure, amount of saving and amount of loan. As indicated in

table 4.7.1, the results do not support H0 (6.1), H0 (6.2), H0 (6.3), H0 (6.4), H0 (6.5) and

H0 (6.6) and revealed that there is positive correlation between all the economic

indicators of the respondents

Table 4.7.1 :- Correlation for Economic Indicators of the respondents

Correlation between… Pearson

Correlation

Sig.

(Twotailed)

N

Monthly income and saving of the respondent 0.763* 0.000 510

Monthly family income and saving of the

respondent

0.465* 0.000 510

Monthly family expenditure and saving of the

respondent

0.319* 0.000 510

Monthly income and loan amount of the

respondent

0.193* 0.000 510

Monthly family income and loan amount of

the respondent

0.155* 0.000 510

Monthly family income and expenditure of

the respondent

0.837* 0.000 510

*Correlation is significant at the 0.01 level (2-tailed).

182

4.7.2 :- Rank correlation for rank given by women of Jamnagar and

Rajkot districts for various reasons of joining SHG

The Spearman's Rank Order correlation was run to determine the correlation between rank

given by women of Jamnagar and Rajkot districts for various reasons of joining SHG.

As indicated in table 4.7.2, the results support H0 (6.7), H0 (6.8) and H0 (6.10), but do

not support H0 (6.9) revealed that there was a positive correlation between ranks of two

district in the reason, To start income generating activities", for others it was not

significant.

Table 4.7.2 :- Rank correlation for rank given by women of Jamnagar

and Rajkot districts for various reasons of joining SHG

Reasons of joining SHG Spearman

Correlation

Sig. (Two

tailed)

N

To Increase Habit of Saving 0.028 0.658 255

To Get Loan 0.026 0.679 255

To Start Income Generating Activities 0.208 0.001 255

To Meet Other Expenses -0.007 0.906 255

Source : SPSS Output


Rajkot districts for purpose of saving


given by women of Jamnagar and Rajkot districts for various purpose of saving. As

indicated in table 6.7.3, the results support H0 (6.11), H0 (6.13), H0 (6.14) and H0

(6.15), but do not support H0 (6.12) revealed that there was a positive correlation between

ranks of two district in the purpose, To meet Food & household expenditure in future", for

others it was not significant.

183


and Rajkot districts for purpose of saving

Purpose of Saving Spearman

Correlation

Sig. (Two

tailed) N

To meet Social occasion expenditure 0.063 0.320 255

To meet Food & household expenditure in future 0.106 0.091 255

To meet Children education expenditure 0.026 0.676 255

To meet medical expenditure 0.087 0.166 255

To buy assets 0.018 0.780 255



Rajkot districts for various components of monthly expenditure


given by women of Jamnagar and Rajkot districts for various components of monthly

expenditure. As indicated in table 6.7.4, the results support H0 (6.17), H0 (6.18) but do not

support H0 (6.16) and H0 (6.19) revealed that there was a negative correlation between

ranks of two districts in the component "Food Expenditure" and "Medical Expenditure

"for others it was not significant.


and Rajkot districts for different monthly expenditure components

Monthly Expenditure Components Spearman

Correlation

Sig. (Two

tailed)

N

Food Expenditure -0.186 0.003 255

Household needs other than Food 0.096 0.126 255

Children education 0.015 0.811 255

Medical Expenditure -0.147 0.019 255


184

4.7.5 Ranking of various reasons for joining SHG by the respondents

During, the study, it was found that the respondents generally prefer to join the group for

various reasons like saving, loan etc and they were asked to rank these reasons as per their

preference. As indicated in table 4.7.5, the overall rank to each reason was given on the

basis of Friedman mean score and inferred that the respondents give first rank to the

reason, increase habit of saving" followed by "to get loan". They give third rank to

"income generating activities", fourth to "meet other expenses" and fifth to other

reasons". It reveals that respondents join the group mainly for saving and to get loan.

Table 4.7.5 : Reasons to join the SHG by the Women

Sr.

No

Reasons for

Joining the SHG

Rank

1

Rank

2

Rank

3

Rank

4

Rank

5 Total

Fried

man

Mean

Rank

Over

all

Rank

1 To Increase

Habit of Saving 230 165 73 41 1 510 1.86 1

2 To Get Loan 115 162 127 102 4 510 2.45 2

3 To Start

Income

Generating

Activities

116 113 154 123 4 510 2.58 3

4 To Meet Other

Expenses 46 69 154 237 4 510 3.16 4

5 Other Reason

for joining SHG 3 1 1 7 498 510 4.95 5

Source : Source : SPSS Output

4.7.6 : Ranking various reasons for joining SHG by BPL beneficiary

and Non- BPL beneficiary

As indicated in table 4.7.6, the overall rank given by the BPL beneficiaries and Non-BPL

beneficiaries for each reason was given on the basis of Friedman mean score and inferred

that the respondents of BPL beneficiary give first rank to the reason "increase habit of

saving" followed by "start income generating activities" while the respondents of Non-BPL

185

beneficiary give first rank to the reason "increase habit of saving" followed by "to get loan".

It reveals that respondents of BPL beneficiary have joined the group mainly for saving and

to start income generating activities.

Table 4.7.6 : Reasons to join the SHG by BPL beneficiary

Sr.

No

Reasons for Joining the

SHG

Friedman Mean Rank Overall Rank based on

Friedman Mean Score

BPL

beneficiary

Non- BPL

beneficiary

BPL

beneficiary

Non- BPL

beneficiary

1 To Increase Habit of

Saving 1.96 1.83 1 1

2 To Get Loan 2.48 2.44 3 2

3 To Start Income

Generating Activities 2.39 2.64 2 3

4 To Meet Other Expenses 3.19 3.16 4 4

5 Other Reason for joining

SHG 4.98 4.94 5 5


4.7.7 Ranking various reasons for joining SHG by Women of Open, OBC

and SC group

As indicated in table 4.7.7, the overall rank given by the women of Open, OBC and SC

group for each reason was given on the basis of Friedman mean score and inferred that the

respondents of OBC give first rank to the reason "increase habit of saving" followed by

"start income generating activities" while the women of SC give first rank to the reason

"increase habit of saving" followed by "to get loan".

186

Table 4.7.7 : Reasons to join the SHG by Social group of the respondent

Sr.

No

Reasons for Joining the

SHG Friedman Mean Rank

Overall Rank based on

Friedman Mean Score

Open OBC SC Open OBC SC

1 To Increase Habit of

Saving 1.89 1.88 1.59 1 1 1

2 To Get Loan 2.39 2.52 2.28 2 3 2

3

To Start Income

Generating Activities

2.60

2.51

2.89

3

2

3

4 To Meet Other Expenses 3.16 3.14 3.28 4 4 4

5 Other Reason for joining

SHG 4.96 4.95 4.96 5 5 5


4.7.8 Ranking of various reasons for saving by the respondents

The members of the SHG save some amount regularly in a group. The respondents

were asked to rank various reasons to save their money as per their preference. As

indicated in table 4.7.8, the overall rank to each reason was given on the basis of

Friedman mean score and inferred that the respondents give first rank to the reason

"Children education expenditure" followed by "Social Occasion expenditure". They give

third rank to "meet Food & Household expenditure, fourth to "meet medical expenditure"

and fifth to buy assets. It reveals that respondents save their money mainly for children

education and to meet social occasion expenditure.

187

Table 4.7.8 : Reasons for saving by the respondents

Sr.

No Reasons for saving

Rank

1

Rank

2

Rank

3

Rank

4

Rank

5

Rank

6

Total

N

Fried

man

Mean

Rank

Over

all

Rank

1

To meet Social

Occasion

expenditure

126 190 98 70 26 0 510 2.37 2

2

To meet Food &

Household

expenditure

135 92 157 106 20 0 510 2.58 3

3

To meet Children

education

expenditure

196 115 112 60 25 2 510 2.23 1

4 To meet medical

expenditure 39 103 114 210 42 2 510 3.23 4

5 To Buy assets 13 11 27 65 386 8 510 4.62 5

6 Other reason for

saving 1 0 2 1 8 498 510 5.96 6


4.7.9 : Ranking of various reasons for saving by the members and

Leaders

As indicated in table 4.7.9, the overall rank given by the members and leaders for each

reason of saving was given on the basis of Friedman mean score and inferred that the

leaders give first rank to the reason "children education expenditure" followed by "social

occasion expenditure". They give third rank to "meet food & household expenditure

while members give first rank to social occasion expenditure" followed by children

education expenditure.

188

Table 4.7.9 : Reasons for saving by the members and Leaders

Sr.



Friedman Mean Score

Members Leaders Members Leaders

1 To meet Social Occasion

expenditure 2.30 2.61 1 2

2 To meet Food &

Household expenditure 2.48 2.88 3 3

3 To meet Children education


4 To meet medical expenditure 3.29 3.06 4 4

5 To Buy assets 4.65 4.54 5 5

6 Other reason for saving 5.96 5.98 6 6


4.7.10 : Ranking of various reasons for saving by women of Hinduism

and Islam

As indicated in table 4.7.10, the overall rank given by the women of Hinduism and Islam

for each reason of saving was given on the basis of Friedman mean score and inferred that

the women of Islam give first rank to the reason "To meet food & household expenditure"

followed by "children education expenditure" and "Social Occasion expenditure". The

women of Hinduism give first rank to "children education expenditure followed by

social occasion expenditure.

Table 4.7.10 : Reasons for saving by women of Hinduism and Islam

Sr.


Friedman Mean Rank

Overall Rank based

on Friedman Mean

Score

Hinduism Islam Hinduism Islam

1 To meet Social Occasion


189

2 To meet Food & Household


3 To meet Children education


4 To meet medical expenditure 3.24 3.16 4 4

5 To Buy assets 4.63 4.51 5 5



4.7.11 : Ranking of various reasons for saving by BPL beneficiary and

Non- BPL beneficiary

As indicated in table 4.7.11, the overall rank given by the BPL beneficiary and Non- BPL

beneficiary for each reason of saving was given on the basis of Friedman mean score and

inferred that the respondents of BPL beneficiary give first rank to the reason "To meet food

& household expenditure" followed by "social Occasion expenditure" and "children

education expenditure". The respondents of Non-BPL beneficiary give first rank to

"children education expenditure followed by social occasion expenditure.

Table 4.7.11 : Reasons for saving by BPL and Non- BPL beneficiary

Sr.



Friedman Mean Score

BPL

beneficiary

Non- BPL

beneficiary

BPL

beneficiary

Non- BPL

beneficiary

1 To meet Social

Occasion expenditure 2.35 2.38 2 2

2 To meet Food &

Household expenditure 2.24 2.69 1 3

3 To meet Children

education expenditure 2.61 2.11 3 1

4 To meet medical


190

5 To Buy assets 4.67 4.60 5 5



4.7.12 : Ranking of various reasons for saving by women of Open, OBC

and SC group

As indicated in table 4.7.12, the overall rank given by the women of Open, OBC and

SC group for each reason of saving was given on the basis of Friedman mean score and

inferred that the women of open and OBC give first rank to the reason "children education

expenditure" followed by "social occasion expenditure" and "meet food & household

expenditure". The respondents of SC give first rank to "social occasion expenditure"

followed by children education expenditure.

