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IDP report ON Study the role of Micro financing in women empowerment in Gujarat.

Submitted by : Krinal Patel (1235) Prexa Patel (1241) MBA-II SEM-IV Submitted To:Mrs.Chetna Makwana (Faculty, NCM)

A report submitted in partial fulfillment of the requirement of MBA Programme of Narmada College of Management

Introduction
The emergence of women entrepreneurs and their contribution to the national economy is quite visible in India. The number of women entrepreneurs has grown over a period of time, especially in the 1990s. Microfinance programs have significant potential for contributing to women's economic, social and political empowerment. Microfinance development has emerged as major strategy to combat the twin issues of poverty and unemployment that continue to pose a major threat to the polity and economy of both the developed and developing countries. A number of agencies- Government as well as Non-government Organizations- are, today involved in micro-finance development initiatives.

Empowerment of women is one of very important issue in developing countries. As women are integral part of society, her status and participation in decision making as well as economic activities is very low. Microfinance plays role in improving women decision making by contributing in economic activities.

This paper tries to attempt to study the role of micro finance in women empowerment. Identify to those factors who empowering women through

microfinance services. Analyze the role of microfinance in improving decision making power of women at domestic level.

MICROFINANCE:Definition : The means by which poor people convert small sums of money into large lump sums (Rutherford 1999)

The goals are: Eradicate Extreme Poverty & Hunger. Achieve Universal Education. Promote Gender Equality & Womens Empowerment. Reduce Child Mortality Combat Diseases Developing Entrepreneurial Spirit

Most important finding in the last two de-cades in the world of finance did not come from the world of the rich or the relatively well-off. More important than the hedge fund or the liquid-yield option note was the finding that the poor can save, can borrow (can indeed decide on loans to fellow poor), and will certainly repay loans. This is the world of microfinance. A good definition of microfinance as provided by Robinson 1 is, Microfinance refers to small-scale financial services for both credits and deposits that are provided to people who farm or fish or herd; operate small or microenterprises where goods are produced, recycled, repaired, or traded; provide services; work for wages or commissions; gain in- come from renting out small amounts of land, vehicles, draft animals, or machinery and tools; and to other individuals and local groups in developing countries, in both rural and urban areas. For several decades, many economies, including the Indian, experimented with subsidised credit for the poor. But the only tangible outcome perhaps was the increase in Non Performing Assets (NPA). Then came the realisation that the core issue for the poor was access to credit rather than the cost of credit. In fact one of the contributions of microfinance can possibly be the end of interest rate debate. access and not interest rates that are a constraint for the poor. Another discovery followed, that the poor can and will save, and can indeed use a wide range of financial services such as remittances facilities and insurance products. The most well- known and cited international example of a microcredit institution is the Grameen Bank in Bangladesh. But there are numerous others. Even during the Asian financial crisis, Bank Rayat Indonesia not only survived but thrived; as did BancoSol in Bolivia. A bewildering range of players have jumped on to the microfinance bandwagon for a variety of rea-sons. There have been NGOs which gradually metamorphosed into lending institutions, developmental professionals who have set up microfinance com-panies and banks that have experimented with working exclusively with groups and therefore have microfinance branches. These range from not-for- profits that see microfinance as having a role in development, to commercial banks that view microfinance as good, sound banking, an excellent way of raising deposits, and lending at low risk. In fact the success of groups in microfinance has attracted the attention of wide-ranging players to use these groups for a range of purposes. Several governmental schemes

are being routed through microfinance, including a very large project funded by the World Bank and being implemented in the state of Andhra Pradesh. Similarly organisations like Hindustan Lever have looked at the potential of these groups as a channel for retailing and have launched a programme called Project Shakti to tap the smaller villages through the microcredit channel. Microfinance leaders are gaining prominence and it is said that some of the leaders, particularly women, have been taking a more active role in other social spheres, including contesting elections for the panchayat and so on. This round table focusses on issues relating to microfinance in India. The Indian microfinance sec- tor is a museum of several approaches found across the world. Indian microfinance has lapped up the Grameen blueprint; it has replicated some aspects of the Indonesian and the Bolivian model. In addition to the imported artifacts of microfinance, we (SHGs). Sanjay Sinha provides a summary of some of the issues that the poor face and an analysis of the performance of microfinance in India. The round table discussion thereafter looks at four major issues: the economic attractiveness of microfinance both to NGOs and to commercial banks; the relative merits of various delivery channels; the issue of growth; and finally, what lies beyond microcredit. In choosing these issues we are aware that several other issues were omitted. One is the role of the state. Both the NABARD and the Small Industries Development Bank of India (SIDBI) illustrate that state-held financial institutions can make meaningful interventions. But governments across the country have jumped on to the microfinance band wagon and have started building groups. One must remember that even the smallest group is an institution in its own right; a group takes competence, dedication and time to build. There is the fear that the state while building a few good groups may build a large number of groups that have all the properties of a good group on paper but not in spirit. The nicest thing one can say about many such groups is that they are harmless parodies. But as a collectivity, they have the potential to bring the SHG into disrepute. Regulation is another consideration. Already because of the restrictions placed on Non-banking Financial Companies (NBFCs) we have Platypus structures. Such typically involve one NBFC that lends (but is unableby law to raise deposits) and a large number of trusts/mutually-aided cooperatives that take deposits. Allowing a hundred organisations to bloom where one would suffice is a recipe for disaster. The third issue is business promotion. There are a large number of microenterprises that need skills in elementary business management, such as marketing

and production. Delivery of these skills has never been resolved satisfactorily. also have the home-grown model of self-help group.

