250

Appendices

1. Photographs

2. Published Journals

3. Interview Schedule

Researcher with the Participants in a SHG Motivational Camp in Dimoria Block

SHG Weekly Meeting in Progress Rangia Block

Gamocha Making by SHG

Weaving by SHG Members

IJSR - INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH 39

Research Paper

CommerceKEYWORDS : Micro Finance;

Entrepreneurship, Development

Sudip Chakraborty Research Scholar, Assam University, Silchar. (Asstt. Prof. Royal Group of Institutions, Guwahati)

Nikhil Bhusan Dey Professor, Department of Commerce, and former Head, Department of Commerce, Assam University, Silchar, and former Dean, School of Management Studies, Assam University, Silchar,

ABSTRACT

-

Entrepreneurship Development Through Micro Finance in Assam

Introduction It is a well known fact that India is a classical land of villages, which constitute the backbone of the country. Uptill date vil-lages continue to contribute 40% to our national income, which play a vital role in the economic life of the nation. It is a well established fact that the country shall develop economically

but with the passage of time they have become the victims of innumerable problems such as illiteracy, casteism, untouch-ability, conservatism, economic backwardness, and so on. The British people did absolutely nothing to develop our villages. On the contrary, villages lost their autonomy, self-reliance and su-premacy during the British period. They subjugated the villages by destroying the cottage, home and small industries. The eco-nomic structure of the villages shattered, their social fabric was disturbed. This resulted in the growth of poverty at an alarming rate not only in the rural areas which ultimately enveloped the entire country. (Rao, 2010)1

It is only in the second half of the twentieth century that the burning problem of poverty has become a matter of our concern and obligation, after a long neglect of the poor during the Brit-ish rule. Thus with the very beginning of planning in India, the problems of the poor have been the main point of focus for the planners while formulating the plans and setting out the objec-tives (Singh, 1985)2.

Government of India had launched different programmes for uplifting the economic status of poor people like Integrated Ru-ral Development Programme (IRDP), Community Development

-opment are considered as the most effective tool for economic empowerment of low income groups, specially the poor. Most

-neurship separately. But empirically there lies a symbiotic rela-

Objectives The objective of the present study is to examine the develop-

Assam.

ScopeThe study has been made for the period from 2007-08 to 2011-12

MethodologyThe study has been conducted on the basis of secondary sources of information like various reports of NABARD, books, journals and periodicals.

Concept of Entrepreneurship Development Economic growth and technological advancement is the urge for

every developing country. In India, since independence the Gov-ernment initiated the route of planned economic development. But this does not mean that individual and group enterprise did not have any role to play, but then there will be assistance, guidance and regulation from State in various ways, in order to bring some economic transformation. The idea behind this was

background could be induced to take small industries and thus small industries could be effective tools for widening the en-trepreneurial base (i.e. entrepreneurship development) in the country.(Batra, 2004)3

The entrepreneurship development is in fact a key to achieve overall economic development. It is a process in which per-sons are injected with motivational drives of achievement and in sight to tackle uncertain and risky situations especially in business undertakings. The process of entrepreneurial develop-ment focuses on training, education, reorientation and creation of conducive and healthy environment for the growth of enter-prise. (Desai, 2010)4

Entrepreneurship Development consists of three phases:

i) Initial phase– Creation of awareness about the entrepre-neurial opportunities based on survey.

ii) Development phase– Implementation of training pro-grammes to develop motivation and management skills.

iii) Support phase – Infrastructure support of counseling and assisting to establish new enterprise and to develop existing units.

Concept of Micro Finance:

economic growth and it has emerged as an effective poverty alleviation tool because it is based on the fundamental princi-ple that human beings are motivated to do whatever it takes to make themselves as well off as possible.

poor to pull themselves out of poverty. Most commonly, it in-volves making small loans to the working poor in developing countries. These loans are usually small in size and are made by

are used by the working poor to establish or expand small busi-nesses that generate additional income for the family. This extra income allows a poor family to buy food, access healthcare, edu-cate their children, put aside savings and lay the foundation for a better future.

