CHAPTER - II

2.1 WOMEN ENTREPRENEURS - AN OVERVIEW

A woman entrepreneur is defined as an adult woman who may create
or own or run an enterprise. She may combine some or all these functions. In
the modern world, the role’ of women goes much beyond the home. She is
now adopting a career of her own. Women play a vital role in the process of
economic development and in shaping the social structure prevailing in the
country. They constitute half of the human resource potential available for
economic activity and perform multiple productive roles. There is a
realization that full involvement of women in industrial development would
ensure effective utilization of available labour and improve the quality of
life. Women form an important segment of the labour force and the
economic role-played by them cannot be isolated from the framework of
development as the role and degree of integration of women in economic
development is always an indicator of women’s economic independence aid
social status.

2.2 CONCEPT AND CHARACTERISTICS OF SELF HELP GROUPS

It is important to know the meaning of important concepts used in the
study and the review of literature for better understanding of the research
problem. Hence it is presented in this chapter.

Before proceeding with the actual discussion of the problem a clear

definition of certain concepts used in the research would be useful to
understand the study properly.

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Asset
An entity, possessing market or exchange value, and forming part of
the wealth or property of the owner. Assets of individuals include all
possessions which have money value.

Advances
It is the amount of loan advanced by an individual or a group or an
institution during a particular period.

Borrowing
The amount of money that a company, an organisation or a person
borrows.

Credit
Credit refers to loan which have been advanced by the bank.

Consumption Credit Needs

Credit needs for the purpose of social functions, births or deaths and
medical needs.

Animator
Animator is the field level functionary. He/She explains the benefits of
thrift and group formation, and also guides and encourages the leader and the
group members.

Empowerment
Empowerment refers to building up of basic psychological and social
awareness to enable members of a group or community to increase their
capacity abilities, for full participation to improve their life conditions in
their given social structure.

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Creditor and Debtor
Creditor is one who lends or gives money and Debtor is one who takes
or borrows money.

Facilitator
Facilitator is one who does a range of development work in rural
areas. He may be the staff member of a NGO, Self-Help Group promoting
institutions, or someone from within the village. He helps in the formation of
SHG. Some of them may receive financial help from the government or from
development agencies.

Formal Credit
Amount of credit advanced by formal financial institutions.

Formal Financial Institutions

Formal financial institutions comprise of commercial banks, co
operative banks and regional rural banks.

Internal Loan
The SHG, out of the savings collected from the members, lends small
amount of loan to the members within the group.

In come
The amount of money earned by a person, during a particular period
of time.

Informal Credit
Amount of credit advanced by informal lenders

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Informal Financial Sector
The informal financial sector functions outside the purview of
regulation imposed by the Reserve Bank of India.

Informal Lenders
Un-registered or Un-official money-lenders, commission agents,
traders and landlords. They are expensive and exploitative.

Loan
An advance of finance by a lender to a borrower. Interest is normally
payable on a loan, and the term to maturity (repayment) can vary from the
very short to the very long.

Income Generating Activity (IGA)

The activity undertaken by the SHG members which yields income to
them.

Mahalir Thittam
This is the Tamil word which in English means women’s programme.
This is the Tamil Nadu State sponsored SHG Programme carried out through
Tamil Nadu Corporation for the Development of Women.

Micro Credit
Micro credit refers to credit provided for self-employment and other
financial services like savings and insurance provided to poor persons.

Micro finance
Micro finance refers to the entire range of financial and non financial
services, including skill upgradation and entrepreneurship development,
rendered to the poor for enabling them to overcome poverty.

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Money lender
Money lender could be a farmer, trader, commission agent, friend or
relative or landlord who lends money and charges high rate of interest.

Micro finance Institutions (MFIs)

Micro finance institutions are those which provide thrift, credit and
other financial services and products of very small amounts mainly to the
poor in rural, semi-urban or urban areas for enabling them to raise their
income level and improve living standards.

NABARD
The apex National Bank for the Development of Agriculture and Rural
Development was established in July 1982. It provides credit by way of
refinance and loans and advances to State Co-operative Banks, Land
Development Banks, Regional Rural Banks and other approved financial
institutions for financing production, marketing and investment activities
relating to agriculture, rural development, small scale, cottage and village
industries, handicrafts and other allied activities in rural areas. As for its own
resources, it depends on Reserve Bank of India for short-term needs and on
World Bank, money market and bilateral credit from other countries for long
term needs.

Amount Outstanding
The amount (principal plus interest) which remains to be recovered on
a particular date are called outstandings. This may be represented in the form
of an equation as; Amount outstanding = Amount borrowed — Amount
repaid

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Repayment
Repaying the borrowed loan amount with interest.

Rate of Interest
The proportion of a sum of money borrowed that is paid over a
specified period of time as charge for loan. It is the price or cost to a
borrower to use cash which he does not own, and the reward or return to the
lender for deferring his consumption or parting with liquidity.

Self-Help Group Promoting Institutions

The institution which promotes the formation of SHGs, gives training
to the members, gives support in getting bank loan and choosing income
generating activities. It may be the banks, NGOs, and Women’s
Development Organisations.

Savings
Unspent income, or income minus consumption, at the end of any
period. Amount of money that one saves

Transition
The process or a period of change from one state or condition to
another.

Voluntary Organisation
A voluntary organisation is a conglomeration or volunteers joined
together with shared values of concern for a specific goal.

Farm based Activities

Farm based activities include banana cultivation, growing medicinal
plants and floriculture.

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Off-farm based Activities
Off-farm based activities include activities such as, goat rearing, much
animals, poultry, beekeeping and sericulture.

Trade based Activities

The activities undertaken by the SHG members such as vegetable
shop, provision store, fish vending and flour mill comes under trade based
activities.

Service based Activities

The activities such as tea shop, hotels, STD booths, and computer and
DTP centre are brought under the service based activities.

Production Work based Activities

Production work based activities include, making of jute products,
fishnet making, palm leaf product, agarpathi (inscence stick) making, candle
making, crafting, simple chemical products, paper plate making, handloom
weaving, tailoring, eatables producing, coconut oil extraction, honey
processing, fish processing, rubber sheet making, pottery and alike.

Household
Household consists of members of a family - the husband, wife and
children.

70
 The Royal Tropical Institute (1981) defined Self Help Group as a

membership organisation or group which implies that its risks, costs and

benefits are shared among its members in an equitable basis and that its

leadership and/or managers are liable to be called to account by membership

for their deeds.

Kuhn (1985) defined Self Help Groups as organisations whose

members have united on the basis of common interest to improve their

economic and social conditions in order to better able to pursue their

paramount long-term aims through joint action and self help.

Kropp Erhard, Marx Michael T, Ballurkar Pramod, Quinones Benjamin R

and Seibel Hans Dieter (1989) in their book “Linking Self-Help Groups and Banks

in Developing Countries” point out that the programme of linking SHGs with the

banks in the developing countries is based on the premises that, (a) while poverty

is widespread in developing countries, the poor have amply demonstrated their

potential for self-help; and (b) while most existing programmes run by the

governmental institutions do not effectively reach the poor, banks may be in a

better position to provide adequate financial services to the rural poor by linking

up with SHGs and with self help promotion institutions (i.e., NGOs) working with

such SHGs.

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 Considering SHG bank linkage experience from South Korea the study

revealed that, Primary Co-operative Societies pooled their surplus resources under

mutual finance scheme instead of depositing in a bank. The mutual finance scheme

in turn provided credit facilities to societies which needed support.

