ENTREPRENEURS - shodhganga.inflibnet.ac.inshodhganga.inflibnet.ac.in/bitstream/10603/40377/11/11_chapter 4.pdfvending, liquid blue making and phenyl making. Nationalised commercial

151

CHAPTER - IV

THE PERFORMANCE OF THE RESPONDENTS AS

ENTREPRENEURS

The principal objective of this research study is to assess the

performance of women entrepreneurs under the guidance of Self-Help

Groups (SHGs). The data collected in this regard from the sample survey

have been classified and tabulated. The present chapter contains an analysis

of the respondents’ performance as entrepreneurs with reference to the

following indicators.

4.1 ANNUAL SAVINGS

Economic empowerment of women in Self-Help Groups starts with

savings and internal lending (Mahalir Thittam, A Report, 1999-2000). One

of the major criteria to become the member of SHG and to avail credit

facilities from the financial institutions is to accumulate the group savings.

When the group members accumulate certain minimum level of savings they

are eligible for receiving revolving fund, which enables them to venture into

various economic activities. The following Table – 4.1 explains the annual

savings of the respondents as members of Self-Help Groups.

152

TABLE - 4.1

ANNUAL SAVINGS OF THE RESPONDENTS IN FOUR

PANCHAYAT UNIONS

S.No. Panchayat Union Amount of

Savings (Rs.)

No. of

Respondents

Mean

Savings (Rs.)

Coefficient

of Variation

1.

2.

3.

4.

Sivagangai

Devakkottai

Ilayankudi

Manamadurai

49,545.08

1,36,879.80

39,410.21

70,285.13

52

76

49

73

952.79

1,801.05

804.29

962.81

111.71

202.00

83.51

88.58

Total 2,96,120.22 250 1,184.48

Source : Complied from Primary Data

The respondents in all four panchayat unions have been very wel1

motivated to have their own savings through Self-Help Groups. They fulfill

the major criteria of thriftiness, which is evidenced in Table 4.1. The

respondents from the Devakkottai Panchayat Union have recorded the

highest annual average savings of Rs. 1,801.05/- followed by the

respondents from Manamadurai and Sivagangai with annual average

savings of Rs. 962.81/- and Rs. 952.72/- respectively. The respondents of

Ilayankudi Panchayat Union have very low annual average savings Rs.

804.29/-. Majority of the respondents have deposited their savings with the

banks and co-operative societies, which have provided them financia1

assistance.

Details of the respondent’s annual savings, activity-wise. are given in

Table 4.2.

153

TABLE - 4.2

ACTIVITY - WISE SAVINGS OF THE RESPONDENTS

S.

No. Name of the Activity

No. of

Respondents

Amount of

Savings (Rs.)

Mean Value

(Rs.)

Coefficient

of Variation

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Arecanut shaving

Candle making

Card making

Cleaning powder making

Food processing

Gem cutting

Grinder stone polishing

Handloom weaving

Liquid blue making

Mat weaving

Milk products making

Mixy cover making

Phenyl making

Plastic wire bag knitting

Pot making

Poultry farming

Quarrying

Readymade garments

making

Thatch making

Vegetable vending

5

19

10

15

36

37

11

5

5

15

23

5

10

4

5

6

15

10

10

4

2,615.00

26,500.00

10,450.00

7,840.05

25,490.16

1,05,770.05

7,970.05

3,020.00

3,640.00

24,460.05

20,059.91

4,025.00

6,385.00

3,260.00

2,000.00

3,250.00

12,289.95

12,125.00

13,220.00

1,750.00

523.00

1,394.74

1,045.00

522.67

708.06

2,858.65

724.55

604.00

728.00

1,630.67

872.17

805.00

638.50

815.00

400.00

541.67

819.33

1,212.50

1,322.00

437.50

32.29

121.43

94.53

57.43

67.38

172.22

33.22

35.08

30.86

59.03

119.99

11.28

40.08

67.01

0.00

16.93

28.72

168.62

47.10

25.34

Total 250 2,96,120.22 1,184.48


154

The respondents in the study area are engaged in multifarious

activities. The choice of the activities to a large extent depends upon the

local demand, availability of raw materials and finance. The major activities

undertaken by the respondents which are listed in the Table - 4.2, are

shaving of Arecanut, Candle making, Card making, Preparation of cleaning

powder, Food processing, Gem cutting. Grinder stone polishing, Handloom

weaving, Liquid blue making, Mat weaving, Making of milk products, Mixy

cover, Phenyl and Plastic Wire bag knitting, Pot making. Poultry, Quarrying,

Readymade garments, making materials for thatching and Vegetable

vending.

In the gem cutting activity the average annual savings of a respondent

is Rs. 2,858.65/-. It has been found to be a product easily marketable. Mat

weaving follows this. In this trade, respondents on an average save Rs.

1,630.67/- annually. This industry involves tapping of local raw materials

and has a wide market network consisting of poor people. The third

important activity in the study area is candle making. The women

respondents engaged in this activity save annually Rs, 1,394.74/-.

Respondents specialising in making materials for thatching work follow

them. There is a growing market for thatching materials in the study area.

155

Another significant activity in the study area is making of readymade

garments. The readymade garments made here are affordable to the poor

people and hence they are very popular among rural masses with low

income. Card making is also another significant thriving activity. In this

activity, the respondents use their originality and creativity to carve out

attractive cards, which have good marketing prospects.

4.2 DETAILS OF CREDIT

Finance is the fuel of any venture. To help the women entrepreneurs in

their pursuit, banks and cooperative societies are extending liberal credit

facilities. But the funds given by the financial institutions are not sufficient

to fulfill their credit requirements. Hence the women entrepreneurs in order

to bail out of their problems, resort to borrowing from moneylenders. There

is an urgent need for channelising institutional credit for both agricultural

and non-agricultural purposes in rural area Otherwise rural people especially

the new generation of women entrepreneurs are likely to fall into the

clutches of moneylenders.

Savings made by the Self-Help Groups pave a way for them to avail

credit facilities to start their enterprise. Among 250 respondents 214 (85.6

per cent) of them have borrowed the amount from banks co-operative

society, internal loans from SHGs and moneylenders. The remaining 36

(14.4 per cent) of them stated that they have mobilised their own resources to

stat their business.

156

TABLE - 4.3

CREDIT AVAILED BY THE RESPONDENTS FROM DIFFERENT

SOURCES IN FOUR PANCHAYAT UNIONS

S.

No.

Panchayat Union No. of

Respon-

dents

Bank

(Rs.)

Co-

operative

Society

Internal

Loans from

SHGs

Money

Lenders

Total

1.

2.

3.

4.

Sivagangai

Devakkottai

Ilayankudi

Manamadurai

44

63

41

66

1,25,800

1,60,000

1,82,500

3,12,000

5,000

39,500

3,000

---

18,425

1,000

---

---

13,500

1,07,300

3,000

42,300

1,62,725

3,07,800

1,88,500

3,54,300

Total 214 7,80,300 (77.0)

47,500 (4.7)

19,425 (1.9)

1,66,100 (16.4)

10,13,325 (100.0)


Figures in ( ) indicate percentage to the total.

