Economic Status of Self-Help Grooup Members

ECONOMIC STATUS OF MEMBERS OF SELF HELP GROUPS A.SUKUMAR., M.Com., M.Phil.
, coimbatore
CHAPTER I
INTRODUCTION AND RESEARCH DESIGN
INTRODUCTION:
Women who have been deprived of self respect and subjugated into existence at
the whim and mercy of the male constitute almost half of the country’s population.
Over the years, women has accepted her role in society as housewives and an
expendable commodity sold off to strangers or a source of dowry for her husband’s
family. More recently, however women liberation movement on global scale has
brought out the concern that women are an issue. Both national and international
policy documents now acknowledge that gender discrimination is one of the most
pervading forms of institutionalized deprivation and there is a need to rectify this
situation. There is also general acceptance of the various ways through which women
contribute to society and economy.
Earlier cultural stereotypes have been scrutinized, statistics increasingly collected on

sex – segregated basis, anti-discriminatory laws passed and a number of new policies,
projects and programmes and some form of national machinery for advancement of
women have been created. All these changes have not been accompanied by a
basically in state approach to women’s issue, which is still limited and biased, as it
does not take into account systemic relations of inequality, involving the relations
between both men and women. The attitude towards development remained
sufficiently, uncritical, when the entire process, especially the assumptions underlying
development need to be questioned, if women issued were to be effectively tackled.
Statement of Problem
Average women’s in most countries is lower than those of men. In many developing
countries marriage is the only career for most women. Professionally women have
confined their activities to such areas as education, office work, nourishing and
medicine. It is only rarely that they enter profession like engineering, business.
Despite women constituting almost half of the world population their representation
ECONOMIC STATUS OF MEMBERS OF SELF HELP GROUPS A.SUKUMAR., M.Com., M.Phil., coimbatore
in gainful employment is comparatively low.
For centuries, women have been the victims of social regicides and assumptions.
Women have been taught to depend on others, to limit their time prospective and to
avoid exposure and risk. Limited exposure and failure to understand and take risk
further inhabit them. The net result is limited achievement.
In Hindu scriptures women are described as the embodiment of Shakthi, the supreme
power, but in practice they have been treated as able the weak and dependent. In
traditional societies women have been confined to the four walls home, children,
household affairs and family rituals and customs. Very few have had the opportunity
to come out of the four walls and shine in different spheres. Recently there is a
change in this trend. Many men and women have come forward to take up
employment because of hard economic necessity. The traditional bound Indian
society is now undergoing a change and women are now seeking gainful employment
in several fields is on increase.
It is only during the last 5-10 years women have started becoming entrepreneurs and
started industries and business but still they have to go a long way to be par with
men. This situation is quite understandable that women have to play a dual role as a
housewife and also a brand winner. Some recent researches indicate that several
women are now willing to become entrepreneurs due to various factors. These factors
can be broadly classified under two heading namely “pull factors” and “push factors”.
Under the first category, the women entrepreneurs choose a profession as a challenge
and adventure with an urge to do something new linking for business and to have an
independent occupation. The other category of women takes up business enterprises
to get over financial difficulties and their responsibility thrust on them due to family
circumstances.
With the spread of education and new awareness women entrepreneurs are spreading
their wings to higher levels of 3Es namely engineering, electronics and energy,
though the number of such units is not as large as it should be, today no stone is left
unturned in all fields up the skilled and determined modern Indian women. Self help
group is a forum or association of likeminded people who are coming together for
economic business. The group is democratically controlled by the members and the
profit or surplus shall be equally distributed among them. This is the beginning of a
co-operative form of organization. The main objective of the formation of self help
group is to strength co-operative movement by utilizing the resources available in the
area. The members of SHGs should be from the same locality and of the same income
group who have combined together to live with dignity. The researcher has
undertaken the study of self help group in Pollachi Taluk of Coimbatore district to
throw light on the economic status of self help group before and after their entry into
SHG.
SCOPE OF THE STUDY:

The study has been taken up to the Economic status of members of self help
group pollichi and after their entry. This study is confined to the members of self help
group mainly engaged. Coir-marketing, Coir-mat making, working in ration shop and
tailoring in Pollichi taluk. It provides the details of the Socio – economic profile of
the members.
This study is also mainly confined to the impact of self help group Pollachi on
the level of their financial conditions like income, expenditure, assets, and loans after
availing of the assistance. The loan repayment aspect of the target groups is also
evaluated.
OBJECTIVES OF THE STUDY:
The study has been carried on with the following objectives.
1. To study the formation, functions, significance of self help group and important
steps to be taken for promotion of self help group.
2. To study the profile of the study area.
3. To analyse and compare the socio-economic situation between before and after
their entry into SHG.
4. To analyse the relationship between level of satisfaction and socio-economic

fators of the members of self help group.
5. To make suitable suggestions for the development of self help group based on
the findings of study.
HYPOTHESIS:
The study aims at testing the following hypothesis in line with the objectives
mentioned above.
1. Age of the members influences the level of satisfaction to become a member of

self help group.
2. Educational attainment of the members influences the level of satisfaction to

become a member of self help group.
3. Marital status of the members influences the level of satisfaction to become a

member of self help group.
4. Relagion of the members influences the level of satisfaction become a member

of self help group.
5. Total number of family members influences the level of satisfaction to become a

member of self help group.
METHODOLOGY:
The study is an empirical study based on the survey method. Both primary and
secondary data have been used. Primary data have been collected from members of
self help groups in Pollachi taluk, by conducting interviews in person. Secondary data
have been collected from books, articles, journals and unpublished records of
Kalanjiyam Office.
Construction of tools:
A structured interview schedule has been used to collect Primary data from the
members of self help group (vide Appendix – A). The formatted interview schedule
has been pre-tested with 15 members. In the light of the experience gained by the
investigator, the interview schedule has been improved. It has been divided into four
parts. The first part is designed to get the details of the personal back ground of the
members of self help group. The second part deals with the details of the group. The
third part deals with income and expenditure status of the group before and after their
entry into the self help group. The final part comprises the level of satisfaction of the
members of self help group.
Sampling design:
The sample comprises the members of self help group who engage themselves
in various activities. The details of polulation of members of self help group in
Pollachi taluk are gathered from the Kalanjiyam office, Stratified proportionate,
random samples as collected from the members from various villages situated at
pollachi taluk.
Geographical coverage:
The study covers the villages situated in Pollachi taluk only.
Field work and data collection:

Field work for this study has been conducted between June 2007 and February
2008. The interview has been conducted by the investigator generally by fixing prior
appointments. The interview has been quiet informal and the details given in Tamil
has been recorded by the investigator checked and edited. The commission and
omissions have been rectified by referring back to the source.
Data processing:
After the completion of data collection, the information collected through the
interview Schedule has been edited properly. A master data base is created to sum up
all the information acquired and classified tables are prepared and have been later
tapped directly for analysis.
Period of study:
This study covers a period from June 2007 to February 2008.

REVIEW OF LITERATURE
Review of literature in any area helps to the researcher to know similar studies,
the methodology employed, issues covered and prescriptions suggested. According to
Bed Ford A. Fabura any research study should invariably be preceded by survey of
literature, for the purpose of getting an insight into the works already conducted.
There are a number of studies on the functioning of self help group in India for
instance (choudhary at 2001, latha and Nagarajan 2002). They deal with the
composition and structure of the self help groups operation of micro credit and micro
enterprises under self help groups. There are studies on the determinants of the
functions of these groups.
CHAPTER SCHEME
This project has been designed and presented in six chapters. The first chapter
deals with the design of the study. It covers introduction and research methodology,
construction of tools, sampling design, geographical coverage, field work and data
collection, data processing, period of study, review of literature and limitations of the
study.
The second chapter deals with introduction, formation of SHG, significance of

self help groups and women status in India.
The third chapter deals with profile of the study area viz., Pollachi.
The forth chapter deals with the Socio Economic status of the members of self
help group, incremental income and expenditure of the members of self help group,
motivational factors of members of self help group, benefits obtained by the members
of self help group after their entry and problems of members of the self help group.
The fifth chapter deals with relationship between the personal factors and level
of satisfaction.
The sixth chapter deals with the summary of findings and suggestions.
CHAPTER II
SELF-HELP GROUPS – FORMATION AND FUNCTIONS
Introduction
“A woman is the companion of man, gifted with equal mental capacities. She
has the right to participate in the minutest details in the activities of man, and she has
an equal right of freedom and liberty with him.”
(Mahatma Gandhi)
Out of 1027.05 million people in India, women comprise 495.57 million

representing 47.7% of the total population. Out of 495.57 million 110.46 million
women are employed (representing 28% of the female population). But as per 1981
census, only 1,50,000 are self employed accounting for only 5.2% of the total self
employed persons in the country. Majority of them are engaged in the unorganized
sector like agriculture, agora-based industries, handicrafts, handlooms and cottage-
based industries. Participation of women as industrial entrepreneurs however is
comparatively a recent phenomenon-commencing from 1970s onwards. In 1988-89
ther are more than 1,53,260 women entrepreneurs claiming 9.01% of the total 1.70
million entrepreceurs in India when it is compared to the year 1981, tis is almost
double the percentage of women (5.2%) among the total populationof self-employe.
Of this, a majority are concentrated in low productivity jobs in the rural and
unorganized sector, 90% (79.4 million) women wokers are in the rural areas as
against only 10% (8.9 million) in urban areas. Only 2.5 million workers are in the
organized sector-mere 12.4% if the total employed. Women entrepreneurs will be
requiring training in self-employed entrepreneurship of shorter duration as well as
some training in trade and skill areas. In order mobiles such percentage to women of
entrepreneurs, a number of activities such as motivational drive preparation of
information material.
FORMATION OF SELF HELP GROUP
Self-help groups are increasingly accepted out as agents of bringing social