40 IJSR - INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH

Research Paper

(SHGs) under SHG-Bank Linkage Programme (SBLP) and the -

er promise and potential to address poverty as it is focused

through linking with the mainstream. In its simplest term it means banking for the poor. (Mansuri, 2010)5

Entrepreneurship Development through Micro Finance -

terrelated is dependent on the extent to which it addresses the economic development process. Yunus (1994), claims, “If we are looking for one single action which will enable the poor to overcome their poverty, I would go for credit. Money is power.” Credit invested in an income-generating enterprise as working capital or for productive assets leads to establishment of a new

-prise provides income, and a general strengthening of income sources.

interdependent is becoming increasingly recognised by experts -

velopment. Over 500 million poor people around the world run

constraint to business growth (IFC, 2002) thus, credit is essen--

them for business, and to expand their services to more villages or urban areas.

In India the launch of the pilot project “SHG –Bank linkage pro-gramme” by the NABARD in the year 1992 is a step towards the

-nance as a combined tool for poverty alleviation programmes. This pilot project has created a milestone in the world of pov-erty alleviation programmes through which economic progress

-uable insights for addressing the massive task of mainstream-ing the very poor and underprivileged with the formal banking system. This idea behind this programme is the formation of SHGs in large numbers and grooming them to successfully han-

dle thrift and credit facilities. Because NABARD realized the fact

development of entrepreneurial skill is also necessary for the upliftment of the poor resulting in the eradication of poverty as well as economic growth.

In order to form, nurture and promote the SHGs, it is necessary to have a large number of institutions which take up this work. They are called Self Help Promoting Institutions (SHPIs). NAB-ARD assists various types of such institutions engaged in this work. NGOs engaged in social sector intermediation are one such institution which is providing their helping hands to the NABARD on poverty alleviation programmes.

From the year 2006 NABARD launched Micro Enterprise Devel-opment Programme (MEDP).This programme was launched to nurture the entrepreneurial talents of members of mature SHGs to set up and run micro enterprises as a livelihood option in farm or non-farm sector, either on individual basis or on group basis. Support is extended under the programme to members of such SHGs to enrich their knowledge on enterprise management, busi-ness dynamics and rural markets. Nearly 5000 skill upgradation training programmes have been conducted under these initia-tives covering nearly 2 lakh members of mature SHGs. Most of the trained SHG members have since started on their journey to be-come promising entrepreneurs by availing loans from their SHGs. The micro enterprise for which trainings were imparted to SHG members included diverse activities like goat rearing, mushroom cultivation, preparation of papad, agarbatti, candles and jute products etc. (Status of Micro Finance by NABARD)

At the same time NABARD also organized training programmes for nurturing members of SHGs to enhance their effectiveness under training and capacity building programme.

Entrepreneurship Development through Micro Finance in Assam: Analysis and InterpretationWith respect to the state of Assam, the Entrepreneurship De-velopment through Micro Finance gathered momentum only from 2001-02 with the introduction of NABARD’s SHG –Bank linkage programme and its position and growth can be analysed through the following facts an narrated below:

Table 1: Savings of SHGs with bank in Assam (agency wise position) (Amount in Rs. lakh)

Year Commercial banks Regional rural banks Co-operative banks Total

No. of SHGs Savings amount No. of SHGs Savings

amount No. of SHGs Savings amount No. of SHGs Savings

amount2007-08 51628 2812.51 85941 2177.75 12096 809.80 149719 5800.062008-09 64122 3634.35 101239 2363.94 15635 298.63 180996 6296.922009-10 77036 3662.24 121298 2637.95 20018 1059.75 218352 7359.942010-11 84597 4573.76 136642 2853.01 23881 769.83 245120 8169.602011-12 102764 5991.53 149291 3039.10 24510 815.35 276565 9845.98

Source: Status of Micro Finance by NABARD

Table 1 shows savings of SHGs with bank in the state of Assam. As on 31st March, 2009 a total of 1,80,996 SHGs were having a savings bank account with banking sector with a savings amount of Rs.6,296.92 lakhs as against 1,49,719 SHGs having savings amount of Rs.5,800.06 lakhs as on 31st March, 2008 thereby having a growth rate of 17.28% and 7.89% respectively.

Again, as on 31st March, 2010 a total of 2,18,352 SHGs were having savings bank account with banking sector with a savings amount of Rs.7,359.94 lakhs and if compared with 31st March, 2009 it registered a growth rate of 20.64% and 16.88% respec-tively.

