A STUDY ON THE ROLE OF MICRO FINANCE IN EMPOWERING

WOMEN AT VILLUPURAM DISTRICT

PROJECT REPORT

Submitted by

NITHIYA PRINCY I

REGISTER NO: 23810463

Under the Guidance of

Ms. K. KALAIVANI,

Assistant Professor,

Department of management studies

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

MANAKULA VINAYAGAR INSTITUTE OF
TECHNOLOGY PUDUCHERRY- 605 107
DECEMBER 2024
 MANAKULA VINAYAGAR INSTITUTE
OF TECHNOLOGY, PONDICHERRY
UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that the project work entitled “A STUDY ON THE ROLE OF MICRO
FINANCE IN EMPOWERING WOMEN AT VILLUPURAM DISTRICT” is a bonafide
work done by NITHYA PRINCY.I [REGISTER NO:23810463 in partial fulfillment of the re-
quirement for the award of Master of Business Administration by Pondicherry University during
the academic year 2024-2025.

GUIDE HEAD OF THE DEPARTMENT

Submitted for Viva-Voce Examination held on

CHAPTER - I INTRODUCTION

1
INTRODUCTION:

Microfinance is a financial service tailored towards individuals who traditionally lack access
to traditional banking services, such as small-scale entrepreneurs, low-income individuals,
and particularly women. It provides these individuals with small loans, savings accounts, in-
surance products, and other financial services to help them start or expand their businesses.
Empowering women through microfinance involves providing them with the necessary finan-
cial tools and resources to improve their livelihoods, gain economic independence, and con-
tribute to their community's development. By accessing microfinance services, women can
start their businesses, generate income, and become financially literate, ultimately increasing
their self-esteem and decision-making power within their households and communit ies. Mi-
crofinance plays a crucial role in women's empowerment by giving them the means to take
control of their financial future and break the cycle of poverty. It has been shown to have a
positive impact on women's social status, health, education, and overall well-being.

HISTORY OF MICROFINANCE:
The history of microfinancing can be traced back as long to the middle of the 1800s when the
theorist Lysander Spooner was writing over the benefits from small credits to entrepreneurs
and farmers as a way getting the people out of poverty. But it was at the end of World War II
with the Marshall plan the concept had a big impact.

The today use of the expression microfinancing has its roots in the 1970s when organizatio ns,
such as Grameen Bank of Bangladesh with the microfinance pioneer Mohammad Yunus,
where starting and shaping the modern industry of microfinancing. Another pioneer in this
sector is Akhtar Hameed Khan. At that time a new wave of microfinance initiatives intro-
duced many new innovations into the sector. Many pioneering enterprises began experiment-
ing with loaning to the underserved people. The main reason why microfinance is dated to the
1970s is that the programs could show that people can be relied on to repay their loans and
that it´s possible to provide financial services to poor people through marketbased enterprises
without subsidy. Shorebank was the first microfinance and community development bank
founded 1974 in Chicago.

2
 An economical historian at Yale named Timothy Guinnane has been doing some research on
Friedrich Wilhelm Raiffeisen´s village bank movement in Germany which started in 1864 a
by the year 1901 the bank had reached 2million rural farmers. Timothy Guinnane means that
already then it was proved that microcredit could pass the two tests concerning peoples pay-
backmoral and the possibility to provide the financial service to poor people.

Another organization, the caisse populaire movement grounded by Alphone and Dorimène
Desjardins in Quebec, was also concerned about the poverty, and passed those two tests. Be-
tween 1900 to 1906 when they founded the first caisse, they passed a law governing them in
the Quebec assembly, they risked their private assets and must have been very sure about the
idea about microcredit.

Today the World Bank estimates that more than 16 million people are served by some 7000
microfinance institutions all over the world. CGAP experts means that about 500 millio n
families benefits from these small loans making new business possible. In a gathering at a Mi-
crocredit Summit in Washington DC the goal was reaching 100 million of the world´s poorest
people by credits from the world leaders and major financial institutions.

The year 2005 was proclaimed as the International year of Microcredit by The Economic and
Social Council of the United Nations in a cal for the financial and building sector to “fuel” the
strong entrepreneurial spirit of the poor people around the world.

THE INTERNATIONAL YEAR OF MICROCREDIT CONSISTS OF FIVE GOALS:

• Assess and promote the contribution of microfinance to the MFIs
• Make microfinance more visible for public awareness and understanding as a very important
part of the development situation

• The promotion should be inclusive the financial sector

• Make a supporting system for sustainable access to financial services

• Support strategic partnerships by encouraging new partnerships and innovation to build and
expand the outreach and success of microfinance for all

The economics professor Mohammad Yunus and the founder of Grameen Bank were
awarded the Nobel Prize 2006 for his efforts. The press release from nobelprize.org states:
“The Norwegian Nobel Committee has decided to award the Nobel Peace Prize for 2006, di-
vided into two equal parts, to Muhammad Yunus and Grameen Bank for their efforts to create
3
economic and social development from below. Lasting peace cannot be achieved unless large
population groups find ways in which to break out of poverty. Micro-credit is one such
means. Development from below also serves to advance democracy and human rights.
Muhammad Yunus has shown himself to be a leader who has managed to translate visions
into practical action for the benefit of millions of people, not only in Bangladesh, but also in
many other countries. Loans to poor people without any financial security had appeared to be
an impossib le idea. From modest beginnings three decades ago, Yunus has, first and fore-
most through Grameen Bank, developed micro-credit into an ever more important instrument
in the struggle against poverty. Grameen Bank has been a source of ideas and models for the
many institut ions in the field of micro-credit that have sprung up around the world.

Every single individual on earth has both the potential and the right to live a decent life.
Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest
of the poor can work to bring about their own development.

Micro-credit has proved to be an important liberating force in societies where women in par-
ticular have to struggle against repressive social and economic conditions. Economic growth
and political democracy cannot achieve their full potential unless the female half of humanity
participates on an equal footing with the male.

Yunus’s long-term vision is to eliminate poverty in the world. That vision can not be realised
by means of micro-credit alone. But Muhammad Yunus and Grameen Bank have shown that,
in the continuing efforts to achieve it, micro-credit must play a major part.”

EVALUATION OF MICRO FINANCE IN INDIA:

Microfinance is one of the popular terms in today’s time. Came into existence in the 80s, it
emerged as a great solution for poverty elevation and also for empowering women. It helps
women become self-dependent.

Though microfinance has vast potential, this sector faces several challenges that are related in
terms of its accessibility, especial y in rural India. It’s an important type of banking service
that is meant for those people who are not capable of availing of formal financial services.

4
The main aim of microfinance is to improve the lifestyle of those unemployed and low-in-
come populations. In India, several institutions offer microfinance services and offer their
helping hands to improve the life and condition of the needy.

Various institutions offer complete support including setting up bank accounts, lending, and
also offering complete micro-insurance products. In many developing countries includ ing In-
dia, financial services with the help of different formal channels don’t match the demand of
the rural need. Therefore, microfinance helps many small-scale businesses develop by offer-
ing that greater financial stability.

The dearth of indication that it is recognized as employment is the fundamental factor behind
the failure of so many formal banking institutions in a nation like India, especially when they
serve the rural poor. Another reason for the failure is collateral that is provided by the poor
when they apply for loans.

Apart from this, the higher risks of transaction costs of those of small loan saving deposits
tend to create a lot of difficulty for those of banking as well. It causes no alternative for the
needful and thus they contact those many local moneylenders for borrowing money at higher
interest rates.

STORY OF MICROFINANCE IN INDIA

In India, the concept of microfinance first came into existence in 1974. The credit goes to the
Self-Employed Women’s Association (SEWA) established in Gujarat for bringing microfi-
nance into popularity.

After this, various banks have been offering financial services to many people who seek to
grow their businesses in those rural areas. The introduction of Kerala State’s Poverty Educa-
tion Mission (Kudumbashree) in the year 1998 is one of the most crucial initiatives in this.

This is one of the female-owned community organizations of those Neighborhood Groups

(NHGs) that bring those women from many urban and rural areas together when it comes to
fighting for their rights and also help in empowering them.

With the help of these NHGs, many women work on various issues such as nutrition, health,
and also agriculture. It helps them easily collect income and also seek microcredit, especially
while working under this crucial scheme. These are indeed the small-scale initiatives that
work

5
Best for promoting that financial independence, especially in those remote or many unprivi-
leged areas.

There’s indeed a higher necessity for offering several microfinance facilities for catering to
those of India’s largest rural population. In India, the major objectives of microfinance are to
promote socio-economic development at the grassroots level with the help of a communit y-
based approach, empower women, and also increase various household incomes. Meanwhile,
running any type of transformative initiative and running a microfinance program in those ru-
ral India includes numerous challenges;

· Higher interest rate

· Limited expansion in those of the poorest states
· Problem in reaching those deserving indigent
· Lower depth of outreach
· Evolution of Microfinance in the Indian Economy
India is one of the countries that accommodates the largest popularity of deficient people.
This service has become much necessary for the ever-growing Indian population. Apart from
this, poverty led to numerous issues such as incomplete education, illness, untimely deaths,
women’s harassment, and many more.

All of these situations urgently required a complete system that would support penurious peo-
ple. Apart from this, microfinance is quite necessary as those formal banks refuse to grant
loans to those people who live below the poverty line.

By the 1980s, the Indian government finally realized that their existing policies and proce-
dures for banking were not sufficient for catering to the needs of those inferior people. And
this is the reason why these people rely on those of unorganized sectors for getting financ ia l
assistance. They often approach private agents, money lenders, and others for getting financ ia
l assistance.

After the success of the concept of Grameen Bank, NABARD (National Bank for Agricult
ure and Rural Development) made a recommendation for several alternative policies and pro-
cedures for making aid to those impecunious population of India that strives for making hands
and also the mouth meet and also serve those from the clutches of those of moneylende rs.
And of this, microfinance was first introduced in numerous banking sectors.
The 1980s brought a major economic crisis that also shifted from the major focus from the
basic philosophy of ‘no profit motive’ to the fact that the system was fully commercially vi-
able.
6
The model was indeed highly capable of offering greater profits and also it was a fully sus-
tainable business offering the necessary credit facilities to those needy people. It’s indeed
worth noting that even before the formal introduction of microfinance, which was introduced
by NABARD.

In those early 70s, the credit goes to none other than Mrs. Ela Bhatt who started the Self- Em-
ployed Women’s Association (‘SEWA’) of the state of Gujarat. She formed an urban cooper-
ative bank, which is popular as the Shri Mahila SEWA Sahakari Bank with the main objective
of offering banking services to those women generally employed by those unorganized sec-
tors in Ahmedabad, Gujarat.

In contrast to formal banking, microfinance is a shorter-duration loan and is also small in size.
There is no need for collateral security and also those of lengthy procedures. The major dif-
ference between these two is that the banking system is something that is a fully commercia l
organization whereas the major objectives of microfinance are indeed social enhancement in
nature. The main highlights of microfinance schemes are loans that are offered even without
collateral security. Loans under this scheme are indeed explicitly offered to those people who
are living under the poverty line.

DIFFERENT MODELS OF MICROFINANCE IN INDIA

ASSOCIATIONS MODEL

The target community forms an 'association' through which various microfinance (and other)
activities are initiated. Such activities may include savings. These associations or groups can
form of a youth, women. It is also formed around political/religious/cultural issues. It can cre-
ate support for microenterprises and other work-based issues.

According to NABARD, SHG-BLP is the world’s largest microfinance program in the world.

BANK GUARANTEES MODEL

A Bank guarantee is used to obtain a loan from a commercial bank. This guarantee may be ar-
ranged externally ( through donor/donation, government agency, etc. ) or internally (using
member savings). The loans obtained may be given to an individual or they may be given to
the self-formed group. It is a form of capital guarantee scheme. Guaranteed funds may be
used for various purposes, including loan recovery and insurance claims. The guaranteed
7
funds can be used for various purposes such as loan recovery or insurance claims.

Bellwether Microfinance Funds (India) is one such example.

COMMUNITY BANKING MODEL

In India, community banking looks very different. Self Help Groups (SHG) are often instit
uted in which members of the local community join together and pool capital resources for
lending to members. They value transparency in their practices and utilizing their savings for
their purposes of lending.