changes and development among the weaker sections. The approach of SHGs
represents a paradigm shift from development toward empowerment. The success of
SHG is its mobilization, organization and banking. Voluntary organizations follow the
approach of self-helps to attain rural development and empowerment of the weaker
sections in India. The self-employment programmes have already been transformed
into of SHGs based. The banking institution channelize their credit to poor through
the SHGs. They have the support NGOs.
The voluntary, autonomous self-functioning SHGs are motivated by these external

institutions to engage in micro credit operations and income generating micro
enterprises. A self-help group is defined as a self governed. Peer controlled informal
group of people with similar socio economic background and having a desire to
collectively perform common purpose.
It is a homogeneous group of poor people voluntarily coming unable to save

whatever amount they can conveniently out of their earnings to mutuality agree to
contribute to a common fund and to lend to the members for meeting their productive
and emergent need. Self help groups have been able to mobilize small savings either
on weekly or monthly basis from persons who are not expected to have any savings.
They have been able to effectively recycle the resources generated among the
members for meeting the emergent credit needs of members of the group. The self
help groups generate a common fund out of small savings, promoted on a regular
basis among members by curtailing unproductive expenditure.
Sometimes the internal savings are supplemented by external resources

loaned/donated by voluntary associations involved in promoting and strengthening
the groups. The funds thus created are used for giving loans to its members. Such
loans include consumption loans and productions. The consumption loans include
subsistence needs, health care, social and religious ceremonies. The production loans
are for the purpose of purchase of agricultural inputs, investments on poultry, sheep,
and for small business like vending, hawing and soon. The credit needs of members
are usually assessed in-group meetings.
LINKING SELF HELP GROUPS WITH BANKS AND THE

NEED FOR LINKAGE
In India, efforts are made to promote micro finance in a sustainable manner. An
important vehicle for this has been the self help group programme and its linkage
with banks. Self help group would have acquired enough experience to manage the
finance but the funds available are not adequate. At this stage group needs the support
of the financial institution.
PROCEDURE FOR EXTENDING BANK FINANCE

Banks may lend directly to SHGs or through bulk lending to NGOs for on
lending to groups. If lending is directly from bank to the group, the group should in
proportion to the savings mobilize the quantum of credit given to the groups. Savings
credit ratio may be 1:1 or 1:2 inutility, which can be raised to 1:4 depending on the
confidence gained by the bank. Linking programme is advantageous to banks; self
help groups and also NGOs.
Advantages to self help groups:
Ø They enjoy the total autonomy in thritl and credit management.
Ø Easy accessibility to larger amount of funds.
Ø Gradual improvement in the economic status of each member.
Ø The status of quality micro enterprises.
Ø Empowerment.
WOMEN STATUS IN INDIA:
Self sacrifice of the women:
The prevailing attitude to women is stick conditioned by religious symbolism,

which highlights the self sacrificing of the women. A woman is always viable as
someone’s sister, daughter and wife or mother- never as a citizen in her own right
who also needs to live with dignity and self respect. Life is joint families is highly
segregated between men and women.
A wife has little content with her husband but spends a great deal of time with other
women. The tasks of running the household are shared among the women and they
are given the role of controlling the younger women and enforcing the qualities of
docility. Obedience and submission.
Dowry system
The whole practice of dowry is the reflection of the devaluation of women and
their powerlessness. It devalues the girl’s contribution and her input into home
making and the family economy. In the commercial transactions, the girl as a person
is a forgotten factor, as she becomes a traded commodity. The problem of dowry is
one of the most important issues in the women’s movement in the country.
The status of Windows
Today not many men or their families approve of marriage with a widow. Where
young brides have been married to old men, many windows can be quite young with
young children to support. Widows traditionally suffer from a number of social
indignities being debarred form public places and auspicious ceremonies. They are
not allowed to wear good clothes or to eat normal food and are made to observe
lifelong mourning for their husbands.
Early Marriage
Within the family, a women is treated as a social and financial dependent,

controlled by the family in every aspect of her life; having had little or no education,
her worth is measured in terms of her ability to produce male children or bring in
money / assets; she no longer belong to her father’s family, whilst her position in her
husband’s family in conditional.
Economic role of Women
Women are principally engaged in agriculture or in the unorganized informal

sector as construction workers, petty hawkers and vendors and in traditional home
based occupation such as basket and mat weaving, lace making, agarbathi and soon.
Women are also involved in marketing certain traditional goods, such as fish trading,
vegetables and flower vending and other areas of petty market trading.
Similarly they have been involved in handicraft occupations such as embroidery and
basket making and will frequently market their products in the local Fairs and
Bazaars.
Women Agriculture
Women also play an important role in harvesting and processing work, which
has not been mechanized. This applies to harvesting, threshing, winnowing, dehiscing
and grinding of millets. Rice mills, on the other hand now mostly dehisce Rice.
Women are also heavily involved in animal husbandry. Whilst the care of draught
animals trends to be the man’s responsibility, care of milk animals, sheep and goats
are the women’s preserve.
Women in the informal sector
Traders expose the women to financial exploitation and middlemen who provide
credit or raw material and who take back the finished product, cheat the women by
providing insufficient or sub standard raw materials and by making unreasonable
deductions for poor quality. The organized sector takes advantages of this vulnerable
position of the labour force in the informal sector and large industries are now finding
it advantageous to decentralize production to make use of workers in the informal
sector.
Women oriented programmes
The policy of self-Employment programme is to endow the poor with credit and
productive assets and to provide training to hone their skill. The wage employment
programme implies a strategy to develop rural infrastructure and to generate
minimum needs. The self-employment programmes include Integrated Employment
and wage employment programmes include National Rural Employment Programme
and Rural Landless Employment Guarantee Programme.
In 1982 an exclusively women’s Programme Development for women and

children in rural area was initiated under the self employment category. Towards the
end of seventh plan, it was observed that NREP and RLEGP were duplicating the
same work and hence were merged into a new scheme Jawahar Rolgaz Yojana.
Significance of Self Help Groups
Mishra and panda in their study, self help groups informal cooperative I Orissa
conclusively state that despite their several structure weakness and operational
bottlenecks the self help group movement has taken a definite step towards
sustainable development by pooling local available resources. They also note that the
self help groups are functioning as informal co-operatives of the poor, based mainly
on the sound principles of mutual help and development credit and in the process, the
rural poor and at the same time have worked as catalyst in taking further group
activities.
Dwaraki, Naraysnasamy and Ramesh have pointed out that the goal of a self help
group is to pool the strength of weaker sections and lead them towards the goal of
achieving developed self-reliant community. According to rural (pp:259) the self help
group play a role of moneylender, a co-operative institution and as community based
organization. Member has been benefited by taking loans to meet emergency and
consumption needs and investing in productive economic activities. The study reveals
that manual trust amongst the members has led them to build groups in the same
fashion as that of co-operative where they are owners as well as borrowers too. It is
found that all the self help groups studied. Have undertaken developmental activities
for the community and built up group solidarity.
SELF HELP GROUPS – GATE WAY TO WOMEN EMPOWERMENT
Self Employment Programmes In Reducing Poverty
An assault over poverty is of recent development in the economic planning. Only

with the fifth plan, poverty alleviation and removal of unemployment came to be
accepted as one of the principle objectives of economic planning in this country. Of
course, India has been aware of the need to remove the poverty and unemployment
for a longtime. Until late 1970s, decision makers in the government and planning
commission have been of the view that, the trickle down effects of growth may have
removed unemployment in the country in the coming years. But it has not been
beneficiary as it is expected.
The disillusionment with trickle down thesis of growth, as in the case of many
developing countries has led to emergence of alternative line of attack to tackle the
twin problems of unemployment and poverty, in addition to continuation of measures
for overall development and strengthening the process of industrialization. These aim
at evolving direct measures of income support through provision of employment
particularly in the rural areas. This is the origin of special programmes for
employment generation which are initiated in the early seventies. These special
programmes have reduced the absolute poverty in the country both in rural and urban
areas.According to official estimate, in rural area the poverty ratio has declined from
56.4 percent in 1973-74 to 45.7 percent in 1983 and from 37.3 percent in 1993-94 to
27 percent in 1999-2000.
In urban area from 49.0 percent in 1873-74 to 40.8 percent in 1983 and from
percentage in 1993-94 to 23.65 percent in 1999-2000. The thirty-year history of these
programmes clearly shows that there is positive impact on the poor, but the desired
results have not been achieved. Given the conditions prevailing in the economy, there
is urgent need to restructure the existing programmes to meet the future challenges.
The objective of the present paper is to review the effectiveness of self-employment
programmes in reducing poverty and to suggest remedial measures to meet the future
challenges.
Major Poverty Alleviation Programme
The existing major poverty alleviation programmes in India can broadly divided into
the following four categories; a) age employment programmes (e.g. public works), b)
credit based self-employment programmes (IRDP, TRYSEM), c) Special group and
area specific programmes (SFDA, MFAL, DPAP), and d) The Public Distribution
Systems (PDS).
Assessment of Poverty Alleviation
At present a number of special anti-poverty programmes are being implemented both