The study also stated that in China, rural credit cooperatives transferred

their excess liquidity to Agricultural Bank of China, which in turn provided credit

facilities to the needy rural credit cooperatives. These experience shows that there

are resources at the grassroot SHGs and can be utilized among themselves.

The case studies prepared by leading Asian Banks and NGOs (1992)

in eight Asian countries namely, Bangladesh, Pakistan, Nepal, India, Sri

Lanka, Malaysia, Indonesia and the Philippines highlights that the NGOs and

SHGs have a key role in rendering the poor bankable, though much effort is

still needed to make the venture profitable. Commercial banks may be able

to contribute to poverty alleviation on a sound commercial basis by

providing loan capital needed by the poor for productive activity and income

generation. And national and international organisations can supply urgently

needed technical assistance, and support for the institutional strengthening of

NGO - mediated programs, to enable them to reach out to a larger proportion

of those living in absolute poverty in Asia. The studies have demonstrated

the scope for increased access by the very poor to credit on a sound

72
commercial basis. Given an appropriate environment it is possible to create

commercial sound linkages between the formal finance sector and well

managed non-government programmes and SHGs among the poor.

NABARD (1995) defined Self Help Group as a homogenous group of’

rural poor voluntarily formed to save whatever amount they can

conveniently save, out of their earnings and mutually agree to contribute to a

common fund from which then lent to members for productive and emergent

credit needs.

Paul B. Mc Guire and John D. Conroy (1997) in their study ‘Bank -

NGO Linkages and the Transaction Costs of Lending to the Poor Through

Groups: Evidence from India and The Philippines” compares the bank -

NGO linkage and the transaction cost of lending in India and the Philippines.

The Indian study compared the transaction costs to banks of lending to

the poor through various channels and found that transaction cost were much

lower where banks used NGOs and SHGs as intermediaries. It also

suggested that the use of such intermediaries significantly improved the

commercial viability of lending to the poor by the banks.

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 The Philippines study looked at the question from the perspective of

the NGOs and found that NGOs could channel credit to the poor with lower

transaction costs, as a proportion of loans granted, than most other

institutions. This suggests an important role for NGOs in the intermediation

process. The small loans and short maturities inherent in lending to the poor

inevitably lead to high transaction costs compared to the value of loans

outstanding at anyone point, in time. The NGOs have to minimise costs as

far as possible if they are to achieve full financial sustainability.

The results of the two studies support a renewed focus on linkages

between banks, NGOs and SHGs as a means of channelling credit to the

poor. There remain a large number of impediments to the spread of linkages

and overcoming these will require active support from governments and

central banks in the form of moral suasion, directives and changing

inappropriate regulations.

According to Nanda (1994) the Self Help Groups or the thrift and

credit groups are mostly informal groups whose member’s pool savings are

re-lent within the group on rotational or needs basis. These groups have a

common perception of need and impulse towards collective action. Many of

these groups got formed for specific production activity promoted savings

74
among members and used the pooled resources to meet the emergent needs

of the members including the consumption needs.

Fernandez (1995) defined Self Help Groups as the informal groups

provide the poor with the means for ‘Economic and social entitlement”. The

formations are based on a growing institutional concept in terms of resources

and management skills of the members, to increasing their confidence to get

involved in issues and programmes in the public and private spheres.

Chowdry (1998) views about Self Help Group as the group of people

in partnership with those able to assist them, identify problems and needs

and assume responsibility themselves to plan, manage, control and assess the

ol1ective necessary actions.

Rao (1994) defined Self Help Groups as a means of raising the cl

capacity of the rural poor for reaching out to such agencies, as they are

willing to work with and which can provide them with additional production

resources. It also implies the development of their bargaining power to an

extent that, such agencies cannot unilaterally impose their conditions and

regulations upon the rural poor as passive recipients.

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 According to Sangwan (1996) Self Help Group involves formation of

informal groups for pooling their savings through regular periodical

meetings and then on lending among the members at some self decided rate

of interest ranging from 1 to 3 per cent per month.

According to Dhan Foundation (1998), Self Help Groups are self

managed groups of pool- men and women which primarily came into

existence to mobilise financial resources through their own savings and lend

the same amongst themselves to meet the credit needs of their members.

Each Self Help Group has an unique system of organising and managing its

own finance and operates as an independent institution.

Gurumoorthy (2000) defined Self Help Group as an organisation

formed to enhance the equality of status of women as participants, decision

makers and beneficiaries in the democratic, economic, social and cultural

pheres of life.

Bhupat M. Desai and Namboodiri N.V. (2001) in their book

“Organisation and Management of Rural Financial Sector observe that SHGs

are voluntary associations of people formed to attain certain collective goals

which could be economic, social or both. Since SHGs are informal groups

their legal status has not been defined. What they initially intended was to

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bring together people particularly economically weaker sections and to

undertake activities of mutual interest. Thrift, credit and income generating

activities emerged as the major activities of the SHGs. The SHGs evolved a

system for collective savings, group consumption credit, as well as

integrating social and economic goals among small groups. The initial

growth in SHGs has been in areas where they received support from NGOs.

They supported not only for the formation of SHGs but identifying economic

activities, imparting training and even financial support in the initial stage.

Thomas Fisher and Sriram M.S (2002) in their book titled “Beyond

Micro-Credit: Putting Development Back into Micro-Finance” view that

micro credit has become widely accepted as a development tool all over the

world and has grown significantly as a sector within India. More and more

NGOs have begun to engage in micro-finance, commonly understood as

small loans given to SHGs.

The author while appreciating the demographic processes in SHGs

and recognizes their potential for empowerment, he also rightly cautions that

these groups are vulnerable to exploitation by local leaders or politicians. He

rightly points to the need for some regulations of SHGs which are currently

unregulated, making women members vulnerable to their leaders who may

be incapable, inefficient or corrupt in the handling of financial affairs of

SHGs.

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 A publication of the Department of Economic Analysis and Research

of NABARD (2003) titled “Agricultural and Rural Development —

Initiatives and Performance 1982-2003” observes that NABARD’s

initiatives in micro finance has now turned into a sustainable social

movement. The design and content of these innovations have remained

dynamic and in tandem with the changing needs of the micro finance sector

in the country. These initiatives have attracted the attention of a wide range

of stakeholders. A large number of formal and informal agencies have

partnered with NABARD in this unique process of socio-economic

engineering. The relevance of the micro finance programme was greatly

enhanced for all the partners through the core strategy of SHG-bank linkage,

which was built around a simple but basic aspect of human nature — the

feeling of self-worth. The informal credit delivery strategy developed for the

banking system by NABARD in collaboration with non-formal

developmental agencies has expanded to become the largest micro finance

programme in the world in terms of its outreach, extending banking services

to people hitherto unserved by the banking system. This programme has

become a main line activity for banks with almost all of them participating in

the programme.

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 Gariyali, C.K. and Vettivel, S.K. (2004) in their book “Women’s Own

— The Self Help Movement of Tamil Nadu” observe that Microcredit

became means for women’s empowerment aimed at reducing poverty,

promoting self-employment and development-based activities. From

Rajasthan to Andhra Pradesh, Haryana to Tamil Nadu villages, need-based

and timely credit has become a powerful instrument with the responsibility

of savings and credit operation left to organised women’s groups called the

SHGS. Daring women, some credit and a sense of hope has, in fact, put the

country’s rural poor in a self-reliant mode. The self-help movement has

sprung surprises in doomed areas. From being perilously close to penury,

women now laugh their way to banks and feel secure.