A successful example is the Royal Bank of Scotland (RBS) Foundation India, which has vari-
ous microfinancing programs to help the poorest communities across India.

· Challenges in accessing credit from the formal sector

· Challenges in accessing credit from the formal sector

COOPERATIVES MODEL

A co-operative is an autonomous association of persons united voluntarily to meet their com-

mon economic, social, and cultural needs and aspirations through a jointly-owned and demo-
cratically-owned enterprise. The members are the shareholders and have their share in equity
capital. They also share the profit.

Co-operative Development Forum Hyderabad is a successful example of this model. It has

built a network of women's thrift groups and men's thrift groups.

CREDIT UNIONS MODEL

This model is based on a member-driven credit union, a self-help financial institution. A

union of members is formed. These members form the common community. They agree to
save together and give loans to each other at a nominal rate of interest. A credit union's mem-
bership is open to all who belong to the group, regardless of race, religion, color, or creed.

The members are people of some common bond:

· Working for the same employer

· Belonging to the same church

8
 · Labor union
· Social fraternity

· Living/working in the same community

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GRAMEEN BANKING MODEL

It promotes credit as a human right and is based on the premise that the skills of the poor are
underutilized. The Grameen Bank (GB) is based on the voluntary formation of slight groups
of five people to provide mutual, morally necessary group guarantees instead of the collatera l
required by conventional banks.

The whole center is jointly responsible for the repayment. Grameen model is being followed
by Sarv Seva Abhiyan (ASSEFA), Activities for Social Alternatives.

INTERMEDIARY MODEL

This model positions a third party between the lending institutions and the borrowers. The in-
termediary plays a critical role in generating credit awareness and education among the bor-
rowers. Intermediaries could be individual lenders, NGOs, microenterprise/microcred it pro-
grams, and commercial banks (for government- financed programs). The intermediaries are
incentivized in monetary and non-monetary forms.

INDIVIDUAL BANKING MODEL

This is a straight forward credit lending model where microloans are given directly to the bor-
rower. The individual banking model is a shift from the group-based model. The MFI gives
9
loans to an individual based on his or her creditworthiness. It also assists in skill developme nt
and outreach programs. Co-operative banks, Commercial banks, and Regional Rural Banks
mostly adopt this model to give loans to the farming and non-farming unorganized sector.
Self-employment women’s association in India s one such example to have adopted this
model. The members own and govern the group.

NGO MODEL

NGOs are one of the key players in the field of micro-financing. They help the cause of micro
- financing by playing the intermediary in multiple dimensions. Non-governme ntal Organiza-
tions (NGOs) played a vital role in rural reconstruction, agricultural development, and rural
development even during a pre-independent era in our country. NGOs became a supplemen-
tary agency for the developmental activities of the government and in some cases, they be-
come alternatives to the government.

Non-governmental Organizations are committed to the upliftment of poor, marginali zed, un-
derprivileged, impoverished, and downtrodden and they are close and accessible to their tar-
get groups.

Various NGOs are helping the cause of micro-financing. For example, MYRADA in Kar-
nataka, SHARE in Andhra Pradesh, RDO (Rural Development Organization) in Manipur,
RUDSOVAT (Rural Development Society for Vocational Training) in Rajasthan, and
ADITHI in Bihar.

ROSCA MODEL OR CHIT FUNDS

Rotating Savings and Credit Associations or ROSCAs, are essentially a group of individ uals
who come together and make regular cyclical contributions to a common fund, which is then
given as a lump sum to one member in each cycle. At the end of a cycle, the total fund col-
lected goes to any one member. Rotating Savings and Credit Associations are a means to save
and borrow simultaneously. There are lakhs of ROSCA functioning in India today 34 Busi-
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VILLAGE BASED MODEL

It is closely related to the community banking and the Group model, this is the communit y-
based saving and credit model. A group of 25-50 people gets together to enhance their in-
come through self-employment activities. They get their first loan from the implementing
agency, which helps them form the community credit enterprise.

SMALL BUSINESS MODEL

This model places a big responsibility on small and medium enterprises. This has been chang-
ing, as more and more importance is placed on small and medium enterprises (SMEs) - for
generating employment, for increasing income, and providing services that are lacking.

MICROFINANCE STRUCTURE
The framework of Microfinance Institutions (MFIs) has been developed to address the diffi-
culties encountered by the conventional financial services industry in providing affordable
and sustainable lending to the low-income population.

A Joint Liability Group (JLG) is a loose group of four to ten people who cooperate to apply
for bank loans, either jointly or individually, with guarantees from one another.

Self-Help Groups (SHGs) are associations of micro entrepreneurs from comparable socioeco-
nomic backgrounds, whether they are registered or not. They willingly band together to save
little amounts each month, put money into a shared account, and help one another out in times
of need. To guarantee responsible credit use and prompt repayment, group members rely on
their combined knowledge and peer pressure.

MICROFINANCE OBJECTIVES
The goals consist of:

· Transforming participants into micro entrepreneurs with year-round business, more

funding, more jobs, and cutting-edge technology.
· Acquiring new skills, assisting first-generation business owners, and improving the
functioning of already-existing companies.
· Putting in place a program for NGOs to train trainers in order to support and grow
startups among members of SHGs and Joint Liability Groups (JLG).
· Giving neglected states in various Indian areas particular attention.
11
 · Establishing digital banking for Self-Help Groups (SHGs) in partnership with banks,
enabling them to regularly update both financial and non-financial data via a portal.

MICROFINANCE IN INDIA OPERATES PRIMARILY THROUGH TWO CHANNELS:

SHG-Bank Linkage Program (SBLP) - This channel was initiated by NABARD in the
year 1992. This model encourages financially backward women to come together to form
groups of 10-15 members. They contribute their individual savings to the group at regular
interva ls. Loans are provided to members of the group from these contributions. SHGs
are also offered bank loans at later stages, and these loans can be used for funding income
generating activit ies. This model has achieved a lot of success in the past and it has also
gained a lot of popularit y for contributing to the empowerment of women in the country.
Once these self-sustaining groups reach stability, they function almost independently with
minimal support from NABARD, SIDBI, and NGOs.

Microfinance Institutions (MFIs) - These institutions have microfinance as their primary

operation. These lend through the concept of Joint Liability Group (JLG), i.e., an informal
group that consists of 5-10 members who seek loans either jointly or individually.

DOCUMENTS REQUIRED FOR A MICROFINANCE LOAN:

Although the documentation required for getting a microfinance loan varies between lenders,
the following are the documents that are usually needed:

· Updated application form

· PAN card, copy of Passport, ration card
· Proof of office address
· Passport-size photos of the applicants and co-applicants
· Certified copies of AOA/MOA/Partnership deed
· Track record of repayment
· Audited financials of the previous 2 years
· ITR of partners/directors for the previous 2 years
· Bank account statements for the past 6 months
· Proforma invoice to the equipment that is to be financed

12
 · For lawyers, CAs, architects, and doctors - Professional qualification certificates

SCHEME OF MICROFINANCE

Microfinance schemes are financial programs that provide small loans, savings accounts, in-
surance, and other financial services to low-income individuals, particularly those who lack
access to traditional banking services. These schemes are often implemented by microfina nce
institutions (MFIs), cooperatives, non-governmental organizations (NGOs), or government
agencies with the aim of promoting financial inclusion, poverty reduction, and economic em-
powerment.

SOME COMMON FEATURES OF MICROFINANCE SCHEMES INCLUDE:

1. Microcredit: This is a key component of microfinance schemes, where small loans are pro-
vided to entrepreneurs or individuals to start or expand their businesses. These loans are typi-
cally offered without collateral and are repaid in regular installments.

2. Savings Accounts: Microfinance schemes encourage individuals to save money by offering sav-
ings accounts with low or no minimum balance requirements. Saving money can help individ-
uals build a financial cushion, access credit, and plan for future expenses.

3. Insurance Products: Some microfinance schemes also include insurance options to help indi-
viduals manage risks associated with health emergencies, natural disasters, or other unfore-
seen events. Insurance products provide financial protection and security to clients.
4. Financial Education: Many microfinance schemes offer financial literacy training to help
clients understand basic financial concepts, improve money management skills, and make in-
formed decisions about their finances.
5. Group Lending: Group lending is a common practice in microfinance where individ uals form
borrowing groups or solidarity groups. Group members act as co-guarantors for each other's
loans, providing mutual support and social capital to ensure repayment.

6. Business Development Services: Some microfinance schemes offer business training, men-
torship, and technical assistance to help entrepreneurs improve their business skills, increase
productivity, and enhance their market access.

Microfinance schemes play a crucial role in promoting financial inclusion, poverty alleviat io
n, and economic empowerment among marginalized populations, particularly women and in-
13
 dividuals in rural areas. By providing access to financial services and resources, microfina nce
schemes help individuals improve their livelihoods, build assets, and break the cycle of
poverty.

TERMS OF MICROFINANCE:
The terms and conditions of microfinance loans can vary depending on the specific microfi-
nance institution and program. However, some common terms and conditions that may be as-
sociated with microfinance loans include:

1. Loan Amount: Microfinance loans are typically small in amount, ranging from a few hun-
dred to a few thousand dollars. The loan amount is tailored to the borrower's financial needs and
repayment capacity.
2. Interest Rate: Microfinance institutions may charge interest on loans, which can vary de-
pending on the institution, loan size, repayment terms, and risk profile of the borrower. Inter-
est rates for microfinance loans are generally higher than traditional banking rates to cover admin-
istrative costs and risks associated with lending to low-income individuals.
Repayment Schedule: Microfinance loans often have flexible repayment schedules to ac-
commodate the irregular income streams of borrowers. Repayments may be made in weekly
or monthly installments over a specified period, with the exact terms outlined in the loan
agreement.

3. Collateral: Microfinance loans are typically provided without the need for collateral or tradi-
tional collateral requirements. Instead, microfinance institutions may use alternative forms of
collateral, such as group guarantees or social collateral, to secure the loan.

4. Borrower Requirements: Microfinance borrowers are generally required to meet certain eli-
gibility criteria, such as having a viable business idea, residing in a target area, and demon-
strating a willingness to repay the loan. Some microfinance programs may also priorit ize lending
to women or marginalized groups.

5. Loan Purpose: Microfinance loans are often intended for income-generating activities, such as
starting or expanding a small business, purchasing equipment, or investing in agricult ural activi-
ties. Borrowers are expected to use the loan funds for productive purposes.

6. Financial Literacy: Some microfinance institutions may require borrowers to undergo finan-
cial literacy training as part of the loan application process. This training helps borrowers under-
stand basic financial concepts, improve money management skills, and make infor med decisions
about their finances.

14
7. Non-Financial Services: In addition to financial products, some microfinance institut ions offer
non-financial services such as business training, skills development, and mentorship to support
borrowers in growing their businesses and improving their financial well-being.

It is important for borrowers to carefully review and understand the terms and conditions of a
microfinance loan before agreeing to take on debt, as this can help ensure a successful bor-
rowing experience and positive impact on their financial situation.

BENEFITS OF MICROFINANCE:
Microfinance offers a wide range of benefits to individuals, especially those in low-income or
underserved communities. Some of the key benefits of microfinance include:

1. Financial Inclusion: Microfinance provides access to financial services for individuals who are
excluded from traditional banking systems. By offering small loans, savings accounts, and in-
surance products, microfinance institutions help underserved populations participate in the for-
mal financial sector.
2. Poverty Alleviation: Microfinance enables individuals to start or expand their businesses,
generate income, and improve their economic well-being. By providing access to credit and
financial resources, microfinance helps lift people out of poverty and create opportunities for
sustainable growth.
3. Empowerment: Microfinance empowers individuals, particularly women, by giving them the
financial tools and resources to make independent decisions, control their finances, and im-
prove their social and economic status. It enhances women's agency, self-esteem, and deci-
sion-making power within their households and communities.

4. Entrepreneurship Promotion: Microfinance fosters entrepreneurship by supporting small- scale

businesses and income-generating activities. By providing capital and technical assistance,
microfinance enables individuals to develop their entrepreneurial skills, create employment
opportunities, and contribute to local economic development.
5. Financial Stability: Microfinance encourages individuals to save money, build assets, and plan
for the future. By promoting savings habits and providing insurance options, microfina nce helps
clients manage financial risks, cope with emergencies, and improve their overall financ ia l stabil-
ity.