Likewise, as on 31st March, 2011 a total of 2,45,120 SHGs were having savings bank account with banking sector with a savings amount of Rs.8,169,60 lakhs and if compared with 31st March, 2010 it registered a growth rate of 12.26% and 11% respec-tively and as on 31st March, 2012 a total of 2,76,565 SHGs were having savings bank account with banking sector with a savings amount of Rs.9,845.98 lakhs and if compared with 31st March, 2011 it registered a growth rate of 12.82% and 20.52% respec-tively.

Thus it can be analysed that more and more poor households are associated with banking agencies and SHG Bank Linkage programme every year.

Table 2 : Bank loan disbursed to SHGs in Assam (agency wise position) (Amount in Rs. lakh)

Year Commercial banks Regional rural banks Co-operative banks Total

No. of SHGs Bank loan No. of SHGs Bank loan No. of SHGs Bank loan No. of SHGs Bank loan

2007-08 8443 3958.45 11327 4068.83 548 841.82 20318 8869.102008-09 11775 8300.78 13417 5647.83 1256 1747.59 26448 15696.20

IJSR - INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH 41

Research Paper

2009-10 11760 9075.23 17486 6635.28 9812 3863.10 39058 19573.61

2010-11 8042 9631.52 18809 9823.59 2243 3260.50 29094 22715.612011-12 10072 8228.09 16279 8691.61 1661 1827.28 28012 18746.98

Source: Status of Micro Finance by NABARD

Table 2 shows bank loan disbursed to SHGs in the state of As-

with a bank loan (including repeat loan) of Rs.15,696.20 lakhs as against 20,318 SHGs with a bank loan of Rs. 8,869.10 lakhs during 2007-08 with a growth rate of 30.17% and 43.41% re-spectively.

with a bank loan of Rs.19,573.61 lakhs and if compared with 2008-09 it witnessed a growth rate of 47.49% and 24.70% re-

29,094 SHGs with a bank loan of Rs.22,715.61 lakhs and like-

with a bank loan of Rs.18,746.98 lakhs. Considering these it can

SHGs in the state of Assam.

Table 3: Bank loan outstanding against SHGs in Assam (agency wise position) (Amount in Rs. lakh)

YearCommercial banks Regional rural banks Co-operative banks TotalNo. of SHGs Bank loan No. of SHGs Bank loan No. of SHGs Bank loan No. of SHGs Bank loan

2007-08 40771 15292.71 30412 7755.55 4222 1176.11 75405 24224.372008-09 47557 18296.28 33844 11015.32 7477 3543.82 88878 32855.422009-10 49925 30216.34 38656 14534.45 11841 4372.58 100422 49123.372010-11 53243 29207.48 47632 16783.43 10714 5479.36 111589 51470.272011-12 55820 34048.27 52330 24105.10 9659 4868.27 117809 63021.64

Source: Status of Micro Finance by NABARD

Table 3 shows bank loan outstanding against SHGs in the state of Assam. As on 31st March, 2009, 88,878 SHGs were having outstanding bank loan of Rs.32,855.42 lakhs as against 75,405 SHGs with outstanding bank loan of Rs.24,224.37 lakhs with a growth rate of 17.86% and 35.62% respectively. Again dur-ing the year 2009-10, 1,00,422 SHGs were having outstanding bank loan of Rs.49,123.37 lakhs and if compared with 2008-09 it registered a growth rate of 12.93% 49.51% respectively. Like-wise during the year 2010-11, 1,11,589 SHGs were having out-standing bank loan of Rs.51,470.27 lakhs and that for the year 2011-12, 1,17,809 SHGs were having outstanding bank loan of Rs.63,021.64 lakhs.

Table 4: Progress of Micro Enterprise Development Pro-gramme: Assam position

Year No. of participants (SHG members)

No. of participants (SHG members)

2007-08 390 3902008-09 900 12902009-10 1500 34582010-11 1380 48382011-12 1710 6548

Source: Status of Micro Finance by NABARDTable 4 shows the progress under the Micro Enterprise Devel-opment Programme (MEDP) in the state of Assam which was launched by NABARD for skill development for the SHG mem-

is an increase in the number of SHG members participating Micro Enterprise Development Programme year by year, from which it can be considered that there is a decent response from the SHG members towards the programme. From this it can be considered that the Micro Enterprise Development Programme (MEDP) is reasonably successful in the state of Assam.