Surjit Singh (2000) in his study “Micro Finance for poor in Rajasthan”

by selecting 32 SHGs from Aiwar, Udaipur, Jodhpur, Hanumangarh and

Kota districts of Rajasthan found out that there is a gender difference in

group behaviour. Women borrow more for household needs while men

borrow for income generating activities. The savings contribution of male

exclusive groups is higher than female exclusive groups. The mixed groups

perform better than male exclusive groups. The different models in operation

namely, NGO promoted, independently formed and bank promoted are more

or less equally performing. The NGO promoted groups are more dependent

whereas the bank promoted groups are more independent. The skill

79
development in terms of account keeping, maintenance of ledgers,

attendance of meetings, decisions on loan disbursals are collectively done

and all members abide by the decision taken.

SHGs formation has led to process of empowerment of the poor in

rural Rajasthan. The role of SHGs in the credit delivery is very important. It

is serving dual purpose of bringing the poor together for self support and

enhancing their capacities to raise family incomes.

Gulati, Ashok and Seema Bathia (2002) in their study “Institutional

Credit to Indian Agriculture — Defaults and Policy Options” give an overall

view about the aspects of Bank Self-Help Group linkage. The evaluation of

the impact of micro finance programme on members of the SHGs reveals

that it benefited poor people in raising their levels of income and has

facilitated them to be more self reliant through promotion of productive

activities. From the banker’s point of view, compared to conventional bank

lending in the rural areas, lending through SHGs has helped the banking

institutions in achieving high recovery performance through peer pressure

and in substantial reduction in the transaction cost to the small borrowers.

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 Jaya S. Anand (2002) in her study “Self-Help Groups in Empowering

Women: Case Study of Selected SHGs and NHGs” examines the

performance of selected SHGs and Neighbourhood Groups (NHGs) and

assess its impact, especially the impact of the micro credit programme on

empowering women. The most striking advantage of the SHGs was the thrift

component which acted as an informal bank at their doorstep. The thrift

comP0fle has provided a cushion to even out earnings during off-seasons to

meet emergencies and even to promptly repay loans. Internal factors play an

active role in making the groups self-reliant. The roles of the co-ordinator

and the promoting agency were identified as the most important external

factors. Group leaders determine the pace of growth of the group in the long

run. All the groups have taken up individual economic activities; but group

activities are very few.

The study also shows that positive change has taken place in the

attitude of the beneficiaries. Several groups have become centres for

initiating social action against the dowry system, alcoholism, illiteracy, and

divorce. Though some groups have succeeded in improving the extent and

levels of political participation of the members, women’s active and effective

involvement in local planning and decision-making is yet to take place. The

general backwardness of the area viz., poor educational background,

ignorance, superstitions, and adherence to outdated values has hindered the

81
pace of development. The author suggests that, networking between groups

and NGOs will facilitate smooth functioning. A coordinated effort of all

voluntary agencies would pay way for overall development and solution of

problems of infrastructure development and marketing and for putting end to

social evils such as early child marriage and dowry.

The author concludes that SHGs can bring about drastic changes in the

lives of the poor. Delivering credit alone may not produce the desired

impact. The supporting services and structures through which credit is

delivered, ranging from group formation and training to awareness-raising

and a wide range of other supporting measures are critical to make the

impact of group activity strong and sustainable.

Barbara Adolph (2003) in her study “The Role of Self-Help Groups in

Rural Non-Farm Employment” observes that, in India SHGs are formed for a

variety of purposes and by a variety of people. The present paper focuses on

SHGs formed by rural people with the objective of improving their

livelihoods through collective savings and investments in income generating

activities. Poor women have succeeded in improving their life through

membership in SHG. The impact on their lives is not just an economic one

— gaining more self-confidence is often a more lasting achievement that

forms the basis for social and economic improvements. To strengthen the

82
participation of the poorest of the poor, more effective targeting mechanisms

are required, and SHG programs need to be geared towards the specific

needs of poor people with hardly any cash income and limited social capital.

Lasting improvement especially of the situation of rural women can only be

brought about if their control over and access to resources increases. It might

be argued that SHG development needs to go hand in hand with policies that

increase women’s access to productive resources, especially land. The author

further states that different types of SHGs are required for different types of

people, depending on their specific social and economic conditions and their

goals.

Bhavani R.V. (1996) in her study “Restructuring Credit System for

Rural Development” states that an extension of promoting links with the

informal sector is channelising bank credit to informal SHGs of people. The

main advantage to banks of such a linkage would be externalisation of a part

of the work items of the credit cycle, assessment of credit needs, appraisal,

disbursal, supervision and repayment, reduction in the paper-work involved

and a consequent reduction in transaction cost, besides improvement in

recovery and expansion of outreach. The groups would benefit from access

to a larger quantum of resources as compared to their meagre corpus

generated through thrift and access to better technology and skill upgradation

through different schemes of the banking sector.

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 Shylendra (1998) defines Self Help Groups are small informal

associations created for the purpose of enabling members to reap economic

benefits out of mutual help, solidarity and joint responsibility. The benefits

include basically obtaining savings and credit facilities and pursuing group

enterprise activities.

Senthurajah (1998) explained Self Help Group basically as the

.mobi1ized group of people of different category for development activities

by imbibing collective strength and vitality to them.

Sheokand (2000) defines an Self Help Group as a small economically

homogenous and affinity group of rural poor voluntarily coming together to

save small amounts regularly to contribute to a common fund to meet their

emergency needs and to provide collateral free loans. There is also the

elements of collective decision-making and resolution of conflicts through

mutual discussions.

Mohanan (2000) defines Self Help Group is a voluntary association of

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

neighbourhood, engaged in similar line of actively working with (or) without

registration for the common good of the members.

84
 Harper (1999) acknowledges the advantages of using Self Help

Groups as an intervention strategy for all the parties involved, viz, the Self

Help Group members, banks and the Non Governmental Organisations. But

the author points out certain issues of concern in using Self Help Group bank

linking as “fix” to solve all the problems of rural poor. Poor people are

usually unable to invest their money in remunerative enterprises due to

various reasons. Funds from the banks may introduce dissension in the group

unlike their savings. There is also the argument that Non Governmental

Organisations should not perpetuate existing exploitative relationships by

linking poor people with the systems, which have marginalized them.

Shylendra (1999) discusses the advantages of Self Help Groups in

Detail. They are (a) better access to institutional credit, (b) cost efficiency,

(c) improved loan recoveries, (d) promotion of thrifts and savings, (e)

overcoming symmetric information problems. Other incidental advantages

like the creation of people centered organisations, achieving women

empowerment and gender equality and creation of group enterprises and

enhancement of bargaining strength of the poor are also mentioned. Similar

views are expressed by Lakshmikantan (2000).

Krishnamoorthy (1996) defined Self Help Group as an organization

formed by the people for pooling their resources to help each other.

85
 The concept of Self Help Group in the view of SAPNA (1997) [South

Asian Perspectives Network Association] is the organised group to solve the

actual problems in such a way that the members are automatically

empowered by realising importance of snatching their rights and utilizing

their own part of resources.

According to Ojha (2001), when individuals act at a thematic level in

a conglomeration on their own initiative in an attempt to meet their

individual ‘and common needs with primary focus on Self-reliance is called

“Self Help Group”. The Self Help Groups are not static institutions. They

grow on the resources and management skills of its members and their

increasing confidence to get involved in the issues and programmes that

require their Involvement in the public and private spheres.