Table 4.7.12 : Reasons for saving by women of Open, OBC and SC group

Sr.



Friedman Mean Score

Open OBC SC Open OBC SC

1 To meet Social

Occasion expenditure 2.44 2.36 2.17 2 2 1

2 To meet Food &

Household expenditure 2.78 2.44 2.52 3 3 3

3 To meet Children

education expenditure 1.99 2.37 2.48 1 1 2

4 To meet medical

expenditure 3.18 3.29 3.13 4 4 4

5 To Buy assets 4.63 4.59 4.74 5 5 5

6 Other reason for saving 5.98 5.95 5.96 6 6 6


191

4.7.13 : Ranking of various components of monthly expenditure pattern

To know the monthly expenditure pattern, the respondents were asked to rank various

components of monthly expenditure pattern as per their spending amount for each

component. As indicated in table 4.7.13, the overall rank to each component was given on

the basis of Friedman mean score and inferred that the respondents give first rank to the

component "food expenditure" followed by "children education expenditure". They give

third rank to "Household needs other than food, fourth to "medical expenditure" and fifth to

"other". It reveals that the respondents spend maximum portion of their money for food

and children education.

Table 4.7.13 : Ranking of various components of monthly expenditure

pattern

Sr.

No

Type of

Expense

Rank

1

Rank

2

Rank

3

Rank

4

Rank

5

Total

N

Fried

man

Mean

Rank

Over

all

Rank

1 Food

Expenditure 214 156 76 52 12 510 2.004 1

2 Household needs

other than Food 50 136 206 99 19 510 2.806 3

3 Children

education 208 104 104 65 29 510 2.222 2

4 Medical

Expenditure 31 97 97 243 42 510 3.329 4

5 Miscellaneous or

other 8 16 25 52 409 510 4.643 5


192

4.7.14 : Ranking for various monthly expenditure components by the

members and Leaders

As indicated in table 6.7.14, the overall rank given by the members and leaders for each

components of monthly expenditure was given on the basis of Friedman mean score and

inferred that the leaders give first rank to the component "children education" followed

by "food expenditure" while members give first rank to "food expenditure" followed by

"children education expenditure". It reveals that members spend maximum portion of their

money for food and children education.

Table 4.7.14 : Ranking for various monthly expenditure components

Sr.

No

Monthly Expenditure

Components

Friedman Mean Rank

Overall Rank based

on Friedman Mean

Score

Members Leaders Members Leaders

1 Food Expenditure 1.91 2.29 1 2

2 Household needs other than

Food 2.75 2.98 3 3

3 Children education 2.31 1.93 2 1

4 Medical Expenditure 3.38 3.17 4 4

5 Miscellaneous or other 4.64 4.63 5 5


4.7.15 : Ranking of various monthly expenditure components by the

women of Hinduism and Islam

As indicated in table 4.7.15, the overall rank given by the women of Hinduism and Islam

for each components of monthly expenditure was given on the basis of Friedman mean

score and inferred that the women of Hinduism give first rank to the component "children

education" followed by "food expenditure" while women of Islam give first rank to "food

expenditure" followed by "children education expenditure". It reveals that the women of

Islam spend maximum portion of their money for food and children education.

193

Table 4.7.15 : Ranking for various monthly expenditure components

Sr.

No

Monthly Expenditure

Components

Friedman Mean

Rank

Overall Rank based

on Friedman Mean

Score

Hinduism Islam Hinduism Islam


2 Household needs other than Food 2.86 2.31 3 2





4.7.16 : Ranking of various monthly expenditure components by BPL

and Non- BPL beneficiary

As indicated in table 4.7.16, the overall rank given by the BPL and Non- BPL beneficiary

for each components of monthly expenditure was given on the basis of Friedman mean

score and inferred that the BPL and Non-BPL beneficiaries give first rank to the

component "food expenditure" followed by "children education expenditure". They give

third rank to "Household needs other than Food, fourth to "medical expenditure" and fifth

to "other". It reveals that respondents spend maximum portion of their money for food and

children education.

Table 4.7.16 : Ranking of monthly expenditure components

Sr.

No

Monthly Expenditure

Components

Friedman Mean Rank

Overall Rank based

on Friedman Mean

Score

BPL

beneficiary

Non- BPL

beneficiary

BPL

beneficiary

Non- BPL

beneficiary


2 Household needs other than Food 2.85 2.79 3 3

194





4.8. Chi-square test

The study focuses on socio-economic aspects of the women and there may be a

relation among different variables or one variable affects to another variable; such

relationship or dependency can be measured by the chi-square test; so the chi-square test

was run to see the dependency of such variables on each other.

4.8.1 : Relationship for level of understanding about group process and

activities and education of the respondent

To examine the relation between understanding level of the respondent about group

activities and education of the respondent, Chi-square test was performed. The Chi-square

results are shown in table 4.8.1, and the results do not support the H0 (7.1) and revealed

statistically significant relationship between the education of the respondents and

understanding level about group activities as p <0.05 in all variables.

Table 4.8.1 : Chi-Square test results for level of understanding about

group process and activities and education of the respondent

Understanding about…. Value DF Sign.

Objectives of the group 36.61 6 0.000*

Rules & Regulations of SHG 36.54 6 0.000*

Meeting calendar 37.14 6 0.000*

Information of group records 31.57 6 0.000*

Your total saving amount in the group 34.44 6 0.000*

Total capital of the group 36.55 6 0.000*

Total loan amount of the group 36.28 6 0.000*

195

No. of members who have taken loan 16.06 6 0.001*

No. of members who have repaid loan 21.76 6 0.000*



activities and Designation of the respondent


activities and Designation of the respondent, Chi-square test was performed. The Chi-

square results are shown in table 4.8.2, and the results do not support the H0 (7.2) and

revealed statistically significant relationship between the designation of the respondents

and understanding level about group activities as p <0.05 in all variables.


group process and activities and Designation of the respondent

Understanding about…. F Value DF Sign.











196


activities and Age of the respondent


activities and Age of the respondent, Chi-square test was performed. The Chi-square


statistically significant relationship between the Age of the respondents and understanding

level about group activities as p <0.05 for all variable except the variable "objectives

of the group" and it support the H0 (7.3) and revealed the relationship is non-significant

for this variable.


group process and activities and Age of the respondent


Objectives of the group 8.84 4 0.065











activities and Basic information or training to the respondent


activities and Basic information or training to the respondent, Chi-square test was

performed. The Chi- square results are shown in table 4.8.4, and the results do not support

197

the H0 (7.4) and revealed statistically significant relationship between the basic

information or training to the respondents and understanding level about group activities as

p <0.05 in all variables.


group process and activities and Basic information or training to the

respondent













activities and Attendance in meeting by the respondent


activities and Attendance in meeting by the respondent, Chi-square test was performed.

The Chi-square results are shown in table 4.8.5, and the results do not support the H0

(7.5) and revealed statistically significant relationship between the Attendance in

meeting by the respondents and understanding level about group activities as p <0.05 in

all variables.

198


group process and activities and Attendance in meeting by the

respondent













activities and Experience of the respondent with the group


activities and Experience of the respondent, Chi-square test was performed. The Chi-square


statistically significant relationship between the Experience of the respondents with the

group and understanding level about group activities as p <0.05 in all variables.


group process and activities and Experience of the respondent




199









4.8.7 Chi-square test for other categorical variables

The chi-square test was performed to various categorical variables like income, saving,

expenditure, loan amount, frequency of meeting, experience of respondent with the group

etc to see the relationship among them and it has shown as under.

To examine the relation between monthly income and education of the respondents, Chi-

square test was performed. The results do not support H0 (7.7) and revealed that the

relation between these variables was significant, χ2 (9, N= 510) = 57.97, p = 0.000 which

is less than 0.05.

To examine the relation between monthly income and social group of the respondents,

Chi- square test was performed. The results do not support H0 (7.8) and revealed that

the relation between these variables was significant, χ2 (6, N= 510) = 24.14, p = 0.000

which is less than 0.05.

To examine the relation between monthly income and religion of the respondents, Chi-


relation between these variables was not significant, χ2 (3, N= 510) = 4.61, p = 0.201

which is more than 0.05.

To examine the relation between monthly income and occupation of the respondents, Chi-


200

relation between these variables was significant, χ2 (3, N= 510) = 236.28, p = 0.000


To examine the relation between monthly income and experience of the respondents, Chi-



is less than 0.05.

To examine the relation between monthly income and source of the earning of the

respondents, Chi-square test was performed. The results do not support H0 (7.12) and

revealed that the relation between these variables was significant, χ2 (24, N= 510) =

447.32, p = 0.000 which is less than 0.05.

To examine the relation between monthly income and saving of the respondents, Chi-



is less than 0.05.

To examine the relation between monthly income and loan amount taken by the




To examine the relation between monthly family income and saving of the respondents,




To examine the relation between monthly family income and loan amount taken by the


revealed that the relation between these variables was significant, χ2 (16, N= 510) = 29.39,

p = 0.021 which is less than 0.05.

To examine the relation between monthly family income and occupation of the


201



To examine the relation between monthly saving and social group of the respondents, Chi-



is less than 0.05.

To examine the relation between monthly saving and experience of the respondents, Chi-



is less than 0.05.

To examine the relation between loan amount taken and source of earning of the




To examine the relation between experience with the group and frequency of meeting of

the respondents, Chi-square test was performed. The results do not support H0 (7.21) and

revealed that the relation between these variables was significant, χ2 (9, N= 510) = 93.98, p

= 0.000 which is less than 0.05.

To examine the relation between education and Frequency of meeting of the


revealed that the relation between these variables was significant, χ2 (9, N= 510) = 44.34,

p = 0.000 which is less than 0.05.

To examine the relation between experience with the group and availability of loan of the


revealed that the relation between these variables was significant, χ2 (3, N= 510) = 24.13, p

= 0.000 which is less than 0.05.

To examine the relation between designation and availability of loan of the respondents,


202



To examine the relation between designation and education of the respondents, Chi-


relation between these variables was significant, χ2 (3, N= 510) = 49.95, p = 0.000 which is

less than 0.05.

4.9 : Exploratory Factor Analysis

One of the objectives of the study is to ascertain the factors related to empowerment

of women. The key factors for women empowerment has been identified by an exploratory

factor analysis. An exploratory factor analysis (EFA) is a statistical method used to

uncover the underlying structure of a relatively large set of variables. EFA is a technique

within factor analysis whose overarching goal is to identify the underlying relationships

between measured variables.

4.9.1 Factor analysis for Social Empowerment Factors

Table 4.9.1.1 : KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.940

Approx. Chi-Square 4747.067

Bartlett's Test of Sphericity df 190

Sig. 0.000

Source : SPSS output

A Principal component factor (PAF) with a Varimax (orthogonal) rotation of the 20 Likert

scale variables for the social empowerment was conducted on data gathered from 510

women respondents. The Kaiser-Meyer Olkin measure of sampling adequacy for the

various factors of social empowerment measurement is 0.940, which indicates the scale is

appropriate and helps in extracting the factor. The ideal measure for this test (KMO > 0.50)

(Malhotra, 2004) and here the KMO measure is 0.940 indicates the variables are measuring

a common factor. Bartlett's test is another indication of the strength of the relationship

among variables. Bartlett's test of sphericity is significant that is, its associated probability

203

is less than 0.05. In fact, it is actually 0.00 indicates the inter-correlation matrix is

factorable and inter-correlation matrix come from a sample population in which the

variables are non-collinear.