From the above Table 4.3, it is clear that the banks are the mayor

sources of borrowing (77.0 per cent) for the respondents as the co-operatives

(4.7 per cent) have failed to make any impression in providing financial

facilities to the budding entrepreneurs. Moneylenders lend money liberally

but at an exorbitant rate of interest. The study has revealed that next to the

banks, moneylenders and co operatives are the main sources from which

rural women entrepreneurs borrow money to run their enterprises. The

respondents feel that co-operatives could play a more dynamic and active

role in providing money at a lower rate of interest.

157

Respondents of Manamadurai and Devakkottai blocks have received

adequate amount of institutional credit of Rs. 3,54.300/- and Rs. 3,07,800/-

respectively. They appear to be really committed and enthusiastic. However

the respondents of Ilayankudi and Sivagangai Unions have complained that

they received comparatively less amount of money as loan, and as such, have

to rely much on the non-institutional credit at exorbitant rate of interest.

The credit needs of the rural enterprises vary according to their

working requirements: in trades like plastic wire bag knitting, vegetable

vending, liquid blue making and phenyl making. Nationalised commercial

banks have been evincing interest in extending credit to all rural enterprises

covered by Self-Help Groups. Table 4.4 gives an idea of the credit a\ailed by

the respondents, activity-wise.

158

TABLE - 4.4 ACTIVITY-WISE CREDIT AVAILED BY THE RESPONDENTS

FROM DIFFERENT SOURCES (Figures in Rs.)

S. No. Name of the Activity

No. of Respon-

dents Banks Co-

operative

Internal Loans from

SHGs

Money Lenders Total

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Arecanut shaving

Candle making

Card making


Food processing

Gem cutting


Handloom weaving

Liquid blue making

Mat weaving


Mixy cover making

Phenyl making


Pot making

Poultry farming

Quarrying

Readymade garments

making

Thatch making

Vegetable vending

5

13 (6*)

6 (4*)

15

29 (7*)

34 (3*)

11

5

4 (1*)

15

18 (5*0

4 (1*)

10

1(3*)

5

5 (1*)

15

7 (3*)

9 (1*)

3 (1*)

--

56,300

22,000

19,000

1,38,100

76,000

44,000

26,000

11,000

28,400

1,18,500

20,000

11,000

3,000

23,000

28,500

57,000

41,000

56,500

1,000

--

--

--

--

1,000

26,000

--

--

--

--

3,000

--

2,500

--

--

13,000

--

--

--

2,000

--

--

9,000

3,425

--

7,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

48,00

14,800

1,000

--

6,300

62,000

22,000

--

--

500

1,500

--

--

--

3,000

--

--

2,000

--

5,000

48,00

71,100

32,000

22,425

1,45,400

1,71,000

66,000

26,000

11,000

28,900

1,23,000

20,000

13,500

3,000

26,000

41,500

57,000

43,000

56,500

8,000

Total 214 7,80,300 47,500 19,425 1,66,100 10,13,325

Source : Complied from Primary Data * Not availed the Credit.

159

The respondents approach various resources of finance to undertake

the income-generating economic activities. There are twenty activities listed

(Table – 4.4 for which the credits are availed by the sample rural women

entrepreneurs. The highest and the lowest credits availed by the respondents

have been highlighted.

It is evident from the above table the respondents have availed credits

from the Banks to carry out food processing (Rs. 1,38,100/-) and for

vegetable vending (Rs. 1,000/-). Secondly, the respondents have an easy

access to approach the moneylenders for their credits. In order to undertake

gem cutting (Rs. 62,000/-) and for mat weaving (Rs. 500/-) the respondents

have availed credits from the moneylenders. 1hirdly, the sample respondents

have also borrowed loans from the co-operative societies to perform the

activities such as, gem cutting (Rs. 26,000/-) and for processing food items

(Ps. 1,000/-). Lastly, the rural women entrepreneurs have also received

credits from internal loans offered by SHGs to activate their enterprises of

card making (Rs. 9,000/-) and for making cleaning powder (Rs. 3.425/-).

4.3 TYPE OF ORGANISATION

The guiding principle of the co-operative organisation is the mutual

help of the members. The formation of women co-operatives augurs well for

the development of women entrepreneurship. But co-operation is yet to take

160

strong roots in the Indian soil, as such people prefer sole proprietorship to

other forms of enterprise. Details of the organisational structure of the

enterprises run by the respondents are given in Table 4.5.

TABLE – 4.5

TYPE OF ORGANISATION AND NATURE OF WORK UNDERTAKEN BY THE RESPONDENTS

Type of organisation S.

No. Nature of

Work Sole Proprietorship Partnership

Women co-

operatives

Total respondents

Percentage to the total

1.

2.

Production

Servicing

176

3

--

1

55

15

231

19

92.0

8.0

Total 179 (71.6)

1 (0.4)

70 (28.0)

250 (100.0) 100.0

Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.

In this table it is clear that out of the 250 sample respondents, 71.6 per

cent ire sole proprietors and only 28.0 per cent belong to co-operative

organisations. Although co-operative enterprises have the advantages of

collective wisdom, sharing of the profits and reaping the benefits of division

of labour, it comes only r to sole proprietorship.

4.4 TRAINING

The general training programmes are important to improve the skills

of the respondents. The respondents receive training in the intricacies of

production and u of their specific products. This helps them to perform their

161

work with least cost and produce greater output. The training programmes

assumed added significance due to the fact that most of the respondents are

starting their business on their own without any past experience or family

background. So training programmes are very effective in inculcating the

nuances of production process. They help respondents to acquire knowledge

and expertise in production. They also help them to know the market

potentials of their product.

The purpose of training under the project SHG is to develop a shared

vision and to bring about transformation in perception through exposure. A

strong and cohesive SHG can be formed only by giving systematic training

adopting participatory method. The impact of training can he easily seen in

better communication skills, greater confidence, higher unity and wider

mobility of SHG women.

Training being the backbone of SHGs, the first step is to impart

training for project partners, viz., NGO field workers, NGO trainers, branch

managers, SHG functionaries (Animator and Representatives) and SHG

members. In 1999 - 2000, the major task undertaken was the preparation of

training manuals in Tamil (Regional language of Tamil Nadu) for SHG

members training and Animators and Representatives training (Mahalir

Thittam, Annual Report, 1999-2000) Mahalir Thittam provides sufficient

training to all project agencies on various topics, the different types of

training envisaged for different project participants are given in Annexure–VI.

162

SHG members are trained with 10 modules of 1 day each, Animators

and one Representative from each group are given training with a total of 12

modules covering 24 days. Majority of the respondents (57.2 per cent) in this

study area have not availed the training facilities offered to them. The

reasons they state are as follows : • Motivation given by NGOs are not

sufficient, • Practical exposure is not given, • Trainer is not fully equipped, •

Unorganised programmes, • Lack of personal care and incidental expenses

are not met.

The following Table 4.6 explains the community-wise distribution of

trained entrepreneurs in various activities.

TABLE - 4.6 COMMUNITY-WISE DISTRIBUTION OF TRAINED

RESPONDENTS IN VARIOUS ACTIVITIES Forward

Community Backward

Community Scheduled

Community Scheduled

Tribe Total

respondents S. No. Name of the Activity

E T E T E T E T E T 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

19. 20.