6. Social Impact: Microfinance has positive social outcomes, such as improving education,
healthcare, and nutrition outcomes for families. When women have access to financ ia l re-
sources, they are more likely to invest in their children's education and well-being, leading to
intergenerational benefits.
15
7. Community Development: Microfinance contributes to the development of communit ies by
promoting economic growth, fostering financial literacy, and building social capital. By sup-
porting local businesses and livelihoods, microfinance plays a role in poverty reduction and sustain-
able development at the grassroots level.

Microfinance offers a range of benefits that go beyond financial support, empower ing indi-
viduals, promoting entrepreneurship, and contributing to poverty reduction and inclus ive de-
velopment. By providing access to financial services and resources, microfinance plays a vital
role in creating economic opportunities and improving the lives of individuals and communi-
ties around the world.

CHALLENGES OF MICROFINANCE:

One of the main challenges of microfinance is sustainability. Many microfinance institut ions
struggle to achieve sustainability and financial viability due to a combination of factors such
as high operating costs, limited access to funding, and difficulties in managing credit risk.

Another challenge is the issue of over-indebtedness. When clients take on multiple loans from
different microfinance providers without proper financial literacy or income-genera t ing op-
portunities, they can become trapped in a cycle of debt. This can lead to increased financ ia l
stress and negatively impact their overall well-being.

Furthermore, reaching remote and marginalized populations can be challenging for microfi-
nance institutions. Limited infrastructure, lack of awareness about financial services, and cul-
tural barriers can hinder access to microfinance for those who need it the most.

Regulatory challenges also exist in the microfinance sector. In some cases, inadequate regula-
tion or oversights can lead to unethical practices or unsustainable growth, putting clients at
risk and affecting the credibility of the microfinance industry.

Overall, addressing these challenges requires ongoing efforts from microfinance institutio ns,
policymakers, and other stakeholders to ensure that microfinance remains a sustainable and
effective tool for empowerment and poverty alleviation.

NEGATIVE IMPACT OF MICROFINANCE:

While microfinance has been widely praised for its potential to alleviate poverty, empower
women, and promote financial inclusion, it is important to acknowledge that microfinance
also has its critics and potential negative aspects. Some of the challenges and criticisms asso-
16
 ciated with microfinance include:

1. High-Interest Rates: Many microfinance institutions charge high- interest rates on loans to cover
operational costs and risks associated with lending to low-income individuals. These high-in-
terest rates can lead to over-indebtedness and financial stress for borrowers, especially if they
face difficulties in repaying their loans.

2. Debt Trap: In some cases, microfinance loans can lead borrowers into a cycle of debt, partic-
ularly if they take out multiple loans to cover existing debts or operational expenses. The pressure
to repay loans can be overwhelming, especially if borrowers' businesses do not perform as
expected.
3. Lack of Regulation: The microfinance sector is not always well-regulated, leading to in-
stances of predatory lending, coercive collection practices, and insufficient consumer protec-
tion measures. Lack of oversight can compromise the welfare of borrowers and erode trust in
microfinance institutions.

4. Gender Disparities: While microfinance aims to empower women, there are concerns that
women may bear a disproportionate burden of debt repayment and financial responsibilit ies
within their households. In some cases, women may face higher risks of defaulting on loans
due to societal constraints, limited control over resources, and unequal power dynamics.

5. Focus on Individual Lending: The traditional microfinance model of individual lending may
not always be effective in promoting community development and collective empowerment.
Group lending models, which rely on social collateral and peer support, may be more suitable
for fostering social capital and sustainable impact.
6. Limited Impact: Critics argue that microfinance alone may not address the root causes of
poverty or structural inequalities. While it can provide short-term financial assistance, broader
systemic changes in education, healthcare, infrastructure, and governance are needed to
achieve lasting poverty reduction and sustainable development.

It is essential to critically examine the potential negative aspects of microfinance and work to-
wards addressing these challenges through responsible lending practices, client protection
mechanisms, and a holistic approach to financial inclusion and poverty alleviation. By recog-
nizing and mitigating the risks associated with microfinance, stakeholders can maximi ze its
positive impact and create more inclusive and sustainable financial services for underserved
populations.

WOMEN EMPOWERMENT

17
Women’s empowerment refers to the process of enabling women to have greater control over
their lives and to be able to make their own decisions. This can include empowering women
to participate fully in the economy and in the political process, as well as empowering them to
make decisions about their own health and well-being. Women’s empowerment is important
because it can lead to a range of positive outcomes, including increased economic growth and
development, improved health and well-being, and greater gender equality.
In India, women’s empowerment has been a key issue for many years. Despite some progress
in recent decades, women in India continue to face significant challenges when it comes to
gender equality. These challenges include discrimination, lack of access to education and em-
ployment, and gender-based violence.

SOME OF THE CHALLENGES FACING WOMEN IN INDIA:

Discrimination: Women in India often face discrimination in many areas of life, including in
the home and in the workplace. This can make it difficult for them to access education and
employment opportunities, and can lead to unequal treatment and lower pay.

Lack of access to education and employment: Women in India face significant barriers
when it comes to accessing education and employment. For example, data from the World
Bank shows that only around 50% of women in India participate in the labour force, com-
pared to around 80% of men. This is due in part to cultural and social barriers that prevent
women from participating in the workforce, as well as lack of access to education and train-
ing.

Lack of access to education and employment: Women in India face significant barriers
when it comes to accessing education and employment. For example, data from the World
Bank shows that only around 50% of women in India participate in the labour force, com -
pared to around 80% of men. This is due in part to cultural and social barriers that prevent
women from participating in the workforce, as well as lack of access to education and train-
ing.

Gender-based violence is a major problem in India: The National Crime Records Bureau
reports that in 2021, there were over 428,278 reported cases of violence against women in In-
dia. This included incidents of physical and sexual assault, as well as dowry-related violence
and female infanticide. The statistics are alarming, with 31,677 reported rapes against women
in 2021 alone.

Poverty: Many women in India live in poverty, particularly in rural areas. Poverty can make
it difficult for women to access education and employment, and can lead to other challenges
18
such as poor health and malnutrition.

Disparities between urban and rural areas: Women in rural areas of India often face
greater challenges when it comes to empowerment. For example, they may have less access to
education and health care, and may be more isolated and vulnerable to gender-based violence.

How empowering women can change women’s lives in india?

Women’s empowerment can have a range of positive impacts on women’s lives, including
improved economic opportunities, greater control over their own lives, increased political par-
ticipation, and greater gender equality. By empowering women to participate fully in the
economy, women can have access to better paying jobs, which can help to lift them and their
families out of poverty. Empowering women can also give them more control over their own
lives, allowing them to make decisions about their own health, well-being, and future, which
can lead to increased self-esteem and confidence, as well as improved mental and physical
health.

When women are empowered to participate in the political process, they can have a greater
say in the decisions that affect their lives and their communities, leading to more inclusive
and representative decision-making and policies and programs that better address the needs of
women and girls.

Women’s empowerment can also help to reduce gender inequality and promote greater gen-
der equality, leading to more balanced relationships between men and women and positive
impacts on women’s health, wel -being, and overall quality of life.

As you read about the challenges facing women in India, we hope that you are inspired to
take action and make a difference. One way to support women’s empowerment in India is by
making a donation to organisations that are dedicated to improving the lives of women and
girls in India through education and health care. Naarisamata is one such organisation that is
committed to this cause. Your donation can help to provide these vital services and make a
real difference in the lives of women and girls in India. Whether you can give a small or large
amount, every donation makes a difference and can help to create a brighter future for women
in India. Please consider making a donation to Naarisamata today and join us in the fight for
gender equality and women’s empowerment in India.

19
CHAPTER – II-OBJECTIVES OF THE STUDY NEED
OF THE STUDY
SCOPE OF THE STUDY LIMITA-
TION OF THE STUDY

20
OBJECTIVES OF THE STUDY

Primary objective

1.To study about the role of micro finance in empowering women at villupuram district.

Secondary objectives

1. To analyze the factors that empower the women to start a business.

2. To assess the awareness level of Microfinance among the women in villupuram.

3. To identify the impact schemes of micro finance on rural women empowerment.

4. To analyze the challenges faced by women while starting business through Micro finance.

NEEDS FOR THE STUDY

21
 1. Women in rural areas like Villupuram often lack access to formal credit facilities. Microfinance
can bridge this gap and help alleviate poverty.

2. Beyond financial support, microfinance can foster social changes by improving women's con-
fidence, reducing gender inequalities, and enhancing their role in the community.

3. Insights from this study can guide policymakers in designing targeted programs that enhance
the effectiveness of microfinance for women's.

4. Highlighting the unique needs of women in Villupuram can help microfinance institutions de -
velop tailored products and services.

5. Findings can be used to advocate for financial literacy and entrepreneurship training pro -
grams to ensure women utilize microfinance effectively.

6.While many studies focus on urban or semi-urban areas, this research sheds light on the rural
context, contributing to the academic and practical understanding of microfinance's role
In women's empowerment.

SCOPE OF THE STUDY

22
1. The study focuses on how microfinance institutions provide women with the necessary financial
support, such as loans and credit, to start new ventures. It also examines how these services contribute
to scaling up existing small businesses by offering working capital and enhancing productivity.

2. To study the Microfinance helps women become self-reliant by reducing economic dependence on
family members or external sources. It explores how financial independence enables women to better
manage personal and household finances.

3. To analysis how microfinance empowers women to make autonomous decisions related to finances,
investments, and business operations. It also looks at how improved decision-making influences their
overall personal and professional lives.

4. The study evaluates how engaging with microfinance institutions leads to enhanced recognition and
respect for women in their communities. It explores shifts in social roles, leadership opportunities, and
women's involvement in community development initiatives.

5. The study examines obstacles such as lack of awareness, stringent loan conditions, cultural restric-
tions, and inadequate financial literacy that hinder women entrepreneurs from fully utilizing microfi-
nance services. It also highlights gaps in microfinance systems that limit their accessibility.

6. The study analyzes the outcomes of businesses funded by microfinance, including profitability,
growth, and sustainability. It also identifies factors contributing to the success or failure of these ven-
tures, such as effective use of funds, market challenges, and entrepreneurial skills.

LIMITATIONS OF THE STUDY

1. The finding of my study were based on the assumptions and the respondents gave their true and un-
biased information's.

23
2. The sample size was 145 respondents. If the sample size were more than the results other inference
would have been different.

3. The availability of the respondent is limited in the villupuram district.

4. Limited scope to explore the psychological impact of micro finance on women.

5. Short study period limits long - term insights

24
CHAPTER – III-REVIEW OF LITERATURE

25
 REVIEW OF LITERATURE

Definition of micro finance: Microfinance mainly refers to micro-credit. A micro-credit is a

small loan which is mainly granted to people with a low income.
There is no shortage of initiatives in developing countries, but there is a lack of funding for
starting a business. Microfinance institutions (MFIs) offer tailored financial and non-financ ia
l services and products for this startup clientele. Microfinance thereby alleviates poverty and
offers the poorest segments of the population the possibility of economic independence by
promoting entrepreneurship.
The financial services provided by microfinance institutions in emerging economies and in
developing countries not only increase the rate of bank penetration but also contribute to a
significant improvement in living conditions as well as to the achievement of the UN's sus-
tainable development goals. Definitions of empowering women:
“Empowerment should mean that women gain the ability to chal enge and combat their

Oppression. In practice, it has come to mean marginally improving their material circum-
stances.”
— Kate Cronin-Furman, postdoctoral fellow, Harvard Kennedy School's Belfer Center for Sci-
ence and International Affairs
“Empowerment is enabling girls and women to develop their own solutions to the problems
they face, and supporting them to transform their own lives, families, and communities.”
— Denise Raquel Dunning, founder and executive director, Rise Up

“When a woman is in a condition where she is aware of her self-worth and values herself.
With that comes the confidence and ability to make decisions for herself, her family and in
other domain of her influence without being bothered about the boundaries that culture, soci-
ety, and other norms have created for her.”
— Neena Joshi, director of programs, Heifer International Nepal “Autonomy.”
— Michelle Carpenter, project manager, Girl Stats

“Women empowerment is the provision of women with the means, skills, and opportunities to
be independent, make their own choices and lead a life free of all sorts of violence and dis-
crimination.”
— Nada Hamza, sexual and reproductive rights specialist, United Nations Population

Fund “Women’s empowerment must include workplace safety and equity — no more dis-
crimination, harassment or conditions that mean working mothers miss out on career advance-
ment opportunities.
26
 TYPES OF MICROFINANCE:
Microfinance includes the following products:
MICROLOANS:
Microfinance loans are significant as these are provided to borrowers with no collateral. The
end result of microloans should be to have its recipients outgrow smaller loans and be ready
for traditional bank loans.

