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This paper explains the features of SHGs. The formation of SHGs leads to undertaking of entrepreneruship. This ultimately results into empowerment of women
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Volume : 4 | Issue : 7 | July 2014 | ISSN - 2249-555X
ReseaRch PaPeR
Impact of SHG on Economic Empowerment of
Dr. A. S. Shiralashetti D.D.Kulkarni
Associate Professor & Research Guide Dept of
Commerce Karnatak University Dharwad (Karnataka)
Assistant professor Shri L. K. Khot College of
Commerce Sankeshwar Dist: Belgaum (Karnataka)
SHG, Empowerment
ABSTRACT Women constitute half of our population and play a vital role in the development of family, the community
and the nation. It has been widely recognized that unless women’s potential is properly developed, no trans-
formation and economic development is possible. Therefore, to accelerate the growth and prosperity of the nation, it is
very important to create opportunities for socio-economic development of women in rural India. The government of India
has been emphasizing the need for designing a separate development programmes for women and to earmark a specific
percentage for women beneficiaries in other rural and development programmes. The present paper focuses on the em-
powerment of women of Self help groups.
Women constitute half of our population. They suffer many
disadvantages as compared to men in terms of literacy, la-
bour participation and earnings. The major strategies of
women empowerment include social empowerment, eco-
nomic empowerment, political empowerment and gender
justice along with demographical justice. In the early socie-
ties, generally the males were playing an active role while
the females play only the passive part. The societies were
generally male dominated and the females were considered
only a thing of enjoyment for men. Manu said in Manusmruti
“Where the women are respected the divine grace adores
that place, but where that is not so, all other forms of worship
is fruitless.”
In Mahabartha, women were placed not only at the centre
of domestic life but also they were playing vital roles in the
social structure. This epic also placed women in high esteem
and said that the place of women in the family and the soci-
ety is set with honor and dignity. The orthodox Hindu society
believed that the women are not independent and they have
no right to personal liberty, “stree swatanrya naarhati”.
There is an emerging need to improve women’s status which
should start with economic empowerment. Empowerment
is a concept that is of equal importance to both men and
women, it is the idea of sharing of power of truly giving it
away. Empowerment is the process through which individual
gain efficiency, defined as the degree to which an individual
perceives that they controls their environment. In the words
of former President of India Dr. A.P.J.Adbul Kalam, “empow-
ering women is a prerequisite for creating a good nation.
When women are empowered, society with stability is as-
sured. Empowerment of women is essential as their thoughts
and their value systems lead to development of a good fam-
ily, good society and ultimately a good nation.”
Need for Women empowerment:
Since women comprise the majority of the population below
the poverty line and they are the poorest among the poor,
there is need for women empowerment through poverty
eradication programmes. It should be women oriented with
special targets for women, e.g. SHGs. Most of the studies of
women and gender equality are prerequisites for achieving
political, social, economic, cultural and environmental secu-
rity among all people and women empowerment is a criti-
cal part of sustainable development. Further, they add that
women empowerment at the individual level help to build
a base for social and political changes along with economic
changes and economic empowerment of women enhances
women’s status in their families and societies.
Nobel laurite Prof Amarty Sen emphasized that unless wom-
en are empowered issues like health, literacy and population
will remain unsolved problems of the developing countries in
part of sub continent.
The paper intends to achieve the following objectives:
• Tounderstandtheconceptofempowerment
• ToassesstheeconomicempowermentofSHGmembers.
The paper is based on primary data. The study collected
responses from 250 respondents in the undivided Dharwad
district in Karnataka. The sample size collected on random
basis from Gadag, Dharwad and Haveri districts. The study
was conducted during 2011. The collected data properly was
classified and tabulated. The researcher has used the statisti-
cal tools such as percentages and has paired t test to ascer-
tain the economic empowerment of the members.