Arecanut shaving Candle making Card making Cleaning powder making Food processing Gem cutting Grinder stone polishing Handloom weaving Liquid blue making Mat weaving Milk products making Mixy cover making Phenyl making Plastic wire bag knitting Pot making Poultry farming Quarrying Readymade garments making Thatch making Vegetable vending

-- -- -- -- -- -- -- -- -- -- 6 -- 1 -- -- -- -- --

-- --

-- 4 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

-- --

-- 7 5 --

17 2

10 3 -- 4 7 2 5 -- 3 1

11 --

-- --

-- 7 3 9

16 30 1 -- 3

10 -- -- 3 4 -- -- -- 9

-- --

5 -- -- 3 3 4 -- 2 -- 1 4 2 1 -- 2 5 3 1

5 1

-- 1 1 3 -- -- -- -- 2 -- -- -- -- -- -- -- -- --

-- --

-- -- -- -- -- 1 -- -- -- -- 6 1 -- -- -- -- 1 --

-- --

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

-- --

5 7 5 3

20 7

10 5 -- 5

23 5 7 -- 5 6

15 1

10 4

-- 12 5

12 16 30 1 -- 5

10 -- -- 3 4 -- -- -- 9

-- --

Total 7 (58.3)

5 (41.7)

85 (47.3)

95 (52.7)

42 (85.7)

7 (14.3)

9 (100.0) -- 143

(57.2) 107

(42.8) Source : Complied from Primary Data E – Experienced; T – Trained; Figures in ( ) indicate percentage to the total.

163

Table - 4.6 shows clearly that out of the 250 respondents engaged in

various activities 180 belong to the backward community. Among these 180

respondents 47.3 per cent (85) have entered into these activities with their

own experience and initiative. They have not received any formal and skill-

based training in their line of activities. The remaining (95) 52.7 per cent of

women entrepreneurs of this community have received formal training and

have acquired practical exposure with the help of non-governmental

organisations and Tamil Nadu Corporation for Development of Women,

Sivagangai District. They have specialised in gem-cutting, food-processing,

mat weaving, cleaning powder making and readymade garments making.

The next large group of 49 respondents, ho have taken tip entrepreneurial

activities, are from the scheduled community. Among them 14.3 per cent (7)

have received formal training in their respective fields while the remaining

85.7 per cent (42) women entrepreneurs are without any formal training.

They are engaged in the production of shaving of arecanut, preparation of

material for thatching the houses and preparation of’ cleaning powder

making. Of the 12 respondents from the forward community 41.7 per cent

(5) have received formal training and the remaining 58.3 per cent (7) are

without any formal training and are involved in making cards and candles.

Respondents belonging to scheduled tribe are 6.2 per cent (9) and they are

not exposed to any training. They are primarily engaged in rearing of live

stocks and making milk products such as butter, buttermilk and curd. In the

study area certain activities are pre-dominantly done by certain community,

since they are more in number in that particular area.

164

4.5 ANNUAL REVENUE, EXPENDITURE AND PROFIT

The viability of an enterprise depends on the profit it yields. In rural

enterprises the profit which is the difference between total revenue and total

cost constitutes the income of the entrepreneur. Revenue from sales denotes

the price received by the entrepreneur by selling their products, to the

ultimate consumers or the middleman. Expenditure includes all the cost

incurred for the production of commodity and other for the sale of the

products. In the case of women entrepreneur even if this income is not

substantial and significant it goes to supplement the family income. The

profit earned by the respondents belonging to different activities is shown in

Table- 4.7.

165

TABLE 4.7 ACTIVITY-WISE ANNUAL REVENUE, EXPENDITURE AND

PROFIT OF THE RESPONDENTS

(Figures in Rs.)

S.


No. of

Respon-

dents

Revenue

from

sales

Expen-

diture

Ave.

expen-

diture

Profit Ave.

profit

Ave.

Profit +

Ave.

Exp

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Arecanut shaving

Candle making

Card making


Food processing

Gem cutting


Handloom weaving

Liquid blue making

Mat weaving


Mixy cover making

Phenyl making


Pot making

Poultry farming

Quarrying

Readymade garments

making

Thatch making

Vegetable vending

5

19

10

15

36

37

11

5

5

15

23

5

10

4

5

6

15

10

10

4

60,000

2,74,200

1,09,800

1,80,000

4,88,340

4,19,350

1,27,100

1,00,400

54,900

2,20,000

4,79,500

76,700

1,21,500

45,700

85,500

56,200

2,26,000

1,38,700

90,600

21,500

29,000

1,01,800

13,800

56,600

1,58,500

70,800

48,500

46,000

19,000

65,000

1,89,500

18,500

32,500

21,000

14,000

18,000

58,000

31,000

45,500

8,500

5,800

5,358

1,380

3,773

4,403

1,914

4,409

9,200

3,800

4,333

8,239

3,700

3,250

5,250

2,800

3,000

3,867

3,100

4,500

2,125

31,000

1,72,400

96,000

1,23,400

3,29,840

3,48,550

78,600

54,400

35,900

1,55,000

2,90,000

58,200

89,000

24,700

71,500

38,200

1,68,000

1,07,700

45,100

13,000

6,200

9,074

9,600

8,227

9,162

9,420

7,146

10,880

7,120

10,333

12,609

11,640

8,900

6,175

14,300

6,367

11,200

10,770

4,510

3,250

1.07

1.69

6.96

2.18

2.08

4.92

1.62

1.18

1.87

2.38

1.53

3.15

2.74

1.18

5.11

2.12

2.90

3.47

0.99

1.53

Total 214 33,75,990 10,45,500 84,201 23,30,490 1,76,83

0


The table shows trade-wise the annual revenue and expenditure of the

respondents. It can be seen that except in the case of trades like vegetable

vending, thatch making, plastic wire bag knitting, poultry farming and

arecanut shaving where the respondents are earning less than Rs. 6,500/- on

an average per year, the average profit in other trades are satisfactory.

166

Figure 4.1 ACTIVITY-WISE ANNUAL REVENUE, EXPENDITURE AND PROFIT OF

THE RESPONDENTS

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Name of the Activity

Pro

fit (i

n R

s.)

Arecanut shaving

Candle making

Card making


Food processing

Gem cutting


Handloom weaving

Liquid blue making

Mat weaving


Mixy cover making

Phenyl making


Pot making

Poultry farming

Quarrying

Readymade garments making

Thatch making

Vegetable vending

167

The last column shows the ratio of average profit to tile average

expenditure. From the table it is clear that the activity of the card making

fetches more profit i.e., 6.96, than tile other activities.

4.6 REPAYMENT

One of the complaints often made by tile banks and the co-operatives

operating in rural areas is that the debtors are not quite prompt in paying

interest and repaying the principal. The delay in repayment has caused

certain constraints to the banks in extending further credit. Women are found

to be more prompt in repaying loans. Particulars of amount borrowed, loans

repaid and amount outstanding in tile case of respondents are given in

Table - 4.8.

TABLE - 4.8

AMOUNT BORROWED, REPAID AND OUTSTANDING OF THE RESPONDENTS IN FOUR PANCHAYAT UNIONS

(Figures in Rs.)

S. No. Panchayat Union

Amount Borrowed

Mean Borrowing

Amount Repaid

Mean Repayment

Amount Out-

standing

Mean Out-

standing 1.