MICROSAVINGS:

Micro savings accounts allow entrepreneurs to operate savings accounts with no minim um
balance. These accounts help users inculcate financial discipline and develop an interest in
saving for the future.

MICROINSURANCE:

· Micro insurance is a type of coverage provided to borrowers of microloans. These

insurance plans have lower premiums than traditional insurance policies.
· In some situations, recipients of microloans are expected to take some training courses,
such as cash flow management or book-keeping.
· Microfinance Channels

BENEFITS TO WOMEN ENTREPRENEURS BY MICROFINANCE

Microfinance provides numerous benefits to women entrepreneurs, enabling them to overcome barriers
to economic empowerment and improve their livelihoods. Key benefits include:

1. ACCESS TO CAPITAL
Microfinance institutions (MFIs) provide small loans that enable women to start or expand their busi-
nesses without requiring significant collateral, which many women lack. It helps bridge the gap for
women who are excluded from traditional banking systems.
2. EMPOWERMENT AND INDEPENDENCE
Access to financial resources fosters economic independence, allowing women to take charge of their
business decisions. It boosts their confidence and social status within their families and communities.

3. SKILL DEVELOPMENT

27
Many MFIs offer training programs in financial literacy, business management, and marketing, help-
ing women develop essential entrepreneurial skills.Workshops and mentoring programs also enhance
their professional growth.
4. SUPPORT NETWORKS
Microfinance programs often create opportunities for women to join self-help groups or cooperatives,
promoting collaboration and peer support. These networks provide advice, encouragement, and collec-
tive bargaining power.

5. ECONOMIC GROWTH AND JOB CREATION

Microfinance helps women entrepreneurs expand their businesses, contributing to local economies.
Many women hire others in their communities, creating jobs and fostering economic development.

6. IMPROVED FAMILY WELL-BEING

Increased income from their businesses enables women to provide better education, healthcare, and
nutrition for their families.Women's financial contributions often lead to better household stability and
quality of life.

7. REDUCTION OF GENDER INEQUALITY

By empowering women economically, microfinance challenges traditional gender norms and reduces
the gender gap in access to resources.

8. ENCOURAGEMENT OF SAVINGS
Many MFIs encourage or mandate savings, helping women build financial security for the future.
Savings provide a safety net against unforeseen challenges.

9. ACCESS TO NON-FINANCIAL SERVICES

Women entrepreneurs often gain access to additional resources like market linkages, supply chains,
and community development programs through microfinance initiatives.

28
ARTICLES:

AN EMPIRICAL STUDY ON WOMEN EMPOWERMENT THROUGH SELF HELP

GROUPS (SPECIAL REFERENCE TO UJJAIN DISTRICT OF MP)-2016
Dr. Deepak Agrawal,

Principal, Laxmi Narian College of Professional Studies, Sanwer Road, Indore

ABSTRACT:

As per the Global Multidimensional Poverty Index (MPI) (2019) 367 million people still
leaves below the poverty line. The major cause is due to unemployment and unequal partici-
pation of females in the country. Women's empowerment is autonomy to women all about
equipping and allowing women to make life-determining decisions through the different prob-
lems in society. It includes developing alternatives for the betterment of the society. They are
promoting themselves and significantly contributing to the society through the „Self-Help
Groups (SHGs)‟ SHG helps the women to take their own decision and to face chal enges and
to support the family too. The major credit for women empowerment in rural areas should be
given to SHG‟s which not only provide employment opportunities but also provide skill de-
velopme nt. To measure the performance of SHP a study was conducted in the Ujjain city of
Madhya Pradesh. The study was conducted by primary and secondary methods. The study re-
viledto educate all the women to make develop of themselves and to develop the econo-
my.The SHGs helps to achieve the social and financial needs.
Keywords: Women empowerment, self-help groups, socio and economic development

Micro Finance, Empowerment of Rural Women and MDG3. An Empirical Study in TamilN
adu Rajendran Karuppannan Pondicherry University
Date Written: October 10, 2015

WOMEN EMPOWERMENT THROUGH MICRO FINANCE-A STUDY IN

COIMBATORE DISTRICT
Mrs.S.MEGALA Ph.D Research Scholar, Department of Commerce, Nallamuthu
Gounder Mahalingam College, Pollachi

Dr.M.V.SATHIYABAMA Associate Professor and Head, Department of Commerce

(ECommerce), Nallamuthu
Gounder Mahalingam College, Pollachi

29
Ms.P.SHINEY Assistant Professor in Department of Commerce,RathinamCollegeofArtsa nd Sci-
ence, Coimbatore
ABSTRACT

Women are an essential part of every economy. All round advancement and harmonio us
growth of a nation can be achieved only when women are considered as equal partners in
progress with men. Empowerment of women is a pre-requisite to harness women labour in
the main stream of economic development. Empowerment of women is a holistic conception.
It is multi-dimensional in its nature and covers economic, political, legal, social/cultural, per-
sonal and family aspects. Of all these aspects of women development, economic empower-
ment is of utmost importance to uphold development of a society. Microfinance is a vital
means for attaining women empowerment. The study aims to analyze the different compo-
nents of Empowerment of Women through Microfinance. Simple random sampling method
has been adopted to determine the sample size. Coimbatore District is the study area. The
sample size for the study is 85 respondents. The sample respondents are equal women SHG
members taken from each taluk in Coimbatore District of Tamilnadu. The studies make use of
statistica l techniques such as percentage analysis, chi-square test, ANOVA and Correlation in
analyzing the data. The study recommended that the SHG members should be inculcated with
the feeling of collective development, social harmony and active role in development
process and governance. The members should be mentally prepared for starting income
generating activities and their sustainability.
Keywords: - Women, Empowerment, Microfinance and development

Exploring the role of microfinance in women’s empowerment and entrepreneurial

development: a qualitative study
Ambreen Khursheed

Future Business Journal volume 8, Article number: 57 (2022) Cite this article

30
THE ROLE OF MICROFINANCE INSTITUTIONS ON WOMEN’S
ENTREPRENEURSHIP DEVELOPMENT ABRAHAM ABEBE &
MEKETAW KEGNE JOURNAL OF INNOVATION AND
ENTREPRENEURSHIP VOLUME 12, ARTICLE NUMBER: 17 (2023) CITE
THIS ARTICLE

ABSTRACT
In developing countries, women’s empowerment is a major concern. Several efforts were
made to tackle this issue as the aims of poverty reduction and development cannot be
achieved without giving attention to women’s empowerment. Over the past decades, micro-
fina nce institutions (MFIs) have appeared as crucial tools not only to address the issue of
poverty but also particularly to empower women. Resultantly, a huge number of studies focus
on the relationships between MFI and women empowerment. However, in the context of rural
areas of Pakistan, the research is limited. Therefore, the objective of this study is to investi-
gate the role of MFI in women’s empowerment in Pakistan so that the research wil facilitate
MFIs and policymakers in strengthening the link between MFIs and women entrepreneurship.
We have used a qualitative methodology, using primary data collected through in-depth inter-
views and a focus group discussion with six female borrowers of Rural Community Devel-
opme nt Programs (RCDP). The empirical results provide valuable insights into the efforts
made by RCDP to empower women and combat poverty by encouraging women’s en-
trepreneurship. Hence, this paper not only examines empowerment, which women are attain-
ing from microfinance but also assists MFIs to know about their significance in developing
the economy. The paper is significant for MFI practitioners to develop policies for boosting
women’s entrepreneurship and to help their existing women clients with efficient training and
supervision.
THIS STUDY INVESTIGATES THE ROLE OF MICROFINANCE SERVICES ON WOMEN'S
ENTREPRENEURSHIP DEVELOPMENT IN ASSOSA TOWN
ABSTRACT
This study investigates the role of microfinance services on women's entrepreneurship development in As-
sosa town. The study employed both descriptive and explanatory designs and a quantitative research ap-
proach. The study targeted 352 women clients of Assosa Woreda Microfinance Institution, and 165 samples
were selected using a simple random sampling technique. The data were collected through a questionnaire
and analyzed through the statistica l package for social science (SPSS) 26 software. The findings from the
descriptive mean analysis indicate that the microfinance institution financial and non-financial services of-
fered were found unable to significantly empower disadvantaged and poor women by improving their liveli-
hood and development of their business. The correlation result also indicated a positive and significant asso-
31
ciation between saving practice, access to credit, skill developme nt training, and the development of
women entrepreneurs. Finally, the regression result saving and the credit or loan services of the microfi-
nance institution service have the most decisive influence on women's entrepreneurship development Em-
powering Women, Grassroots Experience from Tamil Nadu Ganapathy Palanithurai,Parthiban, Joseph Van-
ishree

EMPOWERING WOMEN THROUGH SELF-HELP GROUPS: A CATALYST FOR

SOCIO-ECONOMIC DEVELOPMENT IN TAMIL NADU
D VARALAKSHMI, G YOGANANDHAM
ABSTRACT
This paper explores the role of Self-Help Groups (SHGs) as a catalyst for socio-economic develop-
ment, particularly focusing on the state of Tamil Nadu in India. Women's empowerment has been a
crucial aspect of development agendas globally, and SHGs have emerged as a potent tool in achiev-
ing this objective. Through an analysis of existing literat ure, government reports, and field studies,
this paper elucidates the mechanisms through which SHGs empower women and contribute to socio-
economic development at the grassroots level. The study highlights the significant impact of SHGs on
women's empowerment by providing them with access to financial resources, knowledge, and deci-
sion-making opportunities. By fostering a sense of collective efficacy and solidarity, SHGs enable
women to challenge traditional gender norms and assert their rights within their households and com-
munities. Furthermore, the paper examines the broader socioeconomic benefits generated by SHGs,
including poverty alleviation, enhanced livelihood opportunities, and improved social capital. Draw-
ing on empirical evidence from Tamil Nadu, the paper identifies key success factors and challenges
associated with SHG interventions in the state. It underscores the importance of supportive policy
frameworks, effective institutional mechanisms, and community participation in sustaining SHG
initiatives. Additionally, the paper discusses strategies for scaling up and replicating successful
SHG models to maximize their impact on women's empowerment and socio-economic development.
Overall, this paper contributes to the growing body of literature on the role of SHGs in empowering
women and advancing socio-economic development. By shedding light on the experiences of Tamil
Nadu, it provides valuable insights for policymakers, practitioners, and researchers seeking to har-
ness the potential of SHGs as a transformative force for gender equality and inclusive development.
The paper employs an empirical, statistical, and descriptive approach, utilizing secondary data to
address its subject matter. It emphasizes the significance of the contemporary political, economic,
and social context and provides recommendations for efficient data arrangement and collection.

MICRO FINANCE, EMPOWERMENT OF RURAL WOMEN AND MDG3. AN

EMPIRICAL STUDY IN TAMIL NADU RAJENDRAN KARUPPANNAN

32
AN EMPIRICAL STUDY IN TAMIL NADU (OCTOBER 10, 2015), 2015
Ganapathy Palanithurai, T Parthiban, Joseph Vanishree Con-
cept publishing company, 2007
Poverty reduction and empowerment are uphill tasks that are being faced by governments,
civil society organizations, investing agencies (to deliberately avoid the use of the concept of
donor) and the affected collectivities themselves. Various approaches have been evolved over
a period of time, a multitude of schemes and programmes have been carried out and yet the
expected results have not been achieved. The reasons are being analysed elaborately globally
and locally and one uniform answer emerging from all the analyses is that the affected or
marginali zed have not been prepared internally. Demands have not been generated by them
and of aspirations have not been developed among the people who are vulnerable. Secondly,
it has not been realized that however poor they are, they have got skills, capacity and capabil-
ity. Moreover schemes and programmes are being carried out for poverty reduction with the
perception that they are being done for charity. Individuals, organizations and institutions
which are involved in carrying out poverty reduction programmes, perceive themselves as
donors and the people who receive benefits as beneficiaries. As a result, the self-respect and
self-dignity of the people has been shattered. People reduce themselves to beneficiaries with-
out selfdignity. Nowhere has it been proved that development is achieved at the cost of self-
dignity. They become powerless, voiceless and helpless. In a society which is predominantly
functioning in a highly hierarchic a l structure based on the caste system and a strong patri-
archy one would find little opportunity to overcome barriers and obstacles. Unless the self is
actualized and self-dignity is built up, it is very difficult to bring out the people who are in the
extreme poverty bracket. That is why all over the world community-driven development and
demand driven development are brought to the fore for discussion and adoption.