Table 4.9.1.2 : Total Variance Explained

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumula

tive

%

Total

% of

Variance

Cumulat

ive

%

Total

% of

Variance

Cumula

tive

%

1 8.523 42.615 42.615 8.523 42.615 42.615 4.748 23.741 23.741

2 2.094 10.469 53.084 2.094 10.469 53.084 4.190 20.949 44.690

3 1.103 5.514 58.598 1.103 5.514 58.598 2.782 13.908 58.598

4 .878 4.392 62.990

5 .799 3.995 66.985

6 .708 3.538 70.523

7 .628 3.141 73.664

8 .569 2.843 76.507

9 .554 2.772 79.279

10 .506 2.531 81.809

dimension 0

11 .493 2.466 84.276

12 .474 2.371 86.646

13 .457 2.287 88.933

14 .379 1.895 90.829

15 .352 1.761 92.590

16 .344 1.718 94.308

17 .326 1.629 95.937

18 .313 1.566 97.503

19 .290 1.451 98.954

20 .209 1.046 100.000

Extraction Method : Principal Component Analysis. Source : SPSS output

204

The table 4.9.1.2 shows all the factors extractable from the analysis along with their

eigenvalues, the percent of variance attributable to each factor, and the cumulative

variance of the factor and the previous factors. Notice that the first factor accounts for

42.61% of the variance, the second 10.47% and the third 5.51%. All the remaining factors

are not significant. It is also inferred that three components cover 58 percent of the data

under Principle Component Analysis method and cover considerable variation. Again

rotated component matrix makes the situation clearer and helps in identifying the crucial

factors.

Table 4.9.1.3 : Rotated Component Matrixa

Component

1 2 3

Able to discuss freely with official people : After Joining

SHG

.681

Improvement in Communication skill : After Joining SHG .796

Physical Mobility : After Joining SHG

Decision ability on household expenditure, savings, and

child education : After Joining SHG

.702

Ability to take decision on taking / use of loan : After

Joining SHG

.752

Ability to take decision on family matters / problems : After

Joining SHG

.569

Attending Social / Village / Panchayat Meetings : After

Joining SHG

.790

Recognition or Respect in the Society or Family : After

Joining SHG

.602

Increment in Social awareness : After Joining SHG .624

Ability to take up social issues like Abuse, Violence, Drugs,

Alcoholism etc : After Joining SHG

Development of Leadership skills : After Joining SHG .822

205

Development of Entrepreneurial skills : After Joining SHG .799

Development of Book keeping and Administrative skills :

After Joining SHG

.643

Awareness of Health, Sanitation and Children education :

After Joining SHG

.562

Increased Market Knowledge : After Joining SHG .705

Improvement in Literacy Level : After Joining SHG .672

Awareness of Food and Nutrition : After Joining SHG .704

Expressing views in Family as well as in groups freely : After

Joining SHG

.651

Increased self confidence : After Joining SHG .787


Rotation Method : Varimax with Kaiser Normalization. a. Rotation converged in 6

iterations

The study suppressed all loadings less than 0.5. The idea of rotation is to reduce the

number factors on which the variables under investigation have high loadings. Rotation

does not actually change anything but makes the interpretation of the analysis easier. It can

be inferred from table 4.9.1.3 that "Decision ability on household expenditure, savings and

child education", "Ability to take decision on taking or use of loan", "Ability to take

decision on family matters or problems", "Recognition or respect in the society' or family"

are substantially loaded on Factor (Component) 3, while "Increment in social awareness",

"Awareness of Health, Sanitation and Children education", "Increase in self-spending",

"Awareness of food and nutrition", "Expressing views in family as well as in groups

freely", "Increased self confidence" are substantially loaded on Factor 2. All the

remaining variables like "Able to discuss freely with official people", "Improvement in

Communication skill", "Attending Social / Village / Panchayat Meetings", "Development of

Leadership skills", "Development of Entrepreneurial skills", "Development of Book

keeping and Administrative skills", "Improvement in Literacy level" are substantially

loaded on Factor 1.

206

Table 4.9.1.4 lists the factors extracted from the list of variables and the variables attached

therein. The factors were extracted on the basis of common dimensions reflected by the

variables. First factor which emerges from the combination of different variables of

component 1 is Development in Personality. Second factor which emerges from the

combination of different variables of component 2 is Enhancement in Social

attentiveness. Third factor which emerges from the combination of different variables of

component 3 is Enhancement in decision taking ability. These factors have been used as

variables for further analysis

Table 4.9.1.4 : Factors of Social empowerment of Women as perceived by

Women respondents

Factor

No

Variable

No

Name of the Variable Score Factor Name

1

1 Able to discuss freely with official people 0.681

Development in

Personality

2 Improvement in Communication skill 0.796

3 Attending Social / Village / Panchayat Meetings 0.790

4 Development of Leadership skills 0.822

5 Development of Entrepreneurial skills 0.799

6 Development of Book keeping and Administrative

skills

0.643

7 Improvement in Literacy level 0.672

2

8 Increment in Social awareness 0.624

Enhancement in

Social attentiveness

9 Awareness of Health, Sanitation and Children

education

0.562

10 Increase in self-Spending 0.705

11 Awareness of Food and Nutrition 0.704

12 Expressing views in Family as well as in groups freely 0.651

13 Increased self confidence 0.787

3

14 Decision ability on household expenditure,

savings, and child education

0.702

Enhancement in

decision taking ability

15 Ability to take decision on taking or use of loan 0.752

16 Ability to take decision on family matters or

problems

0.569

17 Recognition or Respect in the Society or Family 0.602

207

4.9.2 Factor analysis for economic empowerment factors

Table 4.9.2.1 :KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.855

Approx. Chi-Square 2459.841

Bartlett's Test of Sphericity df 78

Sig. 0.000

Source : SPSS output

A Principal component factor (PAF) with a Varimax (orthogonal) rotation of the 13 Likert

scale variables for the economic empowerment was conducted on data gathered from 510

women respondents. The Kaiser-Meyer Olkin measure of sampling adequacy for the

various factors of economic empowerment measurement is 0.855, which indicates the scale

is appropriate and helps in extracting the factor. The ideal measure for this test (KMO >

0.50) (Malhotra, 2004) and here the KMO measure is 0.855 indicates the variables are

measuring a common factor. Bartlett's test of sphericity is significant that is, its associated

probability is less than 0.05. In fact, it is actually 0.00 indicates the inter-correlation

matrix is factorable and inter-correlation matrix come from a sample population in which

the variables are non- collinear.

Table 4.9.2.2 :Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of

Squared Loadings

Rotation Sums of

Squared Loadings

Total

% of

Varian

ce

Cumula

tive % Total

% of

Varian

ce

Cumula

tive % Total

% of

Varian

ce

Cumula

tive%

1 4.486 34.508 34.508 4.486 34.508 34.508 3.707 28.513 28.513

2 2.418 18.601 53.109 2.418 18.601 53.109 2.484 19.109 47.622

3 1.022 7.860 60.969 1.022 7.860 60.969 1.735 13.347 60.969

4 .874 6.725 67.694

5 .684 5.263 72.957

208

6 .620 4.771 77.727

dimension 0

7 .571 4.393 82.120

8 .565 4.344 86.464

9 .517 3.976 90.440

10 .392 3.016 93.456

11 .340 2.619 96.076

12 .269 2.065 98.141

13 .242 1.859 100.000


The table 4.9.2.2 shows all the factors extractable from the analysis along with their

eigenvalues, the percent of variance attributable to each factor, and the cumulative

variance of the factor and the previous factors. Notice that the first factor accounts for

34.51% of the variance, the second 18.60% and the third 7.86%. All the remaining factors

are not significant. It is also inferred that three components cover 61 percent of the data

under Principle Component Analysis method and cover considerable variation. Again

rotated component matrix makes the situation clearer and helps in identifying the crucial

factors.

Table 4.9.2.3 :Rotated Component Matrixa

Component

1 2 3

Enhancement in Personal or Family Income : After Joining

SHG

.589

Reduction of Poverty in the Family : After Joining SHG .723

Reduction of dependency on Money lenders : After Joining

SHG

.680

Asset creation : After Joining SHG .850

209

Commencement of Income generating activities : After Joining

SHG

.801

Ability to meet Financial crisis in the Family : After Joining

SHG

.728

Change in nature of employment : After Joining SHG .727

Increment in consumption level of family : After Joining SHG .627

Improvement in standard of living : After Joining SHG .534

Better utilization of available resources : After Joining SHG .817

Development of entrepreneurship skill : After Joining SHG .874

Increase in Purchasing Power : After Joining SHG .698

Increase in Savings : After Joining SHG .781

Extraction Method : Principal Component Analysis.

Rotation Method : Varimax with Kaiser Normalization. a. Rotation converged in 5

iterations

The study suppressed all loadings less than 0.5. The idea of rotation is to reduce the

number factors on which the variables under investigation have high loadings. Rotation

does not actually change anything but makes the interpretation of the analysis easier. It can

be inferred from table 4.9.2.3 that "Asset creation", "Commencement of Income

generating activities",

"Change in nature of employment", "Better utilization of available resources",

"Development of entrepreneurship skill" are substantially loaded on Factor (Component) 1,

while "Ability to meet financial crisis in the Family", "Increment in consumption level

of family",

"Improvement in standard of living", "Increase in Purchasing Power", "Increase in

Savings" are substantially loaded on Factor 2. All the remaining variables like

"Enhancement in Personal or Family Income", "Reduction of Poverty in the Family",

"Reduction of dependency on Money lenders" are substantially loaded on Factor 3.

210

Table 4.9.2.4 lists the factors extracted from the list of variables and the variables attached

therein. The factors were extracted on the basis of common dimensions reflected by the

variables. First factor which emerges from the combination of different variables of

component 1 is Increment in income generating activities. Second factor which emerges

from the combination of different variables of component 2 is Improvement in Economic

condition. Third factor which emerges from the combination of different variables of

component 3 is Improvement in Financial Liberation. These factors have been used as

variables for further analysis

Table 4.9.2.4 : Factors of Economic empowerment of Women as

perceived by Women respondents

Factor

No

Variable

No Name of the Variable Score Factor Name

1

1 Asset creation, 0.850

Increment in Income

generating activities

2 Commencement of Income

generating activities,

0.801

3 Change in nature of employment, 0.727

4 Better utilization of available

resources,

0.817

5 Development of entrepreneurship

skill

0.874

2

6 Ability to meet financial crisis in

the Family,

0.728

Improvement in

Economic condition

7 Increment in consumption level

of family,

0.627

8 Improvement in standard of living, 0.534

9 Increase in Purchasing Power, 0.698

10 Increase in Savings 0.781

3 11 Enhancement in Personal or

Family Income,

0.589

211

12 Reduction of Poverty in the

Family,

0.723 Improvement in

Financial Liberation

13 Reduction of dependency on

Money lenders

0.680

4.10 Multiple Regression Analysis

One of the objectives of the study is to see the impact of microfinance services on

empowerment of women. The impact has been identified by multiple regression

analysis using various socio-economic empowerment variables. Various factors identified

from exploratory factor analysis have also been used as variables to identify the impact of

microfinance on women empowerment. Multiple regression is a statistical tool used to

derive the value of a criterion from several other independent, or predictor, variables. It is

the simultaneous combination of multiple factors to assess how and to what extent they

affect a certain outcome.

