CHAPTER I INTRODUCTION

The concept of SHG moulds women as a responsible citizen of the country achieving social and economic status. In all stages of economic and social activities involvement of women has been added significance to them. omen led SHGs in many parts of the

country have achieved success in bringing the women to the main stream of decision ma!ing. The self help groups "SHGs# in our country has become a source of inspiration for women welfare. SHGs a viable organized set up to disburse micro credit to the urban poor women and encouraging them to enter into entrepreneurial activities. The aim of the pro$ect is to study and the socio economic empowerment of %rban poor women through SHGs in &hennai.

1.1

MEANING OF EMPOWERMENT
'mpowerment is a process that ta!es place wherein an ine(uality moves

towards becoming an e(uality. The in e(uality that has to alter into e(ually is the in e(uality in participation in the various processes of development. These can range from education) health services) housing livilihoods employment) remuneration etc. 'mpowerment is a process whereby constraints that impede e(ual participation are reduced so that the ine(uality starts moving towards becoming e(uality characteristics that will help to achieve empowerment are decision ma!ing authority) power to solve problems) self*confidence) self*awareness and assertiveness. +icro finance claim the

very process of forming self , help groups is empowering and a critical mass is formed which can be harnessed to pull households out of poverty traps.

'mpowerment cannot be achieved through the handling of $ust money since credit by itself does not bond women together enough to unleash a process of empowerment other social and development concerns are re(uired to cement groups so that they can metamorphose into vehicles of empowerment.

1.2

DEFINITION OF SHG
Self help group of about -. people from a homogeneous class to come together

for addressing their common problem. They are encouraged to ma!e voluntary thrift on a regular basis. They use their crude resource to ma!e small interest bearing loans to their member. The ban! loans are given without any collateral and at mar!et rates. The group continues to decide the terms of loans to their own members. The peer pressure ensures timely repayment and replaces the collateral for the ban! loan.

1.3

CONCEPT OF SHGs
SHG is a small group of rural poor) who have voluntarily come forward to form a group for improvement of the social and economic status of the members.

It can be formal "registered# or informal. The concept underlines the principle of Thrift) &redit and self Help. +embers of SHG agree to save regularly and contribute to a common fund.

The members agree to use this common fund and such other funds "li!e grants and loans from ban!s#) which they may receive as a group) to give small loans to needy members as per the decision of the group.

1.4

NEEDS OF SHGs
The rural poor are incapacitated due to various reasons) such as/ most of them

are socially bac!ward) illiterate) with low motivation and poor economic base. Individually) a poor is not only wea! in socio*economic term but also lac!s access to the !nowledge and information) which are the most important components of todays development process. However) in a group) they are empowered to overcome many of these wea!nesses. Hence) there are needs for SHGs) which in specific terms are as under0*

To mobilize the resources of the individual members for their collective economic development.

To uplift the living conditions of the poor. To create a habit of savings. %tilization of local resources To mobilize individual s!ills for groups interest. To create awareness about rights. To assist the members financially at the time of need. 'ntrepreneurship development.

To indentify problems) analyzing and finding solutions in the group. To act as a media for socio*economic development of the village. To develop lin!ages with institutions of 1G2s. To organize training for s!ill development. To help in recovery of loans. To gain mutual understanding) develop trust and self*confidence. To build up teamwor!. To develop leadership (ualities. To use as an effective delivery channel for rural credit.

1.5

STRUCTURE OF SHGs

1.5a. Size o SHG The ideal size of an SHG is 3. to -. members. "4dvantage0 in a bigger group) members cannot actively participate. 4lso) legally it is re(uired that an informal group should not be of more than -. people#. The group need not be registered.

3.5b. Me!"e#s$i% 6rom one family) only one person can become a member of an SHG. "+ore families can $oin SHGs this way#. The group normally consists of either only men or only women. "+i7ed groups are generally not preferred) since it may obstruct free and fran! discussions) opening up typical person problems#.

omens groups are generally found to perform better. "They are better in savings and they usually ensure better end use of loans#.

+embers should be homogenous i.e. should have the same social and financial bac!ground. "4dvantage0 This ma!es it easier for the members to interest freely with each other) if members are both from rich as well as poor class) the poor may hardly get an opportunity to e7press themselves#.