33
WOMEN EMPOWERMENT OF MAHATMA GANDHI NATIONAL RURAL
EMPLOYMENT GUARANTEE SCHEME IN VILLUPURAM
S SUDHA CHRISTI JOY, V GANESHKUMAR
ABSTRACT
As a result of participating in microfinance through SHGs, the study concludes that there is
empowerment of women. Among various dimensions of empowerment, information empow-
erment ranks first followed by psychological empowerment, economic empowerment, man-
agerial empowerment, political empowerment and social empowerment. Hence the study con-
cludes that microfinance through SHGs empowers women and the microfinance through SHG
is an effective instrument to achieve MDG3 and MDG 3 can be achieved in India by 2015
through microfinance.

Think India Journal 22 (14), 12613-12617, 2019

Mahatma Gandhi National Rural Employment guarantee Scheme is one of the wonderful rural
development promote socio-economic growth through women. Government of India pre-
planning budget allotted rural economic growth contribute more employment opportunities
arranged unskilled self help women change the standard living improve the financial condi-
tion. Every village panchayat division of labour work both men and women ward wise guar-
antees 100 days of employment in a financial year to any rural household whose adult mem-
bers are willing to do unskilled manual work. MGNREGS is ensuring potential of paying
minim um wages provide rural women are benefited to meet necessary requirement of ex-
penses for future. Women employees’ compulsory opening bank account getting salary from
of their own account holder in prescribed manner. MGNREGA contributes to benefit the poor
with a special inclination to develop land and water

EMPOWERING WOMEN THROUGH SELF-HELP GROUPS: A CATALYST FOR

SOCIO-ECONOMIC DEVELOPMENT IN TAMIL NADU
D VARALAKSHMI, G YOGANANDHAM
ABSTRACT

This paper explores the role of Self-Help Groups (SHGs) as a catalyst for socio-economic de-
velopment, particularly focusing on the state of Tamil Nadu in India. Women's empowerment
has been a crucial aspect of development agendas globally, and SHGs have emerged as a po-
tent tool in achieving this objective. Through an analysis of existing literat ure,
government reports, and field studies, this paper elucidates the mechanisms through which

34
SHGs empower women and contribute to socio-economic development at the grassroots level.
The study highlights the significant impact of SHGs on women's empowerment by providing
them with access to financial resources, knowledge, and decision-making opportunities. By
fostering a sense of collective efficacy and solidarity, SHGs enable women to challenge tradi-
tional gender norms and assert their rights within their households and communit ies. Further-
more, the paper examines the broader socioeconomic benefits generated by SHGs, including
poverty alleviation, enhanced livelihood opportunities, and improved social capital. Drawing
on empirical evidence from Tamil Nadu, the paper identifies key success factors and chal-
lenges associated with SHG interventions in the state. It underscores the importance of sup-
portive policy frameworks, effective institutional mechanisms, and communit y participation
in sustaining SHG initiatives. Additionally, the paper discusses strategies for scaling up and
replicating successful SHG models to maximize their impact on women's empowerment and
socio-economic development. Overall, this paper contributes to the growing body of literature
on the role of SHGs in empowering women and advancing socio-economic development. By
shedding light on the experiences of Tamil Nadu, it provides valuable insights for policymak-
ers, practitioners, and researchers seeking to harness the potential of SHGs as a transformative
force for gender equality and inclusive development. The paper employs an empirical, statisti-
cal, and descriptive approach, utilizing secondary data to address its subject matter. It empha-
sizes the significance of the contemporary political, economic, and social context and pro-
vides recommendations for efficient data arrangement and collection.

EMPOWERING WOMEN IN THE SEAWEED BUSINESS: ENTREPRENEURSHIP

AN EMPLOYMENT IN RAMANATHAPURAM DISTRICT
R Sathishkumar, K Ramesh Kumar
ABSTRACT

Women play an important role not only in the family institution to ensure family members are
in a comfortable but in the same time they give their economic penitential to improve the eco-
nomic conditions of their family, major of women are contribute to an increase family income
and also the country. Accordingly, it is not surprising that women are now the first time active
in various fields to improve themselves and thus take on the responsibility of helping her hus-
band in the head of the family that is income generating. The objective of this study is
women seaweed entrepreneurs of income, employment and women entrepreneurs’ decision
making. The study area is on the three villages of Ramanathapuram district of Tamil Nadu,
involving of 145 respondents. The informations were collected through questionnaires, in-
depth interviews and field observations. The study reveals the techniques and technologies
35
that try to implementation in seaweed business and status of employment in coastal area di-
rectly or indirectly provides a new perspective to the community to provide space and oppor-
tunities for women not to be marginalized from the mainstream of development taken by the
governmen The Impact of Microfinance on Factors Empowering Women: Differences in Re-
gional and Delivery Mechanisms in India’s SHG Programme Abstract:
We examine how the impact on women’s empowerment varies with respect to the location
and type of group linkage of the respondent. Using household survey data from five states in
India, we correct for selection bias to estimate a structural equation model. Our results reveal
that in the southern states of India empowerment of women takes place through economic fac-
tors. For the other states, we find a significant correlation between women’s empowerment
and autonomy in women’s decision-making and network, communication and political partic-
ipation respectively. We do not, however, find any differential causal impact of different de-
livery methods (linkage models).
C.B. Senthilkumar, A. Arumugam Dharmaraj, B.C. Indhumathi and C.V. Selvam,E.

Kandeepan (2020), in their study entitled “A study on Women Empowerment through

Self- He Groups with special reference to Villupuram District in Tamil Nadu”, to analyse the
attitude of the members of the SHGs towards social impact. The primary data were gathered
from300 SHGs women entrepreneurs visionaries through purposive testing technique. The
data have been analyzed by using rate examination, Garret Rank, ANOVA test and Friedman
test. It is discovered that greater part of the individuals doesn’t take an interest in the gather
ings conversations. This might be because of absence of education and numbness. Hence en-
deavours are made to become friendlier and urged to take an interest in the conversations.
Dr. Kishore Kumar (2020), carried out their study on “Empowering Women through Micro-
finance: Evidence from Uttar Pradesh, India”, to identify the factors those contribute to em-
powerment of women through self-help groups. The data required for the study have been col-
lected with help of questionnaire which is distributed by 151 respondents by adopting Conve-
nience sampling techniques. Factor analysis and t-test have been used to analyse the data. The
study found that most of the beneficiaries belong to middle age group and have basic school
education. The Self-help group formation through microfinance initiatives has provided
Participates in the different activities to generate earnings and providing self-employment.
Mihir Dash, Venkat Mahendra Prasad and C. J. Koshy (2016), in their article on
“Women Empowerment through Microfinance Services”, the main objectives of the study
is to analyse the impact of microfinance schemes on women empowerment. The data for the
study was collected through structured questionnaire which was distributed among women

36
beneficiaries who have taken microfinance services from leading MFI operating in Kerala.
The sample size for the study was 220 microfinance beneficiaries, selected through multis
tage cluster sampling. The study clearly indicates that the majority of the respondents are en-
gaged in various income generatingactivities because of the credit fa-
cilities providedby microfinance institutions.
Soumitro Chakravarty, Umesh Prasad, Anant Kumar and Amar Nath Jha (2014), car-
ried out a study entitled “Women Empowerment through Self-Help Groups: the role of
Information& Communication Technology – A case study of Jharkhand State in India”, to
study the awareness levels of ICT among the members of the SHGs. The study has been car-
ried out with 10 respondents being selected from each SHG by adopting Non probability sam-
pling technique. Likert scale methods have been used to analyze the data. The study recom-
mended to SHG meetings should be encouraged to spread ICT awareness and its importance
for the women to bring about an enhanced reach and impact.
Dr. Ashwin G. Modi, Mr. Kiran J. Patel and Mr. Kundan M. Patel (2014), in their study
entitled “Impact of Microfinance Services on Rural Women Empowerment: An Empirical
Study”, to analyz the impact of microfinance services on rural women empowerment. A sam-
ple of 250 respondents have been collected by adopting Non-probability sampling technique.
Data collected are analyzed by using Descriptive Statistics (Frequency and Percentage), Reli-
abilit y Statistics
(Cronbach‟s Alpha),

Correlation Analysis and Multiple Regression Analysis method. The study reveals that Mi-
crofinance institutions should try to extend more credit facilities to clients to expand their
businesses since the
Kala : The Journal of Indian Art History Congress

ISSN : 0975-7945

Volume-26, No.2(XVII) : 2020-2021 34 study results confirmed that microfinance had a pos-
itive impact in empowering rural women.
Dr. Shuchi Loomba (2008), in their study entitled “Role of Microfinance in Women Em-
powerment in India”, to analyse the empowerment which women members get in SHGs. Pri-
mary data have been collected through issue the questionnaire. The sample for the study in-
cludes 50 samples from 3 SHGs members by adopting random sampling technique. Simple
correlation coefficient, paired t-test, cross tabulation and percentage analysis are used for the
analysis of the data. The study clearly reveals that maximum number of respondents accepted
that microfinance has brought economic development directly and indirectly and thus happi-
37
ness and peace in the family

38
CHAPTER – IV-RESEARCH METHODOLOGY

39
 RESEARCH METHODOLOGY

MEANING

Research is an art of scientific investigation. The advanced learner’s dictionaries of

current English lay down the meaning of research as, “a careful investigation (or) inquiry espe-
cially through search for new facts in any branch of knowledge”.

DEFINITION

Redmen and Mory defined Research as a “systematic effort to gain knowledge”.

METHODOLOGY
Methodology is a way to systematically solve the research problem.

RESEARCH DESIGN

The Research Design undertaken for the study is descriptive one. A study, which wants to
portray the characteristics of a group or individuals or situation, is known as descriptive study.
It is mostly qualitative in nature. The main objective of descriptive study is to acquire knowl-
edge. In the present study, descriptive method is used to study the prevailing organizational
climate.

DESCRIPTIVE RESEARCH

This type of research design is undertaken in many circumstances. When the researcher is in-
terested in knowing the characteristics of certain groups such as age, sex, education level, oc-
cupation or income etc., the objective of such study is to answer the “Who, What, When,
Where, and How” of the subject under investigation, so this project study comes under de-
scriptive research design.

40
DATA COLLECTION

In order to apply the statistical methods to any of enquiry it is essential that statistical data be
collected as statistical analysis is not possible in the absence of quantitative data. Data are ob-
tained either through a survey or experiment. In Social sciences where the use of statistical
methods is indispensable, data can be collected only through statistical surveys. The research
should keep in mind two types of data: i.e.
· Primary Data
· Secondary Data

PRIMARY DATA: Primary data means the information which is collected directly. It is also
called first-hand information. Primary Data was collected throughout google form. The
structured interview schedule was drafted to get information regarding the em-
ployee participation at “A STUDY ON THE ROLE OF MICRO FINANCE IN EM-
POWERING WOMAN AT VILLUPURAM DISTRICT”,
The interview was conducted in English and Tamil.

SECONDARY DATA: Secondary data was collected from website and Institution Records.

QUESTIONNAIRE CONSTRUCTION

Questionnaires are one of the most popular methods of conducting scholarly research. They
provide a convenient way of gathering information from a target population or a questionna
ire is a series of questions asked to individuals to obtain statistically useful informa t ion about
a given topic. When properly constructed and responsibly administered, questionna ires be-
come a vital instrument by which statements can be made about specific groups or people or
entire populations.
· Multiple choice question

41
SAMPLING DESIGN:

When population elements are selected for inclusion in the sample based on the case of ac-
cess, it is called simple random sampling method for the convenience of the researcher.

Population Size: Indefi-

nite Sample Size: 145
Sampling Method: Convenience sample

Sampling Unit: Role of microfinance to empower woman.