4.10.1 Impact of Microfinance Services on Self confidence

The technique of multiple regressions has been used to analyze the impact of microfinance

services on self confidence of women as perceived by them. Table 4.10.1.1 provides the

list of variables used in multiple regression analysis.

Table 4.10.1.1 : Multiple Regression Analysis on Increment in Self

Confidence

Name of the Variable Definition Label

Dependent

Variable

Impact of Microfinance

Services on Women

Empowerment

Microfinance services lead to

the increment in self

confidence of women as

perceived by them

Y

Independent

Variable

REGR factor

Score1

Development in Personality X1

REGR factor

Score2

Enhancement in Social

Attentiveness X2

REGR factor

Score3

Enhancement in decision

taking ability X3

212

Dependent Variable

Dependent Variable taken was the self confidence of women with microfinance services as

perceived by them and the same was rated on five point likert scale.

Independent Variable

All the three factors were taken as independent variables that were extracted from factor

analysis out of the list of 20 variables as provided in the table 4.9.1.4.

Model formulation

Before formulating model for regression analysis, it is necessary to validate the data

by checking whether the multi-colinearity exists between data. For this purpose, estimated

partial correlation between dependent and independent variables was calculated which

measures the correlation among factors for social empowerment and increment in self

confidence of women (Table 4.10.1.2). Moreover, the Pearson correlation matrix also

indicates the nonexistence of colinearity as no correlation is too high.

Table 4.10.1.2 : Pearson Regression of Correlation between dependent

and independent variables for multiple regression analysis on increment

in self confidence

X1 X2 X3 Y

X1 1

X2 0.023 1

X3 0.787 0.000 1

Y 0.191 0.000 0.000 1

*Correlation is significant at 0.05level (2 tailed)

In order to obtain more accurate results, tests such as Variance Inflation factor (VIF)

and Tolerance level (1/VIF) were measured to test the multi co-linearity. VIF equivalent or

below 10 is said to be acceptable (Hair et al., 1998) as it reflects that data is free from

multi-co- linearity. In this case, the value of VIF and Tolerance level came out to 1 (table

213

4.10.1.5) for each independent variable, which is less than 10; hence it can be accepted

from the analysis that there exists no co-linearity among the data.

After checking the multi co-linearity, it can be estimated the regression model. To meet the

objective, the perceived impact of social empowerment variables on the increment in self

confidence of women has been studied. Following model was used for studying the

relationship between dependent and independent variables :

Y= α+ β1X1+ β 2X2 +β 3X3 +Ut

Where,

Y= Dependent Variable;

=Intercept term β1, β2, β3 are Regression coefficients

X1, X2 and X3 represent Independent variables; Ut= Error term.

The model has been summarized in the table 6.10.1.3

Table : 4.10.1.3 Model Summary for multiple regression analysis on

increment in self confidence

R R Square Adjusted R

Square

Std. Error of the

Estimate Durbin-Watson

0.810a 0.656 0.654 0.51232 1.792

The value of R in the model shows a marked degree of correlation. The value of adjusted

R2

is 0.654 which indicates that all the variables extracted could explain 65.4 per cent of

the variation in the dependent variable. Hence, the model can be confidently said to be a

generalized model. The difference between R square and adjusted R square is also

satisfactory (0.656-0.654=0.002), which is interpreted as the 2% less variation in the

outcome if it is derived from the actual population. To check whether the model fulfills the

assumption of independent errors, Durbin- Watson test is applied. The result of Watson

test (1.792) is found to be near 2, which is considered to be significant. It has been proved

through the test that the data meets the assumption of independent errors. To cross check

214

the assumption of normal distribution of the standard errors, it is confirmed through

normal probability curve and histogram

The significance of the model is measured through ANOVA (Analysis of Variance) to test

the following null hypothesis :

H0 (8.1) : β1=β2=β3 =0

The Null hypothesis explains mean values of regression co-efficient are equivalent to zero.

Table 6.10.1.4 has been drawn to reveal the significance level for F statistics. F ratio is

highly significant; once the null hypothesis H0 (8.1) is rejected i.e., there is no significance

difference between the mean values of co-efficient. It is evident that the value of one or

more regression coefficient is not equal to zero.

Table 4.10.1.4 : ANOVA for multiple regression analysis on increment in

self confidence

Model Sum of

Squares df Mean Square F Sig.

1 Regression 230.703 3 76.901 292.988 0.000a

Residual 120.737 460 0.262

Total 351.440 463

All these favorably support the argument that the model is significant and can predict the

outcomes.

Table 6.10.1.5 reveals the coefficient for regression variables. The beta value coefficient

allows us to test the strength of relationship between increment in self confidence and

social factors. Independent variables i.e., X1, X2 and X3 have positive correlation as

well as significant values at 5 per cent level of significance.

Regression Equation

The estimated equation is as follows

Y= 4.151+ 0.020 X1+ 0.686X2+ 0.167X3

215

Table 4.10.1.5 : Multiple regression analysis on increment in self

confidence

Variable

Unstandardized

Coefficients

Standardized

Coefficients t Sig. VIF Statistics

B Std. Error Beta

X1 0.020 0.024 0.023 0.824 0.030 1.000

X2 0.686 0.024 0.787 28.796 0.000 1.000

X3 0.167 0.024 0.191 7.004 0.000 1.000

This equation can be used to know whether the social factors are instrumental in increment

in self confidence of the women given the values of the factors determining the impact of

such variables on women respondents. The equation has been obtained by capturing the

values of beta co-efficient through table 4.10.1.5.

The significant t-value corresponding to each variable confirms the significant contribution

of each independent variable to the model. All factors have significant values. Larger the

value of t statistics, the contribution of the respective variable is known to be greater. The

same fact has been shown through beta values.

The value of Beta coefficient is highest in case of X2 (Enhancement in Social

attentiveness) revealing that 78.7 percent followed by X3 (Enhancement in decision taking

ability) 19.1 percent of the variation in the increment in self confidence can be explained

by this variable. The smallest beta in case of X1 i.e. 0.023, shows that development in

personality factor contribute least to the increment in self confidence of women members.

4.10.2 Impact of Microfinance Services on Development of

Entrepreneurship Skill

The technique of multiple regressions has been used to analyze the impact of microfinance

services on economic empowerment of women as perceived by them. Table 6.10.2.1

provides the list of variables used in multiple regression analysis.

216

Table 4.10.2.1 : Multiple Regression Analysis on development of


Name of the Variable Definition Label

Dependent

Variable

Impact of Microfinance Services

on Women Empowerment

Microfinance services lead to the

Development of

entrepreneurship skill of women

as perceived by them

Y

Independent

Variable

REGR factor

Score1

Increment in Income generating

activities X1

REGR factor

Score2

Improvement in Economic

condition X2

REGR factor

Score3

Improvement in Financial

Liberation X3

Dependent Variable

Dependent Variable taken was the development of entrepreneurship skill of women

with microfinance services as perceived by them and the same was rated on five point

likert scale.


All the three factors were taken as independent variables that were extracted from factor

analysis out of the list of 13 variables as provided in the table 4.9.2.4.

Model formulation

Before formulating model for regression analysis, it is necessary to validate the data

by checking whether the multi co-linearity exists between data. For this purpose,

estimated partial correlation between dependent and independent variables was calculated

which measures the correlation among factors for economic empowerment and

development of entrepreneurship skill of women (Table 4.10.2.2). Moreover, the Pearson

correlation matrix also indicates the nonexistence of co-linearity as no correlation is too

high.

217


and independent variables for multiple regression analysis on


X1 X2 X3 Y

X1 1

X2 0.874 1

X3 0.029 0.000 1

Y 0.030 .000 .000 1

*Correlation is significant at 0.05level (2 tailed)


and Tolerance level (1/VIF) were measured to test the multi-co-linearity. VIF equivalent

or below 10 is said to be acceptable (Hair et al., 1998) as it reflects that data is free from

multi-co- linearity. In this case, the value of VIF and Tolerance level came out to 1 (table

4.10.2.5) for each independent variable, which is less than 10; hence it can be accepted

from the analysis that there exists no co-linearity among the data.


objective, the perceived impact of economic empowerment variables on the development

of entrepreneurship skill of women has been studied. Following model was used for

studying the relationship between dependent and independent variables :

Y= α+ β1X1+ β 2X2 +β 3X3 +Ut

Where,


=Intercept term β1, β2, β3 are Regression coefficients

X1, X2 and X3 represent Independent variables; Ut = Error term.


218



R R Square Adjusted R Square Std. Error of the


0.875a 0.765 0.764 0.65206 1.581


R2




satisfactory (0.765-0.764=0.001), which is interpreted as the 1% less variation in the



test (1.581) is found to be near 2, which is considered to be significant. It has been proved

through the test that the data meets the assumption of independent errors. To cross check

the assumption of normal distribution of the standard errors, it is confirmed through




H0 (8.2) : β1=β2=β3 =0



highly significant; hence the null hypothesis H0 (8.2) is rejected i.e., there is no

significance difference between the mean values of co-efficient. It is evident that the value

of one or more regression coefficient is not equal to zero.

219

Table 4.10.2.4 : ANOVA for multiple regression analysis on development

of entrepreneurship skill

Model Sum of Squares df Mean Square F Sig.

1 Regression 667.316 3 222.439 523.153 0.000b

Residual 204.941 482 0.425

Total 872.257 485

All these favorably support the argument that the model is significant and can predict the

outcomes.


allows us to test the strength of relationship between development of entrepreneurship skill

of women and economic factors. Independent variables i.e., X1, X2 and X3 have

positive correlation as well as significant values at 5 per cent level of significance.

Regression Equation


Y= 3.039+ 1.172 X1+ 0.038X2+ 0.041X3

Table 4.10.2.5 : Multiple regression analysis on development of


Variable

Unstandardized

Coefficients

Standardized

Coefficients t Sig. VIF Statistics

B Std. Error Beta

X1 1.172 0.030 0.874 39.571 0.000 1.000

X2 0.038 0.030 0.029 1.294 0.196 1.000

X3 0.041 0.030 0.030 1.375 0.170 1.000

This equation can be used to know whether the economic factors are instrumental in

development of entrepreneurship skill of the women given the values of the factors

220

determining the impact of such variables on women respondents. The equation has been

obtained by capturing the values of beta co-efficient through table 4.10.2.5.


of each independent variable to the model. All factors have significant values. Larger the



The value of Beta coefficient is highest in case of X1 (Increment in Income

generating activities) revealing that 87.4 percent followed by X3 (Improvement in

Financial Liberation) 3 percent of the variation in the development of entrepreneurship

skill can be explained by this variable.

4.10.3 Impact of Economic Empowerment Factors on Reduction of Poverty of Women

The technique of multiple regressions has been used to analyze the impact of

economic empowerment factors on reduction of poverty of women members. Table

4.10.3.1 provides the list of variables used in multiple regression analysis.