According to Rani (1997) the process of Self Help Group formation

has f which could be separated into three phases. The phases thus identified

include:

1. Identification and formation of Self Help Groups (Phase-I).

2. Group stabilization (Phase-II)

3. Withdrawal (Phase-III).

86
 Munker (1983) identified the following reasons behind the formation

of Self Help Groups. It includes struggle for survival, fight against common

enemy defend common interests, build up counter veiling power and gain

access to resources or services not available to individuals.

Dhan (1998) identified the process of Self Help Group formation have

a series of tasks carried out in a sequence, which include creation of baseline,

short listing the potential village, identifying the poor, seeding the concept,

formation of Self Help Groups, quality control, regularising the systems.

And according to them, the development of Self Help Group passed through

pre-formation, formation stabilization - 1, stabilization - 11, growth to

expansion and diversification.

Puhazhendhi and Satyasai (2000) found that the average size of the

sample Self Help Group was 16 members. The size of group was observed to

relatively larger in the older groups of more than three years than the

younger groups of age less than two years. About 30 per cent of the

members longed to the backward class whereas 31 per cent and 33 per cent

of the embers were from forward class and schedule caste/tribes community

respectively. They also observed that about 24 per cent of the members were

rate and 26 per cent of them could sign.

87
2.3 EVALUATION AND IMPACT STUDIES OF SELF HELP

GROUPS

2.3.(a) Economic Impact

Shylendra (1999) revealed that Self Help Groups were capable of

playing an effective role as financial intermediaries for the poor, also helped

members in mobilizing considerable funds through small savings, and Self

Help Groups had been able to tap external funds quite significantly to meet

the increased credit needs of their members. He also observed that the

members have found Self Help Groups superior to other sources of credit

both formal and informal. In his study, he concluded that Non Governmental

Organisations could play a major role in the successful promotion of Self

Help Groups.

Shylendra (1998) discusses the performance of Self Help Groups

under different projects with respect to variables like formation and

membership of groups, group meetings, lending operations, income

generating programmes, savings, leadership style etc. It is found that Self

Help Groups can be effective instruments of financial intermediation for the

poor. But autonomy of groups, participatory decision-making, managerial

skills among the members etc. are its, which are crucial to the success and

effectiveness of Self Help Groups.

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 Nedumaran (2001) revealed from his study were i) the informal

groups with active intervention of Non Governmental Organisations

significantly improved participation of poor people in group activities. ii) the

poor people were easily accessible to formal credit through Self Help Groups

and iii) group activities had a positive impact of income, asset position and

social condition of the members.

In a study on the women entrepreneurs, Vinze (1987) speaks about the

status of women as entrepreneurs. The role of women in productive activities

in India has been increasing over the years, however the total number of

enterprises run by them is significantly small. They are most involved in the

unorganised sectors. The author further talks about the problems faced by

women entrepreneurs under three major heads. 1) Problems with respect to

project formulation. 2) Problems in relation to project implementation and 3)

problems connected with project operation.

Faulty product selection, poor technical assistance, choice of wrong

locations, absence of market analysis/data etc are some of the problems at

the project formulation stage. While implementing the project, wrong choice

of machinery, poor project planning, institutional and environmental snags

and management create a lot of problems At the project operation phase, the

major problems are errors in marketing strategy, low key market

development efforts, defects in production planning, inadequate working

capital, poor accounting, costing record keeping, unbalanced outwork,

operating style and entrepreneurial incompetence.

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 Puhazhendhi and Jayararnan (1999) reported that as a result of group

formation, women were able to diversify their activities through undertaking

non-farm and animal husbandry activities. Members taking up more than one

activity increased from about 30 per cent during pre group formation to

about 53 per cent during post group formation situation. They also observed

that the average annual net income per member during pre-group formation

ranged from Rs.6,763 to 9,157 while the average net income per member

during post group formation had ranged from Rs. 10,53 1 to Rs. 18,762/-.

The increase in net incremental income was reported in 68 per cent of new

groups whereas 100 per cent in stabilising and stabilised groups.

According to Nedumaran (2001), Implementation of Self Help Group

Bank linkage programme signiflcantly contributed to the improvement of

income generation activity undertaken by sample households. In pre - Self

Help Group situation, only 22 per cent of the sample households had

undertaken income generation activity but in post Self Help Group situation

about 63 per cent of sample households were engaged in income generation

activities.

According to Rajini (1998) voluntary organisation like Padmavathi

Mahila Abyudaya Sangam (PMAS) plays a very important role to meet the

needs of women through various programmes. All the programmes are

90
designed for the development of poor women. In fact, Self Help Groups are

really acting as a means of empowerment of women in Tirupati. Therefore,

in a country like ours, voluntary organisations have a lot to do for the

development of women who are living below poverty line and undergoing so

many exploitations by the civilised society.

Kuberanarayanan, K. (2002) reported that the multi-fold activities of

Self Help Groups have paved the way for improving village economy. As

many as 3,306 Self Help Groups have been formed by Tamil Nadu

Corporation for Development of Women in Madurai district in the last two

years with a membership of 67,202 women who have recorded savings of

Rs.6.34 crores. The credit linked Self Help Groups have ensured a near 100

per cent repayment of loans, encouraging bankers to enhance quantum of

advances. The Non Governmental Organisations have played a vital role in

Facilitating tangible economic growth of women, redeeming them from the

clutches of moneylenders. Several Self Help Group members had taken up

lf-employment or small-scale ventures, utilising the training they got under

entrepreneurship development programmes. The women were no more

dependent on men for petty expenses. On an average, each number has

savings between Rs.l000/- to 10,000/-. As many as 1.57 lakh beneficiaries

have used credit facilities to the tune of over Rs.20 crores along with Rs.5.4

crores as subsidy.

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 Dodkey, M.D. (1999) reported that as on March 1997, 18 states and 2

Union Territories were covered under the programme of linking of Self Help

Groups with banks with the participation of 30 commercial banks. The

programme had benefited nearly 1,50,000 rural poor families. The progress

under the programme has been quite encouraging. The repayment of loans

both at Self Help Groups level and bank level under the programme is

excellent which is almost 100 per cent.

Radha, N (2002) pointed out that a meeting attended by over 5000

Self Help Group women from rural areas organised by the League for

Education and Development in connection with world women’s day decided

to spearhead the campaign to urge the Government to scrap the cheap liquor

scheme and introduce total prohibition, since the Self Help Group movement

which came into existence about six years ago, proved that women could

take up economic ventures with the small savings they were able to make

daily.

Visalakshi Rajeswari (2002) put forth the views of researchers that the

Human Development Report prepared by the UNDP, distinguish non-

economic (personal) activity from economic activities. Economic activities

are further classified as market oriented (included in the system of national

account) e.g. household chores, and information about time allocated to all

92
economic activities was calculated and has published that of all the time

spent by men and women in all economic activities, the contribution of

women exceeds that of men in developing countries and of the time spent by

women in economic activities 66 per cent is in the non system of national

account work and 34 per cent in system of national account work.

Kuttan Mahadevan (2002) reported that the socio-economic survey of’

Self Help Groups conducted by District Rural Development Agency in

different districts of Andhra Pradesh has indicated that the scheme has

helped women earn additional incomes ranging from Rs 250/- to Rs 2000/-

per month depending on the economic activities taken up The programme

has helped reduce dependence on moneylenders in rural areas drastically. In

addition, women have taken initiative in improving their socio-economic

status by participating in governmental programmes such as family welfare,

promoting their nutritional and educational status, awareness of

environment, public health, through sanitation and clean drinking water.