CONVENIENCE SAMPLE MEANING

Convenience sampling is a qualitative research strategy that involves selecting sampling par-
ticipants based on their accessibility and availability to the researcher. Rather than being
drawn at random from a bigger population, participants in this strategy are picked because
they are easily available to the researcher.
SURVEY PERIOD

The period of survey is for two months

STATISTICALTOOLS

These are tools, which helps to analyze the collected data. This analysis contains various ap-
proaches like comparisons, detecting, accuracy, estimation etc. In this survey the researcher
applied some statistical tool for analyzing raw data.
The applied statistical tools are:

• Percentage Method
• Chi square method
• Correlation method
• Weighted average method

SPSS

The researcher uses SPSS software (16th edition) for analysis and interpretations purpose
with regard to this project.

42
CHAPTER-V- ANALYSIS AND INTERPRETATIONS

43
ANALYSIS AND INTERPRETATIONS
The collected data are analyzed with the following statistical tools. Moreover, the analysis
contains various approaches like comparisons, detecting, accuracy, estimation etc. The fol-
lowing are some of the statistical tools for analyzing raw data.
The applied statistical tools are:
· Percentage Method
· Chi square method
· Correlation method
· Weighted average method

1.PERCENTAGE METHOD

The percentage method provides statistics and graphical displays that are useful for describing
many types of variables. The percentage procedure is a good place to start looking at your
data.

For a percentage report and bar chat, you can arrange the distinct values in ascending or de-
scending order, or you can order the categories by their percentage. The percentage report can
be suppressed when a variable has many distinct values. You can label charts with percentage.

𝐍o of respondents

Percentage of Respondents= total no. of respondents 𝐗 100

44
2.CHI SQUARE METHOD

The following assumptions must be satisfied, before we step into Chi square test.
1. Each sample is a random sample
2. The outcomes of the various samples are all mutually independent,(particula r ly
among samples, because independence within samples is part of the first assumption)
3. Each observation may be categorized into exactly one of the categories or classes
4. There must be large observations
5. For comparison purposes, the data must be in original units
6. For a 2x2 table, all expected cell frequencies should be at least equal to 10 (for
larger tables, this value is 5)
Formula

X2 = (O-E) 2
E
O = Observed fre-
quency E = Ex-
pected frequency
Chi- square is used to test whether differences between observed and expected frequencies are
significant or not.

3.CORRELATION METHOD

Correlation is a statistical measurement of the relationship between two variables. Possible

correlations range from +1 to –1. A zero correlation indicates that there is no relations hip be-
tween the variables. A correlation of –1 indicates a perfect negative correlation, meaning that
as one variable goes up, the other goes down. A correlation of +1 indicates a perfect positive
correlation, meaning that both variables move in the same direction together.

45
Formula

r = Cor(x,y) / σX . σy

Cor (x,y) = 1 /n(Σxy – x . y)

2 2)
σX = √ 1/n ( Σx – x

2 2)
σy = √ 1/n( n Σy – y

Where

R = Karl Pearson co-efficient

Cora(x,y) = co-variance of(x,y)
σX = Standard deviation of x

σy = Standard deviation of y

x = Mean value of y

= Mean value of y

4.WEIGHTED AVERAGE METHOD

Weighted average can be defined as an average whose component items are multiplied by
certain values (weights) and the aggregate of the products are divided by the total of weights.
One of the limitations of simple arithmetic mean is that it gives equal importance to all the
items of the distribution.

In certain cases relative importance of all the items in the distribution is not the same. Where
the importance of the items varies, It is essential to allocate weight applied but may vary in
different cases. Thus, weight age is a number standing for the relative importance of the
items.

The weighted average method can be calculated by the following formula. This tool is used to
find the rank given by the respondents to the various factors in performance appraisal.
It can be calculated as,

X = WX/W

46
Here,

WX represents the weighted average.

X represents the value of variable.
W represents the weight given to the variable.

47
 AGE
TABLE 5.1

AGE NO OF RESPON- PERCENTAGE

DENTS

20-30 33 22.8%

30-40 51 35.2%

40-50 58 40%

60 and above 3 2.1%

Total 145 100%

CHART 5.1

AGE
2%
INFERENCE: 23%
From the above table it is inferred that 40% of the respondent age between 40-50 and the 2.1 % of
48
40%
the respondent are 60 above

TABLE 5.2
MARITAL
STATUS

M NO
PER-
OF RE-
CENT-
SPON-
AGE
DENTS

Married 114 78.6%

Unmar- 21 14.5%
ried

Wid- 6 4.1%
owed

Di- 4 2.8%
vorced

Total 145 100%

49
 Married Unmarried Widowed Divorced

79%

14%

4% 3%

CHART
MARITAL 5.2
STATUS
INFERENCE:
From the above table it is inferred that 78.6% of the respondent are married and 2.8% of the re-
spondent are divorced.

TABLE 5.3
EDUCATIONAL QUALIFICATION

EDU-
NO OF RESPON- PERCENTAGE
CA-
DENTS
TIONA
L
QUALI-
FICA-
TION

No formal education 20 13.8%

Higher education 27 18.6%

Under graduate 34 23.4%

Post graduate 64 44.1%

50
 Total 145 100%

No formal education Higher education Under graduate Post graduate

23%

19%
44%

CHART 5.3

EDUCATIONAL QUALIFICATION
INFERENCE:
From the above table it is inferred that 44.1% 13.8%of the respondent
14% are post graduate and 13.8%
of the respondent are no formal education

51
 TABLE 5.4
MICRO FINANCE SERVICES

MI-
C
NO OF RESPON- PERCENT-
R
DENTS AGE
O

F
I
N
A
N
C
E

S
E
R
V
I
C
E
S

Friends/family 41 28.
3
%

Financial Institu- 36 24.

tions 8
%

Social media/ In- 20 13.

ternet 8

52
 %

Micro finance 48 33.

institution 1
%

Total 145 10
0
%

Friends/family Financial Institutions Social media/ Internet Micro finance institution

14% 25%

33%
28%

MICRO FINANCE SERVICES

CHART 5.4
INFERENCE:

From this above table it is inferred that 33.1% of the respondent are hear about MFS in micro
finance institutions and 13.8% of the respondent are in social media /Internet
TABLE5.5
DESCISION MAKING
POWER

DESCISION MAK-
N
ING
O OF PERCENT-

53
POWER AGE
RE-
SPON
DENT
S

Incresed my descion 51 35.2

making power %

Enhanced my social 46 31.7

status %

Neutral in decision 33 22.8

making %

No significant 13 9%
changes

Decreased my deci- 2 1.4%

sion
making

Total 145 100%

CHART 5.5

54
 32%

Increased my decision- making power Enhanced my social status

Neutral in decision making No significant changes
Decreased my decision making

23%
35%

9% 1%

INFERENCE: DESCISION MAKING POWER

From this above table it is inferred that 35.2% of the respondent increased their decision making
and 1.4% of the respondent are decreased their decision making

55
 TABLE 5.6

BEFORE STARTING BUSINESS

BE- NO OF RE- PER

F SPONDENT %CE
O NT-
R AGE
E
S
T
A
R
T
I
N
G
B
U
S
I-
N
E
S
S

Em- 55 37.9%
ployed

Un- 43 29.7%
em-
ploye
d

Home- 34 23.4%
maker

56
 Stu- 10 6.9%
dent

Part 3 2.1%
time
job

Total 145 100%

CHART 5.6

30%

Employed Unemployed Homemaker Student Part time job

23%
38%

7% 2%

BEFORE STARTING BUSINESS

INFERENCE:
From this above table it is inferred that 37.9% of the respondent are employee before starting busi-
ness and 2.1% of the respondent are in part time job
TABLE 5.7 MOTIVA-
TION TO START BUSINESS

NO OF RESPON- PERCENTAGE
MOTIVATION DENT

57
 TO START
BUSINESS

Financial independence 42 29%

To fulfil a personal pas-

56 38.6%
sion
or dream

Lack of job opportunities 29 20%

To support household in- 18 12.4%

come

Total 145 100%

Financial independence To fulfil a personal passion or dream

Lack of job opportunities To support household income
39%

20%

CHART 5.7
INFERENCE: MOTIVATION TO START
From this above table itBUSINESS
is inferred that 38.6% of the respondent are motivated to fulfill a personal
passion or dream and 12.4% of the12%
respondent are to support household income .
TABLE 5.8 CONFIDENT
IN STATING BUSINESS

58
CONFIDENT IN
N
STATING BUSI- PERCENT-
O
NESS AGE
OF
RE-
SPO
N-
DEN
T

Very confident 2 17.2%

5

Confident 5 36.6%
3

Neutral 5 37.2%
4

Unconfident 1 9%
3

Very unconfident 0 0%

Total 14 100%
5

59
 Very confident Confident Neutral Unconfident Very unconfident

37%

37%

17%
9% 0%
CHART 5.8
CONFIDENT IN STATING
BUSINESS

INFERENCE:
From this above table it is inferred that 37.2% of the respondent confident are neutral and 0 %
of the respondent are very unconfident .

TABLE 5.9
TAKING OF MICRO FINANCE

TAKING
N
OF
O OF PERCENT-
MI-
RE- AGE
CRO
SPO
FI-
N-
NAN
DEN
CE
T

Before starting 71 49%

business

After starting busi- 50 34.5%

ness

60
 Middle of the busi- 24 16.6%
ness

Total 145 100%

Before starting business After starting business Middle of the business

34%

49%

17%
CHART 5.9

TAKING OF MICRO FINANCE

INFERENCE:
From this above table it is inferred that 49% of the respondent are taking of microfiance before
starting business and 16.6% of the respondent are taking of microfinance middle of the busi-
ness.
TABLE 5.10
AMOUNT OF TAKING

AMOUN
NO
T OF
OF RE- PERCENT-
TAK-
SPON- AGE
ING

61
 DENTS

Less than 2 17.2%

20,000 5

20,000- 2 15.5%
30,000 3

30,000- 4 29%
40,000 2

40,000- 3 25.5%
50,000 7

More than 1 12.4%

50,000 8

Total 14 100%
5

29%

Less than 20,000 20,000-30,000 30,000-40,000 40,000-50,000 More than 50,000

26% 16%

17%
12%

CHART 5.10
AMOUNT OF TAKING

INFERENCE:
From this above table it is inferred that 29% of the respondent are taking amount between
30,000-40,000 and 12.4% of the respondent of the are more than 50,000.

62
 TABLE 5.11
BARRIERS IN ACCESSING

NO OF
OPTIONS PERCENT-
RESPON- AGE
DENTS

Lack of infor- 44 30.3%

mation

D
44 30.3%
o
c
u
m
e
n
t
a
t
i
o
n

r
e
q
u
i
r
e
m
e
n
t

63
 High rate of 37 25.5%
interest

I
19 13.1%
m-
prop
er
com
mu-
nica-
tion

None 1 0.7%

Total 145 100%

Lack of information Documentation requirement High rate of interest

Improper communication None
30%

26%

CHART 5.11

BARRIERS IN ACCESSING
1%
INFERENCE: 13%

From this above table it is inferred that 30.3% of the respondent

30% barriers in both lack of infor -
mation and documentation requirement and 0.7% of the respondent are none of above.
.