Table 4.10.3.1 : Variables used in Multiple Regression for Poverty Reduction

Name of the Variable Label

Dependent

Variable Reduction of Poverty in the Family : After Joining SHG Y

Independent

Variable

Enhancement in Personal or Family Income : After Joining SHG X1

Reduction of dependency on Money lenders : After Joining SHG X2

Asset creation : After Joining SHG X3

Commencement of Income generating activities : After Joining

SHG X4

Change in nature of employment : After Joining SHG X5

Better utilization of available resources : After Joining SHG X6

Development of entrepreneurship skill : After Joining SHG X7

Increase in Purchasing Power : After Joining SHG X8

Increase in Savings : After Joining SHG X9

221

Dependent Variable

The reduction of poverty of women member was taken as dependent variable with

microfinance services as perceived by them and the same was rated on five point likert

scale.


Total nine factors were taken as independent variables from the table 6.10.3.1.

Model formulation

Before formulating model for regression analysis, it is necessary to validate the data by

checking whether the multi co-linearity exists between data. For this purpose,


which measures the correlation among reduction of poverty of women and the factors

affecting the poverty (Table 4.10.3.2). Moreover, the Pearson correlation matrix also

indicates the nonexistence of co-linearity as no correlation is too high.


and independent variables for multiple regression analysis on reduction

of the poverty

X1 X2 X3 X4 X5 X6 X7 X8 X9 Y

X1 1

X2 0.197 1

X3 0.392 0.194 1

X4 0.235 0.139 0.235 1

X5 0.230 0.087 0.042 0.568 1

X6 0.279 0.175 0.139 0.558 0.631 1

X7 0.160 0.150 0.001 0.726 0.540 0.502 1

X8 0.250 0.081 0.010 0.698 0.661 0.559 0.660 1

X9 0.278 0.170 0.305 0.327 0.327 0.310 0.359 0.351 1

Y 0.200 0.138 0.307 -0.029 -0.009 0.053 0.021 -0.053 0.425 1

222


and Tolerance level (1/VIF) were measured to test the multi co-linearity. VIF equivalent

or below 10 is said to be acceptable (Hair et al., 1998) as it reflects that data is free

from multi-co- linearity. In this case, the value of VIF and Tolerance level came out in

between 1.086 and 2.731 (Table 4.10.3.5) for each independent variable, which is less

than 10; hence it can be accepted from the analysis that there exists no co-linearity among

the data.


objective, the perceived impact of economic empowerment variables on the reduction of

poverty has been studied. Following model was used for studying the relationship between

dependent and independent variables :

Y= α+ β1X1+ β 2X2 +β 3X3 +β 4X4+ β 5X5+ β 6X6 + β7X7+ β 8X8 +β 9X9 +Ut

Where,


=Intercept term β1, β2, β3, β4, β5, β6, β7, β8, β9, are Regression coefficients X1, X2, X3,

X4, X5, X6, X7, X8, and X9 represent Independent variables; Ut= Error term.

The model has been summarized in the table 4.10.3.3 :


reduction of the poverty



0.497a 0.247 0.233 0.76150 1.555


R2




satisfactory (0.247-0.233=0.014), which is interpreted as the 0.01.4% less variation in the


223


test (1.555) is found to be near 2, which is considered to be significant. It has been

proved through the test that the data meets the assumption of independent errors. To cross

check the assumption of normal distribution of the standard errors, it is confirmed through

normal probability curve and histogramThe significance of the model is measured through

ANOVA (Analysis of Variance) to test the following null hypothesis :

H0 (8.3) : β1=β2=β3=β4=β5=β6= β7= β8= β9 =0



highly significant; hence the null hypothesis H0 (8.3) is rejected i.e., there is no



Table 4.10.3.4 : ANOVA results for multiple regression analysis on

reduction of the poverty


1 Regression 91.137 9 10.126 17.463 0.000a

Residual 277.183 478 0.580

Total 368.320 487

All these favorably support the argument that the model is significant and can predict

the outcomes.


allows us to test the strength of relationship between poverty reduction and economic

factors. Independent variables i.e., X1, X2, X3, X4, X5, X6, X7, X8 and X9 have positive

correlation as well as significant values at 5 per cent level of significance. X6 which has

negative beta has been eliminated for the purpose of interpretation as well as from

regression model.

224

Regression Equation


Y= 1.377+ 0.039 X1+ 0.289X2+ 0.067X5+ 0.108X7+ 0.087X9

Table 4.10.3.5 : Multiple regression analysis on reduction of the poverty

Variable

Unstandardized

Coefficients

Standardized

Coefficient s t Sig.

VIF S

tatistics B Std. Error Beta

X1 0.039 0.018 0.089 2.158 0.031 1.086

X2 0.289 0.040 0.315 7.211 0.000 1.213

X3 0.052 0.045 0.075 1.147 0.252 2.731

X4 0.026 0.039 0.039 0.663 0.507 2.206

X5 0.067 0.039 0.094 1.708 0.038 1.931

X6 -0.069 0.041 -0.104 -1.668 0.096 2.461

X7 0.108 0.042 0.166 2.559 0.011 2.686

X8 0.040 0.046 0.044 0.878 0.381 1.609

X9 0.087 0.050 0.081 1.747 0.081 1.354


poverty reduction of the women given the values of the factors determining the impact of

such variables on women respondents. The equation has been obtained by capturing the

values of beta co-efficient through table 4.10.3.5.


of each independent variable to the model. All factors have significant values except

X3, X4, and X8 hence excluded while formulating equation. Larger the value of t statistics,

the contribution of the respective variable is known to be greater. The same fact has been

shown through beta values.

The value of Beta coefficient is highest in case of X7 (Development of entrepreneurship

skill : After Joining SHG) revealing that 16.6 percent of the variation in the poverty

reduction can be explained by this variable. Similar results are shown by other variables

225

such as"Enhancement in Personal or Family Income : After Joining SHG

(X1)","Reduction of dependency on Money lenders : After Joining SHG (X2)","Change in

nature of employment

After Joining SHG (X5)","Better utilization of available resources : After Joining

SHG"(X6) and Increase in Savings : After Joining SHG (X9). So, it can be said that

micro finance services lead to reduction of poverty of women.

4.10.4 Impact of Economic Empowerment Factors on Improvement in

Standard of living of Women

The technique of multiple regressions has been used to analyze the impact of

economic empowerment factors on improvement in standard of living of women

members. Table 4.10.4.1 provides the list of variables used in multiple regression analysis

Table 4.10.4.1 : Variables used in multiple regressions for standard of

living of women based on economic empowerment factors


Dependent

Variable

Improvement in standard of living Y

Independent

Variable

Enhancement in Personal or Family Income : After Joining

SHG

X1

Reduction of Poverty in the Family : After Joining SHG X2

Asset creation : After Joining SHG X3

Commencement of Income generating activities : After

Joining SHG

X4

Change in nature of employment : After Joining SHG X5

Increment in consumption level of family : After Joining

SHG

X6

Better utilization of available resources : After Joining SHG X7

Development of entrepreneurship skill : After Joining SHG X8

Increase in Purchasing Power : After Joining SHG X9

Increase in Savings : After Joining SHG X10

226

Dependent Variable

Dependent Variable taken was the improvement in standard of living of women member


likert scale.


All the ten factors were taken as independent variables that were provided in the

table 4.10.4.1.

Model formulation




which measures the correlation among improvement in standard of living of women and

the factors affecting the economic empowerment (Table 4.10.4.2). Moreover, the Pearson


high.



improvement in standard of living of the women based on economic

empowerment factors

X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 Y

X1 1

X2 0.195 1

X3 0.347 0.197 1

X4 0.054 0.139 0.235 1

X5 0.100 0.087 0.229 0.568 1

X6 0.203 0.175 0.280 0.559 0.631 1

X7 0.351 0.160 0.270 0.323 0.303 0.366 1

227

X8 0.142 0.150 0.160 0.727 0.541 0.504 0.391 1

X9 0.004 0.081 0.251 0.698 0.661 0.559 0.329 0.661 1

X10 0.277 0.170 0.278 0.327 0.327 0.310 0.528 0.359 0.351 1

Y 0.402 0.138 0.202 -0.027 -0.007 0.055 0.285 0.023 -0.051 0.425 1



or below 10 is said to be acceptable (Hair et al., 1998) as it reflects that data is free

from multi co- linearity. In this case, the value of VIF and Tolerance level came out in

between 1.087and 2.737 (Table 4.10.4.5) for each independent variable, which is less

than 10; hence it can be accepted from the analysis that there exists no co-linearity among

the data.


objective, the perceived impact of economic empowerment variables on the improvement

in standard of living of women has been studied. Following model was used for studying

the relationship between dependent and independent variables :

Y= α+ β1X1+ β 2X2 +β 3X3 +β 4X4+ β 5X5+ β 6X6 + β7X7+ β 8X8 +β 9X9

+β10X10+Ut

Where,


=Intercept term β1, β2, β3, β4, β5, β6, β7, β8, β9, β10 are Regression coefficients

X1, X2, X3, X4, X5, X6, X7, X8, X9, X10, represent Independent variables;

Ut= Error term.


228


improvement in standard of living of the women based on economic

empowerment factors



0.563a 0.317 0.303 0.64539 1.943


R2




satisfactory (0.317-0.303=0.014), which is interpreted as the 0.01.4% less variation in the









H0 (8.4) : β1=β2=β3=β4=β5=β6= β7= β8= β9= β10 =0



highly significant; hence the null hypothesis is H0 (8.4) rejected i.e., there is no



229

Table 4.10.4.4 : ANOVA for multiple regression analysis on improvement

in standard of living of the women based on economic empowerment

factors


1 Regression 92.178 10 9.218 22.130 0.000a

Residual 198.270 476 0.417

Total 290.448 486


the outcomes.


allows us to test the strength of relationship between improvement in standard of living of

women and economic empowerment factors. Independent variables i.e., X1, X2, X3, X4,

X5, X6, X7, X8, X9 and X10 have positive correlation as well as significant values at 5 per

cent level of significance. X3, X8 and X9 which have negative beta have been eliminated

for the purpose of interpretation as well as from regression model.

Regression Equation


Y= 1.410+0.025 X1+ 0.218 X2+ 0.018X4+ 0. 0.082X5+ 0.172X6+ 0.102X7+ 0.255X10

Table 4.10.4.5 : Multiple regression analysis on improvement in standard

of living of the women based on economic empowerment factors

Variable

Unstandardized

Coefficients

Standardized

Coefficient s t Sig. VIF Statistics

B Std. Error Beta

X1 0.025 0.015 0.065 1.634 0.103 1.087

X2 0.218 0.037 0.246 5.898 0.218 1.211

X3 -0.071 0.038 -0.116 -1.847 0.065 2.737

230

X4 0.018 0.033 0.031 0.548 0.584 2.206

X5 0.082 0.033 0.130 2.452 0.015 1.971

X6 0.172 0.042 0.194 4.100 0.000 1.563

X7 0.102 0.035 0.173 2.872 0.004 2.526

X8 -0.136 0.036 -0.237 -3.800 0.000 2.705

X9 -0.008 0.041 -0.010 -0.194 0.847 1.756

X10 0.255 0.042 0.266 6.050 0.000 1.351


improvement in standard of living of the women given the values of the factors

determining the impact of such variables on women respondents. The equation has been

obtained by capturing the values of beta co-efficient through table 6.10.4.5.


of each independent variable to the model. All factors have significant values except X3,

X8 and X9 hence excluded while formulating equation. Larger the value of t statistics, the

contribution of the respective variable is known to be greater. The same fact has been

shown through beta values.