in rural and urban areas and it is hoped that they will contribute a lot to poverty
alleviation. The programmes for the rural poor includes, public works programmes,
Integrated Rural Development Programmes (IRDP), Jawahar Rojagar Yojana (JRY),
Training of Rural Youth for Self-Employment (TRYSEM) and Development of
Women and Children in Rural Areas (DWCRA).
The Nehru Rojgar (NRY) was launched for the benefit of the urban poor. Over the
year the functioning of the anti-poverty programmes and their impact on the poverty
has attracted the attention. A number of studies have highlighted their achievements
as well as weakness. Official claims the number of beneficiary works carried out in
additions to that productive assets are exaggerated.
Wage-Employment Programmes
These programmes have direct benefits in the form of employment and income to the
poor. Wage-Employment Programmes have many other direct and indirect benefits.
These programmes stabilize the income and activities like employment insurance for
the poor. The other benefits are asset creation and impact on agriculture growth;
upward pressure on agricultural wages. Wage-employment Programmes also help in
preventing famine during the drought. Self-Employment on the other hand, increases
the skills of workers, in the post-economic reform period skill based workers will get
much higher wages and wage-employed people continue to get lower wages.
However, the Integrated Rural Development Programme (IRDP) is not satisfactory.
On the other hand, NGOs based Programmes are more successful, but their scale of
operation is not large. Regarding credit-based self-employment, it has been argued
that, these Programmes have the potential to be most cost effective. Self-Employment
is a major form of employment in the rural area and this fact must not be ignored in
the strategy of poverty alleviation. However in India the experience of Self-
Employment programmes is not satisfactory but they play an important role.
Self Help Group
SHG is a small voluntary association of poor people, preferably from the same socio-
economic background. The come together for the purpose of solving their common
problems through self help and mutual help. The SHG promotes small savings among
its members. The savings are kept with a bank. This common fund is in the name of
the SHG. Usually, the number of members in one SHG does not exceed twenty.
Non Governmental Organizations (NGOs) social workers health workers, village

level workers, etc informal associations of local people development oriented
government departments banks bank personnel and other individuals. Farmer’s clubs
under the vikas volunteer vahini programme of NABARD other development
institutions. The SHG-bank linkage programme is targeted to reach the poorest
sections, which are by passed by the formal banking system. Therefore, it is essential
that only the very poor be considered as the target froup for the SHG banks linkage
programme. An SHG can be all-women group, all-men group, or even a mixed group.
However, it has been the experience that women’s groups perform better in all the
important activities of SHGs. Mixed groups is not preferred in many of places due to
the presence of conflicting interests.
Characteristics of SHG
ü SHG usually create a common fund by contributing their

small savings.
ü The groups evolve flexible system of operations, often

with the help of NGOs and manage common pooled resources in al
democratic manner.
ü Requisition of loan is considered by groups in periodical

meeting, with competing claims on limited resources being settled by
giving considerations for greater need.
ü Loaning is mainly on the basics of mutual need and trust

with minim um documentation and without any tangible security.
ü The loan amounts are small, frequent, and for short

durations, and are mainly for unconventional purposes.
ü Rate of interest vary from group to group depending upon

the purpose of loan and is often higher than that of banks but lower than
that of moneylenders.
ü At periodical meetings besides, collecting money,

emerging rural social and economical issues are discussed.
ü Defaults are rare due to group pressures and intimate

knowledge of the end use of credit as also the borrowers economic
resources.
Credit needs to SHGs
As part of evolving an institutional arrangement for meeting the small quantum of

requirements of the people in rural areas, the national bank for agriculture and rural
development (NABARD) have made an assessment of the credit needs of self help
group members as follows:
1. Small individual loans at different times for consumption, crop

production and working capital support in petty business activities.
2. Medium or long term loans for purposes like work bullocks dairy
animals, irrigational wells and pump sets, sericulture etc., either
individually or in a group and
3. Medium and long term loans for joint income generating activities
taken up by the entire self help group like grocery shop, brick making,
forest produce based processing units, production-cum-training centres
and so on.
While the credit needs of type (a) are generally met to a large extent by the Self-Help
Groups through their common fund, those of types (b) and (c) remain unserved due to
paucity of internal resources and are met from external sources often at a high cost.
National Bank for Agriculture and Rural Development (NABARD) have brought out
a regular scheme during the beginning of this decade under which self help groups of
rural poor are recognized as an alternate credit delivery system and measures
suggested to encourage linking of Self Help Groups with bands for the purpose.
Subsequently, the Reserve Bank of India has issued instructions to commercial banks
regarding establishment of linkages by them directly with NGOs and Self Help
Groups. The lending of amount the Self Help Groups members was Rs.10.27 crores
in 1997-98 and it increased to Rs.54.59 crores in 1999-2000, recording 431.55
percent of increase in lending money among them. This shows the sustainability of
the self-efforts. The internal rotation of loan amount among the members of Self Help
Group was 0.79 lakh in 1997-98 and it has been raised to 1.63 lakh 1999-2000,
indicating a more than 100% of increase in this regard.
It can be noted that though Self Help Groups have been started three years ago, it
records tremendous achievements in all aspects of its operation, indicating the
sustainability of the project. Many Self Help Group women members are currently
involved in economic activities such as production and marketing of Agarbathis,
Candle and Soap. Readymade garments. Pickles, appalam, toys, bags, palm leaf
products, dhotis, herbal products, fancy sea shell. Ornaments, eatables, coir mat and
other products, mattresses, chapels, leather goods and the like, the impact of these
programmes on the status of women can be observed from the following.
The empowerment of women through Self Help Group enables
Ø To create the thrift habit among the women.
Ø To develop the managerial skills.
Ø Ability to keep learning and developing.
Ø To improve the self-reliance and self-confidence.
Ø To provide enthusiastic, motivation and commitment.
Ø To gain knowledge through trainings and programmes.
Ø To obtain the leadership capacity.
Ø To initiate for sharing ideas and skills among the groups.
Ø To create employment opportunity.
Ø To create social awareness.
Ø To take decisions, individually as also by involving others.
Ø To make better communication skills.
Ø To educate Self Help and mutual help.
Ø To improve functional literary and numeracy.

Summary
Self Help Group plays a significant role in the upliftment of rural poor particularly
the women. It brings out the traditional bound Indian society to the streets. Women
are now seeking gainful employment in several fields. It is only during the last 5 to
10 years women have started becoming entrepreneurs and started industries and
business.
In recent years women have come in forefront in different walks of life and they
successfully complete with men. This has been possible only because of education.
Political awakening, legal safeguards and social reforms etc.
Self help groups has opened the way to improve the status of women in all walks of
life. At present they become entrepreneurs and occupy various positions in the
different organizations. Self help groups helps rural women in the under mentioned
ways.
1. Poverty is alleviated to a certain extent.
2. Income of the rural poor has improved.
3. The earning of the self help group members supports the family.
4. It gives an opportunity for self employment.
5. Standard of life has been improved after their entry into self help group.
CHAPTER III
PROFILE OF THE STUDY AREA

3.1. INTRODUCTION
This study is related to Self Help Group with special reference to Pollachi Taluk
of the Coimbatore Distict.
Pollachi Taluk is one of the important taluk in Coimbatore district. It is known as

“Swittzer land of Coimbatore Diestict” because of its chill climate. This taluk is
situated on Dindigul – Bangalore main road (NH 209) i.e., 39 km east of Coimbatore.
Towards North is the Palladam taluk, Moonar is in the South and Palgat is in the
West. Valparai taluk is in the southwest and Kodaikanal taluk is in the southeast. It is
the head quarters with a total area of 13.87 Square kilometers and with a total
population of about 5,44,194 (2001 census).
Total of the pollachi taluk is divided into 4 major blocks namely, Pollachi North
block, Kinathukadavu block, anaimalai block and pollachi south block. The taluk is
governed by a tahsildar and the blocks are administered by the block Development
Officers.
Pollichi taluk is surrounded by 137 major villages. Cultivation of coconut trees