64
 TABLE 5.12
DIFFICULTIES IN REPAYMENT

DIFFICULTIES PERCENT-
NO
IN REPAY- AGES
OF RE-
MENT
SPON-
DENTS

N 23 15.9
e %
v
e
r

R 53 36.6
a %
r
e
l
y

S 55 37.9
o %
m
e
t
i
m
e
s

F 13 9%
r
e
q
u
65
 e
n
t
l
y

A 1 0.7
l %
w
a
y
s

T 145 100
o %
t
a
l

Never Rarely Sometimes Frequently Always

36%

38%

16%
CHART 5.12 9%

DIFFICULTIES IN REPAYMENT
1%
66
INFERENCE:
From this above table it is inferred that 37.9% of the respondent are faced simetimes difficulty
in repayment and 0.7% of the respondent are always face difficulty in repayment .
TABLE 5.13
BENEFITS OF USING MFS

BENEFITS OF US-
ING
NO OF RESPONDENT PERCENTAGE
MFS

It helps to start a busi-

34 23.4%
ness

It help to growth a
54 37.2%
business

Provide access to sav-

ings 34 23.4%
and insurance

Help manage house-

hold 11 7.6%
expenses

Provides financial
12 8.3%
independence

total 145 100%

67
 Provide access to savings and insurance Help manage household expenses
Provides
It helps tofinancial independence
start a business It help to growth a business

37%

23%

CHART 5.13
BENEFITS OF USING
MFS
INFERENCE:
8%
From this table it is inferred that 37.2% of the respondent saying it help to growth a business
and 7.6% of the respondent are saying to help manage household expenses .
TABLE 5.14
TIME OF RECEIVED LEAVE

TIME OF N
PER-
RECEIVED O OF
CENT-
LEAVE RE-
AGE
SPON-
DENT

Once 8 57.2%
3

Twice 4 30.3%
4

More than 1 12.4%

twice 8

Total 1 100%

68
 4
5

Once Twice More than twice

57%
30%

CHART 5.14

TIME OF RECEIVED LEAVE

INFERENCE: 13%

From this table it is inferred that 57.2% of the respondent are received leave once and 12.4% of
the respondent received leave more than twice

69
 TABLE 5.15
BALANCING FAMILY AND RESPONSIBILITY

BALANCING
FAMILY AND
NO OF RESPON- PERCENT-
RESPONSIBIL-
DENT AGE
ITY

Very challenging 59 40.7

%

Sometimes challeng- 71 49%

ing

Not challenging 15 10.3

%

Total 145 100

%

CHART 5.15

BALANCING FAMILY AND RESPONSIBIL-

ITY

41%

49%

Very challenging Sometimes challenging Not challenging

70
INFERENCE:
From this table it is inferred that 49% of the respondent are sometimes challenging in balancing
family and responsibility and 10.3% of the respondent are not challenging.

71
 TABLE 5.16

ADDITIONAL SUPPORT TO IMPROVE BUSINESS

ADDITIONAL
SUPPORT TO
NO OF RE-
IMPROVE BUSI- PERCENTAGE
SPONDENT
NESS

Better finan-
cial
liter-
28 19.3%
acy
pro-
grams

Access to
larger
loans
36 24.8%
(or)
grant
s

Mentorship programs
for women en- 63 43.4%
trepreneurs

Improved infrastruc-
18 12.4%
ture

Total 145 100%

CHART 5.16

72
 44%
25%

Better financial literacy

programs
Access to larger loans (or)
grants
Mentorship programs for
ADDITIONAL SUPPORT TO IMPROVE women
BUSINESS
entrepreneurs
Improved infrastructure
INFERENCE: 12%
19%
From this table it is inferred that 43.4% of the respondent are saying mentorship programs for
women entrepreneur for addition support and 12.4% of the respondent are improved infrastruc-
ture for addition support
TABLE 5.17
RATE OF INTEREST

RATE
N
OF
O OF PERCENT-
INTER- AGE
RE-
EST
SPON
DEN
T

Very 2 15.9%
afford- 3
able

Afford- 3 26.9%
able 9

Neutral 6 46.9%
8

73
 Expen- 1 8.3%
sive 2

Very 3 2.1%
expen-
sive

total 14 100%
5

Very affordable Affordable Neutral Expensive Very expensive

47%

27%

8% 16%
2%

CHART 5.17
RATE OF INTEREST

INFERENCE:
From this table it is inferred that 46.9% of the respondent are neutral in rate of interest and
2.1% of the respondent are say that very expensive rate of interest.
.

74
 TABLE 5.18
APPLYING FOR LOAN

A
N
O OF PERCENT-

RE- AGE

SPON-
DENT
S

Very easy 1 10.3%

5

Easy 7 51%
4

Neutral 4 29%
2

Difficult 1 6.9%
0

Very difficult 4 2.8%

Total 1 100%
4
5

CHART 5.18

75
 Very easy Easy Neutral Difficult Very difficult

51%

29%

7% 10%
3%

APPLYING FOR
INFERENCE: LOAN
From this table it is inferred that 51% of the respondent are saying easy to applying for loan
and 2.8% of the respondent are say very difficult

76
 TABLE 5.19

ABLE TO EXPAND BUSINESS

ABL
E

T
O

E
X
P
NO.
A
OF RE-
N PPERCENT-
SPON-
D AGE
DENTS

B
U
S
I
N
E
S
S

2
Yes, Significantly 15.9%
3

8
Yes, somewhat 55.2%
0

2
No change 19.3%
8

Business has de- 1 9%

77
 crease 3

Lead into loss 1 0.7%

1
TOTAL 4 100%
5

55%

Yes, Significantly Yes, somewhat No change Business has decrease Lead into loss

19%

16%
9%
CHART 5.19

Able to expand business

INFERENCE: 1%

From this table it is inferred that 55.2% of the respondent are yes somewhat able to
expand and 0.7% of the respondent are lead into loss.

78
 TABLE 5.20
RATE OF YOUR SUCCESS

R
N
O. PERCENTAGE

OF
RE-
SPON
DEN
TS

Very success- 18 12.4%

ful

Successful 59 40.7%

Moderately 47 32.4%
successful

Slightly suc- 18 12.4%

cessful

Not successful 3 2.1%

TOTAL 145 100%

CHART 5.20

79
 Very successful Successful Moderately successful Slightly successful Not successful

41%
33%

12%
12%

RATE OF YOUR SUCCESS

INFERENCE: 2%

From this table it is inferred that 40.7% of the respondent are successful in their busi-
ness and 2.1% of the respondent are not successful

80
 TABLE 5.21
CHALLENGE FACED IN RUNNING BUSINESS

CHALLENGE
NO.
FACED IN PERCENT-
OF RE-
RUNNING AGE
SPON-
BUSINESS
DENTS

Lack of market 2 16.6%

access 4

Difficulty man- 7 49%

aging finance 1

High operational 3 22.8%

cost 3

Lack of family
1 11.7%
(or)
7
com-
mu-
nity
sup-
port

TOTAL 1 100%
4
5

CHART 5.21

81
 Lack of market access Difficulty managing finance
High operational cost Lack of family (or) community support
49%

23%

12% 16%

CHALLENGE FACED IN RUNNING BUSINESS

INFERENCE:
From this table it is inferred that 49% of the respondent are difficulty managing finance and
11.7% of the respondent are lack of family (or) community support

82
 TABLE 5.22
EFFECTIVE OF MF

EFFECTIVE N
PERCENTAGE
OF MF O. OF
RE-
SPON
DENT
S

Very effective 2 16.6%

4

Effective 7 53.1%
7

Moderate effec- 3 22.1%

tive 2

Slightly effective 1 6.9%

0

Not effective 2 1.4%

TOTAL 1 100%
4
5

83
 Very effective Effective Moderate effective Slightly effective Not effective

53%

22%

17%
7%
CHART 5.22

EFFECTIVE OF MF
INFERENCE: 1%

From this table it is inferred that 53.1% of the respondent are effective of MF and 1.4% of the re-
spondent are not effective

84
 TABLE 5.23
TERMS AND CONDITIONS

TERMS NO OF
PERCENT-
AND CON- RESPON-
AGE
DITIONS DENTS

Never 2 15.9%
3

Rarely 5 36.6%
3

Some- 5 37.9%
times 5

Fre- 1 9%
quently 3

Always 1 0.7%

Total 1 100%
4
5

85
 Never Rarely Sometimes Frequently Always

36%

38%

16%
9% 1%
CHART 5.23
TERMS AND CONDITIONS

INFERENCE:

From this table it is inferred that 35.2% of the respondent are rarely and 1.4% of the respon-
dent are always.

86
 CHI-SQUARE

AGE VS MOTIVATION TO START BUSINESS

HYPOTHESIS:

NULL HYPOTHESIS (HO):

There is no significant association between Age and motivation to start a business.

ALTERNATIVE HYPOTHESIS (H1):

There is significant association between Age and motivation to start a business.

Age

OPTIONS NO. OF. RESPONDENTS PERCENTAGE

20-30 33 22.3%

30-40 51 35.2%

40-50 58 40%

60 above 3 2.1%

TOTAL 145 100%

87
 Motive

OPTIONS NO. OF. RESPONDENTS PERCENTAGE

Financial Independence 42 29%

To fulfill a personal passion 56 38.6%

or dearms

Lack of job opportunity 29 20%

To support household in- 18 12.4%

come

TOTAL 145 100%

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Age * How motivated

145 100.0% 0 .0% 145 100.0%
on bussiness

Age * How motivated on bussiness Crosstabulation

Count

How motivated on bussiness

To fulfill a To support Total

Financial in- Lack of job
personal pas- household
dependence opportunities
sion income

Age 20-30 33 0 0 0 33

30-40 9 42 0 0 51
88
 Age * How motivated on bussiness Crosstabulation

Count

How motivated on bussiness

To fulfill a To support Total

Financial in- Lack of job
personal pas- household
dependence opportunities
sion income

Age 20-30 33 0 0 0 33

40-50 0 14 30 14 58

60
0 0 0 3 3
Above

Total 42 56 30 17 145

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)

Pearson Chi-Square 2.021E2

a
9 .000

Likelihood Ratio 211.364 9 .000

Linear-by-Linear As-
105.642 1 .000
sociation

N of Valid Cases 145

a. 5 cells (31.3%) have expected count less than 5. The

minimum expected count is .35.

89
 INFERENCE:

Since the frequency is less than 5, the null hypothesis is accepted. Hence, there is no

significant association between age and motive

CORRELATION
DIFFICULTIES IN REPAYMENT AND FAR THROUGHOUT TEAMS AND CONDITION
MF

HYPOTHESIS:
NULL HYPOTHESIS (HO):

There is no significant relationship between the Difficulties in repayment loan and Far throughout
terms and conditions of MF

ALTERNATIVE HYPOTHESIS (H1):

There is significant relationship between the Difficulties in repayment the loan and Far throughout
terms and conditions of MF

90
 DIFFICULTIES IN REPAYMENT LOAN

OPTIONS NO. OF. RESPONDENTS PERCENTAGE

Never 51 35.2%

Rarely 46 31.7%

Sometimes 33 22.8%

Frequently 13 9%

Always 2 1.4%

TOTAL 145 100%

TERMS AND CONDITIONS

OPTIONS NO. OF. RESPONDENTS PERCENTAGE

Never 23 15.9%

Rarely 53 36.6%

Sometimes 55 37.9%

Frequently 13 9%

Always 1 0.7%

TOTAL 145 100%

91
Correlations

Correlations

faced termsandcon-
difficult ditions

Pearson Corre-
1 .869**
lation
faced difficult
Sig. (2-tailed) .000

N 145 145

Pearson Corre-
.869** 1
lation
Terms and con-
ditions Sig. (2-tailed) .000

N 145 146

**. Correlation is significant at the 0.01 level (2-tailed).

INFERENCE:
Hence, it is positively correlation. Thus, if is a signification relationship between difficulties in repay-
ment loan and far throughout terms and conditions

WEIGHTED AVERAGE METHOD

DISSAT- VERY
VERY SATIS- SATISFAC- NEU-
FACTOR ISFA DIS-
FACTION TION TRAL
CTION SATIS

92
 FAC-
TION

personal
financial
64 51 22 7 1
Indepen-
dence

Flexibility
and work
22 57 61 4 1
life bal-
ance

Support
from
family 27 60 49 6 3
and
friends

Access to
business re- 27 64 45 7 2
sources

Satis-
fac-
tion
with
gov- 24 64 49 7 1
ern-
ment
sup-
port

93
CALCULATIONS OF WEIGHTED AVERAGE METHOD:

W
E
I VER
G Very Sat DIS- Y R
H Sati is- NEUT SAT DIS- TO- A
FACTORS
sfi fie R AL IS- SAT TAL N
T ed d FIED IS- K
( FIED
W
)

personal
financial X 6 5 2
7 1 145
Indepen- I 4 1 2
dence

X 3 2
6 1
I 2 0 1 605 1
6 4
W 0 4

Flexibil-
ity and
X 2 5 6
work 4 1 145
I 2 7 1
life bal-
ance

X 1 2
18
I 1 2 8 1 530 5
3
W 0 8

94
 Support
from
X 2 6 4
family 6 3 145
I 7 0 9
and
friends

X 1 2
14 1
I 3 4 3 537 4
7 2
W 5 0

Access to
X 2 6 4
business re- 7 2 145
I 7 4 5
sources

X 1 2
13 1
I 3 5 2 542 2
5 4
W 5 6

Satis-
fac-
tion
with
X 2 6 4
gov- 7 1 145
I 4 4 9
ern-
ment
sup-
port

X 1 2
14 1
I 2 8 1 538 3
7 4
W 0 6

INFERENCE:

From the data it is understood that most of the respondents are satisfied with their personal financial Indepen-
dence is ranked as first, Access to business resources as Ranked second, Satisfaction with government support
as Ranked Third, Support form family and friends as Ranked Fourth, Flexibility and work life balance as Fifth
as provided by the respondents.