Women Empowerment In India


Naukri For Women, is a new job site and one of the first of its kind in India. It aims to help women build their careers, without compromising their other responsibilities. It is a known fact that many companies prefer to have women candidates for certain jobs. Naukri For Women aspires to help companies reach suitable women candidates for their job vacancies. This is a good initiative to bring women empowerment in India. The principle of gender equality is enshrined in the Indian Constitution in its Preamble, fundamental rights, Fundamental Duties and Directive Principles. The Constitution not only grants equality to women, but also empowers the State to adopt measures of positive discrimination in favor of women. Empowerment is the one of the key factors in determining the success of development is the status and position of women in the society. We put a special focus on empowering women and girls, because we believe they hold the key to long-lasting social change in communities. Empowering women must be a united approach, a cause that requires continued attention and stewardship by all. We need to augment our efforts for empowering women and enhance their progress. It is our moral, social and constitutional responsibility to ensure their progress by providing them with equal rights and opportunities. Today women with their smartness, grace and elegance have conquered the whole world. They with their hard work and sincerity have excelled in each and every profession. Women are considered to be more honest, meticulous, and efficient and hence more and more companies prefer hiring women for better performance and result.

Microfinance and Women Empowerment:


Micro-finance programmes not only give women and men access to savings and credit, but reach millions of people worldwide bringing them together regularly in organised groups. Although no magic bullet, they are potentially a very significant contribution to gender equality and women's empowerment, as well as pro-poor development and civil society strengthening. Through their contribution to womens ability to earn an income these programmes have potential to initiate a series of virtuous spirals of economic empowerment, increased well-being for women and their families and wider social and political empowerment. Micro finance services and groups involving men also have potential to question and significantly change men's attitudes and behaviours as an essential component of achieving gender equality. Majority of microfinance programmes focus women with a view to empower them. There are varying underlying motivations for pursuing women empowerment. Some argue that women are amongst the poorest and the most vulnerable of the underprivileged and thus helping them should be a priority. A more feminist point of view stresses that an increased access to financial services represent an opening/opportunity for greater empowerment. Such organizations explicitly perceive microfinance as a tool in the fight for the womens rights and independence. Finally, keeping up with the objective of financial viability, an increasing number of microfinance institutions prefer women members as they believe that they are better and more reliable borrowers.

Literature review
Microfinance and Women Empowerment An Empirical Study with special reference to West Bengal
Dr. Jyotish Prakash Basu The paper examines the two basic research questions. First, the paper tries to attempt to study how a womans tendency to invest in safer investment projects can be linked to her desire to raise her bargaining position in the households. Second, in addition to the project choice, women empowerment is examined with respect to control of savings, control of income, control over loans, control over purchasing capacity and family planning in some sample household in Hooghly district of West Bengal. The analytical framework of underlined the study is based on Nash bargaining game theoretic model. The first part is based on two household members make a few non co-operative production decision regarding a credit contract and risky business projects. This is also an empirical study based on 100SHG members in the Hooghly district, West Bengal in 2006. The empirical findings show that the empowerment of women is established in weak form using the above indicators. This paper has important policy implications. It is appropriate to emphasize the strategy of financial inclusion in the wider context of economic growth and financial deepening.

The paper of DR C. NIRMALA(January-2012) investigate, Micro Finance A Boon To Women Empowerment. In recent years Microfinance has attracted widespread attention for its developmental Impact for the poor, but it too has multitude of issues and complications. This research project has adopted a mix of empirical and theoretical approach with the objective to identify a comprehensive range of implementation and impact issues of microfinance. It has universally been accepted that the micro financing is a well successful instrument for eradication of poverty. Most of the government in developing countries is encouraging micro financing for alleviation of poverty and empowerment of women in their countries. India has been playing leading role in micro financing programme. In India now various international donor agencies are working for extending micro-credit to the rural poor for eradication of poverty.

S.Sarumathi and Dr.K.Mohan (2011) studied , Role Of Micro Finance In Womens Empowerment, In olden days women were restricted to take part in any social activities and not given roles in decision making in her family. The situation was even more worsening in rural and remote areas. Now the situation has been changed. She is given freedom to do what she wishes. In todays scenario more women are engaged in income generating activities. This is because of NGO and other financial institution came forward to provide microfinance to poor women. They believe that a woman is the small credit risk and often benefits the whole family. The main aim of microfinance is to empower women. This induced the researcher to focus more on the empowerment of rural women who participates in the microfinance.

