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IDP report

ON

Study the role of Micro financing in women empowerment

in Gujarat.

Submitted by :

Krinal Patel (1235)

Prexa Patel (1241)

MBA-II SEM-IV

Submitted To:-

Mrs.Chetna Makwana

(Faculty, NCM)

A report submitted in partial fulfillment of the requirement ofMBA Programme of

Narmada College of Management


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Most important finding in the last two de-cades in the world of finance did not come

from the world of the rich or the relatively well-off. More important than the hedge

fund or the liquid-yield option note was the finding that the poor can save, can

borrow (can indeed decide on loans to fellow poor), and will certainly repay loans.

This is the world of microfinance.

A good definition of microfinance as provided by Robinson 1 is, Microfinance refers

to small-scale financial services for both credits and deposits that are provided to

people who farm or fish or herd; operate small or microenterprises where goods are

produced, recycled, repaired, or traded; provide services; work for wages or

commissions; gain income from renting out small amounts of land, vehicles, draft

animals, or machinery and tools; and to other individuals and local groups in

developing countries, in both rural and urban areas. For several decades, many

economies, including the Indian, experimented with subsidised credit for the poor.

But the only tangible outcome perhaps was the increase in Non Performing Assets

(NPA). Then came the realisation that the core issue for the poor was access to

credit rather than the cost of credit. In fact one of the contributions of microfinance

can possibly be the end of interest rate debate. access and not interest rates that

are a constraint for the poor. Another discovery followed, that the poor can and will

save, and can indeed use a wide range of financial services such as remittances

facilities and insurance products. The most well- known and cited international

example of a microcredit institution is the Grameen Bank in Bangladesh. But there

are numerous others. Even during the Asian financial crisis, Bank Rayat Indonesia

not only survived but thrived; as did BancoSol in Bolivia. A bewildering range of

players have jumped on to the microfinance bandwagon for a variety of rea-sons.

There have been NGOs which gradually metamorphosed into lending institutions,

developmental professionals who have set up microfinance com-panies and banks

that have experimented with working exclusively with groups and therefore have

microfinance branches. These range from not-for- profits that see microfinance as

having a role in development, to commercial banks that view microfinance as good,

sound banking, an excellent way of raising deposits, and lending at low risk. In fact

the success of groups in microfinance has attracted the attention of wide-rangingplayers to use these groups for a range of purposes. Several governmental schemes


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are being routed through microfinance, including a very large project funded by the

World Bank and being implemented in the state of Andhra Pradesh. Similarly

organisations like Hindustan Lever have looked at the potential of these groups as a

channel for retailing and have launched a programme called Project Shakti to tap

the smaller villages through the microcredit channel. Microfinance leaders are

gaining prominence and it is said that some of the leaders, particularly women, have

been taking a more active role in other social spheres, including contesting elections

for the panchayat and so on. This round table focusses on issues relating to

microfinance in India. The Indian microfinance sec- tor is a museum of several

approaches found across the world. Indian microfinance has lapped up the Grameen

blueprint; it has replicated some aspects of the Indonesian and the Bolivian model. In

addition to the imported artifacts of microfinance, we (SHGs). Sanjay Sinha provides

a summary of some of the issues that the poor face and an analysis of the

performance of microfinance in India. The round table discussion thereafter looks at

four major issues: the economic attractiveness of microfinance both to NGOs and to

commercial banks; the relative merits of various delivery channels; the issue of

growth; and finally, what lies beyond microcredit. In choosing these issues we are

aware that several other issues were omitted. One is the role of the state. Both the

NABARD and the Small Industries Development Bank of India (SIDBI) illustrate that

state-held financial institutions can make meaningful interventions. But governments

across the country have jumped on to the microfinance band wagon and have

started building groups. One must remember that even the smallest group is an

institution in its own right; a group takes competence, dedication and time to build.

There is the fear that the state while building a few good groups may build a large

number of groups that have all the properties of a good group on paper but not in

spirit. The nicest thing one can say about many such groups is that they are

harmless parodies. But as a collectivity, they have the potential to bring the SHG into

disrepute. Regulation is another consideration. Already because of the restrictions

placed on Non-banking Financial Companies (NBFCs) we have Platypus structures.

Such typically involve one NBFC that lends (but is unableby law to raise deposits)

and a large number of trusts/mutually-aided cooperatives that take deposits.

Allowing a hundred organisations to bloom where one would suffice is a recipe for

disaster. The third issue is business promotion. There are a large number of micro-

enterprises that need skills in elementary business management, such as marketing


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and production. Delivery of these skills has never been resolved satisfactorily. also

have the home-grown model of self-help group.

Women Empowerment In India

Naukri For Women,is a new job site and one of the first of its kind in India. It aims

to help women build their careers, without compromising their other responsibilities.

It is a known fact that many companies prefer to have women candidates for certain

jobs. Naukri For Women aspires to help companies reach suitable women

candidates for theirjob vacancies. This is a good initiative to bring women

empowerment in India.