Sivarajan (2002) reported the success story of Self Help Groups in

Dharmapuri district. The district boasts of having formed as many as 7500

Self Help Groups considered the maximum in the State. The groups have so

Tar saved Rs.25 cr01-es, also considered highest in the State. The groups,

which :had availed revolving funds and successfully rotated the amount for

93
at least six months, are rated for economic assistance. Accordingly, as many

as 486 groups have so far been provided with a subsidy of Rs 5 34 crores

horn 1999-2000 to 2001-2002, while the bank had extended loans to the tune

of Rs.14.13 crores.

2.3(b) S1GN1F1CANCE OF THE AGE OF THE WOMEN

ENTREPRENEUR

Age has its effects on the thinking pattern of the individuals. The

views and Opinions of the individuals are determined by their respective age

to a large extent. The capabilities of individuals vary at different ages in

terms of perceptions, physical endurance. Confidence level and the time

available. Younger persons are generally more energetic, enthusiastic,

dynamic, progressive, farsighted, courageous and innovative whereas the

older ones are more experienced, knowledgeable, cautious, balanced and

matured.

Birley, S. and Noburn, D. (1987,) in the study conducted in

U.K.(United Kingdom) acclaim that the average age of female entrepreneurs

to enter into innovative establishment is 32.7 years. Naik, B.M.

Nandakumar, P. and Kaliurkar, S.P. (1990,) and Ramamurthy, V.M.J and

Krishna Kumar, 11 (1990,) have also found that the best age for women to

start their enterprises in India is observed to he between 20 and 40 years.

94
 A study of Tiwari, Joseph Philip, V.K. and Amar Naih Pandey (1991)

in Karnataka reveals that the better performing entrepreneurs are relatively

young and the desire to be self-employed is more in them. Findings of the

study undertaken by Shantha Kohili Chandra (1991) also reveals that, as far

as the age of the women entrepreneurs is concerned a ma of’ them are young

and have all the vigour and time to pursue their ventures to see them fully

grown.

According to Srivastava, R.M. (1994) most of the women

entrepreneurs in India start their ventures when they attain the age of 35

years and above. In a case study done by Nazima Am Hussain (1994) from

Bangladesh, it is noted that female entrepreneurs are younger in age than

male entrepreneurs. In his study it is revealed that 75 per cent of women

entrepreneurs are in the age group of 35 years and the average age of female

entrepreneurs is 31 years.

Lalitha Rani. D. (1996 has observed in a study at Visakapatinarn that

the average age of women entrepreneurs at the time of starting an enterprise

varies between 31 and 3 years. A survey carried out by, Manimekalai, N. and

Rajeswari, G. (1998) has noted that the women entrepreneurs are mostly

young, with the average age of 35 years, who are technically and non-

technically qualified and some of them are also professionally qualified.

95
 Yadav, R.J. (1999) has observed from Sowrashtra region in Gujarat,

that 45 per cent of the women entrepreneurs belong to the age group of 20-

30 years, 35 per cent are in the age group of 31-40 years and 20 per cent

belong to the group of 4l–50 years. Muthuraja, C (1999) quotes the statement

noted by Nirmala anneree (1991), that men reach their peak of labour force

participation between 25-29 years, whereas in the case of women it is

between 40-44 years. Women often enter the labour force late because of

poor education, household responsibilities, child hearing and rearing and

extreme poverty.

Various research studies in U.K., Bangladesh and India during the last

decade reveal that women entrepreneurs take up their ventures when they are

relatively young and the age of women entrepreneurs is around 35 years.

The above studies have clearly shown that majority of the women

Entrepreneurs in India belong to the age group of 25 to 35 years. As the

growing needs of the family have made it necessary for women to

supplement the family income, women are willing to undertake even inferior

and dead end ventures. The studies have also brought out the fact that age

has no significant relationship with the role, training needs and performance

of women entrepreneurs.

96
2.3(c) IMPACT OF EDUCATION

Education is considered as one of the most essential means to

empower a person with knowledge, skills and self-confidence necessary to

participate fully in development processes. Education plays a vital role in the

socio-economic as well as cultural enhancement of rural household. It is an

important factor that influences the life-style, occupation and adjustment

pattern of women entrepreneurs. Formal education of women entrepreneurs

is an essential factor as it is an important instrument for increasing and

bettering the chances of employability and empowering women to think by

themselves. It enables them to evaluate their performance critically, to face

the strengths and weaknesses ob and to take suitable decisions. Technical or

vocational training helps them to de clop their professional skills. Education

gives women a sense of worth and achievement by developing their

intellectual capacity mid resourcefulness, which in turn will increase their

self-confidence and influence their personality, behaviour and action.

Women’s education is important because only an awakened mind can solve

the sundry problems of’ life. The World Developed Council in its Annual

Report (1981) rightly stated that the education of women is the best resource

for all developmental programmes.

Jaswant Kaur (1981) and Khajan Singh (1982) have studied about the

training of farm- women in different areas. They have found that women

respondents in their study are illiterates to the extent of’ 55 per cent to 80 per

cent.

97
 Ramaswami, K.S (1 985) has reported that education is a crucial factor

for developing modern entrepreneurship and it accelerates the

entrepreneurial spirit. Kamla Singh (1992) in her study on Women

Entrepreneurs in Haryana State has stressed the fact that women with higher

educational qualifications take an enterprise as a challenge for doing

something new while others with moderate education cannot think of an

enterprise as anything but a tool for earning money.

Lalitha Raid, D. (1996) in her study on Women Entrepreneurs in

Vishakapattinam is convinced that education is known to be the best means

of developing a person’s resourcefulness, which in turn encompasses

different dimensions of entrepreneurship. Yadav R.J. (1999) has commented

that formal education has always been considered as an important asset of an

individual in building his or her operational career in a bureaucratic society.

The case study conducted Rekha R. Gaonkar (1999) among the

women potters in Margao town in the south of Goa, highlight the fact that all

the 25 respondents of the sample area are illiterates having no formal

education. But they are quick to grasp the situation and make calculations

mentally. They can easily compute their income and expenditure. They

cannot be easily cheated by anyone.

98
 It is clear from the above study that formal education and technical

training benefits entrepreneurs by making available to them knowledge and

skills necessary for entrepreneurial endeavour. There may be instances to

show that illiterates too can cope with the challenges of entrepreneurship.

But they may be the case in trading enterprise that does not need much

education.

2.3(d) ROLE OF THE FAMILY

The family is the most important human grouping especially in the

rural community in India. It is the primary group in which every member is

directly associated. It is the faculty where socialization directs and guides the

behaviour of its members. The type and size of the family determines the

extent to which women can take decisions independently.

There are divergent reports on the impact of family profile on the

entrepreneurial performance of women. According to Mies, M. (1980,) “One

can speak of’ the social problems of men without involving the family but

we cannot speak of women without dealing with their family functions”.

Another study by Jaswani Kaur (1981 and Khajan Singh (1982) on farm-

women shows that medium size family is a favourable factor for t women

workers.

99
 Women entrepreneurs from joint families experienced less mental

stress than those from nuclear families. A significant association is observed

between the size of the family and entrepreneurial activity [Bhardwaj.S.

(1982), Takshak Rena (1990)]. It is generally believed that majority of the

women entrepreneurs emerge from nuclear families rather than from large

and medium families [(1985). Singh, V. P. Sehgal, P. Madan Tithani and

Rita Sengupta (1986) Takshak Renu (1990)]. Contrary to this many women

entrepreneurs are found h to joint families [Vidva Lata (1990)].