Concept of Empowerment:
The empowerment of women is not a self-propelled action,
which can be attained by their personal efforts alone. It is a
two way process in which the culturally defined nations of
feminist and masculinity. The roles of males and females and
the man-woman relationships have to be changed. It is there-
fore, a joint endeavor of both males and females in the soci-
ety. It is an educational process by which both the males and
females remove the hierarchical relationships that prevail and
make co-ordinated efforts to make women feel good about
them help build their confidence and self respect.
Women empowerment is a global issue and discussions of
women political right are at for front of many formal and in-
formal campaigns worldwide. Empowerment has become a
widely used word. In spheres, as different as management
and labor unions, health care and ecology, banking and edu-
cation, empowerment is also taking such place.
Empowerment is liberation of women from all perspectives
of life. Empowerment is the freedom of social, economic,
political and legal to women folk. Late Pandit Nehru wrote,
“To awaken the people, it is the women who should be awak-
ened. Once she is on the move, the family moves, the nation
moves.” He further adds that the building India as a nation
will also be judged by the position of the Indian women. The
empowerment of rural women is crucial for the development
Volume : 4 | Issue : 7 | July 2014 | ISSN - 2249-555X
ReseaRch PaPeR
of rural India as comprehended by Ninth Five year plan. So,
it gave special attention to the empowerment of women and
thus it is stated in its objectives as “empowering women as
an agent of social change and development.
The government formulated the number of schemes to em-
power the down trodden, untouchables and unemployed in-
cluding women. The various income generation programmes
results into the empowerment of beneficiaries. Poverty eradi-
cation programmes have hidden agenda of women empow-
erment. Women are accustomed to save money secretly and
invest with either money lenders or chit funds or bisis. SHG
approach resembles the same with a certain kind of definite-
ness. The micro credit programmes strive for financial inclu-
sion by bringing to main streamline. The SHG member should
attempt on increase in the total amount of internal lending,
higher rate of recovery, reduce dependence on the informal
credit channels, stick up to the purpose of loan, lending for
income generation activities, credit bank linkage etc. These
ensure indication of economic empowerment.
Measurement of Economic empowerment:
Table 1: Income position of members
Particulars Before After
Less than Rs 10000 168 (27) 107 (43)
Rs 10001 to Rs 25000 22 (9) 62 (25)
Rs 25001 to Rs 50000 25 (10) 22 (9)
Rs 50001 to Rs 100000 21 (8) 28 (11)
Above Rs 100000 14 (6) 31 (12)
Total 250(100) 250(100)
Mean 50 50
Variance 4367.5 1255.5
Df 08
Two tail
t-critical value
Source: Fieldwork
Figures in parenthesis indicate the percentage to the respec-
tive totals
Table 1 provides that there has been 36.30 per cent decrease
in income who were earning less than Rs 10000. There has
been cent percent improvement of earning whose income is
above Rs 100000. The paired t-test value of one is less than
t-critical value of 2.3060. It is inferred that there has been
significant improvement of earning of the members after
joining the SHG. The borrowing from SHG is used in income
generation activities. The income position of members is re-
flected in the following figure 1
Table 2: Materials possession
161 (19.75)
173 (17.58)
214 (26.26)
210 (21.34)
188 (23.07)
156 (15.85)
Two wheeler
82 (10.06)
245 (24.90)
170 (20.86)
200 (20.33)
Two tail value
t-critical value
Source: Field Work
Figures in the parenthesis show the percentages to the total
It is known from table 2 that the possession of radio by the
members has increased by 7.45 percent after joining the
SHG. Members have shifted themselves from comforts to
luxury goods. It is observed that members purchase the two
wheelers after joining the SHG. This is recorded at 198.78
percent. This may be because of use of internal lending of
funds for this purpose or as considered fruit of joining the
SHG. The paired t-test two-tailed value is 0.246. As this
value is less than critical value of 2.306, it is inferred that after
joining the SHG there is greater improvement of possession
of goods.