and Coir industries occupy a key position in pollachi taluk. It is the source of
livelihood for majority of people. Parambikulam Aliyar Project is a boon to the ryots
for irrigation.
State Bank of India, State Bank of Thiruvangur, Canara Bank, Indian bank,
Syndicate Bank, Vijaya Bank, Indian overseas Bank, Tanjavur Bank, Madura Bank,
Dhanalakshmi Bank, Federal Bank, Karuru Vishaya Bank, Lakshmi Villas Bank,
South Indian Bank, Catholic Syrian Bank, Bank of Baroda, Urban Co-Operative
Bank, Land Development Bank (Pollachi North Branch), Land Development Bank
(pollachi south Branch). Tamil Nadu Merchandised Bank, Coimbatore Central Co-
operative Bank, Pollachi urban Co-operative Bank help very much for the
development of Pollachi taluk. For public conveyance, lorry transport, taxi, auto
services are sufficiently available in Pollachi taluk.
As villages surround most part of Pollachi Taluk, nearly 5,44,194 of the total
population live in villages and their main occupation is agriculture. 48,297 male and
44,397 female are employed in agriculture.
3.2. STUDY OF THE EXISTING CONDITIONS
3.2.1. Location:
Pollachi town is situtated on the Eartern side of the Western Ghats at the foot fo
the Annaimalai hills in Coimbatore District. It is situated at 770 East longitudes and
10030’ North latitude. The town is the taluk Head Quarters. The town holds the
central position for the surrounding towns namely Coimbatore, Udumalper, Valparai,
Dharapuram, Palladam and Palghat of Kerala State. The town is linked with the
Cochin harbor 225 km away from it. The meter gauge railway line Olavako to
Dindigul as well as Coimbatore to Rameshwaram, link Pollachi town with the
neighbouring important town in Tamil Nadu and Kerala state.
3.2.2. Physical factor:
The general typography of this town is dominated by the sloping lands around it
with steadily rising land in the west towards Annaimalai Hills. The average elevation
of the town is 292.50 meter above the mean sea level.
The town is also the main outler for the hill produces coming down for the
annaimalai hills and parts of Derikulam in Kerala State. Owing to his advantageous
geographical location and its capacity to serve a West hinterland, Pollachi has the
largest weekly market in the South.
3.2.3. Climate and temperature:
It is against the Plaghat pass and close to Annaimalai, and therefore the climate
is pleasant with cool breeze blowing through the Plaghat pass. Mean maximum and
minimum temperature is 370c and 14.90c respectively.
3.2.4. Rainfall and soil:
The average rainfall is 907mm. Southwest monsoon brings most of the rainfall
during the months of june to September. The Soil in and around the Pollachi town is
mainly red loom and resend. Gypsum occurs in near place and its immediate
surroundings are good for building construction.
3.2.5. Population:
The population of Pollachi taluk as per the 2001 census is 5,44,194 (male:
2,73,055 and Female 2,71,139)
Table 3.1
TOTAL POPULATION IN POLLACHI TALUK
POPULATION MALE FEMALE TOTAL

POLLACHI NORTH 96,856 95,804 1,92,660
KINATHUDADAVU 49,729 50,453 1,00,182
ANAIMALAI 69,929 69,796 1,39,725
POLLACHI SOUTH 56,541 55,086 1,11,627
TOTAL 2,76,055 2,71,139 5,44,194
Source: Indian Statistical Department, Pollachi.
From the above table it is observed that the total population of pollachi taluk has
been classified as Pollachi North, Kinathukadavu, Anaimalai and Pollachi South. In
Pollahci North areas as per in 2001 census Statistical report the total male population
is 96,856 and the female is 95,804. Therefore total population in Pollachi Norht area
is 1,92,660 as such as the population of Kinathukadavu area is 1,00,182 of which
male population is 49,729 and the female is 50,453 as such the population in
Anamalai area is 1,39,725 of which the total number of male is 69,796 and
population of pollachi south area is 1,11,627 of which male comprises 56,541 and the
female is 55,086 as such the population of Pollachi North, Kinathukadavu, Anaimalai
nd Pollachi South area is 5,44,194.
Table 3.2
LITERATE IN POLLACHI TALUK
PARTICULAR MALE FEMALE TOTAL

POLLACHI 72,369 58,466 130,835
KINATHUKADAVU 33,599 25,131 58,730
ANAIMALAI 46,754 35,513 82,267
POLLACHI SOUTH 41,017 31,510 72,527
TOTAL 193,739 150,620 344,359
From the above table it is observed that the total Literate of Pollachi taluk has
been classified as Pollachi north. Kinathukadavu, Anaimalai and Pollachi South. In
Pollachi North areas as per in 2001 censes statistical reort the total number of male is
72,369 and the female is 58,466. Therefore total Literacy in Pollachi North area is
1,30,835 as such as the literacy of Kinathukadavu area is 58,730 of which the total
number of male literates is 33,599 and the female is 25,131 as such the literacy in
Anaimalai area is 82,267 of which male literates is 46754 and the female is 35,513
and the literacy of Pollachi South area is 72,527 of which the total number of male
literates is 41,017 and the female is 31,510. The total literacy of Pollachi North,
Kinathukadavu, Anaimalai and Pollachi South area is 3,44,359.
Table – 3.3
ILLITERATE IN POLLACHI TALUK

POLLACHI 24,487 37,338 61,825
KINATHUKADAVU 16,130 25,322 41,452
ANAIMALAI 23,175 34,283 57,458
POLLACHI SOUTH 15,524 23,576 39,100
TOTAL 79,316 120,519 199,835
From the above table it is observed that the illiterate of Pollachi taluk has been
classified as Pollachi North, Kinathukadavu, Anaimalai and the total male population
is 24,487 and the female is 37,338. Therefore total illiterates in Pollachi North area is
99,163 as the rate of illiteracy of Kinathukadavu are as 41,452 of which the total
number of male illiterates is 16,130 and the femaleis 25,322. The total number of
illiterates in Anaimalai area is 57,458 of which male is 23,175 and the female is
34283. The illiteracy of Pollachi South area is 39,100 of male is 15,254 and the
female is 23,576. The total illiteracy of Pollachi South area is 2,83,016.
Workers can be classified as cultivators, agriculturalists, household industries

manufacturing, processing, surviving and repairs and other workers.
Table – 3.4
CULTIVATORS IN POLLACHI TALUK

POLLACHI 6,897 3,424 10,321
KINATHUKADAVU 8,085 4,960 13,045
ANAIMALAI 4,385 1,408 5,793
POLLACHI SOUTH 5,182 2,572 7,754
TOTAL 24,549 12,364 36,913
From the above table it is observed that the total cultivators of Pollachi taluk has
been classified as Pollachi North, Kinathukadavu, Anaimalai and po sourth. In
Pollachi North areas as per in 2001 census statistical reports the total number of male
cultivators is 6897 and the femaleis 3424. Therefore total cultivators in Pollachi
North area is 10321 as such as the cultivators of Kinathukadavu area is 13045 of
which the number of male is 8085 and the female is 4960 as such as the cultivators in
Anaimalai area is 5793 of which male cultivators are 4385 and the female is 1408 and
the cultivators of Pollachi South area is 7754 of which male cultivators are 5182 and
female cultivators are 2572. The total number of cultivators of Pollachi North,
Kinathukadavu, Anaimalai and Pollachi South area is 36913.
Table – 3.5
AGRICULTURALISTS IN POLLACHI TALUK

POLLACHI 12,321 12,983 25,304
ANAIMALAI 18,858 15,715 34,573
POLLACHI SOUTH 8,266 7,023 15,289
TOTAL 48,297 44,397 92,694
Form the above table it is observed that the total former of Pollachi taluk has
been classified as Pollachi North, Kinathukadavu, Anaimalai and Pollachi South. In
Pollachi North areas as per in 2001 census statistical report the total nuber of male
formers is 12,321 and the female 13,983. Therefore total agricultures in Pollachi
North area is 25,304 as such as the agriculturists is 8,852 and the female is 8,676 as
such the agricultures in Anaimalai area is 34,573 of which male is 18,858 and the
female is 15,715 and the agricultures of Pollachi South area is 15,289 of which the
total number of male formers is 8266 and the female is 7,023. The total number of
agriculturists of Pollachi North, Kinathukadavu, Anaimalai and Pollachi South area is
92,694.
Table – 3.6
HOUSEHOLD INDUSTRIES MANUFACTURING, PROCESSING,

SURVIVING AND REPAIRS IN POLLACHI TALUK

POLLACHI 2,261 1,435 3,696
KINATHUKADAVU 1,040 645 1,685
ANAIMALAI 967 559 1,526
TOTAL 6,439 3,916 10,355
Form the above table it is observed that the total household industries
manufacturing, processing, surviving and repairs of Pollachi taluk has been classified
as Pollachi North, Kinathukadavu, Anaimalai and Pollachi South. In Pollachi North
area as per in 2001 census statistical report male is 2,261 and the female is 1,435.
Therefore total household industries manufacturing, processing, surviving and
reapairs in Pollachi North area is 3,696 as such as the household industries
manufacturing, processing, surviving and repairs of Kinathukadavu are is 1,685 of
which the total number of male is 1,040 and the female is 645 as such the household
industries manufacturing, processing, surviving and repairs in Anaimalai area is 1,526
of which the total number of male is 9,67 and the female is 5,59 and the household
industries manufacturing, processing, surviving the repairs of Pollachi South area is
3448 of which the total number of male is 2,171 and the female is 1,277. The total
number of household industries manufacturing, processing surviving and repairs of
Pollachi North, Kinathukadavu, Anaimalai and Pollachi South area is 10,355.
Table – 3.7
OTHER WORKERS IN POLLACHI TALUK