2.

3.

4.

Sivagangai

Devakkottai

Ilayankudi

Manamadurai

1,62,725

3,07,800

1,88,500

3,54,300

3,616.11

5,216.95

4,712.50

5,061.43

48,250

1,27,350

82,600

2,17,450

1,206.25

2,234.21

2,065.00

3,106.43

1,14,475

1,80,450

1,05,900

1,36,850

2,441.67

3,119.49

2,838.46

2,073,49

Total 10,13,325

(100.0)

4,75,650

(46.9)

5,37,675

(53.1)


168

0

50000

100000

150000

200000

250000

300000

350000

400000

Am

ou

nt

(in

Rs.

)

Sivagangai Devakkottai Ilayankudi Manamadurai

Figure - 4.2 AMOUNT BORROWED, REPAID AND OUTSTANDING OF THE

RESPONDENTS IN FOUR PANCHAYAT UNIONS

Amount Borrowed

Amount Repaid

169

The analysis of repayment by the respondents have shown that they

are prompt in repaying the money they have borrowed from banks. The

lending agencies are also very happy at the prompt repayment of loans by

the respondents. The above Table 5.8 shows that the loan outstanding in the

Devakkottai block (Rs. 1,80,450/-) is quite high and the average borrowing

(Rs. 5,126.95/-) is also quite considerable. This is not a negative sign, as the

respondents have been regularity clearing the debts. It is evident from the

above table that out of the amount (Rs. 10.13,325-), borrowed Rs. 4,75,650/-

(46.9 per cent) has already been repaid, within the specified period of time.

According to the banks, the amount of repayment in the case of the women

respondents is found to be better.

The following Table - 4.9 shows the amount borrowed and repaid by

the respondents who have undertaken various activities in the study area. Out

of the 250 respondents only 214 (85.6 per cent) have availed loans from

banks, c0-operatives, internal loans from SHGs and moneylenders. The rest

36 (14.4 per cent) have submitted that they have mobilized their own

resources to start business.

170

TABLE – 4.9

ACTIVITY - WISE AMOUNT BORROWED AND REPAID BY THE

RESPONDENTS

(Figures in Rs.)

Amount Borrowed Amount Repaid

S.


No. of

respon

-dents

Amount Mean

No. of

respon

-dents

Amount Mean

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Arecanut shaving

Candle making

Card making


Food processing

Gem cutting


Handloom weaving

Liquid blue making

Mat weaving


Mixy cover making

Phenyl making


Pot making

Poultry farming

Quarrying

Readymade garments

making

Thatch making

Vegetable vending

5

13

6

15

29

34

11

5

4

15

18

4

10

1

5

5

15

7

9

3

48,000

71,100

32,000

22,425

1,45,400

1,71,000

66,000

26,000

11,000

28,900

1,23,000

20,000

13,500

3,000

26,000

41,500

57,000

43,000

56,500

8,000

9,600

5,469.23

5,333.33

1,495.00

5,013.79

5,029.41

6,000.00

5,200.00

2,750.00

1,926.66

7,111.11

5,000.00

1,350.00

3,000.00

5,200.00

8,300.00

3,800.00

6,142.86

6,277.78

2,666.67

5

13

4

15

28

32

11

5

4

15

18

4

8

1

5

5

15

7

9

3

13,300

34,400

4,000

14,050

58,200

77,150

38,800

19,500

8,500

10,500

76,000

9,700

4,350

2,000

11,100

14,650

32,600

16,500

26,650

3,700

2,660.00

2,646.15

1,000.00

936,66

2,078.57

2,410.94

3,527.28

3,900.00

2,121.00

700.00

4,222.00

2,425.00

543.75

2000.00

2220.00

2930.00

2173.33

2357.14

2961.11

1233.33

Total 214 10,13,325 207 4,75,650


From the Table - 4.9 it is clear that 37 respondents are involved in

gem cutting only 34 of them have borrowed Rs. 1,71,000/-. The average loan

is Rs.5,029.41/-. The amount borrowed is high when compared to the other

activities because more women entrepreneurs are involved in this work. Next

171

to gem cutting, food processing seems to be a popular trade among the

respondents. Of the 36 respondents, 29 have borrowed Rs.1,45,400/- and the

average credit availed is Rs.5,013.79/-. The next important activity of the

respondents is making of milk products. 18 respondents are engaged in this

trade have borrowed on an average Rs. 7,111.11/-. The highest amount

borrowed by the respondents is in the case of production of shaving of

arecanut. The average borrowing stands at Rs. 9,600/-. This is because it is

an enterprise, which requires more capital than others.

This is followed by poultry farming with average borrowing of Rs.

8,300/- and making of milk products with average borrowing of Rs. 7,111/-.

Respondents engaged in all the activities have been found to repay their dues

regularly. The respondents engaged in making of milk products have the

highest mean amount repaid Rs. 4,222.22/- followed by the respondents

engaged in handloom weaving, with the mean amount repaid at Rs. 3,900/-

and grinder stone polishing with mean amount repaid at Rs. 3,527.28/-.

Among 214 respondents who have borrowed credits from the various

agencies, only (207) ie. 96.7 per cent have paid. The remaining (7) 3.3 per

cent of the respondents are yet to repay the loan.

An attempt has been made in the present study to assess the

performance of the respondents in terms the amount saved, the amount

borrowed, the amount repaid and the amount of income, details of which are

furnished in Table - 4.10.

172

TABLE – 4.10

AGE-WISE PEFORMANCE OF THE RESPONDENTS IN TERMS OF FOUR PARAMETERS-SAVINGS, BORROWINGS,

REPAYMENT AND INCOME

S.No. Age Group (in years)

No. of respondents

Amount of savings

Amount borrowed

Amount repaid

Amount of income

1.

2.

3.

4.

Below 20

20 – 24

25 – 29

30 and above

9

(3.6)

29

(11.6)

71

(28.4

141

(56.4))

11,660.32

31,689.60

82,758.61

1,70,011.69

37,479.70

1,16,545.70

2,86,784.30

5,72,515.30

15,123.40

50,175.40

1,38,084.60

2,72,266.60

73,897.64

1,80.336.84

5,61,859.16

15,14,396.36

Total 250 (100.0)

2,96,120.22 10,13,325.00 4,75,650.00 23,30,490.00


As has been pointed out in Chapter - III, Table - 3.1, majority of the

respondents are from the age group of above 25 years i.e. 84.8 per cent.

Table - 4.10 shows that the respondents in these age groups have done

satisfactorily in terms of savings made, repayment of loans and income

earned.

The amount of income earned by the rural women entrepreneurs are

Rs.23,30,490/-, the amount repaid goes upto Rs. 4,75,650/- which is around

46.9 per cent of the total amount of Rs. 10,13,325/- borrowed.

173

4.7 CO-OPERATION FROM THE FAMILY MEMBERS

The co-operation of the family members is one of the ingredients for

the women entrepreneurs to run the business effectively. Apart from the

physical labour which they provide, the involvement of the family members,

the financial as well as the moral support given by them are of great help for

the women entrepreneurs to run the enterprise successfully.