Table 5: Progress of NABARD’s training and capacity build-ing programmes to SHG members in Assam

Year No. of participants (SHG members)

No. of participants (SHG members)

2007-08 10,533 78,7072008-09 11,955 90,6622009-10 14,609 1,05,2712010-11 9,298 1,14,5692011-12 10,021 1,24,590

Source: Status of Micro Finance by NABARD

Table 5 shows the progress of NABARD’s training and capacity building programmes implemented in the state of Assam. From

members have actively participated the programme every year.

Not only this, from the report published by the PNRD Deptt. As-sam (2009) it can be pointed out that the SHGs of the state has undertaken various micro enterprise activities like weaving,

etc.

ConclusionThe impact of entrepreneurship development through micro

it can rightly be pointed out that the pilot project of NABARD’s

but also had promoted entrepreneurial skill for the members of

helped them in overcoming their pangs of poverty. Therefore it can rightly be assumed that entrepreneurship development

-ing the problem of poverty from the society and will guide the society towards a healthy economic life.

REFERENCE 1. Rao C.N. Shankar, Sociology of Indian Society (2010), S. Chand and Company Ltd., New Delhi. | 2. Singh Radha Raman (1985), Studies in Regional Planning and Rural Development, Associated Book Agency, Patna.

| 3. Batra G.S. (2004), Development of Entrepreneurship, Deep and Deep Publications Pvt. Ltd, New Delhi. | 4. Desai Vasant (2010), The Dynamics of Entrepreneurial Development and Management, Himalaya Publishing House. | 5. Dr. Mansuri B.B (2010), Micro Finance Through Self Help Group –a case study of Bank Linkage Programme of NABARD, APJRBM, Volume I (Issue 3), December 2010, ISSN-2229-4104, p-3. | 6. Yunus Muhammad, Grameen Bank, “Major Uses of Loan Funds”, Bangladesh (1994); and Extracts from the keynote address delivered at 85th Rotary International Convention help in Taipei, Taiwan, on June 12, 1994 | 7. Status of Micro Finance in India 2007-08, by NABARD | 8. Status of Micro Finance in India 2008-09, by NABARD | 9. Status of Micro Finance in India 2009-10, by NABARD | 10. Status of Micro Finance in India 2010-11, by NABARD | 11. Status of Micro Finance in India 2011-12, by NABARD | 12. Government of Assam, PNRD Report, 2009 |

INTERVIEW SCHEDULE

GENERAL INFORMATION

1)

2)

3)

4)

5) Year of formation:

6)

7) Age in years:

1)for below 20 : 2) for 20-30 : 3) for 30-40 : 4) for 40-50 : 5) above 50

8) Educational Status:

1) for primary : 2) for high school : 3) for higher education :

4) for no education : 5) for technical education

9) Marital Status:

1) For married: 2) For unmarried : 3) For widow : 4) For divorced

10) Caste:

1) For general: 2) For SC : 3) For ST : 4) For OBC : 5) For others

11) Religion:

1) For Hindu: 2) For Muslim : 3) For Christian : 4) For others

12) Type of Family:

1) For Joint Family: 2) For Nuclear Family

13) No. of Family Members

14) No. of Children

15) Main Occupation of the SHG Member:

1) for Self Employed in Agriculture : 2) for Self Employed in Non Farm

Enterprise 3) for Casual Workers : 4) for Salaried Workers :

5) for Domestic Workers : 6) for Student

TECHNICAL INFORMATION

I. INCOME AND EXPENDITURE

II. FOODING: BEFORE AFTER

1. Number of meals a day:

1) for no meal: 2) for once a day: 3) for twice a day : 4) for more than

twice a day

2. Intake of meat, fish or other luxury food:

1) for weekly: 2) for fortnightly: 3) for monthly: 4) for less than frequently a

month

3. No. of days for which the meal consist of inferior foods only (in last 7 days)

1) for none: 2) for 1 to 3 days: 3) for 4 to 6 days: 4) for all 7 days

4. No. of days for which the household does not have enough to eat everyday

(in last 30 days)

1) for none: 2) for less than 10 days: 3) for 10 to 20 days: 4) for more than 20

days 5. No. of months for which the house hold have at least one day without enough to eat:

1) for none: 2) for 1 to 2 months: 3) for 3 to 4 months:

4) for above 4 months

PARTICULARS BEFORE AFTER

1. Monthly income of the household (in Rs.)

2. Monthly income of the SHG member (in Rs.)

3. Monthly household consumption expenditure (in Rs.)

4. Monthly food expenditure of the household (in Rs.)

5. Monthly non food expenditure of the household (in Rs.)

6. No. of working days per month

7. Savings per month (in Rs.)

6. No of weeks for which the household have a stock of local staple food:

1) for no stock: 2) for < a week: 3) for 1-4 weeks:

4) for > 4 weeks

7. Type of cooking fuel source primarily used:

1) for collected woods only: 2) for both collected and purchased woods:

3) for charcoal: 4) for kerosene: 5) for LPG

III. HEALTH & HYGINE

1. Attended hospitals/ health centers/ doctors for medical treatment:

1) for yes: 2) for no: 3) for not applicable

2. Can afford to buy medicines in emergencies:

1) for yes: 2) for no: 3) for not applicable

3. Women in household attended hospitals/ health centers:

1) for yes: 2) for no: 3) for not applicable

4. Immunization of children in time:

1) for yes: 2) for no: 3) for not applicable

5. Malnourished children in household:

1) for yes: 2) for no: 3) for not applicable

6. Sources of drinking water:

1) for pond/ lake/ river: 2) for open public well: 3) for public tube well

4) for own tube well: 5) for piped public water

7. Type of toilet facility available:

1) for bush/ field/ no facility: 2) for shared pit toilet: 3) for own pit toilet

4) for shared improved pit latrine: 5) for own improved pit latrine

IV. LAND HOLDING STATUS AND HOUSING

1. Land holding status:

1) for landless (0 to< 3 bigha): 2) for marginal (3 bigha to< 7.5 bigha)

3) for small (7.5 bigha to< 15 bigha): 4) for above 15 bigha

2. Ownership of house

1) for rented: 2) for own

3. Type of roofing material used:

1) for tarpaulin, plastic sheets etc: 2) for grass or straws: 3) for brick tiles:

4)for concrete

4. Type of external walls:

1) for bamboo twigs: 2) for mud walls: 3) for iron sheets: 4) for timber:

5) for brick with cement plaster

5. Type of flooring:

1) for mud: 2) for wood: 3) for bricks only:

4) for bricks with cement plaster

6. Structural condition of the main dwelling

1) for seriously dilapidated: 2) for needs major repairs: 3) for needs minor repairs

4) for sound structures

7. Type of electricity supply:

1) for no connection: 2) for shared connection: 3) for own connection

8. Type of house:

1) for pucca: 2) for half-pucca: 3) for kutcha

9. Number of dwelling rooms:

1) for one room: 2) for two rooms: 3) for more than two rooms

10. Availability of separate rooms for kitchens:

1) for available: 2) for not available

V. SOCIAL PARTICIPATION:

1. Level of participation in social action:

1) for no participation: 2) for low level participation:

3) for very active participation

2. Access to local elites:

1) for no access: 2) for somewhat accessible: 3) for easily accessible

VI. SHG MATTERS

1. Period of participation with SHG:

1) For less than 1 yr : 2) For 1 - 2 yrs : 3) For 2 - 3 yrs :

4) For 3 - 4 yrs : 5) For above 4 yrs

2. Participation in networks:

1) For only SHG membership : 2) For membership in other networks apart from SHG

3. Have you received any training under the programme:

1) For yes : 2) For no

4. Status of the activity undertaken:

1) For individual activity: 2) For group activity : 3) For yet to start any activity

5. Status of the asset created out of SHG loan:

1) For asset is operational : 2) For asset is not operational :

3) For had not created any asset at all 4) For the asset is already sold

6. Opinion about fairness in selecting members of the SHG:

1) For fair: 2) For unfair : 3) For uncertain about it

7. Amount of savings in SHG per week:

8. SHG loan taken:

9. SHG loan invested in which activity

VII. ASSET HOLDING STATUS:

ASSET TYPE BEFORE AFTER

NO. OWNED RESALE VALUE AT CURRENT MARKET PRICE

NO. OWNED

RESALE VALUE AT CURRENT MARKET PRICE

LIVE STOCK

1. cattle and buffalo

2. sheep, goats and pigs

3. poultry

TRANSPORTATION RELATED ASSETS

4. cars

5. motorcycle

6. bicycle

7. other vehicles

APPLIANCES AND ELECTRONICS

8. Televisions

9. CD/DVD/Tape Recorder/Radio

10. Refrigerators

11. Electric or gas cookers

12. Washing machine

13. Fans

Signature of the Respondent