The value of Beta coefficient is highest in case of X10 (Increase in Savings) revealing

that 26.6 percent of the variation in the improvement in standard of living can be

explained by this variable. Similar results are shown by other variables such as

"Reduction of Poverty in the Family (X2)","Increment in consumption level of family

(X6)","Better utilization of available resources (X7)", and Change in nature of employment

(X5). So, it can be said that micro finance services lead to improvement in standard of

living for the women.

4.10.5 Impact of Social Empowerment Factors on Improvement in Social

Status of Women members

The technique of multiple regressions has been used to analyze the impact of social

empowerment factors on improvement in social status of women members. Table 4.10.5.1

provides the list of variables used in multiple regression analysis.

231

Table 4.10.5.1 : Variables used in multiple regression for social status of

women members based on social empowerment factors


Dependent

Variable

Impact on social status of women Y

Independent

Variable

Able to discuss freely with official people X1

Improvement in Communication skill X2

Physical mobility X3

Ability to take decision on household expenditure, savings, and child

education

X4

Ability to take decision on taking / use of loan X5

Ability to take decision on family matters / problems X6

Attending social / Village / Panchayat meetings X7

Increment in Social awareness X8

Ability to take up social issues like abuse, violence, drugs, alcoholism X9

Development of Leadership skills X10

Development of Entrepreneurial skills X11

Development of Book keeping and administrative skills X12

Awareness of health , sanitation and children education X13

Increased market knowledge X14

Increase in self-Spending X15

Improvement in literacy level X16

Awareness of food and nutrition X17

Expressing views in family as well as in groups freely X18

Increased self confidence X19

232

Dependent Variable

Dependent Variable taken was the improvement in social status of women member


likert scale.


All the Nineteen factors were taken as independent variables that were provided in the

table 4.10.5.1.

Model formulation




which measures the correlation among improvement in social status of women and the

factors affecting the social empowerment (Table 6.10.5.2). Moreover, the Pearson


high.



improvement of social status of the women based on social empowerment

factors

X

1

X

2

X

3

X

4

X

5

X

6

X

7

X

8

X

9

X

10

X

11

X

12

X

13

X

14

X

15

X

16

X

17

X

18

X

19

Y

X

1

1

X

2

0.

40

4

1

233

X

3

0.

28

5

0.

68

6

1

X

4

0.

44

6

0.

50

4

0.

43

0

1

X

5

0.

42

4

0.

42

0

0.

39

1

0.

44

2

1

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6

0.

45

1

0.

26

0

0.

19

1

0.

38

6

0.

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7

1

X

7

0.

30

9

0.

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3

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6

0.

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8

0.

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9

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6

1

X

8

0.

23

6

0.

52

6

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59

6

0.

24

2

0.

28

9

0.

12

4

0.

32

8

1

X

9

0.

42

0

0.

41

2

0.

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4

0.

46

5

0.

34

0

0.

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3

0.

26

5

0.

27

0

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X

1

0

0.

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6

0.

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2

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4

0.

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234

X

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0

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6

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6

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4

1

X

1

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0.

38

9

0.

42

3

0.

34

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8

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3

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3

0.

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1

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1

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3

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8

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6

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1

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1

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0.

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59

0

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9

0.

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1

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1

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4

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3

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7

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0

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1

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4

0.

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3

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1

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2

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7

0.

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0

0.

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9

0.

56

1

0.

49

9

0.

49

8

1

Y

0.

43

4

0.

31

2

0.

25

9

0.

42

9

0.

28

8

0.

34

7

0.

19

8

0.

14

8

0.

47

2

0.

40

3

0.

21

4

0.

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8

0.

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7

0.

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7

0.

40

6

0.

51

8

0.

33

2

0.

49

3

0.

43

4

1



or below 10 is said to be acceptable (Hair et al., 1998) as it reflects that data is free from

multi co- linearity. In this case, the value of VIF and Tolerance level came out in

between 1.465 and 3.096 (Table 6.10.5.5) for each independent variable, which is less than

10; hence it can be accepted from the analysis that there exists no co-linearity among the

data.


objective, the perceived impact of social empowerment variables on the social status

of women has been studied. Following model was used for studying the relationship

between dependent and independent variables :

235

Y= α+ β1X1+ β 2X2 +β 3X3 +β 4X4+ β 5X5+ β 6X6 + β7X7+ β 8X8 +β 9X9 +β 10X10+

β11X11+ β 12X12 + β13X13+ β 14X14 +β 15X15 +β 16X16+ β 17X17+ β

18X18+ β19X19+Ut

Where,


=Intercept term β1, β2, β3, β4, β5, β6, β7, β8, β9, β10, β11, β12, β13, β14, β15, β16,

β17, β18, β19 are Regression coefficients

X1, X2, X3, X4, X5, X6, X7, X8, X9, X10, X11, X12, X13, X14, X15,, X16, X17,

X18, X19, represent Independent variables;

Ut= Error term.




factors



0.635a 0.403 0.378 0.66115 1.878


R2




satisfactory (0.403-0.0.378=0.025), which is interpreted as the 2.5% less variation in the







236



H0 (8.5) : β1=β2=β3=β4=β5=β6= β7= β8= β9= β10= β11= β12= β13= β14= β15= β16=

β17=β18= β19=0



highly significant; hence the null hypothesis is rejected i.e., there is no significance

difference between the mean values of co-efficient. It is evident that the value of one or

more regression coefficient is not equal to zero.

Table 4.10.5.4 : ANOVA results for multiple regression analysis on


factors


1 Regression 131.220 19 6.906 15.800 0.000a

Residual 194.082 444 0.437

Total 325.302 463


the outcomes.


allows us to test the strength of relationship between improvement in social status of

women and social empowerment factors. Independent variables i.e., X1, X2, X3, X4,

X5, X6, X7, X8, X9, X10, X11, X12, X13, X14, X15, X16, X17, X18, and X9 have

positive correlation as well as significant values at 5 per cent level of significance. X2,

X10, X11, X12, X15 and X16 which have negative beta have been eliminated for the

purpose of interpretation as well as from regression model.

Regression Equation


237

Y= 0.359+0.102 X1+ 0.092 X3+ 0.135X4+ 0.180X5+ 0.030X6+ 0.045X7+ 0.061X8+

0.109X9+0.072X13+ 0.040X14+ 0.018X17+ 0.057X18+ 0.122X19

Table 4.10.5.5 : Multiple regression analysis on improvement of social

status of the women based on social empowerment factors

Variable

Unstandardized

Coefficients

Standardized

Coefficient s t Sig.

VIF

Statistics

B Std. Error Beta

X1 0.102 0.050 0.122 2.028 0.043 2.671

X2 -0.033 0.047 -0.044 -0.703 0.482 2.857

X3 0.092 0.046 0.099 2.000 0.046 1.822

X4 0.135 0.053 0.121 2.560 0.011 1.665

X5 0.180 0.046 0.176 3.871 0.000 1.547

X6 0.030 0.041 0.033 0.741 0.059 1.465

X7 0.045 0.033 0.074 1.364 0.043 2.163

X8 0.061 0.045 0.068 1.367 0.032 1.815

X9 0.109 0.043 0.119 2.561 0.011 1.606

X10 -0.049 0.042 -0.075 -1.170 0.243 3.096

X11 -0.016 0.036 -0.025 -0.431 0.667 2.428

X12 -0.007 0.038 -0.010 -0.183 0.855 2.247

X13 0.072 0.054 0.069 1.340 0.031 1.999

X14 0.040 0.045 0.048 0.903 0.033 2.125

X15 -0.037 0.053 -0.038 -0.700 0.485 2.188

X16 -0.015 0.040 -0.021 -0.378 0.706 2.321

X17 0.018 0.046 0.019 0.394 0.044 1.717

X18 0.057 0.049 0.062 1.177 0.240 2.087

X19 0.122 0.049 0.126 2.493 0.013 1.915

238

This equation can be used to know whether the social factors are instrumental in

improvement in social status of the women given the values of the factors determining the

impact of such variables on women respondents. The equation has been obtained by

capturing the values of beta co-efficient through table 6.10.5.5.


of each independent variable to the model. All factors have significant values except X2,

X10, X11, X12, X15 and X16 hence excluded while formulating equation. Larger the



The value of Beta coefficient is highest in case of X5 (Ability to take decision on taking /

use of loan) revealing that 17.6 percent of the variation in the increment in social status can

be explained by this variable. Similar results are shown by other variables such as"able to

discuss freely with official people (X1)","Decision ability on household expenditure

savings, and child education (X4)"," ability to take up social issues like abuse,

violence, drugs, alcoholism etc (X8)", and increased self confidence (X19). So, it can be

said that micro finance services lead to improvement in status of women economically as

well socially. The smallest beta in case of X6 i.e. 0.033 shows that the variable "ability

to take decision on family matters or problems" contribute least to the social status of

women.

4.11 Frequency for multiple choice type questions

The study includes several multiple choice questions related to sources of family income,

purpose of loan and type of training taken by the women. To analyze and interpret the

result of these questions, the frequency distribution has been portrayed because the

frequency of a particular observation is the number of times the observation occurs in the

data and it is commonly used to categorize information so that it can be interpreted quickly

in a visual way.

4.11.1 : Sources of Family Income of the respondent

As indicated in table 6.11.1, the source of family income of the most of the respondents is

animal husbandry and agriculture respectively. Family income is also contributed by the

income generating activities like small glossary shop, weave work, cottage industry etc.

239

Table 4.11.1 : Sources of Family Income of the respondent

Sources

of Family

Income

Animal

husbandry Agriculture

Labour

work

Small

Grossary

Shop

Poultry Cottage

industry Other

F % F % F % F % F % F % F %

Yes 256 50.2 242 47.5 187 36.7 33 6.5 5 1.0 35 6.9 116 22.7

No 254 49.8 268 52.5 323 63.3 477 93.5 505 99.0 475 93.1 394 77.3

Total 510 100.0 510 100.0 510 100.0 510 100.0 510 100.0 510 100.0 510 100.0


4.11.2 : Purpose of loan taken by the respondents

As indicated in table 4.11.2, 247 out of 510 women respondents have taken loan from the

SHG, and most of the respondents have taken loan for animal husbandry, social

occasions and income generating activities. The women have also taken loan for medical

treatment and house repair.

Table 4.11.2 : Purpose of loan taken by the respondents

Purpose

of loan

Medical

expenditure

Social

occasions

Children

education Agriculture

Animal

husbandry

Income

generation

activities

House

repair

Other

F % F % F % F % F % F % F % F %

Yes 51 20.6 64 25.9 45 18.2 18 7.3 64 25.9 54 21.9 18 7.3 6 2.4

No 196 79.4 183 74.1 202 81.8 229 92.7 183 74.1 193 78.1 229 92.7 241 97.6

Total 247 100.0 247 100.0 247 100.0 247 100.0 247 100.0 247 100.0 247 100.0 247 100.0


4.11.3 : Type of information or training taken by the respondent from

SHG

As indicated in table 4.11.3, 234 out of 510 women respondents have taken information or

training from the SHG, and most of the respondents have taken training for

entrepreneurship, sanitation facility, child immunity and family planning.