POLLACHI 40,617 9,925 50,542
KINATHUKADAVU 13,404 4,416 17,820
ANAIMALAI 16,661 4,557 21,218

POLLACHI SOUTH 20,099 5,587 25,686
TOTAL 90,781 24,485 115,266
From the above table it is observed that the total number of other workers of
Pollachi taluk has been classified as Pollachi North areas as per in 2001 census
statistical report the total number of male doingother work is 40,617 and the female is
9,925. Therefore total number of the male doing other work in Pollachi North area is
50542 as such as the other workers in Kinathukadavu area is 68,362 of which the
total number male is 13,404 and the total number of female is 4416 as such the other
workers in Anaimalai area is 34,622 of which the total unmber of male is 16,661 and
the female is 4,557 and the total number of other workers in Pollachi South area is
25686 of which the total number of male is 20,099 and the female is 5,587. The total
number of other workers in Pollachi North, Kinathukadavu, Anaimalai and Pollachi
South area is 1,15,266.
Table – 3.8
MARGINAL WORKERS IN POLLACHI TALUK

POLLACHI 3,162 4,177 7,339
ANAIMALAI 3,857 5,521 9,378
TOTAL 9,725 14,991 24,716
From the above table it is observed that the total number of marginal workers in
Pollachi taluk has been classified as Pollachi North, Kinathukadavu, Anaimalai and
Pollachi South. In Pollachi North area as per in 2001 census statistical report the total
number of male is 3,162 and the female is 4,177. Therefore total number of marginal
workers in Pollachi North area is 7339 as such as the total number of marginal
workers in Kinathukadavu area is 4,537 of which the total number of male is 3,857
and the female is 5,521 and the total number of marginal workers in Pollachi South
area is 3462 of which the total number of male is 1002 and the female is 2,460. The
total number of marginal workers in Pollachi North, Kinathukadavu, Anaimalai and
Pollachi South area is 24,716.
Table – 3.9
NON – WORKERS IN POLLACHI TALUK

POLLACHI 34,760 68,037 102,797
KINATHUKADAVU 16,644 28,923 45,567
ANAIMALAI 25,201 42,036 67,237
POLLACHI SOUTH 35,826 18,525 54,351
TOTAL 112,431 157,521 269,952
From the above table it is observed that the total number of non-workers in
Pollachi taluk has been classified as Pollachi North, Kinathukadavu, Anaimalai and
Pollachi South. In Pollachi North area as per in 2001 census statistical report the total
number of male is 34760 and the female is 68,037. Therefore total number of non-
workers in Pollachi North area is 10,2797 as such as the total number of male is
16,644 and the female is 28,923 as such the total number of non-workersin Anaimalai
are is 67,237 of which the total number of male is 25,201 and the female is 42,036
and the total number of non-workers in Pollachi South area is 54,351 of which the
total number of male is 35826 and the female is 18,525. The total number of non-
workers in Pollachi North, Kinathukadavu, Anaimalai and Pollachi South area is
2,69,952.
3.3. Summary:
Pollachi taluk in Coimbatore district is widely spoken by the people because of

its fertility and its chill climate. It is often referred as “Swittzer land of Coimbatore
Diestict”. The tourists are attracted towards it mainly because it is situated near
Coimbatore. Towards North is in the palladam taluk, moonar is in the south and
palghat is in the west. Valparai taluk is in the South west and kodaikalal talukis in the
southest. Aliyar, thirumoorthy and amaravathi dam situated in the district are the
places of tourism. Pollachi taluk has many shools and colleges to render education to
rural poor. Also there are holpitals and health centres to serve the people of this taluk.
Pollachi taluk also has 93 banks such as we seen above to serve the people.
CHAPTER IV
SOCIO ECONOMIC STATUS OF MEMBERS OF SELF HELP GROUP –

BEFORE AND AFTER THEIR ENTRY
4.1. INTRODUCTION
This chapter deals with an appraisal of the characteristics of sample

respondents and their Socio-Economic status of members of Self Help Groups. This
chapter also deals with the incremental and the average income and Expenditure of
members before and after their entry into SHG. And it also explores the reasons for
formation of Self Help Group, the motivational factors of the members of Self Help
Groups and benefits obtained by the members of Self Help Groups and the problems
of members of Self Help Groups and impact of Self Help Groups on women social
empowerment. The statistics given in this chapter is mainly based on the data’s
collected by conducting personal interviews and by getting feedback through
interview schedule.
4.2. AN APPRAISAL OF THE CHARACTERISTICS OF SAMPLE

RESPONDENTS
The socio economic characteristics of the sample respondents for the self help
groups have been appraised such as age, education, marital status, type of family,
total number of family members, age of self help group and weekly savings of the
respondents.
Table – 4.1
COMPOSITION OF RESPONDENTS ON THE BASIS OF AGE
AGE NO. OF RESPONDENTS PERCENTAGE

21 - 30 30 30
31 - 40 45 45
41 - 50 17 17
ABOVE 50 8 8
TOTAL 100 100
INFERENCE:
The above table reveals that, out of the total sample respondents taken for study, 30%
of the respondents belong to the age group of 20 – 30 years, 45% of the respondents
belong to the age group of 31 – 40 years, 17% of the respondents belong to the age
group of 41 – 50 years, and 8% of the respondents belong to the age group of above
50 years. Among the total sample respondents majority of the sample respondents
(45%) are belong to the age group of 31 – 40 years.
Table – 4.2
COMPOSITION OF RESPONDENTS ON THE BASIS OF THEIR

EDUCATIONAL ATTAINMENT
NO. OF
EDUCATION PERCENTAGE
RESPONDENTS
ILLITERATE 27 27
PRIMARY 30 30
SECONDARY 15 15
HIGHER SECONDARY 28 28
TOTAL 100 100
INFERENCE:
The above table indicates that out of the total respondents taken for study, 27% of the
respondents are illiterate, 30% of the respondents have studied primary level, 15% of
the respondents have studied secondary level and 28% of respondents have studied
higher secondary level. Along the total respondents (30%) majority of the
respondents are primary level educated.
Table – 4.3
COMPOSITION OF RESPONDENTS ON THE BASIS OF MARITAL STATUS
MARITAL NO. OF
PERCENTAGE
STATUS RESPONDENTS
MARRIED 60 60
UNMARRIED 12 12
WIDOW 20 20
SEPARATED 8 8
TOTAL 100 100
INFERENCE:
The above table reveals that out of the total respondents taken for study,
60% of the respondents are married, 12% of the respondents are unmarried, 20% of
the respondents are widow, and 8% of the respondents are separated. Among the total
respondents (60%) are married.
Table – 4.4
COMPOSITION OF RESPONDENTS ON THE BASIS OF THEIR FAMILY

TYPE
NO. OF
TYPE OF FAMILY PERCENTAGE
RESPONDENTS
JOINT 43 43
NUCLEAR 57 57
TOTAL 100 100
INFERENCE:
The above table reveals that out of the total respondents 43% of the sample
respondents are in joint type of family and 57% of the respondents are in nuclear type
of family. Among the total respondents majority of the respondents (57%) are in
nuclear type of family.
Table – 4.5
COMPOSITION OF RESPONDENTS ON THE BASIS OF AGE OF THE

SELF HELP GROUP
NO. OF
PERIOD PERCENTAGE
RESPONDENTS
1 – 2 years 4 4
2 – 3 years 16 16
3 – 4 years 32 32
4 – 5 years 48 48
TOTAL 100 100
INFERENCE:
The above table reveals that, out of the total respondents taken for study, 4% of
the respondents belong to the period of 1 to 2 years, 16% of the respondents belong to
the period of 2 to 3 years, 32% of the respondents belong to the period of 3 to 4 years,
48% of the respondents belong to the period of 4 to 5 years. Among the total sample
respondents majority of the sample respondents (48%) belong to the period of 4 to 5
years.
Table – 4.6
COMPOSITION OF RESPONDENTS ON THE BASIS OF REASONS FOR

THE FORMATION OF SELF HELP GROUP BY THE MEMBERS OF SHG
PURPOSE I II III IV V SCORE

TO GAIN SOCIAL STATUS 45 68 48 54 31 246
TO INCREASE SAVINGS 80 48 63 62 20 273
LOW RATE OF INTEREST 200 84 66 20 7 377
FOR ADDITIONAL INCOME 115 104 45 32 20 316
INCREASING KNOWLEDGE 75 108 66 32 20 301
INFERENCE:
From the above table it is clear that the availability of loan at low interest
becomes the main purpose for the members to start SHGs, as this purpose has secured
the top score of 377. Next to this the score secured by for additional income clearly
states that the Self Help Groups are formed to increase the income level. The score is
316. Next score is 301 secured by the purpose of increasing knowledge. Therefore it
is clear that some members from SHG to get knowledge. The Self Help Groups are
formed for the purpose to increase savings. It has secured the score of 273.
Table – 4.7
WEEKLY SAVINGS OF THE RESPONDENTS
WEEKLY NO. OF PERCENTAG

SAVINGS RESPONDENTS E
10 -20 20 20
20 -30 62 62
30 - 40 9 9
40 -50 7 7
ABOVE 50 2 2
TOTAL 100 100
INFERENCE:
The above table reveals that, out of the total respondents taken for study,
20% of the respondents have saved an amount of Rs.10 to Rs.20, 62% of respondents
have saved an amount of Rs.20 to Rs.30, 9% of the respondents have saved an
amount of Rs.30 to Rs.40, 7% of respondents have saved an amount of Rs.40 to
Rs.50, 2% of respondents have saved an amount of above Rs.50. among the total
respondents majority of the respondents (62%) belong to the group of weekly savings
of Rs.20 to Rs.30.
Table – 4.8
COMPOSITION OF RESPONDENTS ON THE BASIS OF FREQUENCY TO