The principle of gender equality is enshrined in the Indian Constitution in its

Preamble, fundamental rights, Fundamental Duties and Directive Principles. The

Constitution not only grants equality to women, but also empowers the State to adopt

measures of positive discrimination in favor of women. Empowerment is the one of

the key factors in determining the success of development is the status and position

of women in the society. We put a special focus on empowering women and girls,

because we believe they hold the key to long-lasting social change in communities.

Empowering women must be a united approach, a cause that requires continued

attention and stewardship by all. We need to augment our efforts for empowering

women and enhance their progress. It is our moral, social and constitutional

responsibility to ensure their progress by providing them with equal rights and

opportunities. Today women with their smartness, grace and elegance have

conquered the whole world. They with their hard work and sincerity have excelled in

each and every profession. Women are considered to be more honest, meticulous,

and efficient and hence more and more companies prefer hiring women for better

performance and result.
http://naukriforwomen.com/http://naukriforwomen.com/http://naukriforwomen.com/


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Microfinance and Women Empowerment:

Micro-finance programmes not only give women and men access to savings and

credit, but reach millions of people worldwide bringing them together regularly in

organised groups. Although no magic bullet, they are potentially a very significant

contribution to gender equality and women's empowerment, as well as pro-poor

development and civil society strengthening. Through their contribution to womens

ability to earn an income these programmes have potential to initiate a series of

virtuous spirals of economic empowerment, increased well-being for women and

their families and wider social and political empowerment. Micro finance services

and groups involving men also have potential to question and significantly changemen's attitudes and behaviours as an essential component of achieving gender

equality.

Majority of microfinance programmes focus women with a view to empower them.

There are varying underlying motivations for pursuing women empowerment. Some

argue that women are amongst the poorest and the most vulnerable of the

underprivileged and thus helping them should be a priority. A more feminist point of

view stresses that an increased access to financial services represent an

opening/opportunity for greater empowerment. Such organizations explicitly perceive

microfinance as a tool in the fight for the womens rights and independence. Finally,

keeping up with the objective of financial viability, an increasing number of

microfinance institutions prefer women members as they believe that they are better

and more reliable borrowers.


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Literature review

Microfinance and Women Empowerment An Empirical Study withspecial reference to West Bengal

Dr. Jyotish Prakash BasuThe paper examines the two basic research questions.

First, the paper tries to attempt to study how a womans tendency to invest in safer

investment projects can be linked to her desire to raise her bargaining position in the

households. Second, in addition to the project choice, women empowerment is

examined with respect to control of savings, control of income, control over loans,

control over purchasing capacity and family planning in some sample household in

Hooghly district of West Bengal. The analytical framework of underlined the study is

based on Nash bargaining game theoretic model. The first part is based on two

household members make a few non co-operative production decision regarding a

credit contract and risky business projects. This is also an empirical study based on

100SHG members in the Hooghly district, West Bengal in 2006. The empirical

findings show that the empowerment of women is established in weak form using the

above indicators. This paper has important policy implications. It is appropriate toemphasize the strategy of financial inclusion in the wider context of economic growth

and financial deepening.

The paper of DR C. NIRMALA(January-2012) investigate, Micro Finance A Boon

To Women Empowerment. In recent years Microfinance has attracted widespread

attention for its developmental Impact for the poor, but it too has multitude of issues

and complications. This research project has adopted a mix of empirical and

theoretical approach with the objective to identify a comprehensive range of

implementation and impact issues of microfinance. It has universally been accepted

that the micro financing is a well successful instrument for eradication of poverty.

Most of the government in developing countries is encouraging micro financing for

alleviation of poverty and empowerment of women in their countries. India has been

playing leading role in micro financing programme. In India now various international

donor agencies are working for extending micro-credit to the rural poor foreradication of poverty.


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S.Sarumathi and Dr.K.Mohan (2011) studied , Role Of Micro Finance In

Womens Empowerment,In olden days women were restricted to take part in any

social activities and not given roles in decision making in her family. The situation

was even more worsening in rural and remote areas. Now the situation has been

changed. She is given freedom to do what she wishes. In todays scenario more

women are engaged in income generating activities. This is because of NGO and

other financial institution came forward to provide microfinance to poor women. They

believe that a woman is the small credit risk and often benefits the whole family. The

main aim of microfinance is to empower women. This induced the researcher to

focus more on the empowerment of rural women who participates in the

microfinance.

Dr. Dhiraj Jain and Ms. Bhagyashree Jain (2012) investigated , Does

Microfinance Empower Rural Women? -A Empirical Study In Udaipur District,

Rajasthan, Women are the most crucial elements of the social fabric and are

playing a pivotal role in the socioeconomic scenario of Rajasthan. Microfinance

programs like the SHGs in India have been promoted for their positive economic

impact and the belief that they empower women. Microfinance programs like the

SHGs in India have been promoted for their positive economic impact and belief that

they empower women. The survey was conducted on around 100 respondents from

various SHGs of Udaipur district, Rajasthan and the analysis was done to study the

empowerment of women through microfinance. The results strongly demonstrate

that on an average, there is a significant increase in women empowerment of theSelf Help Groups members. However, social backwardness, indebtedness and

presence of other microcredit programs in the same or nearby villages have a

significant positive influence on womens participation in this

Programme.