240

Table 4.11.3 : Type of information or training taken by the respondent

from SHG

Type of

information

or training

taken from

SHG

Maternity

services

About Child

Immunity

About

Family

planning

AIDS

awareness

Entrepre

neurship

training

About

Sanitation

facility

Other

F % F % F % F % F % F % F %

Yes 37 15.8 58 24.8 56 23.9 42 17.9 79 33.8 78 33.3 50 21.4

No 197 84.2 176 75.2 178 76.1 192 82.1 155 66.2 156 66.7 184 78.6

Total 234 100.0 234 100.0 234 100.0 234 100.0 234 100.0 234 100.0 234 100.0


241

CHAPTER - 5 : CONCLUSION, MAJOR CONTRIBUTIONS

& SCOPE OF FUTURE WORK

INTRODUCTION

This- closing chapter presents the summary of major findings of the research and the

key implications drawn from the study. Findings are discussed in three parts as per the

objectives of the study. The chapter closes with recommendations for possible future

research.

A qualitative and quantitative approach has been adopted for the study. In the initial

phase of the study exploratory design was adopted because of the problem and to

generate new ideas. In this phase in depth interviews of the bankers were arranged to

have a feel of the subject. Secondly the interviews were held of NGO functionaries,

Aanganwadi workers, Sakhi mandal functionaries who motivate the rural poor to have

micro finance service accessible. The focus groups (six focus groups) for beneficiaries

were also conducted. The design for this initial phase is presented as under

PHASE-I

Sample Unit Research method

Officials of Co-operatives (Mandalies) In-depth Interviews

Beneficiaries Focus Group

After getting insights from the.. phase-I, descriptive research design was adopted. Survey

method was adopted and the instrument used was a questionnaire. The responses

were collected from women beneficiaries of micro credit during the period October. 2014

and May. 2017

242

In the first chapter, an attempt has been made by the researcher to give a focus on the

women empowerment activities and the origin and growth of SHGs in India and Gujarat

along with the major objectives and the hypotheses framed for the purpose of the study.

In the second chapter, an attempt has been made to review the existing literature and also

to study the profile of the respondents.

In the third chapter, an attempt has been made by the researcher to examine the major

motivational factors to join the SHGs and also to study the performance and success rate of

running SHGs. The factors responsible for individual empowerment were also identified

through factor analysis and their inter relationships were found using bi-variate correlation.

Influence of demographics over factors of individual empowerment were also examined..

In the fourth chapter, an attempt has been made by the researcher to examine the

empowerment activities and the support system available to the members of the SHGs.

Accordingly, the empowerment activities of the SHG members are given in the Section-A-

and the support systems were analysed in the Section-B-.

In the fifth chapter the problems faced by the SHG members are discussed.

Major Findings of the study It is found that:

1. Most of the respondents (32.80%) are in the age group of 25-35 years.

2. Majority of the respondents (67.30%) were married.

3. Most of the respondents (33.20%) are illiterates.

4. Most of the respondents (43.50%) are labourers.

5. Most of the respondents’ (54.70%) Grandfathers were agriculturists.

6. Most of the respondents’ (38.70%) fathers are agriculturists.

7. 11.5% of the respondents expressed that they devote less than 25% of their time for

the enterprise and 42.2% of the respondents expressed that their family members

devote less than 25% of their time for the enterprise.

243

8. Most of the respondents (37.30%) came to know about SHG through their friends.

9. Most of the respondents (39.30%) were motivated to join in SHGs through their

friends.

10. The Friends act as the main source to recommend and motivate the members to join

SHG and Relatives act as the least source to recommend and motivate the members

to join SHGs.

11. The respondents in the age group of 25-35 years have got more motivation to join

SHGs and the respondents with less than 25 years have got less motivation to join

SHGs. The self employed respondents were motivated more to join SHG and the

respondents’ dependent on others were less motivated to join SHGs.

It is also observed that:

12. Most of the respondents (45.00%) are saving in post offices.

13. Most of the respondents (38.30%) are conducting meetings once in a week.

14. Most of the respondents (48.00%) have attended more than 75% of the group

meetings.

15. Most of the respondents (62.00%) are supplying their products to open market.

16. Most of the respondents (85.30%) agreed that their SHGs are organized by the

experienced members.

17. Most of the respondents (80.70%) expressed that their organizers are not working

for monthly salary.

18. Most of the respondents (52.5%) with group size more than 10 are supplying the

products in the open market.

19. Most of the respondents (67.8%) with group size more than 10 are having

experienced organizers.

244

It is also found that:

20. The classification based on group size and organizer working for salary are not well

associated.

21. The classification based on group size and successful running of enterprise are not

well associated.

22. The respondents (69.3%) with group size more than 10 are considering future

prospects/growth of the group.

23. The married respondents are more satisfied with the performance of SHGs than the

respondents living as single.

24. The labourers are more satisfied with the performance of SHGs and the respondents

dependent on others are less satisfied with the performance of SHGs.

25. The respondents in groups with size more than 10 are more satisfied with the

performance of SHGs than the respondents in the groups with size less than 10.

26. The respondents associated with the groups conducting meeting every week are having

more satisfaction towards the performance of SHGs and respondents associated with

the groups conducting meeting every month are having less satisfaction towards the

performance of SHGs.

27. The respondents belongs to the group with size more than 10 are having more

managerial capabilities than the respondents belonging to the group with size less

than 10.

30. The respondents with groups conducting weekly meeting possess more managerial

capabilities and the respondents with groups conducting monthly meeting possess

less managerial capabilities.

It is also found that:

31. The managerial capabilities of SHG members and performance of SHG by 70.1%.

32. The Self confidence improves Performance of SHGs.

245

33. The factor 1 is a combination of 7 original variables such as “able to start income-

generating activities”, “children educational needs fulfilled”, “adding more

facilities in the house”, “able to Purchase assets”, “expansion of business”,

“meeting bank officials” and “meeting Government officials” which is named as

Self confidence factor.

34. The self confidence is the prime and important factor for individual empowerment

of selected sample respondents and self confidence will lead a way for other factors.

35. The income generating activities and fulfilling the children educational needs are

the prime reasons for respondents’ self confidence.

36. The decision making abilities and purchase of additional assets, furniture, improved

electric and water supply in homes are the prime reasons for respondents’ self

improvement.

37. Attending meeting and marriage is the prime reasons for respondents’ mobility.

38. Wearing gold ornaments and quality and costly garments are the reasons for their

physical appearance.

39. The respondents with age 36-45 years are having more Self confidence and the

respondents with age up to 25 years are having less Self confidence.

40. The respondents with age 36-45 years have attained more Self- improvement and

the respondents with age up to 25 years have attained less Self -improvement.

41. The respondents with age 36-45 years are more good with Mobility and the

respondents with age above 45 years are little lacking in Mobility.

42. The married respondents are having more Self confidence than respondents living

as single.

43. The married respondents have attained more Self improvement than the


49. The married respondents are better with the Personal appearance than the


246

50. The respondents possessing education up to secondary level are having more Self

confidence and the respondents possessing higher secondary education are having

less Self confidence.

51. The respondents possessing education up to secondary level have attained more

Self improvement and the respondents possessing higher secondary education have

attained less Self improvement.

52. The respondents possessing education of degree/diploma are better in Mobility and

the respondents possessing higher secondary education are little lacking with the

Mobility.

53. The respondents possessing education up to secondary level are better in Personal

appearance and the respondents possessing higher secondary education are little

lacking with the Personal appearance.

54. The self employed respondents are having more Self confidence and the

respondents drawing salary are having less Self confidence.

55. The respondents working as labourer have attained more Self improvement and the

respondents dependent on others have attained less Self improvement.

56. The respondents with self employment are better with the Mobility and the respondents

dependent on others are little lacking in Mobility.

57. The respondents employed as laborers are better with the Personal appearance and

the respondents dependent on others are little lacking with Personal appearance.

58. The respondents belonging to the groups with size more than 10 are having more

the Self confidence than the respondents associated with the group of size less than

10.

59. The respondents belonging to the groups with size more than 10 have attained more

Self improvement than the respondents belonging to the group with size less than

10.

60. The respondents belonging to the groups with size more than 10 are better in

247

Mobility than the respondents associated with the groups with size less than 10.

61. Most of the respondents (67.50%) expressed that they have enough participation of

women in SHGs.

62. Most of the respondents (82.30%) agreed that women can do well in all the fields

wherever they placed.

63. Most of the respondents (80.20%) agreed that their SHGs are running successful.

64. Most of the respondents (87.00%) accepted that they consider future prospects /

growth of the group.

65. Most of the respondents (47.80%) expressed that they rated their SHGs as

moderately successful.

66. The self confidence of SHG members improves success of SHG by 84.0%.

67. The self improvement of SHG members increases success of SHG by 76.8%.

68. The mobility of SHG members improves success of SHG by 57.8%.

69. The personal appearance of SHG members improves success of SHG by 64.1%.

70. The performance of SHG improves success of SHG by 74.0%.

Following. easures may be suggested:

Transparency in interest rates charged by the MFIs is to be brought in.

Opaque corporate governance and usurious interest rates should be controlled: MFIs

should have code of conduct and its compliance should be ensured by third party.

Proper mechanism for redressal of grievances of the clients.

End of policy uncertainties.

Banks are providing a major portion of the resources for MFIs to lend. As lenders,

bankers have to enforce lenders discipline on the MFIs and avoid exploitation of the

248

poor and also there should be transparency in the operations of the MFIs including

effective interest rate paid by the clients.

Till now banks have played only a passive role and lent money to MFIs looking

into the governance and the operations of the MFIs

Under the concept of -Responsible Lending" a platform termed as 'Lenders' Forum'

can be created wherein all the major lenders of MFIs have agreed to work together

to impress upon the MFIs to implement the same through a common set of loan

covenants including transparency.

SHG-Bank linkage is one of the successful models to deliver microfinance and as

per the revised guidelines. a borrower cannot be a member of more than one Self

Help Group [SHG]/Joint Lending Group [MG} and not more than two. NBFC-

MFIs can lend to the same borrower.

Experts after comparing the leading model for delivery of microfinance services

consider SHG model as better model than MFIs.

5.2.2 Policy Implications

1) The need for new services

Looking to the need after need assessment services suitable to the target will reap

benefits both for the institution as well as the target. A vanilla product may not solve

the problems as requirements may differ on varied social and economic profile of the

target.

2) Relationship Building

MFis should not consider poor clients as their database for profit maximization.

3) Client Protection MFIs should take steps to protect poor clients interests. MFIs

have to extend credit if borrowers have the ability to repay. Terms and conditions

of financial products be transparent. Privacy of individual client's data should be

maintained.

249

4) Self Regulation

Efforts should be increased by MFIs to promote self regulation among

themselves, to avoid problems related to overlending or multiple agencies

lending. To some extent this can be served by Microfinance Bill, 2012.

5) Responsible to community

Like SHGs, MFIs should come up with some meaningful social contracts (`credit

plus' like livelihood training, supply of materials, interventions in the area of

health and education, marketing of products) to improve the status of poor clients.