Table 3: Family property
Land less
76 (44.19)
43 (22.99)
Less than 5 acres
78 (45.35)
113 (60.43)
6 to 10 acres
16 (9.30)
29 (15.51)
11 and above
2 (1.16)
2 (1.07)
172* (100)
187 *(100)
Two tail value
t-critical value
Source: Fieldwork
Figures in the parenthesis denote the percentages to the re-
spective totals
*Multiple selections
It is observed from table 3 that the members who were
landless were 76 reduced to 43. The holders of less than 5
acres have considerably increased by 44.87% after joining
the SHG. However, there is no change with respect to the
member who has 11 acres of land. The paired t-test used to
test the significant improvement in the family property. The
paired t-test value is 0.907, which is less than t critical value of
2.447. It is concluded that the members have improved their
family property significantly after joining the SHG.
Table 4: Family’s other property
Other property
Post Office Certifi-
24 (11.37) 82 (19.62)
Bank deposits
LIC Bonds 116 (52.98) 189 (45.21)
14 (33.5)
Total 211* (100) 418* (100)
Volume : 4 | Issue : 7 | July 2014 | ISSN - 2249-555X
ReseaRch PaPeR
REFERENCE •ArjuanPangannavar,SHGs andWomenEmpowerment inIndia, NewCenturyPublication,NewDelhi 2011pp51-53, 58-59|• Shanumukh
RaoEmpowermentofWomen, SonaliPublications,New Delhi,2011 |•Geetamma (2006),Management ofMFIsand theirfunctioning
inempowermentof Ruralpoorin KolardistrictM.Sc thesisUniversityAgricultural Science,Dharwad.|•H.S.Shylendra(2008) RoleofSHGs YojanaVol52,January
2008pp25-28 |• S.K.Chug(2008)Human Welfareand ResearchInitiative, vol52 January2008 pp 44-46.| •P.DinakaraRao (2008), MakingDreams ComeTrue,
MaryJohn(2008),WomenEmpowermentThroughSHGs, SouthernEconomist,Vol46(21),March2009pp28-30.| DebotoshSinha(2008),SHG-VehicleforWomen
Two tail
t-critical value
Source: Fieldwork
Figures in the parenthesis show the percentage to the total
*Multiple selections
It is known from table 4 that there has been noticeably in-
crease in the investments of the members. The investment
in post office was 11.37 percent before joining SHG rose
to 19.62 percent after joining the group. There has no im-
provement with respect to investments in bank deposits. The
paired t-test value is 0.038, which is less than t-critical value
of 3.182. Hence, it is proved that other properties are sig-
nificantly improved after joining the group. This is shown in
below figure
Table 5: Income earners in the family
Number of income
Before After
203 (81.2)
22 (8.8)
37 (14.8)
186 (74.4)
9 (3.6)
21 (8.4)
1 (0.4)
21 (8.4)
Two tail
t-critical value
Source: Field survey
Figures in parenthesis indicated the percentage to the total
It is revealed from Table t that the dependence on one mem-
ber was 81 percent before joining SHG. The same has re-
duced to 8.8 percent after joining the SHG. Similarly, there
were two income earners in the family to the extent of 14.8
percent, which was considerably increased to 74.4 percent.
Since the paired t-test the two-tailed value 1 is less than t-
critical value of 2.3060, it is guessed that the number of in-
come earners has increased after joining the SHG.
There has significant improvement in the income posi-
tion of the members after become member of the group.
The members have possessed materials such as car, tel-
evision, two-wheeler and many other comfort and luxury
goods after joining the SHG.
The number of earners in the family has also considerably
There has considerable shift in their investment from post
office to insurance bonds, bank deposits and shares to
certain extent.
The formation of SHG made women to come out of four wall
of house. She has realized her importance in the world. SHG
is boon to women folk. Rabindranath Tagore said “Women is
the builder and moulder of nation’s destiny, though delicate
and soft as lily; she as a heart, far stronger and bolder than
of men. She is supreme inspiration of man’s onward march.”
She has become part of policymaking bodies.
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