TABLE - 4.11

PERCENTAGE OF CO-OPERATION FROM THE FAMILY MEMBERS IN FOUR PANCHAYAT UNIONS

Co-operation from the Family

S.No. Panchayat Union Sufficient Insufficient

Total

1. 2. 3. 4.


47 (90.4)

65 (85.5)

49 (100.0)

70 (97.2)

5 (9.6) 11

(14.5) --- 3

(2.8)

52 (100.0)

76 (100.0)

49 (100.0)

73 (100.0)

Total 231 19 250 (100.0)


To know the extent of co-operation received by the respondents in the

study area horn their family members, chi-square test has been made.

TABLE – 4.12 RESULTS OF CHI-SQUARE TEST

Value df Asymp. Significance (2-sided)

Person Chi-Square 12,335 3 0.006

174

0

10

20

30

40

50

60

70

80

Per

cen

tag

e


Figure - 4.3PERCENTAGE OF CO-OPERATION FROM THE FAMILY

MEMBERS IN FOUR PANCHAYAT UNIONS

175

The encouraging aspect of the findings from the chi-square test is that

the respondents of all the Panchayat Unions have received support and co-

operation from their family members. The family members of the

respondents are the cementing force for the successful entrepreneurship. The

study also points out that in all the Panchayat Unions the co-operation

received by the respondents from their family members is overwhelming and

tin form.

4.8 TYPE OF ORGANISATION OF BUSINESS AND LEVEL OF CO-

OPERATION FROM THE FAMILY MEMBERS:

Logistic regression is used to determine the factors that influence the

women entrepreneurs as a major contributor of the family income. The

variable, women’s income from the activity is recorded as I if she

contributes more than 50 per cent of the family income, 0 if her contribution

is less than 50 per cent. Here the dependent variable takes the value 1 or 0.

The independent variables considered are : • women’s education level

• type of activity • number of adult females employed in the family • nature

of labour • total number of hours worked in a month • co-operation level

from the family • type of difficulties in marketing type of marketing

channels, and • amount - borrowed.

176

In order to filter only significant variables in the above said 9

independent variables, FORWARD LIKELIHOOD RATIO METHOD of

selection of variables in the logistic regression is employed. The result of the

logistic regression analysis furnished below.

TABLE - 4.13

RESULTS OF LOGISTIC REGRESSION ANALYSIS

Variable B S.E. Wald df Significance R Exp(B)

Type of Organisation

Partnership

Co-operative society

Co-operation

received from the

family (insignificant)

constant

-2.6216

1.4093

-1.8039

-1.9743

22.2440

0.5571

0.8852

0.6640

6.4244

0.0139

8.4007

5.9132

8.8395

2

1

1

1

1

0.0403

0.9062

0.0114

0.0150

0.0029

0.1462

0.0000

0.1969

0.1833

---

0.0727

4.0932

0.2011

---

- 2log likelihood = 113.48376

Chi – square df significance

Model 12.075 3 0.0071

The logistic regression model chosen is a good fit, since significance

value of γ2 is 0.0071 and this is confirmed by the large value of -2 log

likelihood which is 113.48376.

177

The independent variables, viz., type of organisation of business and

level of co-operation from the family member of the women entrepreneurs,

turn out to be significant factors. Compared to the sole proprietorship firms,

the partnership firms significantly reduce the chance of the respondents

becoming a major contributor of the family income while the women co-

operative society type of firms increase her odds as the major contributor of

the family income four folds (odds ratio 4.0932). When there is insufficient

co-operation from the family members, her chance as a major contributor

decreases by a factor of 0.2011 (odds ratio). Thus, from the logistic

regression analysis, the respondents who have tie up pith co-operative

societies are found to reap the maximum benefits.

4.9 MARKETING CHANNELS

The success of the women entrepreneurs lie not only in production but

also the efficient marketing. There are at present only limited channels of

marketing open to the women entrepreneurs to market their products. They

are : •Marketing directly to the consumer, • Marketing through co-

operatives, • Marketing through linking agency, ‘Poomalai’ and • Marketing

through middlemen.

As far as the present respondents are concerned, there are only three

channels, which are shown in Table - 4.14.

178

TABLE – 4.14

MARKETING CHANNELS OF THE RESPONDENTS IN FOUR PANCHAYAT UNIONS

Marketing Channels

S.No. Panchayat Union To the ultimate

consumers

To the co-operatives

To the middlemen

Total No. of Respondents

1.

2.

3.

4.

Sivagangai

Devakkottai

Ilayankudi

Manamadurai

21

37

10

21

--

--

--

10

31

39

39

42

52

76

49

73

Total 89 10 151 250

Percentage to the Total 35.6 4.0 60.4 100.0


If the respondents can sell their products directly in the organised

markets their profit vi1l he more. At the moment they are not in a position to

sell their products directly to the ultimate consumer to reap the such profit.

They also do not prefer to sell their products through Poomalai (a centre

setup to sell the produce of SHGs) as there is delay in payment. So they are

forced to sell their products, at throw away prices to the middlemen.

From the Table - 4.14. it is clear that 60.0 per cent of die respondents

are selling their products primarily to the middlemen while only 35.6 per

cent sell directly to the consumers Only 4 per cent of the respondents of

Manamadurai Panchayat Union are selling their products through co-

operatives.

179

The study has revealed that the respondents are very particular that

they get the payment for their products at once, because they cannot afford to

wait as their resources are very limited.

It is a well-known fact that the agriculturists and rural craftsmen in

India depend on middlemen for selling their products. This often leads to

exploitation. But even then they prefer this marketing channel because they

get payment for their products without delay. Data relating to the income

earned by the respondents through different marketing channels are given in

Table - 4.15.

TABLE - 4.15 INCOME EARNED BY THE RESPONDENTS THROUGH

DIFFERENT MARKETING CHANNELS

S. No.

Marketing Channels No. of respondents

Amount Mean Income

Coefficient of

Variation 1.

2.

3.

To the ultimate consumer

To the co-operatives

To the middle men

89

10

151

8,49,540

97,000

13,83,950

9,545.393

9,700.000

9,165.232

5380

24.32

57.62

Total 250 23,30,490 9,321.960


The table shows that the income earned by the respondents by selling

their products to the co-operatives is less than that earned by them by selling

directly to the consumers or to the middlemen. Out of the 250 respondents

180

151 (57.6 per cent) a stated that they are getting their average income of Rs.

9,165.23/- from middlemen. The concept of co-operative marketing does not

have much appeal to the respondents. The majority of the respondents

considers that co-operative marketing societies lack initiative and enterprise.

Industrial development in general depends on the development of

infrastructural facilities. This is true not only of major enterprises but also of

rural enterprises. Facilities like water, electricity, link road and market are

essential for rural development. Even today there are many villages in India,

which lack these essential facilities. The respondents opinion about the

adequacy of infrastructure facilities is shown in Table - 4.16.

181

TABLE – 4.16

RESPONDENTS’ OPINION ABOUT THE AVAILABILITY OF INFR ASTRUCTURAL FACILITIES

S. No. Panchayat Union Water Electricity Link

Roads Toilet Sanitary Street Light

Post Office

Communi-cation / STD

Marketing facilities

School / Primary

Health Centre

A 50

(96.1) 50

(96.1) 50

(96.1) 13

(25.0) 18

(34.6) 43

(82.7) 20

(38.5) 15

(28.8) 13

(25.0) 5

(9.6) 1.