Dr. Dhiraj Jain and Ms. Bhagyashree Jain (2012) investigated , Does Microfinance Empower Rural Women? -A Empirical Study In Udaipur District, Rajasthan, Women are the most crucial elements of the social fabric and are playing a pivotal role in the socioeconomic scenario of Rajasthan. Microfinance programs like the SHGs in India have been promoted for their positive economic impact and the belief that they empower women. Microfinance programs like the SHGs in India have been promoted for their positive economic impact and belief that they empower women. The survey was conducted on around 100 respondents from various SHGs of Udaipur district, Rajasthan and the analysis was done to study the empowerment of women through microfinance. The results strongly demonstrate that on an average, there is a significant increase in women empowerment of the Self Help Groups members. However, social backwardness, indebtedness and presence of other microcredit programs in the same or nearby villages have a significant positive influence on womens participation in this Programme.

ROLE OF MICROFINANCE IN EMPOWERMENT OF FEMALE POPULATION OF BAHAWALPUR DISTRICT


Sara Noreen (2011) Empowerment of women is one of very important issue in developing countries. As women are integral part of society, her status and participation in decision making as well as economic activities is very low. Microfinance plays role in improving women decision making by contributing in economic activities. In this study an attempt is made to explore the socio economic determinants of women empowerment in which microfinance is crucial economic determinant. This study used regression analysis based on primary data of Bahawalpur City to check the relationship of different socioeconomic determinants on women empowerment. Women empowerment measured by constructing simple index using five indicators related to child health, education, selection of spouse of children, purchase of basic goods and decision about the use of loan. The results show that women empowerment is considerably influenced by age, education of husband, father inherited assets, marital status, number of sons alive and microfinance. Age, education of husband, no of live sons and father inherited assets are more statistically significant variables in this study. Further, this study decompose data with male and female using loan which implies that females uses loan by themselves has some better results than where loans were used by male family members. Finally, it is concluded that as microfinance is major explanatory variable in this study has some positive role in empowerment but not as much as was expected. It is suggested that education facilities and family protection must be provided in proper way. Microfinance institutions should strengthen and expand their support to resource poor women.

The paper of

Dr.Suchi Loomba (2004) investigate ,Role Of Microfinance In

Women Empowerment In India a list of the most commonly used dimensions of womens empowerment, drawing from the frameworks developed by various authors in different fields of social sciences. Allowing for overlap, these frameworks suggest that womens empowerment needs to occur along multiple dimensions including: economic, socio-cultural, familial/interpersonal, legal, political, and psychological. M.B. Dhanya and P. Sivakumar (2010) studied,Women empowerment and microfinance: Case study from Kerala. The subject of micro-finance is considered as significant and emerging trend in the present scenario for the empowerment of women. Micro finance programmes are promoted as an important strategy for womens empowerment. Micro finance builds mutual trust an d confidence between bankers and rural poor to encourage banking in a segment of population where formal financial institutions usually find difficult to reach. The present paper examines the economic impact of micro finance beneficiaries and whether the economic empowerment has resulted in the generation of a set of self reliant women. The Thiruvananthapuram district of Kerala State was selected for the case study. The survey shows about the positive impact of the development programme of Kudumbashree, a micro financial institution in Kerala, India.

Statement of the problem:


In olden days women were restricted to take part in any social activities and not given roles in decision making in her family. The situation was even more worsening in rural and remote areas. Now the situation has been changed. She is given freedom to do what she wishes. In todays scenario more women are engaged in income generating activities. This is because of NGO and other financial institution came forward to provide microfinance to poor women. They believe that a woman is the small credit risk and often benefits the whole family. The main aim of microfinance is to empower women. This induced to focus more on the empowerment of rural women who participates in the microfinance.

Title of Study
Study the role of Micro financing in women empowerment in Gujarat.

Objectives of Study
The major objectives of the study are:
1. To study the role of micro finance in women empowerment. 2. To identify the various factors empowering women through microfinance services. 3. To analyze the role of microfinance in improving decision making power of women at domestic level. 4. To study the problems women members face in SHG. 5. To study the performance of SHGs in Gujarat rural region. 6. To analyze the role of microfinance in family empowerment by women .

Research Methodology:Research Design:A research design is considered as the framework or plan for a study that guides as well as helps the data collection and analysis of data. The research design may be exploratory, descriptive and experimental for the present study. The descriptive research design is adopted for this project.

Sample size:- 300 samples from the area of study have been considered
to conduct the present study.

Type of Study:For the purpose of study, sample study will be conducted for management staff of the company.

Data collection:Data is collect through primary data and secondary data. Most of the data is collected by the primary data through questionnaire and personal interview.

Tools for Data Collection:The research instrument use in this research is questionnaire, which was formatted keeping in view the objectives and information needed for the analysis and drawing conclusion.

Method for Data Collection:Data is collecting by conducting personal interview of respondent with the help of questionnaire.

Data Analysis & Interpretation:The data analysis would be been done with the help of charts & tables.

Conclusion :Micro-finance has been proved to be an important tool in the development process empowering the rural poor women educationally, socioeconomically and politically. Impact of micro-finance is appreciable in bringing confidence, courage, skill development and empowerment among rural poor women.