MEETING THE CO-MEMBERS
MEET CO NO. OF
PERCENTAGE
MEMBERS RESPONDENTS
DAILY 5 5
ONCE IN MONTH 16 16
ONCE IN WEEK 79 79
TOTAL 100 100
INFERENCE:
Majority of the respondents (79%) are meeting the co-members once in week.
And 16% of the respondents are meeting the co-members once in month. And only
5% of respondents are meeting the co-members daily.
Table – 4.9
COMPOSITION OF RESPONDENTS ON THE BASIS OF VISITING OTHER

GROUP
NO. OF
RESPONSE PERCENTAGE
RESPONDENTS
YES 78 78
NO 22 22
TOTAL 100 100
INFERENCE:
The above table shows that the 78% of the respondents are visit other groups to
maintain good relationship as well as to share their ideas. And 22% of the
respondents are not visiting other groups.
Table – 4.10
COMPOSITION OF RESPONDENTS ON THE BASIS OF RECEIVE

INTERNAL LOAN FROM GROUP
NO. OF
RESPONSE PERCENTAGE
RESPONDENTS
YES 79 79
NO 21 21
TOTAL 100 100
INFERENCE:
From the above table the 79% of the respondents are receive the internal loan
from the Self Help Groups. And the remaining 21% of respondents are not receiving
the internal loan form Self Help Group.
Table – 4.11
COMPOSITION OF RESPONDENTS ON THE BASIS OF THE FINANCE

ASSISTANCE TO THE GROUP
NO. OF
FINANCE PERCENTAG
RESPONDENT
FROM E
S
BANK 93 93
NABARD 4 4
NBFC 3 3
TOTAL 100 100
INFERENCE:
Majority of the respondents (93%) are got a loan from the bank. And very least
of the respondents 4% and 3% are got a loan from NABARD and NBFC respectively.
Hence it is clear that the financial assistance to the self help groups from bank.
Table – 4.12
COMPOSITION OF RESPONDENTS ON THE BASIS OF TYPE OF LOAN

BORROWED FROM SHG
NO. OF
TYPE OF LOAN PERCENTAGE
RESPONDENTS
CASH CREDIT 26 26
TERM LOAN 29 29
BOTH 45 45
TOTAL 100 100
INFERENCE:
From the above table 45% respondents are got a both of the cash credit and term
loan and 29% of respondents are got term loans and 26% of the respondents got cash
credit.
Table – 4.13
INCOME OF THE MEMBERS OF SGH BEFORE AND AFTER THEIR

ENTRY
PERIOD NO. OF RESPONDENTS PERCENTAGE

AFTER 68 68
BEFORE 32 32
TOTAL 100 100
INFERENCE:
Majority of the respondents (68%) are get good income after they enter the self
help group. Only 32% of the respondents are get low income after they enter the self
help group. Hence it is clear that the respondents are get good income through self
help group.
Table – 4.14
COMPOSITION OF RESPONDENTS ON THE BASIS OF LOAN AMOUNT

SANCTIONED BY FINANCIAL INSTITUTIONS
NO. OF PERCENTAG
LOAN AMOUNT
RESPONDENTS E
UP TO 20,000 38 38
20,000 - 40,000 50 50
40,000 - 60,000 8 8
ABOVE 60,000 4 4
TOTAL 100 100
INFERENCE:
The above table reveals that the majority (50%)of respondents got a loan amount
within the Rs.20,001 to Rs.40,000, and 38%of respondents got loan amount upto
Rs.20,000; 8% of respondents are got loan amount of Rs.40,001 to Rs.60,000 and
only 4% of respondents are got above Rs.60,000 as a loan.
Table – 4.15
COMPOSITION OF RESPONDENTS ON THE BASIS OF PROBLEMS IN

REPAYMENT OF LOAN
NO. OF
RESPONSE PERCENTAGE
RESPONDENTS
YES 49 49
NO 51 51
TOTAL 100 100
INFERENCE:
The above table reveals that, 51% of the respondents have no problem in
repayment of loan, but the same time 49% of respondents are have a problem in
repayment of loan.
Table – 4.16
HELP FROM BANK WHILE MARKET THE PRODUCTS OF SHG
NO. OF
RESPONS PERCENTAG
RESPONDENT
E E
S
YES 79 79
NO 21 21
TOTAL 100 100
INFERENCE:
From the above table more than three-fourth of the respondents are agreed that
the bankers are more helpful for marketing the products of SHG. And 21% of the
respondents are said that there is no help from bank while market the product of the
SGH.
Table – 4.17
COMPOSITION OF RESPONDENTS ON THE BASIS OF THEIR BENEFITS

THROUGH SHG
NO. OF
RESPONSE PERCENTAGE
RESPONDENTS
YES 98 98
NO 2 2
TOTAL 100 100
INFERENCE:
98% of the respondents are agreed that they are benefited from the Self Help
Groups. Only 2% of the respondents are not benefited through Self Help Groups.
Table – 4.18
COMPOSITION OF RESPONDENTS ON THE BASIS OF DEPOSITS IN

BANK OR POST OFFICE
NO. OF
RESPONS PERCENTAG
RESPONDENT
E E
S
YES 80 80
NO 20 20
TOTAL 100 100
INFERENCE:
The above table reveals that four-fifth of the respondents are have deposits in
bank or post office. Only 20% of the respondents are have no any deposits in bank or
post office. Hence it is clear that the Self Help Group is improve the economic status
of the members of the Self Help Groups.
Table – 4.19
COMPOSITION OF RESPONDENTS ON THE BASIS OF PARTICIPATION

IN SOCIAL WORK
NO. OF
RESPONS PERCENTAG
RESPONDENT
E E
S
YES 64 64
NO 36 36
TOTAL 100 100
INFERENCE:
The majority (64%) of the respondents are participating in social work. Only
36% of respondents are not participating in social work. Hence it is clear that the Self
Help Groups are useful to society also.
Table – 4.20
COMPOSITION OF RESPONDENTS ON THE BASIS OF REGULARITY IN

MAINTAINING THE ACCOUNT BOOK
NO. OF
RESPONS PERCENTAG
RESPONDENT
E E
S
YES 70 70
NO 30 30
TOTAL 100 100
INFERENCE:
More than three-fifth of the respondents are regularly maintained the account
book only 30% of the respondents are not maintain the account book. From this we
conclude that the Self Help Groups will create self regularity in the part of it’s
members.
Table – 4.21
COMPOSITION OF RESPONDENTS ON THE BASIS OF IMPROVEMENT

IN JOB SKILL AFTER JOINING THE SHG
NO. OF
RESPONS PERCENTAG
RESPONDENT
E E
S
YES 93 93
NO 7 7
TOTAL 100 100
INFERENCE:
Most of the respondents are agreed that they are improved their job skills after
joining the Self Help Groups. Only 7% respondents are having no any improvement
after joining the Self Help Groups. Hence, we conclude that the Self Help Groups are
improve it’s members job skills.
CHAPTER – V
RELATIONSHIP BETWEEN PERSONAL FACTORS AND LEVEL
OF SATISFACTION
5.1. INTRODUCTION:
This chapter deals with the level of satisfaction of the sample respondents in
Pollachi Taluk towards Self Help Groups. It is prepared on the basis of primary data
collected through interview schedule.
5.2. CALCULATION OF SATISFACTORY SCORES
The Respondents were asked to state their level of Satisfaction relating to
twenty factors. Based on their responses the Satisfaction score obtained by each
respondent was found out. Points or scores were allocated based on the response. For
each of the factor three levels of satisfaction were assigned namely high, medium and
low. For high satisfaction three points were given, for Medium two and for low
satisfaction one point was given. The total scores secured by each respondent was
thus arrived at. All the hundred respondents were classified based on their level of
satisfaction. Those who have obtained up to 30 points were classified under low
satisfaction category, Respondents with 30 – 45 points were classified under medium
satisfaction category and those with more than 45 points were classified under high
satisfaction category.
NUMBER OF RESPONDENTS AND LEVEL OF SATISFACTION

LEVEL OF
NO. OF RESPONDENTS
SATISFACTION
HIGH SATISFACTION 21
MEDIUM SATISFACTION 64
LOW SATISFACTION 15
TOTAL 100
CHI-SQUARE TEST
Chi-square test is one of the simplest and most widely used non-parametric tests in
statistical work. This test was first used by Karl Pearson in the year 1900. The
quantity describes the magnitude of the discrepancy between theory and observation.
It is a method to test the relationship between the theoretical (hypothesis)

& the observed value.
Chi – square test (X2) = ∑ (O – E)2 / E
Degrees Of Freedom = V = (R – 1) (C -1)
Were, ‘O’ = Observed Frequency

‘E’ = Expected Frequency
‘R’ = Number of Rows
‘C’ = Number of Columns
For all the chi-square test the table value has taken @ 5% level of significance.
TABLE NO. 5.1
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN AGE AND