+embers should be between the age group of -3*8. years. +embers should be rural poor "9y poor one should be guided by the living conditions) as given herein before/ and this has no relation to poverty line. :eople living above poverty line "4:;# can also from SHG li!e 9:;.

1.&

FUNCTION OF SHGs
To develop a group into a well*managed Self Help Group) the members should

evolve rules and regulations) which are to be adopted) after discussions with all the members for compliance in full. Some illustrative guidelines for the formulation of such rules and regulations are given as under0*

1.&a. MEETING The group should meet regularly) ideally) the meetings should be wee!ly or at least monthly. "4dvantage0 They become closer if they meet regularly. This helps them to understand each others difficulties better#. &ompulsory 4ttendance0 6ull attendance in all the group meetings will ma!e it easy for the SHG to stabilize and start wor!ing to the satisfaction of all. +embership register) minutes register etc. are to be !ept upto date by the group by ma!ing the entries regularly. "4dvantage0 This helps you to !now about the SHG easily. It also helps to build trust among the SHG members#. 6i7ed day for meetings0 The group should have a fi7ed day or date for the meetings. "4dvantage0 This will help the members to plan their routine wor!s in advance#. &ommonplace0 The group should fi7 a common place to conduct the meetings

1.&". SA'INGS Savings should be deposited by all the members in the meeting itself. "4dvantage0 This will help to inculcate the habit of regular savings in the members. 9y depositing savings in the meetings before all members will avoid the element of distrust amongst members#. 1o interest will be paid to the members for their money with the group.

The members will not be encouraged to ad$ust their savings amount against their loan due to the Group. 2nly at e7treme circumstances the Group shall consider to ad$ust.

1.&(. )EEPING OF ACCOUNTS* Simple and clear boo!s for all transactions to be maintained. If no members is able to maintain the boo!s) the SHG may ta!e outside help. 4ll registers and account boo!s should be written during the course of the meeting. "4dvantage0 This creates confidence in the minds of members who are unable to read and write#. 1.&+. ,oo-s .o "e !ai/.ai/e+ "0 a/ SHG Mi/1.es o ,oo-2 The proceedings of meetings) the rules of the group) names of the members etc. are recorded in this boo!.. Sa3i/4s a/+ 5oa/ Re4is.e#2 Shows the savings of members and that of the group as a whole separately. <etails of individual loans) repayments) interest collected) balance etc. are entered here. Wee-60 7 Fo#./i4$.60 7 Mo/.$60 Re4is.e#2 Summary of receipts and :ayments) updated in every meeting. Me!"e#s Pass "oo-s2 Individual members pass boo!s in which individuals savings and loan balance outstanding is regularly entered.

1.8
1.8a

MA9OR FUNCTIONS OF AN SHG

Sa3i/4s a/+ T$#i .2 4;; SHG regularly save a small amount. The amount may be small) but savings have to be regular and continuous habit with all the members.

=Savings first*&redit later> should be the motto of every SHG member. SHG members ta!e a step towards self*dependence when they start small savings. They learn financial discipline through savings and internal lending "4dvantage0 This is useful when they use ban! loans#.

1.8". I/.e#/a6 6e/+i/42 The SHG should use the savings amount for giving loans members. The purpose) amounts) rate of interest) schedule of repayment etc. are to be decided by the group itself. :roper accounts to be !ept by the SHG.

1.8(. Dis(1ssi/4 %#o"6e!s2 In every meeting) the SHG should be encouraged to discuss and try to find solutions to the problems faced by the members of the group. Individually) the poor people are wea! and lac! resources to solve their problems. hen

the group tries to help its members) it become easier for them to face the difficulties and come up with solutions.

1.8+. P6a//i/42 The SHG prepare plans for the future so that each member can collectively wor! for the achievement of the same. It should plan to get financial support from Government) 9an! and 1G2 for its sustainability. It can ta!e up some development programmes in the locality and all the members should involve themselves in implementation and monitoring of the programmes.