As per the study of Lalitha Rani, D. (1996), the family structure of

women entrepreneurs is considered as useful information influencing the life

style of women entrepreneurs. The environment in the family motivates or

shapes the women entrepreneurs. According to the author 78 per cent of’ the

women entrepreneurs are from nuclear family set-ups. Only 22 per cent of

them are from joint family. Similar observation has been made by Yadav,

R.J. (1999,) among the farmwomen workers of Sourashtra, where 35 per

cent of women entrepreneurs hail 1mm the joint families and 65 per cent

from the nuclear families.

Majority of the studies in this area has shown that families of the

nuclear type are more suitable to the development of women entrepreneurs

and that there re more women entrepreneurs from middle and large sized

100
families. From the above studies it can be inferred that co-operation from

family members is one of the essential factors for the development of women

entrepreneurs.

2.4 PERFORMANCE OF WOMEN ENTREPRENEURS IN

DIFFERENT STATES OF INDIA
Women in India have passed through numerous vicissitudes in their

socio economic life since time immemorial. Today, women stand at the

crossroads. They are in the process of revising and redefining their roles and

values in all spheres of activities.

Vinze Medha Dubhashi (1987) has expressed that entrepreneurship

helps women in improving their position not only in their family but also in

the society where people treat them with respect. In fact the best non-

controversial way to empower women, rich or poor, is to inculcate in them

the spirit of entrepreneurship. The author has also stressed the dire necessity

for the emancipation of women and development of the society by the

effective means of entrepreneurship. Entrepreneurship raises the confidence

of women and enables them to earn their status and respect in society.

Pillai, N.C. and Anna, V. (1990) have examined the compelling

reasons and stimulating factors that led women to industry in Kerala. The

following are the d factors, which force women to venture into the industrial

101
activities: • To achieve the cc-operation from the family, • To seek

independent economic status, • In gain pecuniary advantage and to be self-

reliant, • To seek employment and • To pave the way for industrial

expansion.

Khanka, S.S. (1990) has studied around 50 small-scale women

entrepreneurs in a notified backward region of the Kumaun division of Uttar

Pradesh regarding the emergence, performance and problems of

entrepreneurship. A guiding assumption of this study is that, true display of

the entrepreneurial role and attributes can well be seen only in the case of

small-scale entrepreneurs. This study brings under its purview

entrepreneurial setting, entry into entrepreneurship, financing of

entrepreneurship, entrepreneurial performance and their problems. The

author lays stress on the policy implications to provide liberal incentives and

concessions to the entrepreneurs to encourage, promote and strengthen the

small units in backward areas.

Hina Shah and Bhuptani. D.D. (1990,) in their study, tried to get an

answer to the question. “Are women entrepreneurs different”. They have

conducted a studs’ covering a sample of 300 trained women entrepreneurs of

Gujarat belonging to middle and high income working women and

housewives, skilled and technically qualified women and low income

women. According to their study almost all women expressed difficulty in

102
getting things clone quickly during the planning and implementation stages.

A majority of the respondents found procedures of financial institutions quite

irksome. It took generally 6-8 months to get a loan. Better-educated women

came out as successful entrepreneurs at a faster rate Economic independence

combined with the challenge of doing something on their own is the prime-

motivating factor. Women do not take risks as men do, especially in the

initial stage. Most of them have entrepreneurial abilities, which developed

considerably as a result of training, and hence this should be included in the

Women Entrepreneurial Development (WED) curriculum

Gloria Daya Samuel (1991) has explored the managerial efficiency of

women entrepreneurs in food processing units in Madurai District of Tamil

Nadu. Among the 66 married entrepreneurs, 56 women entrepreneurs are of

31-50 years age groups and the remaining 10 are men- entrepreneurs. Out of

56, 54 women entrepreneurs have studied up to secondary school level and

the remaining two are graduates. All the enterprises have a capital

investment of not less than Rs. 20,000/-. The t-test used by the author reveals

that there is no significant difference in the managerial performance in terms

of profit of the men and Women entrepreneurs. The findings of this study

show that there is a positive correlation between age and managerial

performance and between time allocation and managerial performance and,

there is a negative correlation between educational level and managerial

performance.

103
 The study of Kamala Singh (1992) on Haryana Women

Entrepreneurs’ reveal certain diverse characteristics of women entrepreneurs

in India. It has been observed that women from business and non-business

family background engage in traditional as well as non-traditional activity.

Contrary to the general belief, women entrepreneurs produce not only

products used by women, but also involve themselves in manufacturing and

trading products used by both women and men. The researchers are of the

view, that women are much concerned, with expansion, diversification and

modernization.

Lalitha Rani, D. (1996) has discussed extensively the various aspects

of women entrepreneurship, their strengths, weakness problems,

performances and success in Visakhapatnam City, Andhra Pradesh. The

objectives of the study are : • To study the socio-economic background of

women entrepreneurs, • To analyze the motivational factors behind women

entrepreneurship, • To analyze the degree of work-home role conflict of

women entrepreneurs and its effects on entrepreneurial performance, and •

To suggest a frame work for the promotion of women entrepreneurship.

Some of the findings of Lalitha Rani are : • Community-wise positive

factors like success stories are the influencing factors for the scheduled

castes, while other factors like leisure and boredom are the influencing

factors in the case of forward and backward castes. • Most of the women

104
have taken up entrepreneurship after marriage. Education of both the women

and their husbands, influence the women positively and actively towards

entrepreneurship. • Commitment and dedication of the entrepreneur are

considered to be the major strength of the women entrepreneurs. I they are

positively oriented towards the task they have taken on. Planned and

systematic approach and family support constitute the next important

strength. • The easy availability of loans on concession rate is not considered

to be Important at all by the women entrepreneurs. • Success is achieved

only by hard work and their positive qualities, not through short cut methods

of grace, charm and contacts, a perceived by the society.

A few suggestions are given by the author to promote

entrepreneurship among women. They are, • The role models should be

projected through books in school magazines or televisions to create a need

within women to better their status, and notable exceptions of women in the

different fields should be used as role models. • A separate cell or a body

may be formed operating under the District. Industry (‘enters preferably

manned by women who should co-ordinate all the requirements of women

entrepreneurs. • A “Women Entrepreneurial Association” can be formed to

encourage potential women entrepreneurs. • Family-support facilities should

be provided to women entrepreneurs (e.g.) childcare centres, preparatory

schools, home delivery provisional stores, service centres to make electricity

bill payments, purchase of railway tickets etc.

105
 The author concludes that women entrepreneurs despite their travails

and hardships are a satisfied and confident lot in society and a model to other

women.

Jose Paul, Ajith Kumar,; N., Paul T. Mampilly (1996,) have observed

that in Kerala women entrepreneurs outnumber men entrepreneurs. Kerala

has made significant progress in the field of social development and this is

reflected in the higher level of literacy among the women. women

entrepreneurs of Kerala have propel education access to capital. They have a

high degree of motivation and enter into business as a result of

encouragement received from husbands, relatives and Mahila Sangams. A

majority of women entrepreneurs seek the rewards in the form of good

returns from investments and find the work satisfying and challenging. The

study reveals that the motivating factors for self-employment among the

women of Kerala is the desire to work at the place of residence, difficulty in

getting gainful employment in the public and private sectors and the desire

for social recog1 It is also found that most of these women have plans fur

expansion and diversification of their enterprise. Above all the authors have

stressed the need for educational institutions particularly women’s colleges

and universities, to conduct training programmes in entrepreneurship

development and for establishing industrial estates and marketing complexes

exclusively for women entrepreneurs.