Sivagangai

INA 2

(3.8) 2

(3.8) 2

(3.8) 39

(75.0) 34

(65.4) 9

(17.3) 32

(61.5) 37

(71.2) 39

(75.0) 47

(90.4)

A 76

(100.0) 76

(100.0) 76

(100.0) 36

(47.3) 28

(36.8) 72

(94.7) 63

(82.9) 55

(72.4) 34

(44.7) 4

(5.3) 2.

Devakkottai

INA -- -- -- 40

(52.6) 48

(63.2) 4

(5.3) 13

(17.1) 21

(27.6) 42

(55.3) 72

(94.7)

A 49

(100.0) 49

(100.0) 49

(100.0) 5

(10.2) 6

(12.2) 49

48 (97.6)

48 (97.6)

27 (55.1)

-- 3.

Ilayankudi

INA -- -- -- 44

(89.1) 43

(87.7) --

1 (2.1)

1 (2.1)

22 (44.9)

49 (100.0)

A 65

(89.1) 65

(89.1) 65

(89.1) -- --

65 (89.1)

65 (89.1)

65 (89.1)

62 (84.9)

-- 4. Manamadurai

INA 8

(10.9) 8

(10.9) 8

(10.9) 73

(100.0) 73

(100.0) 8

(10.9) 8

(10.9) 8

(10.9) 11

(15.1) 73

(100.0) Source : Complied from Primary Data

N – Number of Respondents ; A – Adequate ; INA - Inadequate

Figures in ( ) indicate percentage to the total

182

As far as essential facilities such as water, electricity and link roads

are concerned absolute majority of the respondents hold that they are

adequate in their area. Around 12.2 per cent of the respondents who feel that

they are inadequate in Manamadurai than in the other three panchayats.

There is a general complaint that toilet and sanitary facilities are inadequate.

Post office (61.5 per cent) and communication facilities (7i .2 per cent) are

found to he inadequate in Sivagangai. Majority of the respondents in

Sivagangai, Devakkottai and Ilayankudi have complained that school and

primary health centres are inadequate (90.4 per cent, 91.7 per cent and 100.0

per cent respectively).

4.10 MARKETING DIFFICULTIES

The following Table - 4.17 identifies the faced by the women

entrepreneurs, while marketing their products.

TABLE - 4.17 MARKETING DIFFICULTIES FACED BY THE RESPONDENTS

PERCENTAGE-WISE

Difficulties in Marketing S.

No. Panchayat Union Price competition

Very long time to recover

money

Known brands

Linking agency

Total

1.

2.

3.

4.


8 (15.4)

19 (25.0)

12 (24.5)

6 (8.2)

8 (15.4)

21 (27.6)

17 (34.7)

29 (39.7)

13 (25.0)

6 (7.9) 10

(20.4) 10

(13.7)

23 (44.2)

30 (39.5)

10 (20.4)

28 (38.4)

52 (100.0)

76 (100.0)

49 (100.0)

73 (100.0)

Total 45 (18.0)

75 (30.0)

39 (15.6)

91 (36.4)

250 (100.0)


183

The above Table - 4.17 shows clearly the marketing difficulties that

are encountered by the respondents n the study area. The respondents have to

surmount four difficulties in marketing their products. They are price

competition. Very long time to recover money, known brands and

inadequate linking agencies. I he difficulties and the bottlenecks faced by the

respondents are not uniform. The gravity of the problems differs

significantly in different Panchayat Union in the study area. To study the

intensity of the problems union-wise Chi-square test has been made.

TABLE - 4.18

RESULTS OF CHI-SQUARE TEST

Value df Asymp. Significance

(2-sided)

Person Chi-square 25.125 9 0.003

In the above Chi-square test, as the significant value is 0.003, it is

clear that all the difficulties are of not uniform intensity in all four Panchayat

Unions.

4.10(a) STORAGE OF FINISHED PRODUCTS

Effective storage of finished products is also an important factor for

the respondents to market their products. The following Table - 4.19 gives a

view of various type of facilities for storage of finished products.

184

TABLE - 4.19

PERCENTAGE-WISE ANALYSIS OF STORAGE OF FINISHED PRODUCTS IN FOUR PANCHAYAT UNIONS

Storage of Finished Products

S.No. Panchayat Union In the Unit only

Outside the Unit

Production according to

the order

Total

1.

2.

3.

4.


24 (46.2)

45 (59.2)

20 ()40.8)

46 (63.0)

14 (27.2)

08 (10.5)

14 (28.6)

36 (14.4)

14 (26.6)

23 (30.3)

15 (30.6)

27 (37.0)

52 (100.0)

76 (100.0)

49 (100.0)

73 (100.0)

Total 135 (54.0)

16 (6.4)

79 (31.6)

250 (100.0)


The Table - 4.19 shows the storage facilities available to the

respondents for maintaining the stocks of their products. 54 per cent of the

respondents store the products only in the work spot. It means that they do

not have separate godown or other storing facilities. Another interesting

aspect of their production is they produce their products on order and dispose

them oft alter the production is over. In this case there is no need for storing.

31.6 per cent of the production is carried out only by this method. 14.4 per

cent of the respondents store their finished products outside.

185

TABLE - 4.20

RESULTS OF CHI-SQUARE TEST

Value df Asymp. Significance

(2-sided)

Person Chi-square 55.562 18 0.000

From the Chi-square test, it is seen that there exists significant

difference in the storage facilities.

4.11 MACHINES AND EQUIPMENTS

Many of the rural enterprises do not require the help of machinery to

turn out their products. They require only simple machines and equipments,

which are not expensive. Table - 5.21 gives an idea about the value of the

machines and equipments used by the respondents.

186

TABLE - 4.21 VALUE OF MACHINES AND EQUIPMENTS OWNED BY THE

RESPONDENTS (in Rs.)

Present Value S. No. Panchayat Union

No. of Respondents Machines Equipment

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Arecanut shaving

Candle making

Card making


Food processing

Gem cutting


Handloom weaving

Liquid blue making

Mat weaving


Mixy cover making

Phenyl making


Pot making

Poultry farming

Quarrying

Readymade garments

making

Thatch making

Vegetable vending

5

19

10

15

36

37

11

5

5

15

23

5

10

4

5

6

15

10

10

4

--

18,300

--

--

8,550

1,59,100

--

13,200

--

36,500

--

--

--

--

22,000

--

--

58,000

--

--

5,000

21,850

1,000

5,100

11,140

19,950

6,850

5,700

2,500

7,260

1,85,800

5,000

3,850

800

38,500

26,500

7,800

3,600

850

550

Total 250 3,15,650 3,59,600


The value of machines used in gem cutting is high at (Rs. 1,59,100/-)

while that of machinery used in food processing is low at ( Rs. 8,550/-). The

value of equipments used in making milk products is high (Rs. 1,85,800/-)

while the value of equipments used in vegetable vending is the least

(Rs. 550/-).

187

TABLE 4.22

MAJOR PROBLEMS ENCOUNTERED BY THE RESPONDENTS

S.No. Problems No. of

Respondents

Percentage to the

total

1.

2.

3.

4.

5.

6.

7.