1.:

DEFINITION OF MICRO FINANCE

+icro finance encompasses the management of small amounts of money

through a range of products and a system of intermediary functions that circulates money in an economy. +icro finance is small in value amounts targeted at low incomes clients. It includes loans) savings) insurance) transfer services and other financial :roviders of micro finance include non*government

products and services.

organizations "1G2s# self help groups) cooperatives) credit unions commercial and state ban!s) insurance and credit card companies) wire services) post offices and other points of sale.

CHAPTER II 2. NEED FOR UR,AN POOR WOMEN EMPOWERMENT

omen empowerment not only improves the welfare of the family but the whole nation. 'mpowerment enables them to develop self*confidence) self awareness and self assertiveness. Self confidence enable them to start the business on their own and earn income to get away from poverty trap. Self awareness induces them to educate their children not letting them to go for wor!. Self assertiveness enables them to solve the family problems and ta!e decisions on their own.

2.1

O,9ECTI'ES
To study the impact of SHG movement on the economic empowerment of %rban :oor omen.

To find out the role of SHG movement in empowering urban poor women socially To study the credit repayment capacity of the SHG members. To assess the accessibility of ?evolving &redit 6und.

2.2

METHODO5OG;

This pro$ect or study is based on the primary data collected by the students in different zones across the city &hennai in -..@. The name of the zones are Ailliva!!am)

Bodamba!!am) Aadapalani) 4yanavaram) +ogappair) Tondiarpet.

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6rom the selected zones 3.. samples were selected on the basis of random sampling. 4 (uestionnaire was prepared and information was collected through direct interview method. The period of study in Cune -..@. The (uestionnaire was designed to collect information regarding longevity of self help group) accessibility of ?evolving &redit 6und) creditability of self help group members average has been used in the pro$ect to study the validity of the ob$ectives.

2.3

CHAPTERISATION

The plan of the chapters for the study is as follows0 The first chapter deals with the introduction) general information about empowerment) definition of SHG) 6unctions of SHG and the <efinition of +icro &redit. The second chapter dwells with the 1eed for empowerment of women) ob$ectives and methodology. The third chapter analysis the socio and economic empowerment of urban poor women through SHGs in &hennai. The 6orum chapter offer the summary and suggestion.

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CHAPTER III ANA5;SIS OF SOCIO ECONOMIC EMPOWERMENT OF UR,AN POOR WOMAN IN CHENNAI

The self help group has emerged as the most successful strategy in the process of participatory development and empowerment of women.

In this chapter) analysis of socio economic empowerment of women has been carried out. 6urther the percentage of receivers of the revolving fund and income of the

households after they $oined the SHG movement has been found out. The average is used further to find out the credibility of the respondents. The diagrammatic representation of receivers of revolving fund and size of the family are given. 6rom the data collected regarding repayment of loans) the fre(uency distribution of period of repayment of loan to ban!s is also found.

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3.1

Re3o63i/4 F1/+ Ta"6e < I Re(ei3e#s o Re3o63i/4 F1/+

The no.of times loan ta!en 3 D 1o. of SHGs 8. D. 3.

+ore than 5.E of the respondents have ta!en loan once and 3.E of the respondents have ta!en thrice. 6rom the above table it is evident that a small percentage. 2nly a small percentage is having greater access to revolving fund) ma$ority of the SHGs have less accessibility to the revolving fund.

Re(ei3e#s o #e3o63i/4 1/+

3FE 3 5.E DDE D

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3.2

INCOME Ta"6e II MONTH5; INCOME OF SHGs %e# !o/.$

Income 5.. , 3... 3... , 35.. 35.. , -... -... , -5.. -5.. , D... D... , D5.. D5.. , G... G... , G5.. G5.. , 5... 1o. of SHGs 6amilies D 8 D5 D. -. 3 3 -

The above table shows the income of the 3.. respondents after they have $oined SHG movements 2ne third of the respondents obtain income between -... *-5... +a$ority of respondents obtain income between 35.. , -.... 2nly one respondent has got the income between D5.. , G.... +ore than @FE respondents have an income between 3... and 5.... DE of the respondents obtain income less than 3....