106
 A study was conducted by Swarajayalaxmi, C. (1998), on the socio-

economic background of the women entrepreneurs in Andhra Pradesh. The

author b identified the following : • First generation entrepreneurs are not

quite successful, • Units established by the pre-married entrepreneurs are

unsuccessful, • The married entrepreneurs with grown-up children are quite

successful, • The educated unit promoters are academically as well as

technically successful. Electronic, brick making and other technical /

mechanical units are failures because of the inadequate assist rendered by the

promotional agencies, while fabrics, home products and other allied units are

successful, due to their stature and experience which are the important

factors for the success of any enterprise.

Anne George (1999) has expressed in her study, of 80 married women

entrepreneurs in Kerala that 92 per cent of them are sole proprietors and are

in the age group of 30-3 years. All the units managed by them invariably

earn profit, but the women entrepreneurs who have special training in

tailoring earned higher profit than the others, because of the changing

demands of the market.

Aiyadurai, K. (1999,) has made a detailed study of the women

entrepreneurs and enterprises in Chennai. The author has brought out the

special characteristics of women entrepreneurs. They are as follows : •

107
Psychological dependency of the business women on their family members

in decision-making, • Sharing the family responsibilities along with their

entrepreneurial responsibilities, • Interest and proper exposure to the

requirement leading to the running of enterprises, • Proper training before

entering into the business. • Interested in routine matters, not involving in

innovative ventures, • Marketing orientation, • Distinguishing

entrepreneurial functions from other functions, and • Personality traits of the

women in communicating with others.

The study has also suggested some of the specific requirements of

women entrepreneurs, which are essential for their progress. They are :

• Infusing courage and self-confidence, • Fixing priority in family and

business activities, by allocating appropriately sufficient time for both, •

Urging to learn new things and undergoing training in skills elated to

entrepreneurship. • Change from production orientation to real marketing

orientations, to gain the maximum satisfaction of the maximum number of

customers. • Involving in risk-taking and taking effective decisions

appropriately, • Readiness to accept changes, Elimination for unnecessary

activities, and Building up a good relationship and working atmosphere for

the employees within the organization.

108
 Attempts have been made by Soundarapandian, M. (1999) to evaluate

the role of organization in the rural women entrepreneur development in

Madurai District of Tamilnadu. A total of 30 women groups have been

interviewed. The major activities of the women groups are cooking powder

preparation, washing products, running fair price shops and canteens. The

author has studied the growth and performance of Arivoli Mahalir Iyyakkam

(AMI) in Madurai District with the Following objectives : • To analyze the

role and developmental activities of the Iyyakkam, • To evaluate the

successful implementation of Development of women and Children in Rural

Areas (DWCRA) scheme on fair price shops, canteens, cooking powders,

washing powders and rearing much animals, and • To suggest various

concrete measures for the successful implementation of rural women

enterprise development in the district.

The author has concluded that the development of women is possible

by means of providing education. It is successful in reducing the gender gap

by means of empowering women through self-employment and income-

generating activities.

Ganesan. S. and Duraipandian, R. (1999) have stressed the fact that

training of rural women is important to increase their involvement in the

development Process, enhance their skills, and make them equal partners in

109
the national development and also prepare them to face new challenges

through technological development. The authors have also suggested that

more training programmes should be initiated region-wise and business-

wise, by including dynamic factors like information sharing and provision of

infrastructure facilities.

Shyamala, B. (1999,) has studied the need for women

entrepreneurship, existing programmes that help the women entrepreneurs

and the institutions that render financial support to the women entrepreneurs

and has identified the areas where women-entrepreneurship can thrive.

The author also studied the benefits of the existing schemes like,

Indira mahila Yojana, Rashtriya Mahila Kosh, Science Technology

Entrepreneur’s Park (STEP) Assistance to Rural Women in Non-farm

Development (ARWIND), Development of Women and Children in Rural

Areas (DWCRA), Small Industries Development Bank of India (SIDBI).

Training of Rural Youth for Self Employment Progaramme (TRYSEM) and

Self – Employment for Educated Unemployed Youth (SFEUY) which assist

the women entrepreneurs.

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 The author has suggested very many profitable activities that can be

successfully run by women entrepreneurs. They are Agarbathi

manufacturing, Papad making, Embroidery, Handicrafts, Catering service,

Pickle manufacturing. Milk distribution and Small retail shops.

For export promotion, enterprises such as, leather products, 100(1

processing. gem and jewellery, software development, cultivation of

medicinal plants, vermiculture, horticulture, packaging, mushroom

cultivation and fish culture are identified. The author strongly recommends

that the government should take full responsibility for providing raw

materials and childcare services, crèches, working women hostels to

encourage women, to enter into the world of entrepreneurial-force.

Bernardshaw, R. (1999) has identified the specific problems faced by

women entrepreneurs such as, competition from ma1 e counterparts, paucity

of finance, lack of mobility, social taboos etc. The author has proposed

suitable technology, for women entrepreneurs. It is essential to train women

more than men in scientific annual husbandry and basic veterinary care.

Animals like sheep, rabbit, goat, poultry and bees are reared by women for

additional income. Aquaculture opens new vistas of economic progress for

rural women. Cultivation of medicinal plants is an important upcoming

branch of agriculture towards income generation for women. Food

111
processing technologies like pickle making and food preservation can help to

generate more income for women. Rural women can participate in the

various entrepreneurial development programmes. In this endeavour the

Government, Non-Government Organizations ( NGOs) and the society have

a vital role to play.

Kashyap, S. and Dahia, R. (1999,) have explored appropriate area of

human resource development for rural women. The essential areas of human

resource development of rural women are studied under various land holding

categories such as landless farmers, marginal farmers, small farmers,

medium and large farmers respectively. Forty essential areas of training have

been grouped into 5 categories namely, food and nutrition, clothing and

textiles, child development, family resource management and other

miscellaneous areas. The authors have observed that whenever the training

programmes are organized in the villages, only the medium and large

landlord’s wives are trained. The women belonging to landless labourers and

marginal farmers are neglected. Hence, more emphasis should be given to

train the rural women belonging to the above mentioned agrarian strata as

these are the human resources to be developed on a priority basis.

112
 Gosh, D.K. (1999) has discussed in detail the plight of women in

Rural Development Programme. He is of the opinion that inspite of various

programmes iraplemented for the welfare of womenfolk since the dawn of

independence, even after 54 years there exists a wide gap in all spheres of

development. Women’s intervention in the development process of the rural

areas can do well if this support comes in time adequately. Otherwise there is

every likelihood that the task of correcting gender imbalances in the

development sphere will remain unfinished and the existing gap between

men and women would widen. Let the government rise to the occasion and

do justice to the constitutional amendment providing for women’s

employment.

2.5 PROBLEMS FACED BY WOMEN ENTREPRENEURS

The attitude of the society towards women and constraints in which

they have to live and work is quite adverse. Women have to face not only

resistance or reservation of men but also of elderly women who are ingrained

with the attitude of inequality. The women entrepreneurs face the problems

of finance, marketing, production, personnel and social problems. It has been

reported that the incentives and subsidy schemes have remained on paper

without being passed on to the women entrepreneurs.

113
 Srivastava, R.M. (1994) in a case study has investigated the problems

faced by the women entrepreneurs in their day-to-day operations. The study

revealed that women are facing problems of shortage of raw materials,

power, finance and marketing of products. Besides, a maze of laws and

cumbersome procedures act as a dampening force to the entrepreneurs’ zeal

and zest to expand and diversify their business.