Irregularity / bribery in the agencies providing loans / subsidies / long procedure to avail the bank loan Improper functioning of marketing, linking agency Poomalai Lack of Technical / Skill based training Intervention of middlemen. Low level of family background with regard to education occupation / income of the family members Low self – esteem Scarcity of raw materials

113

52

34

25

16 6 4

45.2

20.8

13.6

10.0

6.4

2.4

1.6 Total 250 100.0


The inference from the Table - 4.22 is that the most important problem

experienced by the respondents is bribery. There are many irregularities in

the agencies that provide loan and the procedure to avail the bank loan is

long and cumbersome, 45.2 per cent of the respondents hold these as a major

problem. The second important problem is marketing, as expressed by 52

respondents (20.8 per cent). 34 respondents (13.6 per cent) of this study feel

strongly that the technical and skill-based training given is insufficient 10.0

188

per cent of them state that middlemen play a permanent role in marketing

their products. Hence the respondents in turn are not able to sense the pulse

of the ultimate consumers and major portion of the profit goes to middlemen.

Low level of the family background is also considered as a problem for their

progress. Only 1.6 per cent have expressed that the scarcity of raw-material

in their locality, is a problem in their trade.

The evaluation of the performance of the rural women entrepreneurs is

quite encouraging. At the same tine it must be said that there is still room for

development. A detailed attempt at evaluating the performance of the

respondents panchayat-wise and family background-wise and activity-wise

has been made in the next chapter using statistical tools of analysis.

4.12 ANALYSIS AND DISCUSSION

(a) SAVINGS OF THE RESPONDENTS

Women entrepreneurs in all four Panchayat Unions are motivated to

save, since their savings have direct bearing on their capacity to borrow for

their activities.

The following Table – 4.23 explains the amount saved by the

respondents of four Panchayat Unions.

189

TABLE – 4.23

AMOUNT OF SAVING IN FOUR PANCHAYAT UNIONS

Variable Panchayat Union

No. of Respondents

Total amount of

Savings (Rs.)

Mean savings (Rs.)

Coefficient of

variation Sivagangai

Devakkottai

Ilayankudi

Manamadurai

52

76

49

73

49,545.08

1,36,879.80

39,410.21

70,285.13

952.79

1,801.05

804.29

962.81

111.71

202.00

83.51

88.58

Amount

of savings

Total 250 2,96,120.22 1,184.48

From the above table it is clear that there is a vast difference in the

saving habits of the respondents. The respondents in the Devakkottai

Panchayat Union save as high as Rs.1,801.05/- per year as against

Rs.804.29/- of respondents in Ilayankudi. Eventhough respondents of

Devakkottai save more than those of other Panchayat Unions, their savings

a prone to larger fluctuations. This is shown by the higher coefficient of

variation of their savings (202 per cent).

TABLE – 4.24 ANOVA FOR AMOUNT OF SAVINGS

Variable Source of variation Sum of squares

df Mean Sum of Square

F Significance

Among Panchayat Unions Within Panchayat Unions

4.2E+07

1.1E+09

3

246

1.4E+07

4571169

3.088 0.028 Amount

of savings

Total 1.2E + 09 249

190

The above ANOVA (Analysis of Variance) tab which has been

formed to find out the differences in the savings pattern of the respondents of

the four Panchayat Unions shows that there is significant differences in their

savings. This is confirmed by the sign value of P 0.028. The variation can be

attributed to the differences in theft income pattern of’ the respondents

belonging to the Panchayat Unions.

(b) BORROWINGS OF THE RESPONDENTS

It has been already stated that the respondents have availed credit from

nationalised banks, indigenous banks and moneylenders. The extent of

borrowings in Panchayat Union-wise and the association between savings

and borrowings of the respondents me analysed here under :

TABLE- 4.25

AMOUNT BORROWED IN FOUR PANCHAYAT UNIONS


No. of Respondents

Total amount of Borrowing

(Rs.)

Mean Borrowing

(Rs.)

Coefficient of

variation

Sivagangai

Devakkottai

Ilayankudi

Manamadurai

45

59

40

70

1,62,725

3,07,800

1,88,500

3,54,300

3,616.11

5,216.95

4,712.50

6,061.43

103.77

117.06

93.02

98.51

Amount

of

savings

Total 250 10,13,325 4,735.16

191

The above table shows that the respondents of Devakkottai have

borrowed on an average of Rs. 5,216.95/-, followed by the respondents of

Manamadurai Rs. 5,061 .43. - The respondents of Ilayankudi have borrowed

Rs.4,712.50/- while those of Sivagangai Rs.3,616.11/- on an average. The

highest borrowings by the respondents of Devakkottai is a singular index of

their savings. I should be remembered that the respondents of Devakkottai

have recorded the highest level of savings also as referred in Table – 4.23

An ANOVA test has been used to know the differences in the extent

of borrowings of the respondents of four Panchayat Unions.

TABLE – 4.26

ANOVA FOR AMOUNT OF BORROWED



F Significance


7.8E+07

5.2E+09

3

210

2.6E+07

2.5E+07

1.034 0.378 Amount

of savings

Total 5.3E + 09 213

The above ANOVA clearly shows that there is no significant

difference among the respondents of the four Panchayat Unions. The

differences in the borrowings of the respondents of the four Panchayat

Unions stems (ton the fact that there are differences in their savings.

192

The savings of the respondents is taken into consideration, while

sanctioning of loans are given by the four agencies. So the researcher is

interested to know if there exists a correlation between savings and

borrowings the respondents. The correlation is given below :

TABLE – 4.27

CORRELATION BETWEEN THE AMOUNT SAVED AND

BORROWED

No. of Respondents Amount

Borrowed

Savings

Person

Correlation

Amount borrowed

savings

1.000

0.293**

2.093**

1.000

Sig (2-tailed) Amount borrowed

savings

0.000

0.000

N Amount borrowed

savings

214

214

214

250

Karl person’s correlation coefficient ® has been used to estimate the

relationship between amount borrowed and the amount saved by the

respondents in the study area. The correlation coefficient between the above

mentioned two variables is 0.293. The t-test, which has been made to find

out the significance of correlation coefficient, shows the relationship

between amount borrowed and saved is highly significant.

193

(c) REPAYMENT OF LOANS BY THE RESPONDENTS

In the previous Chapter, it has been pointed out that the repayment of

loans by the respondents is on the whole satisfactory. Difference in

repayment, Panchayat Union-wise and community-wise are presented below.

TABLE – 4.28

REPAYMENT OF LOANS BY THE RESPONDENTS IN FOUR

PANCHAYAT UNIONS


No. of Respondents

Total amount of Borrowing

(Rs.)

Mean Borrowing

(Rs.)

Coefficient of

variation

Sivagangai

Devakkottai

Ilayankudi

Manamadurai

40

57

40

70

48,250

1,27,350

82,600

2,17,450

1,206.25

2,234.21

2,065.00

3,106.43

90.05

115.88

81.69

84.00

Amount

of

savings

Total 207 4,75,650 2,297.83

The respondents in the study area in general are very prompt in

remitting their dues to their lending institutions. The above table shows the

encouraging repayment pattern of the respondents in the study area. With a

view to find out whether there are significant variations between the

respondents union-wise or community-wise in repayment of loans the

following ANOVA tests have been conducted.