5.3 The impact of microfinance on women empowerment

5.3.1 Major Findings

Social category and caste wise distribution of members in all four

models/cases have been largely dominated by Schedtile Tribes. 100%

respondents in Rajkot and Jamnagar are STs. 13.6% STs and 68.2% SEBC in

Vasudhara SHGs. 73% respondents are STs and 21.5% are SEBC.

Nearly half of the respondents (45.7%) have had no formal education in

Jamnagar cooperative. 1.52% in Vasudhara. 4.76% in GramSeva and 14.28%

respondents in Rajkot 23.66% clients of cooperative have high dependency

compared to a third of the client group. Some 44% of the client group had low

dependency. burden. In Vasudhara 36.36% clients have-high dependency. Some

43% of the client group had moderate dependency burdens. In Gram Seva trust

23.66% clients have high dependency compared to a third of the client group.

Some 44% of the client group had low dependency burdens. In ANaRDe.

23.66% clients have high dependency compared to a third of the client group.

Some 44°A of the client group had low dependency burdens.

Majority members in all for groups have taken up rearing of mulch animal and

modern farming as their livelihood activities. Before membership they were

largely dependent on traditional farming and labourers for others.

250

The study found no significant differences between the number of crises

suffered by beneficiaries before membership and after membership except in

terms of majoi- illness.

After membership borrowing from group has been the major coping strategy

adopted by the members. Dependence on friends at the time of crises still

continues to be the second preferred strategy by the members. Dependence on

moneylender has not been observed after membership.

There has been significant change in ownership of assets like livestock and

household assets like bicycle, jewellery, water pump and T.V. after

membership in co-operative. There has been considerable change in ownership

assets like livestock, livestock pen and agriculture equipments and household

assets like gobar gas, jewellry, T.V. and water pump after membership in

Vasudhara SHGs. A change in ownership of assets like livestock and

household assets like T.V. and bicycle has been found after membership in

GramSeva SHGs and ANaRDe SHGs.

Due to financial access almost all members in all four models/cases have been

able to increase their income after membership through self-employment and/

ownership of productive assets.

The large majority of houses are 'Kachha house'. A significant difference has

been found in roof Material. door material and use of sturdy material in

building of house. after membership in co-operative. All Members are having

Own house. A significant difference has been found in quality of housing after

membership as almost all members has been staying in 'pucca houses' after

membership in Vasudhara SIAGs. A significant increase in `pucca houses' has

been observed in GramSeva SHGs after membership. A significant difference

has been found in use of sturdy material in building of house after membership

iii ANaRDe.

A large number of members (75.27%) in co-operative are using community

hand pumps. Due to the efforts of the Co-operative for hand pump facility.

members are now not required to travel miles on foot for drinking water. In

Vasudhara SHG. significant change has been noticed in terms of improved

251

source of drinking water. A large number of members (66.67%) are using own

tap and community hand pumps (56.06%). In GramSeva and ANaRDe

significant change has been observed in terms of community hand pumps for

water after memberShip.

There. has been significant improvement in sanitation facility available to

respondents after membership in all four models. A lot need to be done as 64

members in cooperative still uses open toilet.

The gender difference in terms of education of children does not seem to be

there. Rajkot SHGs have better stand in terms of education of children as nearly

52% children are having graduation degree.

As far as food is concerned 55 members of co-operative have as much food as

they want a substantial increase from what it was prior to membership. All

members of Rajkot SHG have as much food as wanted. Only one member has

enough food but not all type said that she is not getting pulses.As far as food is

concerned 57.14% members of GramSeva have as much food as wanted a

substantial increase from what it was prior to membership. Only 5 members who

have been able to have enough food but not all type and there is no one who goes

hungry.

Borrowing from friends, moneylender and shop has been considerabl y

reduced after membership in all four models and a significant increase in

migration for to get a job and a considerable number of respondents

.themselves found other source of income as coping strategy for hunger after

membership.

Consumption for food has been a major head of expenditure in al four models.

Investment in health, education and housing has been other major areas of

expenditure. Very less is spent for clothing investment in business and repair

equipments.

The analysis of the table below showed that there has been an increase in

savings of members in all four models in institutional avenues like

cooperative. banks and insurance after membership as compared to before

252

membership. Further. co-operative/SHG savings by members increased

considerably. However post office has not been preferred much due to lack of

awareness.

None of the members has been borrowing from moneylenders in last 12

months in case of Rajkot , jamnagar and GramSeva. This is a positive sign that

members are escaping from the trap of usurious moneylenders.. There has been

significant increase (86.3%) in co-operative borrowing after membership in co-

operative. The reliance on moneylenders is striking as none of the members

borrowed from moneylenders. There has been considerable reduction in

borrowing from merchant, employer and family. Still considerable

number of members relies on friend as a source of borrowing.

There has been increase in loan for investment purpose. No, striking change has

been observed in loan for life cycle need except for marriage loan. In case of loan

for household need a significant reduction has been observed in loan for food.

The earlier scenario was that nearly 25%, 29%, 69% and 45% in all four

models respectively were going to `Bhuvas' for the treatment of health

problem which after the membership is no more. The other encouraging trend is

that there has been a substantial increase in the percentage of respondents who

are availing of government set up health facilities. The increase of

respondents utilizing the services of midwife (not formally trained) has been

drastically reduced. The responses are a clear indication that the effort made by

the Govt.. co-operatives/SI-IGs and other such bodies has paid dividends.

The earlier scenario was that the decision regarding family planning.,

children's marriage and loan taking was taken by the spouse only and other

family members df the respondents. Their role in decision making has been

drastically reduced after membership. After membership majority of the

decisions are taken jointly. Respondents only have been taking decisions on

taking of loan. loan use. loan management and livelihood choices after

membership.

Before membership family size decision was largely taken by other family

members and spouse only. After membership drastic change has been

253

observed in this as members are taking this decision jointly with their

husbands.

As shown by the below responses no pressure exists for bearing son in all

cases -(models) except in GramSeva SFIGs members. In discussion with the

community members it was found that they are not much concerned about the gender

of the child. Some pressure for bearing son does seem to be there amongst the

members of GramSeva SHOS having less tribal respondents compared to other

models.

The respondents are aware about their political rights and the participatory role is

also high in all four cases/models. However participation in village election as

candidate has found to be low.

A very high degree of agreement has been noticed in all four models regarding attitude

of members towards cleanliness, perception on role of daughters and property

inheritances.

A high degree of agreement has been observed in all four models regarding mobility

and attitude towards cultural entertainments. In GramSeva SHG lower agreement

has been found in comparison to others regarding mobility.

Though agreement has been observed regarding perception on husband wife relations,

enough scope exist for reducing subordination of women.

High degree of agreement has been observed in component like mobility, access

to economic and financial resources. ability to make small purchases. ability to make

larger purchases and collective action in all the four models of microfinance delivery.

High degree of agreement in only observed in Rajkot SHG regarding relative

freedom from domination and political and legal awareness. In the same are

reaming three models show moderate agreement. GramSeva SHGs are actively

involved in political campaininiz. A large number of the respondents also consider

proximity to the children while doing business as an important reason for investing

the first loan. but slowly this disappears as clients no longer consider proximity to

children in subsequent and current loan in want of more profit.

254

Clients do not use their first loans on personal or household needs. but this need

slowly emerges in the significant and current loan use strategies.

The respondents consistently use their profits on their children's education and

basic needs. They also use their profits on household assets and health needs. Very

less incidence of investment of surplus as additional capital has been noticed in all

four models.

Clients uses varied coping strategies to meet crises. However, group, savings,

friends and relatives has been ,considered as more preferred strategies and

bank, sale of assets, sale of land 'and moneylenders are less preferred as coping

tool.

First loan use decision was controlled by husband and other members of

respondents' family which has reduced later. Majority of substantial and

urrent loan decisions have been taken by members jointly with their

husbands. In Songadh, more incidence of members' individual decision on

loan use has also been observed.

The respondents expressed low self-esteem, shown in feelings of shame about

their appearance. In the present women feel better about themselves — this is

expressed in terms of their appearance as they dress better. They find time for

themselves and they are more confident in meeting the persons from outside

society.

In the past, all of the women considered their primary roles in their

households to be mothers and wives and their responsibilities clearly

defined as housekeeping (cooking. washing clothes and nurturing). Further, all

members help their husbands in household work. The present situation has not

been much different to past.

In past. their role was as subordinate to the husband's work. Women were

content to work at irregular or low-paid jobs. Their focus was survival. rather

than expanding their business and their comments reveal a lack of

entrepreneurial confidence and skills at that time. Significant change has been

255

noticed in the present except their focus for survival in co-operative members

and ANaRDe SHG members.

Before membership as their attention was focused on survival they had no

time to socialize and they feel marginalized in the community. In the present.

almost all of the women said that they go out into the community more.

interact with a wider social circle and join in community activities.

5.3.2 Policy Implications

Expanding Financial Literacy

Formal banking sector should expand financial literacy through State

programmes (as cost can not be borned by these institutions) as the rural poor

can neither find nor understand financial information as financial literacy is

non-existent in most of the states as available from primary data.

Design client friendly products

Formal institutions should understand the requirements of poor rural clients and

should create financial products that meet the needs of the financially

excluded/unbanked.

a Channelises Government Schemes

As seen from the primary data SHGs (Rajkot and Jamnagar ) are channelizing

government schemes to protect the interest of poor clients. These SHGs are

motivating members for group insurance and create awareness. Further, this can

also be utilized for spread of education (as revealed by primary data).

Livelihood Choices All

Models in study area should make efforts to provide more livelihood choices

(other than animal rearing and agriculture),

256

More productive loan use

All models should take care for the utilization of loan by clients. As revealed by

primary data that members use (other than first) loans more for consumption

purpose rather for productive purposes which is more apparent in backward

communities.

Awareness among members regarding food security system of

government

The models in the study area should create awareness among member regarding

food security system of government so that the expenditure on food get

reduced.

5.4 FURTHER RESEARCH

Micro Finance is one of the most discussed and researched topics in almost all less

developed countries in the world. Inspite of efforts made on the part of government,

a huge population remains outside of the access to formal financial institutions. In

this backdrop micro finance has a major role to play in India's drive to financial

inclusion. This research paves way for further research in the following area:

Effect of empowerment on promoting alternative livelihood activities; effect of

empowerment on sustainable rural development, effect of empowerment on gender

equality, Replication of the study is also possible for other models in any

geographical area. Further panel study may also be taken up to measure impact of

micro finance over a period of time.

270

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LIST OF PUBLICATIONS

Prof. Hiren Mehta (April to June 2018) An Overview of Microfinance in India :

Vidyawarta - International Multilingual Research Journal Impact Factor 5.131

(IIJF), Issue - 22, Vol. 10 April to June 2018 - Page No. 38 - 44.

Prof. Hiren Mehta (April 2018) Assessment of The Impact of Microfinance on

the Growth of Small Businesses in Kisumu Municipality : Research Matrix :

2321 - 7073 - An International Referred Multidisciplinary Journal of Applied

Research, Vol. 2 Year : 5, April 2018 - Page No. 242 - 247.

a study on women empowering through microfinance …€¦ · i, mr. hiren prakashbhai mehta, hereby...

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