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ROLE OF MICROFINANCE IN EMPOWERMENT OF FEMALE

POPULATION OF BAHAWALPUR DISTRICT

Sara Noreen (2011) Empowerment of women is one of very important issue in

developing countries. As women are integral part of society, her status and

participation in decision making as well as economic activities is very low.

Microfinance plays role in improving women decision making by contributing in

economic activities. In this study an attempt is made to explore the socio economic

determinants of women empowerment in which microfinance is crucial economic

determinant. This study used regression analysis based on primary data of

Bahawalpur City to check the relationship of different socioeconomic determinants

on women empowerment. Women empowerment measured by constructing simple

index using five indicators related to child health, education, selection of spouse of

children, purchase of basic goods and decision about the use of loan. The results

show that women empowerment is considerably influenced by age, education of

husband, father inherited assets, marital status, number of sons alive and

microfinance. Age, education of husband, no of live sons and father inherited assets

are more statistically significant variables in this study. Further, this study

decompose data with male and female using loan which implies that females uses

loan by themselves has some better results than where loans were used by male

family members. Finally, it is concluded that as microfinance is major explanatory

variable in this study has some positive role in empowerment but not as much as

was expected. It is suggested that education facilities and family protection must be

provided in proper way. Microfinance institutions should strengthen and expand their

support to resource poor women.


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The paper of Dr.Suchi Loomba (2004) investigate ,Role Of Microfinance In

Women Empowerment In Indiaa list of the most commonly used dimensions of

womens empowerment, drawing from the frameworks developed by various authors

in different fields of social sciences. Allowing for overlap, these frameworks suggest

that womens empowerment needs to occur along multiple dimensions including:

economic, socio-cultural, familial/interpersonal, legal, political, and psychological.

M.B. Dhanya and P. Sivakumar (2010) studied,Women empowerment and

microfinance: Case study from Kerala. The subject of micro-finance is

considered as significant and emerging trend in the present scenario for the

empowerment of women. Micro finance programmes are promoted as an important

strategy for womens empowerment. Micro finance builds mutual trust and

confidence between bankers and rural poor to encourage banking in a segment of

population where formal financial institutions usually find difficult to reach. The

present paper examines the economic impact of micro finance beneficiaries and

whether the economic empowerment has resulted in the generation of a set of self

reliant women. The Thiruvananthapuram district of Kerala State was selected for the

case study. The survey shows about the positive impact of the development

programme of Kudumbashree, a micro financial institution in Kerala, India.

Statement of the problem:

In olden days women were restricted to take part in any social activities and not

given roles in decision making in her family. The situation was even more worsening

in rural and remote areas. Now the situation has been changed. She is given

freedom to do what she wishes. In todays scenario more women are engaged in

income generating activities. This is because of NGO and other financial institution

came forward to provide microfinance to poor women. They believe that a woman is

the small credit risk and often benefits the whole family. The main aim of

microfinance is to empower women. This induced to focus more on the

empowerment of rural women who participates in the microfinance.


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Title of Study

Study the role of Micro financing in women empowerment in

Gujarat.

Objectives of Study

The major objectives of the study are:

1. To study the role of micro finance in women empowerment.

2. To identify the various factors empowering women through microfinance services.

3. To analyze the role of microfinance in improving decision making power of womenat domestic level.

4. To study the problems women members face in SHG.

5. To study the performance of SHGs in Gujarat rural region.

6. To analyze the role of microfinance in family empowerment by women.

Research Methodology:-

Research Design:-

A research design is considered as the framework or plan for a study that

guides as well as helps the data collection and analysis of data. The research

design may be exploratory, descriptive and experimental for the present

study.

The descriptive research design is adopted for this project.

Sample size:- 300 samples from the area of study have been considered

to conduct the present study.


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Type of Study:-

For the purpose of study, sample study will be conducted for management

staff of the company.

Data collection:-

Data is collect through primary data and secondary data.

Most of the data is collected by the primary data through questionnaire and

personal interview.

Tools for Data Collection:-

The research instrument use in this research is questionnaire, which was

formatted keeping in view the objectives and information needed for the

analysis and drawing conclusion.

Method for Data Collection:-

Data is collecting by conducting personal interview of respondent with the

help of questionnaire.

Data Analysis & Interpretation:-

The data analysis would be been done with the help of charts & tables.

Conclusion :-

Micro-finance has been proved to be an important tool in the

development process empowering the rural poor women educationally, socio-

economically and politically. Impact of micro-finance is appreciable in bringing

confidence, courage, skill development and empowerment among rural poor

women.

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