194

TABLE – 4.29

ANOVA FOR THE REPAYMENT OF LOANS



F Significance


9.6E+07

1.0E+09

3

203

3.2E+07

4937204

6.470 0.000 Amount

of savings

Total 1.1E + 09 206

The ANOVA table shows that there is a significant difference in the

amount repaid by the respondents of the four Panchayat Unions. The

difference in the repayment pattern is due to the differences in the savings of

respondents and the profitability of their trade. The respondents of

Devakkottai and Manamadurai have been found to have better access to

banks and other lending agencies. This has certainly a positive bearing on

their repayment capacity. This advantage is not available to the respondents

of Sivagangai and Ilayankudi.

195

TABLE – 4.30

RESULTS OF MULTIPLE REGRESSION

Unstandardized Coefficients

Standardized Coefficients Variable

ββββ Std. Error Beta t Significance

Constant Amount Repaid Amount Saved

668.663 1.663 0.257

309.553 0.096 0.094

0.759 0.119

2.160 17.409 2.729

0.032 0.000 0.007

From the Beta coefficient of this table, the amount repaid is the

primary factor and the amount saved is the secondary factor in determining

the variable Y, the amount borrowed.

The regression equation is Y = 668.663 + 1.663X1 + 0.257X2.

Where,

Y - amount borrowed

X1 - amount repaid

X2 - amount saved

From this regression line, it is clear that for every one rupee repaid, the

respondents get Rs. 1.66 as loan, whereas for everyone rupee saved, they get

26 paise as credit.

196

The women in the Self-Help Groups are motivated to repay the

amount borrowed. Their repayment behaviour has a direct bearing on the

amount they can borrow. The banks recycle the amount they receive from

the respondents for extending further loans. In a way the respondents are

motivated to save and invest.

The overall summary figure shows that the amount repaid by the

respondents determines the quantum of borrowings. The Panchayat union-

wise splitting of borrowing pattern shows that there are also other factors

influencing the amount borrowed. A few respondents in the study area are

highly motivated and spirited. They are highly enthusiastic to channelise

their own resources for starting their enterprises. The existence of well-knit

non-governmental organizations is a boon for the budding women

entrepreneurs to get financial and non-financial support.

(d) BORROWINGS PATTERN IN FOUR PANCHAYAT UNIONS

Respondents in this study are not financially sound enough to mobilize

the resources for starting their enterprises. Nationalised banks by their

outreach programmes are able to extend loans to the needy respondents. The

amount borrowed from the Banks is determined by the amount they are

repaying. The women entrepreneurs in these Panchayat unions avil loans not

only from the banks but also from the other institutional agencies and non-

governmental organizations. The model summary of amount repaid in the

four Panchayat unions are shown clearly in the following Table. 4.31.

197

TABLE – 4.31 REGRESSION MODEL SUMMARY

Panchayat

Union Model R R-Square

Adjusted R Square

Standard Error of the Estimate

Devakkottai

Manamadurai

Ilayankudi

Sivagangai

1

2

3

4

0.919

0.869

0.556

0.419

0845

0756

0.309

0.176

0.842

0.752

0.291

0.154

2464.674

2482.445

3690.689

3586.520

The goodness of fit the R-Square (0.845) indicates that the amount

repaid is the single most important variable influencing the dependent

variable. The amount borrowed. All the other variable do not have much

influence on the borrowed amount in Devakkottai Panchayat Union.

The amount borrowed is closely related to the amount repaid. This is

evidenced by high goodness of fit R-Square (0.756). This shows clearly that

the amount repaid is a vital factor influencing the amount borrowed by the

women entrepreneurs in Manamadurai Panchayat Union.

In Ilayankudi Panchayat Union, the amount repaid is evidenced by the

low goodness of fit R-Square (0.309) implies that 31 per cent of the

variations in the amount borrowed is influenced by the amount repaid. Rest

of the 69 per cent of the variation unexplained in the borrowed amount may

be due to the factor, like availability of own funds and financial assistance

from other institutions.

198

Lastly, the respondents in Sivagangai Panchayat Union are exuberant

compared to those of other Panchayat Unions. The amount repaid is not the

only crucial factor in determining the amount borrowed, it is one of the

factors which determine the amount borrowed. It is evident from the low

goodness of fit R-Square (0.176) that the amount repaid is although an

important factor, it is not a decisive factor. It is obviously shown that only 18

per cent of variation in the borrowed amount is caused by the variation in the

repaid amount. The remaining 82 per cent of the variations unexplained in

the borrowed amount may be due o the factors, like own funds and existence

of other agencies.

TABLE – 4.32

RESULTS OF REGRESSION ANALYSIS

Unstandar-dized

coefficients

standardized coefficients

standardized coefficients S.

No. Panchayat Union Model ββββ Standard

Error Beta

t Significance

1.

2.

3.

4.

Devakkottai Manamadurai Ilayankudi Sivagangai

Constant

Amount Repaid

Constant

Amount Repaid

Constant

Amount Repaid

Constant

Amount Repaid

359.146

2.201

-98.553

1.661

1727.74

1.445

200.3.859

1.504

432.848

0.127

463.233

0.115

929.486

0.350

853.439

0.529

0.919

0.869

0.556

0.419

0.830

17.303

-0.213

14.505

1.859

4.126

2.348

2.845

0.410

0.000

0.832

0.000

0.071

0.000

0.24

0.007

199

The regression equation is fitted to show the impact of amount repaid

on the borrowings.

Where,

Y - amount borrowed

X - amount repaid.

The regression equation for Devakkottai Panchayat Union,

Y = 359.146 + 2.201 X, shows that every repaid amount of one rupee,

the respondents are likely to get Rs. 2.20 as borrowing amount.

The regression equation for Manamadurai Panchayat Unions is,

Y = -98.553 + 1.661 X reveals that for every one rupee repaid, they

are likely to get Rs. 1.66 as borrowing amount.

The regression line states that in Ilayankudi Panchayat Union,

Y = 1727.74 + 1.445 X, states that for every one rupee repaid, the

respondents are likely to receive Rs. 1.45 as borrowing amount.

The regression equation for Sivagangai Panchayat Union,

Y = 2003.859 + 1.504 X, indicates that for every one rupee repaid, the

respondents are likely receive Rs. 1.50 as borrowing amount.

200

Thus, the Regression Coefficients of amount repaid, is highly

significant. This obviously shows that the amount borrowed is related to the

amount repaid.

It is evident from the foregoing different statistical analysis carried out

in this chapter, that the savings made by the respondents, the amount of

credit availed by them, the different aspects of the respondents’ income and

the repayment performance of them is quite encouraging. Thus the fourth

hypothesis “the over all performance of the rural women entrepreneurs in

terms of savings, borrowings, of incomes and repayment, which constitute

the parameters in the present study for evaluating the performance is quite

disappointing”, is invalid and hence should be rejected.

The foregoing analysis and discussion has tried to highlight the

performance of the respondents within the given constraints and to analyse

the differentials if any in such performance union-wise, activity-wise,

literacy level-wise and community-wise. The findings of the study and

suggestions for the effective functioning of women entrepreneurs in the

Self–Help Groups are given in the next chapter.

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