Jose Paul et al., (1996) has identified the problems laced by Indian

women entrepreneurs as, financial constraints, over dependence on

intermediaries, scarcity of raw materials, intense competition, high cost of

production, low mobility, family ties and responsibilities, economic and

social status, adverse effects of risk hearing, lack of education and skill

acquisition and lack of urge to achieve something new.

Balu, V. (1998) has found out that most of the women entrepreneurs

felt that they cannot take up any independent decision to start a business

enterprise. They feel that they cannot raise sufficient capital for the business.

Uneducated women suffer from inferiority complex and they feel that they

are given second - class treatment.

114
 Manimekalai, V (1998) has stated that the marketing and its related

payment delay have been considered as the foremost problem by most of the

women entrepreneurs. Power shortage has also been very frequent which

reduces their incentive to work more. The price paid to the entrepreneurs per

gemstone has been on the decline, and this also negatively contributes to

their initiative.

Govindappa, G. T. (1999) has observed that the rural women

entrepreneurs grow in the tradition of their own family and play a

subservient, dependent role in the family. They are restrained from acquiring

traits such as set self-confidence, need for achievement, inclination towards

risk-taking and independence that are very essential for entrepreneurial

ventures.

Shyamala, B. (1999) has identified the Specific problems faced by

women entrepreneurs. They are • Stiff competition from men entrepreneurs,

• High prices of raw materials, • Financial constraints, • Managerial

constraints, • Technical difficulties. • Low ability to bear economic, technical

and environmental risks, • Discrimination in selection for entrepreneurial

development training, • Poor co-operation from their family, • Lack of

adequate educational facilities, ‘Limited occupation and entrepreneurial

base, • Inferiority complex among women, • Lack of entrepreneurial

115
initiative, • Unplanned and haphazard growth of women entrepreneurship in

the country, • Lack of specialized entrepreneurial programmes or women

entrepreneurs, • Late commencement of women entrepreneurship in India, •

Attitude of the society towards women, ‘Procedures for bank loans, and

•Delay in the disbursement of sanctioned loans and running about for

everything concerning their enterprise.

Sundaram, S.K.G. (2000) in the study of Post-Independence Growth

and Development of Women Entrepreneurship has listed the problems faced

by the women entrepreneurs as follows : • Preparation of a viable project

proposal, ‘Getting suitable land / workplace / shed. •Procedural complexities

and bottlenecks. • Marketing and management skills. • Poor self-image. •

Lack of assets in their names. • Lack of time due to family responsibilities. •

Lack of exposure to business practices.

Dahiya L.N.S. (2000) holds that the basic ingredients such as

independence and authority required for a successful entrepreneur are not

adequate for women in India. Also the risk bearing capacity which is a

crucial factor in running an enterprise is very low among women. Owing to

lack of confidence in women’s ability, women entrepreneurs more often

resort to borrowing from unscrupulous money-lenders at exorbitant rates of

interest. Moreover a serious problem of marketing exists, due to lack of

storing facilities. Entrepreneurs mostly of the low ‘stay-capacity, engaged in

116
seasonal and agro-based products, are forced to sell their products at lower

prices and middlemen take advantage of the seasonal effects.

Neelima, B.N. and Shyam Swaroop, T. (2000) have brought out the

fact that there is lack of access to peer support, low level of education, strong

fear of failure and ridicule, lack of recognition, lack of property and assets,

non-availability of collateral security and lack of access to capital for the

women entrepreneurs. Also the training given to them with respect to

entrepreneurship even in the academic curriculum is limited to stereotyped

occupations such as dress and fashion designing and secretarial practice.

2.5.1 Problems and Constraints in the Process of Organisation and

Empowerment of Women in Self Help Groups

Khan (1995) emphasised that in Self Help Group, the question of’

sustainability come up again and again in Sri Lanka. Further the point of

transparency and accountability of the Self Help Group is another serious

problem.

Wijawardena (1995) opined that initially the group members stick

together for some time. Later when some of them developed better abilities

and advanced more, differences crop up and they no longer want to associate

themselves with the groups. Most groups, fell apart once a few members of

the group become more economically advanced.

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 Desai and Arora (1996) have detailed the following problems in the

oganisational process of Self Help Groups, which include.

1. Pressure groups / self interest prevailing over community interest /

vested interest groups / gate keepers try to create problems in the

functioning.

2. Intra or inter group complexes in the functioning.

3. Chances of conflict among group members in respect of sharing

contributions / benefits.

4. Problems of generation gap.

5. Non-attendance of members.

6. Problems connected with maintenance of records.

7. Outside influences.

8. Problems of women folks with reference to communication.

Sangeetha, P. (1998) found that interviews conducted with women’s

groups pointed to several examples where the objectives of the collective

were inconsistent with those of individual women. One concrete instance of

this clash was in cases where the collective consisted of women belonging to

different castes. Another example is that of the collective turning down

requests for money made under family pressure by individual women for

their husbands or other male members in the family.

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2.5.2 Suggestions to Improve the Programmes of Self Help Groups for
the Empowerment of women
Promod (1990) assumes that at the level of poor family, the requirements

for self-reliant development are,

1. Motivation and incentives to save continuously.

2. A flexible credit arrangement to meet the production and investment

needs and possibly consumption needs.

3. Availability of required physical inputs, technical advises, information

service and other services like processing, marketing etc.

Pathak (1992) pointed out that leadership can influence the Self Help

Group members for proper functioning. It can help, guide and support

members in solving their problems. Rajasekar (1993) has elicited the

following factors as important information and sustenance of Self Help

Groups : (1) the groups should homogenous in terms of the combined criteria

of caste, economic status sex (2) the rules and regulations should be

discussed and decided upon by group members themselves and (3) the size

of the group should be small that it would allow members to participate

effectively in democratic decision making.

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 Anonymous (1994) reported that voluntary agencies have to withdraw

from the existing group by creating an apex body in each of the areas it

operating. The apex body was expected to provide umbrella support to the

Self Help Groups in future. They also said that some Self Help Groups have

started creating common assets owned by all the members. These common

assets also provide additional income to the group.

Desai and Arora (1998) have given some suggestions to improve

organisations of Self Help Groups. It include:

1. Make the people conscious about the vested interest groups and their

malafide intentions. Also make people aware of their rights and duties.

2. Induce feeling of mutuality within and among different groups.

3. Initiation of income generating activities.

4. Propagation of feeling of equality and mutual respect.

5. Every member should receive his due and proper share of benefits.

NABARD (1998) report on the study attempted by Kerala

Agricultural University (KAU) on Self Help Groups showed that small size

group allowed members to participate effectively in democratic functioning

and decision making.

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 Realisation that the regular development programmes are not

sufficient for improving the status of women, gradually led to the

development of the concept of women’s empowerment. Women

empowerment is the process whereby women acquire control over resources

and the structures of subordination rather than merely accepting the help

offered to them through development programmes.

The process of empowerment is approached in different ways and

various strategies have been used in effecting this process. Among them,

Self Help Groups are very important and frequently used strategies. The

studies reviewed here suggest that they are used very extensively by 1’con

Governmental Organisations and Governmental agencies. They also

highlight the problems and prospects of this strategy. Although a number of

studies have been conducted about the performance of these groups, few

were done on the extent of empowerment brought about through the Self

Help Groups. These studies have found that this strategy is truly empowering

even though there are various limitations.

Most of these studies focus on the economic aspects of the Self Help

Groups and rarely emphasise individual level changes. Therefore, the present

study focuses on this aspect, i.e. the empowerment or status of women at the

individual and household level.

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