95
CHAPTER – VI-FINDING OF THE STUDY

96
 FINDINGS OF THE STUDY

➢ The research reveals that 40% of the respondent are between 40-50 and 2.1% of the respondent
are above 60.

➢ From the study, that 78.6 % of the respondent are married and 2.8 % of the respondent are the
divorced.

➢ In this research their are 14.5% of the respondent are unmarried that mean their are minimum
21 unmarried entrepreneur in Villupuram district

➢ The research identify the 44.1% of the respondent are finish their post graduate (PG) and 18.
8% of the respondent are did not finish their formal education.

➢ In this research that 33.1% of the respondent are hearing or gaining knowledges about micro fi-
nance serve from micro financial institution.

➢ This research identify that 35.2% of the respondent are declared their decision making power
was increased and 1.4% of the respondent are in decreased their decision making.

➢ From the study 37.9 % of the respondent are employer before starting their business and 2.1%
of the respondent are in their part time jobs.

➢ In this identify that 38.6% of the respondent are motivated to start their business for to fulfill
the passion or dream.

➢ This research is identify that 37.2% of the respondent confident level is neutral and only 9% of
the respondent are very unconfident when their starting business.

➢ From the study 49% of the respondent are claim their loan amount before starting their busi-
ness.

97
➢ In this research 29% of the respondence are claim their amount between 30,000-40,000 and
12.4% of the respondent are more tha 50,000.
➢ From the study , that 37.9% of the respondent are say that some times difficulty in repayment
the loan.

➢ In this research is identify that, 37.2% of the respondents are highly benefits in MFS to grow
their business level.

➢ The study identify the 40.7% of the respondent are face very challenges in balancing both fam-
ily and responsibility.

➢ This study identify that 30.3% of the respondent are barriers in accessing both lack of informa-
tion and documentation requirement.

➢ The research identify that 40.7% of the respondent are facing very challenging in balance their
both family and responsibility and 10.3% of the respondent are not facing any challenging

➢ From the study that 46.9% of the respondent are neutral in the rate of interest and 2.1% of the
respondent are say rate of interest are very expensive.

➢ The research identify that 51% of the respondent applying for loan in easy way and 2.8 % of
the respondent are face difficulty in applying the loan.

➢ The research identify that 55.2% of the respondent are expand there business somewhat and
0.7% of the respondent are lead their business into loss.

➢ From the study that 40.7% of the respondent are successful in their business and 2.1% of the
respondent are not successful in their business.

➢ The research identify that 49% of the respondent facing difficulty managing finance in run-
ning business and 11.7% of the respondent facing lack of family (or) community support

➢ Using correlation, there is a significant relation between the difficulty in repayment the loan
and loan amount far throughout teams and conditions. Hence ,it is positively correlated.

98
➢ Using chi-square the frequency is less than 5, the null hypothesis is accepted. Hence , there no
significant association between age and motive to start business.

➢ From the weighted average method is understood that most of the respondent personal financial
independent ranked as first, access to business resources ranked as second , satisfaction with
government support ranked as third , support from family and friends ranked as fourth, flexibil-
ity and work life balance ranked as fifth as provided by respondent.

99
 SUGGESTIONS & RECOMMENDATION

➢ Since 33.1% of respondents gained knowledge about microfinance services through microfinance
institutions, it is crucial to conduct more awareness campaigns to reach the remaining popula-
tion, especially those without formal education (18.8%).

➢ Development Offer skill development and entrepreneurship training, especially for the 37.9%
who were employees before starting their business. This will enhance their confidence levels,
particularly for the 37.2% who reported neutral confidence and 9% who were very unconfident.

➢ As 37.9% of respondents reported occasional difficulties in loan repayment, introducing flexible

repayment schemes and financial literacy programs can help mitigate this challenge.

➢ Financial Products With 29% of respondents claiming loans between ₹30,000–₹40,000 and
12.4% claiming above ₹50,000, financial products should cater to different needs, offering cus-
tomized loan amounts and repayment terms.

➢ Support for Family-Work Balance Since 40.7% face challenges balancing family and business
responsibilities, microfinance institutions could provide family-oriented support, such as work-
shops on time management and childcare assistance for women entrepreneurs.

➢ Encourage Passion-Driven Ventures With 38.6% motivated to start businesses to fulfill passions
or dreams, microfinance institutions should promote programs that align with personal interests
and provide mentorship for long-term success.

➢ Education Encourage higher education and training opportunities for women, as 44.1% of re-
spondents with postgraduate qualifications demonstrate the potential benefits of education in
business growth.

➢ The impact of microfinance services on women entrepreneurs and seek feedback to improve the
services, ensuring long-term empowerment and business growth.

CONCLUSION

100
The study highlights the significant role of microfinance services in empowering women in
Villupuram district. Microfinance has enabled women to start businesses, fulfill their pas-
sions, and improve decision-making power, with 35.2% of respondents reporting increased
autonomy. However, challenges remain, including difficulties in loan repayment, balancing
family responsibilities, and barriers in accessing services.

The findings emphasize the need for targeted interventions such as awareness programs, flexi-
ble financial products, and skill development initiatives. Addressing these challenges will not
only enhance the effectiveness of microfinance but also contribute to the socio-economic em-
powerment of women in the district. With continuous support and tailored strategies, microfi-
nance can be a transformative tool for improving the lives of women entrepreneurs and their
communities.

101
ANNEXURE

ANNEXURE-I
102
 QUESTIONNAIRE

A STUDY ON THE ROLE OF MICRO FINANCE IN EMPOWERING WOMEN AT

VILLUPURAM DISTRICT

I (NITHIYA PRINCY.I) am doing MBA project in the topic of “A STUDY ON THE ROLE OF
MICRO FINANCE IN EMPOWERING WOMEN AT VILLUPURAM DISTRICT” As a
project, I need to collect the views and. Opinion of the women entrepreneur. Hence, I kindly re-
quest you to respond to the following questionnaire, framed for above purpose. The collected in-
formation will be confidential and used for academic purpose only

QUESTIONNAIRE:

1. Age :
(a) 20-30
(b) 30-40
(c) 40-50
(d) 60 above

2. Marital status:
(a) Married
(b) Unmarried
(c) Widowed
(d) Divorced

3. Education qualification:
(a) No formal education
(b) Higher education
(c) Under graduate
(D) Post graduate

4. How did you hear about micro finance service?

(a) Friends/family
103
(b) Financial Institutions
(C) Social media/Internet
(d) Micro finance Institutions
(e) Other

5. How has microfinance influenced your status and decision- making power within your house-
hold and community?
(a) Increased my decision- making power
(b) enhanced my social status
(c) neutral in decision making
(d) no significant changes
(e) decreased my decision making

6. Employment status before starting the business?

(a) employed
(b) unemployed
(c) homemaker
(d) student
(e) other

7. What motivated you to start a business?

(a) Financial independence
(b) To fulfil a personal passion or dream
(c) Lack of job opportunities
(d) To support household income
(e) other

8. How confident were you in your skills when starting the business?
(a) Very confident
(b) confident
(c) neutral
(d) unconfident
(e) very unconfident

9. When did you take your Micro finance loan service?

104
(a) Before starting business
(b) After starting business
(c) middle of the business

10. How much you taken a loan from a micro finance?

(a) less than 20,000
(b) 20,000-30,000
(c) 30,000-40,000
(d) 40,0000-50,000
(e) More than 50,000

11. Have you faced any challenges or barriers in accessing microfinance service in villupuram?
(a) lack of information
(b) Documentation requirement
(c) High rate of interest
(d) improper communication
(e) other

12. Have you ever faced difficulties in repaying the loan?

(a) Never
(b) Rarely
(c) sometimes
(d) Frequently
(e) always

13. In your opinion, what are the benefits of using microfinance service?
(a) It helps to start a business
(b) It help to growth a business
(c) Provide access to savings and insurance
(d) Help manage household expenses
(e) Provides financial independence

14. How many times have you received a leave from micro finance?
(a) Once
(b) Twice
105
(c) more than twice

15. How challenging has it been to balance family and business responsibility?
(a) very challenging
(b) sometimes challenging
(c) not challenging

16. What kind of additional support would help improve your business experience?
(a) better financial literacy programs
(b) access to larger loans (or) grants
(c) mentorship programs for women entrepreneurs
(d) improved infrastructure
(e) others

17. How would you rate the interest rate on the loan?
(a) very affordable
(b) affordable
(c) neutral
(d) expensive
(e) very expensive

18. How easy was it to apply for a loans through microfinance?

(a) very easy
(b) easy
(c) neutral
(d) difficult
(e) very difficult

19. Have you been able to expand your business operation since taking the loan?
(a) yes, significantly
(b) yes, somewhat
(c) no change
(d) business has decreased
(e) lead into losses

106
20.How would you rate your success?
(a) very successful
(b) successful
(c) Moderately successful
(d) slightly successful
(e) Not successful

21. What challenges have you faced in running your business?

(a) lack of market access
(b) difficulty managing finances
(c) high operational cost
(d) lack of family (or) community support
(e) others

22.How far you have gone through the terms and conditions?
(a) Never
(b) Rarely
(c)Sometimes
(d) Frequently
(e) Always

23.How would you rate your access to the following resources when starting you business?

Factors Very accessible Accessible Moderate acces- Not accessible

sible

Funding option

107
 Mentorship (or)
advisory sup-
port
Very satis- Very dis-
Factors Satisfied Neutral Dissatisfied
fied satisfied

Education in
Personal
business man-fi-
agement in-
nancial
dependence

Flexibility
Networking op-
and work
portunities
life balance

Support
from family
& friends

Access to
business re-
sources

Growth of
the business

Satisfaction
with govern-
ment sup-
port

Managing
work stress

24. Satisfaction table starting a business throughout microfinance

108
25. How satisfied are you with following aspects of the microfinance service you have used?

Factors Very satisfied Satisfied Neutral Dissatisfied Very dissatis-

fied

Access to micro-
finance services

Interest rates on
loans

Support from
microfinance
staff
Flexibility in
loan repayment

Loan amount
available

Ease of under-
standing finan-
cial terms

Overall satisfac-
tion with MFIS

109
 ANNEXURE- II

BIBLIOGRAPHY

REFERENCES:

1. KOTHARI. C.R, "Research methodology - Methods & Techniques"

New Age International (P) Ltd. New Delhi, Second edition,2004, Page No. 80 to 93.

2. GUPTA S.P, "Statistical Methods" Sultan chand & sons Publishers

NewDelhi, Thirty fourth editions, 2005. Page No. 220 to 235.

3. ELLEN E. MEADE-. "Banking on Women: The Role of Microfinance in Women’s Em-

powerment"
4. NIMISHA MUKHERJEE, G.A. PAHARI-"Women and Microfinance in the Global South:
The Power of the Principal"
ARTICLES REFERENCE:

➢ S. Sudha christi Joy, V. Ganeshkumar (2019),Wome Empowerment of mahatama Gandhi

National Rural Empowerment Gurantee Scheme In villupuram, Think Indian Journal 23(14)
12613-12617, 2019.

➢ Mrs.s.Megala, Dr. M.V.Sathiyabama, Ms. P. Shiney (2022), Women Empowerment

Through Micro Finance - A study in coimbatore District, Future business Journal valume 8,
(2022).

➢ Dr. Deeak Agrawal(2015) , An empirical study on women Empowerment Through self help
group, Tamil nadu Rajendran karupannan pondicherry university, October 10,2015

WEBSITES:

➢ www.ippbonline.com

➢ www.academia.edu

➢ www.articlebase.com

➢ www.ithinklogistics.com

➢ www.googlescholar.com

110