SATISFACTION WITH REGARDING SELF HELP GROUPS
LEVEL OF SATISFACTION
AGE TOTAL
HIGH MODERATE LOW
21 - 30 YEARS 4 19 7 30
31 - 40 YEARS 19 18 8 45
41 - 50 YEARS 4 11 2 17
ABOVE 50 6 2 0 8
TOTAL 33 50 17 100
HO: There is no significant relationship between age and level of

satisfaction.
H1: There is significant relationship between age and level of

satisfaction
O E O-E (O-E)2 (O-E)2/E
4 9.90 -5.90 34.81 3.52
19 14.85 4.15 17.22 1.16
4 5.61 -1.61 2.59 0.46
6 2.64 3.36 11.29 4.28
19 15.00 4.00 16.00 1.07
18 22.50 -4.50 20.25 0.90
11 8.50 2.50 6.25 0.74
2 4.00 -2.00 4.00 1.00
7 5.10 1.90 3.61 0.71
8 7.65 0.35 0.12 0.02
2 2.89 -0.89 0.79 0.27
0 1.36 -1.36 1.85 1.36
TOTAL 14.11
X2 = ∑ (O-E)2 / E = 14.11
Number of degree of freedom:

ndf = (row-1) (column –1)
(3) (2)
= 6
Table value of x2 at 5% level of significant = 12.59
Conclusion:
HO is accepted since the calculated value of x2 (14.11) more than the table
value of x2 (12.59) hence there is significant relationship between satisfaction

and age.
TABLE NO. 5.2
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN

EDUCATIONAL ATTAINMENT AND SATISFACTION WITH REGARDING
SELF HELP GROUPS
EDUCATIONAL LEVEL OF SATISFACTION TOTA

ATTAINMENT HIGH MODERATE LOW L
ILLITERATE 9 4 10 23
PRIMARY 5 7 12 24
SECONDARY 0 11 4 15
HIGHER
7 9 12 28
SECONDARY
DEGREE /
2 2 1 5
DIPLOMA
OTHERS 2 2 1 5
TOTAL 25 35 40 100
HO: There is no significant relationship between educational
attainment and level of satisfaction.
H1: There is significant relationship between educational attainment
and level of satisfaction
O E O-E (O-E)2 (O-E)2/E
9 5.75 3.25 10.56 1.84
5 6.00 -1.00 1.00 0.17
0 3.75 -3.75 14.06 3.75
7 7.00 0.00 0.00 0.00
2 1.25 0.75 0.56 0.45
4 8.05 -4.05 16.40 2.04
7 8.40 -1.40 1.96 0.23
11 5.25 5.75 33.06 6.30
9 9.80 -0.80 0.64 0.07
2 1.75 0.25 0.06 0.04
10 9.20 0.80 0.64 0.07
12 9.60 2.40 5.76 0.60
4 6.00 -2.00 4.00 0.67
12 11.20 0.80 0.64 0.06
1 2.00 -1.00 1.00 0.50
TOTAL 16.21
X2 = ∑ (O-E)2 / E = 16.21
(5) (2)
= 10
Conclusion:
HO is accepted since the calculated value of x2 (16.21) less than the table
value of x2 (18.31) hence there is no significant relationship between

satisfaction and educational attainment.
TABLE NO. 5.3
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN MARITAL

STATUS AND SATISFACTION WITH REGARDING SELF HELP GROUPS
MARITAL LEVEL OF SATISFACTION TOTA

STATUS HIGH MODERATE LOW L
MARRIED 23 23 14 60
UNMARRIE
0 12 0 12
D
WIDOW 6 11 3 20
SEPARATED 4 4 0 8
TOTAL 33 50 17 100
HO: There is no significant relationship between marital status

and level of satisfaction.
H1: There is significant relationship between marital status
O E O-E (O-E)2 (O-E)2/E
23 19.80 3.20 10.24 0.52
0 3.96 -3.96 15.68 3.96
6 6.60 -0.60 0.36 0.05
4 2.64 1.36 1.85 0.70
23 30.00 -7.00 49.00 1.63
12 6.00 6.00 36.00 6.00
11 10.00 1.00 1.00 0.10
4 4.00 0.00 0.00 0.00
14 10.20 3.80 14.44 1.42
0 2.04 -2.04 4.16 2.04
3 3.40 -0.40 0.16 0.05
0 1.36 -1.36 1.85 1.36
TOTAL 16.47
X2 = ∑ (O-E)2 / E = 16.47
(3) (2)
= 6
Conclusion:

and marital status.
TABLE NO. 5.4
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN FAMILY

TYPE AND SATISFACTION WITH REGARDING SELF HELP GROUPS
FAMILY LEVEL OF SATISFACTION TOTA

TYPE HIGH MODERATE LOW L
NUCLEAR 20 26 11 57
JOINT 13 24 6 43
TOTAL 33 50 17 100
HO: There is no significant relationship between family type

H1: There is significant relationship between family type
O E O-E (O-E)2 (O-E)2/E
20 18.81 1.19 1.42 0.08
13 14.19 -1.19 1.42 0.10
26 28.50 -2.50 6.25 0.22
24 21.50 2.50 6.25 0.29
11 9.69 1.31 1.72 0.18
6 7.31 -1.31 1.72 0.23
TOTAL 1.10
X2 = ∑ (O-E)2 / E = 1.10
(1) (2)
= 2
Conclusion:
value of x2 (5.99) hence there is no significant relationship between satisfaction

and family type.
TABLE NO. 5.4
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN AGE OF

SELF HELP GROUP AND SATISFACTION WITH REGARDING SELF HELP
GROUPS
LEVEL OF SATISFACTION TOTA

PERIOD
HIGH MODERATE LOW L
1 TO 2 4 0 0 4
2 TO 3 8 2 6 16
3 TO 4 12 14 6 32
4 TO 5 9 34 5 48
TOTAL 33 50 17 100
HO: There is no significant relationship between age of self help

group and level of satisfaction.
H1: There is significant relationship between age of self help group
O E O-E (O-E)2 (O-E)2/E
4 1.32 2.68 7.18 5.44
8 5.28 2.72 7.40 1.40
12 10.56 1.44 2.07 0.20
9 15.84 -6.84 46.79 2.95
0 2.00 -2.00 4.00 2.00
2 8.00 -6.00 36.00 4.50
14 16.00 -2.00 4.00 0.25
34 24.00 10.00 100.00 4.17
0 0.68 -0.68 0.46 0.68
6 2.72 3.28 10.76 3.96
6 5.44 0.56 0.31 0.06
5 8.16 -3.16 9.99 1.22
TOTAL 25.60
X2 = ∑ (O-E)2 / E = 25.60
(3) (2)
= 6
Conclusion:

and age of self help group.
TABLE NO. 5.
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN WEEKLY

SAVINGS AND SATISFACTION WITH REGARDING SELF HELP GROUPS
WEEKLY LEVEL OF SATISFACTION TOTA

SAVINGS HIGH MODERATE LOW L
10 TO 20 8 10 2 20
20 TO 30 23 24 15 62
30 TO 40 2 7 0 9
40 TO 50 0 7 0 7
ABOVE 50 0 2 0 2
TOTAL 33 50 17 100
HO: There is no significant relationship between weekly savings
H1: There is significant relationship between weekly savings
O E O-E (O-E)2 (O-E)2/E
8 6.60 1.40 1.96 0.30
23 20.46 2.54 6.45 0.32
2 2.97 -0.97 0.94 0.32
0 2.31 -2.31 5.34 2.31
0 0.66 -0.66 0.44 0.66
10 10.00 0.00 0.00 0.00
24 31.00 -7.00 49.00 1.58
7 4.50 2.50 6.25 1.39
7 3.50 3.50 12.25 3.50
2 1.00 1.00 1.00 1.00
2 3.40 -1.40 1.96 0.58
15 10.54 4.46 19.89 1.89
0 1.53 -1.53 2.34 1.53
0 1.19 -1.19 1.42 1.19
0 0.34 -0.34 0.12 0.34
TOTAL 15.36
X2 = ∑ (O-E)2 / E = 15.36