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40 35 30 25 20 15 10 5 0 500 1000 1000 1500 1500 2000 2000 2500 2500 3000 3000 3500 3500 4000 4000 4500 4500 5000

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TA,5E < III 3.3 SI=E OF THE FAMI5;

Size of the 6amily D G 5 8 F H 1o. of SHGs 6amilies 3. -. G. D. G 8

6rom the above table it is clear that out of the hundred samples the ma7imum size of the family was H and minimum size of the family was D. The ma7imum number of respondents were in the size of the family 5. The minimum number of respondents were in the size of the family D. 3I3. th of the families were in the size of the family D and 3I8 of the families are in the ma7imum size H.

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TA,5E I' 3.4 PERIOD OF REPA;MENTS OF 5OANS TO ,AN)S

Size of the 6amily .,8 8 , 33- , 3H 3H , -G -G , D. D. , D8 1o. of SHGs 6amilies D. D. -. 3. 5 5

6rom the above tables we come to understand -ID rd of the respondents have repaid the loan within a year which shows the credibility is high. +eagre percentage of respondents have ta!en a longer period in repaying the loan.

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TA,5E '

3.5

EMP5O;MENT AND MARITA5 STATUS EMPO5;MENT STATUS

'mployed 1ot employed H. -.

The table 5 shows the employment status of the H.E respondents who are employed.

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TA,5E 'I MARITA5 STATUS

+arried 1ot married

@. 3.

The table 8 shows that the @.E of the respondents are married. 2nly 3.E of the respondents are not married.

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3.&

ECONOMIC EMPOWERMENT

3.&a. ,USINESS TA,5E 'II RIGHT TO DO THE ,USINESS

Jes @8

1o G

The above table shows that the @8 respondents have got the right to do the business on their own) after they have $oined the self help group movement.

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3.&". ACCESS TO HIGHER EDUCATION TA,5E 'III

Jes @5 1o 5

The table given above shows that the @5 respondents are able to give higher education to their children) after they have $oined in the self help group movement.

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TA,5E I>

3.&(.

,ETTER STANDARD OF 5I'ING

Jes @5 1o 5

It is clear from the above table that the standard of living has improved for @FE of the respondents. 6rom the above table we understand that they are economically empowered.

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3.8

SOCIA5 EMPOWERMENT TA,5E < >

3.8a.

RESPECT FROM THE SOCIET; SOCIA5 RESPECT

Jes @. 1o 3.

6rom the above table it is clear that the @. respondents are respected in the society after they have the $oined in the SHG movement.

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TA,5E >I 3.8". RIGHT TO TA)E DECISION

Jes H5 1o 35

6rom the table it is clear that the H5E respondents are given the right to ta!e decision on their own.

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TA,5E >II 3.8(. RESPECT FROM THE FAMI5;

Jes @. 1o 3.

6rom the above table we understand that @. respondents are respected from the family after they $oined in the self help group movement.

6rom the above table K) KI) KII we can conclude that they are socially empowered.

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SUMMAR;
3. 8.E of the SHGs have less accessibility to the ?evolving 6und. -. +a$ority of the respondents income have improved after they have $oined in SHG movements. D. In case of the size of the family) the ma7imum size of the family is H and minimum size of the family is D. G. 8.E of the respondents have repaid the loan within a year. 5. +ore than @5 respondents have got the right to do the business) after they have $oined the SHG movement. 8. @5 respondents are able to give higher educations to their children) after they have $oined in the self help group movement. F. The standard of living has improved for @FE of the respondents. 6rom the findings 5) 8 L F we conclude that the respondents of the SHG movements are economically empowered. H. @. respondents are respected in the society after they have $oined in the SHG movement. @. H5E of the respondents are given the right to ta!e decision on their own.

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3.. @.E of the respondents are respected from the family after they have $oined the SHG movements. 6rom H) @ and 3. we conclude that the respondents of the self help group movements are socially empowered.

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SUGGESTIONS
3. 4ll the members should be educated about the functioning of the SHG movement. -. +ar!eting assistance should be enhanced. D. Training could be given in their locality at their convenient time so that their normal wor! need not get affected. G. +ore awareness should be created among the SHGs movement to bring them into the fold and to enhance their purchasing power. ?'6'?'1&'S 3http0IImegapib.nic.inImselfhelpgroupMgeninf.htm -!uru!shetra)feb-..D)pD.

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