(4) (2)
= 8
Conclusion:
value of x2 (15.57) hence there is no significant relationship between

satisfaction and weekly savings.
CHAPTER VI
SUMMARY OF FINDINGS AND SUGGESTIONS
6.1. INTRODUCTION:
This chapter deals with the summary of the findings of the study. The summary
of the findings are based on the contents of the previous chapters.
6.2. Summary of findings:
The second chapter deals with the introduction, formation and functions SHG,
Women status in India, Women oriented Programmes, Significance of Self-Help
Groups, and Self-Help Groups Gate way to women empowerment.
The third chapter deals with the introduction and study of the existing
conditions.
The fourth chapter deals with the introduction and an appraisal of the
characteristics of sample respondents such as age, educational attainment, marital
status, type of family, age of the self-help group and weekly savings of the sample
respondents. And also deals with Socio-Economic Status before and after their entry
into SHG. Availability of loan at low rate of interest becomes the many reason for the
members to start SHGs. The self help groups are formed merely to gain Social status.
The fifth chapter discusses the level of satisfaction of the sample respondents
regarding self-help groups. It has been measured by the “Satisfaction scale”.
Satisfaction scale has been constructed with the help of five components namely
income, Expenditure, Employment, Status and Marketing support. Score has been
distributed to these components. After having applied the scoring scheme, Arithmetic
mean and standard deviation were computed, 22% of the sample respondents have
attained low level satisfaction, 50% have attained medium level and 28% have
attained high level satisfaction.
The researcher has identified five factors namely age, educational attainment, marital
status, type of family, total number of family members of the sample respondents that
influence of level of satisfaction of the sample respondents. In order to find out the
relationship between the satisfaction level and the personal factors, chi-squire test has
been applied.
It is found that out of five factors, three factors namely age, marital status and type of
family of the sample respondents of self help group have relationship with the level
of satisfaction of the members. The remaining two factors such as educational
attainment and total number of family members of sample respondents have no
relationship with the level of satisfaction.
FINDINGS:
ü Most of the sample respondents who are in self help group are in the
age group between 31 years to 40 years.
ü 30% of the respondents are having primary level of the education.
ü Majority of the respondents (60%) are married.
ü Members belong to the Nuclear family start Self Help Group ie,. Out
of 100 sample respondents 57 are from nuclear family.
ü 48% of respondents are in Self Help Group 4 to 5 years 32 are 2 to 3

years.
ü More than half of the respondents are save an amount of Rs.20 to

Rs.30 per week.
ü As far as satisfaction concerned
ü All the sample respondents jointed in Self Help Group to support their
family in money matters.
ü Income and Expenditure of the Self Help Group members has

considerably increased after their entry into self help group.
6.3. SUGGESTIONS:
Ë Government should take necessary steps to bring more number of educated

persons in Self Help Group.
Ë NGO’s and Government should inculcate saving habits to self help group
members.
Ë Self help group members are properly trained before launching their
venture.
Ë They lack in marketing. Hence through professional Self help group

members are to be trained to market their products. Government should take more
steps to market their products.
Ë It is widely spoken that self help group members fail in many areas, they
must be concentrated and proper guidance and counseling programmes to be
arranged.
Ë Mostly uneducated people joint in self help group to avail loan from the
bank to utilize mere subsidy granted by government. This habit must be avoided.
Ë Self help group review meeting should be conducted periodically.
Ë Few educated person cheat the illiterate members of self help group. It must
be taken care of.
Ë It must be taught to the self help group members to the importance of

savings. Compulsory savings may impart to the self help group members.
Ë Uniform pricing may be fixed for their produces.

6.4. CONCLUSION:
It is no wonder, that self help group shows the right path to the lakhs of young
educated and uneducated both rural and urban women to lead their life. Now,
including the idle women from rural area is earning money for their better being. Self
help group opened the eyes of the young rural women entrepreneur to start their
business almost each and every field which they previously worried to undertake.
Self help group registered a good record in the saving habits, income generation,
social status and standard of living. The problem related to women can be effectively
tackled only by bring about a social awakening. Self help groups were playing a vital
role. Thus the formation of SGHs has led to a number of positive features. The most
important achieved aspect is that the earlier belief that the poor are unbankable and
less credit worthy has been proven wrong. Most of the earlier studies reveal that he
poor can excel in giving access to management and is assuming control over their
own financial resources and too can help themselves in their social, economic and
political development given opportunities and professional encouragement.
A STUDY ON ECONOMIC STATUS OF MEMBERS OF SELF HELP GROUP

(BEFORE AND AFTER THEIR ENTRY)
WITH SPECIAL REFERENCE TO POLLACHI TALUK
Questionnaire
1. Name of the member :
2. Age (in years)
1. 20 to 30 3. 40 to 50
2. 30 to 40 4. Above
50
3. Educational attainment
1. Illiterate 4.higher secondary
2. Primary 5. Degree /diploma
3. Secondary 6. Others
4. Marital status
1. Married 3.widow
2. Unmarried 4.separated
5. Type of family
1. Nuclear 2. Joint
6. Name of the self help group _____________________
7. Data of formation _________________________
8. How long are you a member in year?
1. 1 to 2 3. 3 to 4
2. 2 to 3 4. 4 to 5
9. What was the purpose of group formation? (Please rank it)
1. To gain social status
2. To increase savings
3. Low rate of interest on loan
4. for additional income
5. Increasing knowledge
10. Weekly savings (in Rs.)

1. 10 to 20 3. 30 to 40
2. 20 to 30 4. 40 to 50
5. above 50
11. Frequency of meetings the co-members
1. Daily 3. Fortnightly
2. Once in week 4. Once in month
12. Did you visit meet any other group recently?
1. Yes 2. No
13. Have you received any internal loan?
1. Yes 2. No
If yes, state the amount and date of receipt of loan recently _________
14. From where does the group get its financial assistance?
1. Banks 4.internal loan
2. NBFC 5. Others
3. NABARD
15. What type of loan borrowed by SHG ?
1. Term loan 2.Cash Credit 3. Both
Before After
16. Income earned by the respondents
17. Income earned by your husband
18. Total income
19. Employment (no. of days)
20. How much of loan amount sanctioned by financial institutions of bank?
1. up to 20,000 3. 40,000 to 50,000
2. 20,000 to 60,000 4. Above 60,000
21. Do you face any problem in repayment of loan?
1. Yes 2. No
If yes, specify the reason _______________________
22. Is bankers are helpful for marketing your product?
1. Yes 2. No
23. Do you feel, you are benefited through SHG?

24. Do you have any deposit in bank of post office?
1. Yes 2. No
25. In which bank the SHG has the account ________________
26. How many hours do you spend for SHG activities?
27. Do you participate in social work?
1. Yes 2. No
28. Are you maintaining the account book regularly?
1. Yes 2. No
29. Is your SHG registered?
1. Yes 2. No
30. Did you improve your skill in your job after joining the SHG’s ?
1. Yes 2. No
31. Level of satisfaction with regard to SHG (please tick)
Level of satisfaction
Attitude
Highly satisfied Satisfied Not satisfied
Income
Expenditure
Employment
Social Status
Marketing support
32. What is your suggestion to improve the working SHG ?

Economic Status of Self-Help Grooup Members

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ECONOMIC STATUS OF MEMBERS OF SELF HELP GROUPS A.SUKUMAR., M.Com., M.Phil.

Earlier cultural stereotypes have been scrutinized, statistics increasingly collected on

in gainful employment is comparatively low.

SCOPE OF THE STUDY:

OBJECTIVES OF THE STUDY:

The study has been carried on with the following objectives.

2. To study the profile of the study area.

4. To analyse the relationship between level of satisfaction and socio-economic

1. Age of the members influences the level of satisfaction to become a member of

2. Educational attainment of the members influences the level of satisfaction to

3. Marital status of the members influences the level of satisfaction to become a

4. Relagion of the members influences the level of satisfaction become a member

5. Total number of family members influences the level of satisfaction to become a

The study covers the villages situated in Pollachi taluk only.

Field work and data collection:

This study covers a period from June 2007 to February 2008.

The second chapter deals with introduction, formation of SHG, significance of

SELF-HELP GROUPS – FORMATION AND FUNCTIONS

Out of 1027.05 million people in India, women comprise 495.57 million

FORMATION OF SELF HELP GROUP

Self-help groups are increasingly accepted out as agents of bringing social

The voluntary, autonomous self-functioning SHGs are motivated by these external

It is a homogeneous group of poor people voluntarily coming unable to save

Sometimes the internal savings are supplemented by external resources

LINKING SELF HELP GROUPS WITH BANKS AND THE

PROCEDURE FOR EXTENDING BANK FINANCE

Advantages to self help groups:

Ø They enjoy the total autonomy in thritl and credit management.

Ø Easy accessibility to larger amount of funds.

Ø Gradual improvement in the economic status of each member.

Ø The status of quality micro enterprises.

WOMEN STATUS IN INDIA:

Self sacrifice of the women:

The prevailing attitude to women is stick conditioned by religious symbolism,

The status of Windows

Within the family, a women is treated as a social and financial dependent,

Economic role of Women

Women are principally engaged in agriculture or in the unorganized informal

Women in the informal sector

Women oriented programmes

In 1982 an exclusively women’s Programme Development for women and

Significance of Self Help Groups

SELF HELP GROUPS – GATE WAY TO WOMEN EMPOWERMENT

Self Employment Programmes In Reducing Poverty

An assault over poverty is of recent development in the economic planning. Only

Major Poverty Alleviation Programme

Assessment of Poverty Alleviation

At present a number of special anti-poverty programmes are being implemented both

Self Help Group

Non Governmental Organizations (NGOs) social workers health workers, village

ü SHG usually create a common fund by contributing their

ü The groups evolve flexible system of operations, often

ü Requisition of loan is considered by groups in periodical

ü Loaning is mainly on the basics of mutual need and trust

ü The loan amounts are small, frequent, and for short

ü Rate of interest vary from group to group depending upon

ü At periodical meetings besides, collecting money,

ü Defaults are rare due to group pressures and intimate

Credit needs to SHGs

As part of evolving an institutional arrangement for meeting the small quantum of

1. Small individual loans at different times for consumption, crop

The empowerment of women through Self Help Group enables

Ø To create the thrift habit among the women.