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Dr V M Bhandari

 Dr. V. M. Bhandari M. Com. Ph. D. Associate Proffessor.

EXECUTIVE SUMMARY of MINOR RESEARCH PROJECT

MOVING SELF- HELP GROUPS TOWARDS ENTREPRENEURSHIP

A  STUDY WITH REFERENCE TO THE STATE OF KARNATAKA

EXECUTIVE SUMMARY OF MINOR RESEARCH PROJECT REPORT

SUBMITTED

TO

THE UNIVERSITY GRANTS COMMISSION

SOUTH WESTERN REGIONAL OFFICE, BANGALORE

THROUGH

THE PRINCIPAL S.D.M DEGREE COLLEGE OF ARTS, SCIENCE, COMMERCE, BUSINESS ADMINISTRATION AND PG STUDIES HONAVAR

 

BY

DR.VINAYAK M. BHANDARI M.COM, Ph.D.

ASSOCIATE PROFESSOR, DEPARTMENT OF COMMERCE

S.D.M DEGREE COLLEGE OF ARTS, SCIENCE, COMMERCE,BUSINESS ADMINISTRATION  AND PG STUDIES  HONAVAR,U.KANNADA DISTRICT,KARNATAKA,INDIA.

NOVEMBER 2014

 

                            

 

 

DECLARATION

I hereby declare that this Minor Research Project Report “Moving self help groups towards entrepreneurship-a study with reference the state of Karnataka “is an outcome of my research work carried out during the period between 2012 and 2014. I also declare that this report is prepared by gathering information from both primary and secondary data collected through field survey. To the best of my knowledge and belief the information included in this report is true and correct.

 

Place :Honavar

Date: 30   -11-2014                                              Dr.Vinayak M. Bhandari  

 

 

 

ACKNOWLEDGEMENT

 

The Minor Research Project report entitled “Moving self help groups towards entrepreneurship-study with reference to the state of Karnataka” is submitted to the University Grants Commission, SWRO Bangalore.I express my deep sense of gratitude to Dr. Gopukumar, Secretary,UGC SWRO,Bangalore for extending financial help in the preparation of this project report.

I thank most sincerely Dr.M.P Karki, President MPE Society and Dr.A.V Shanbhag, Principal Grade-I for permitting and encouraging me to prepare the project report. My thanks are also due to my departmental colleagues and members of office staff of our college for their help and co-operation.

I am also thankful to officials of Government  and Non govt. organizations  and members of Self Help Groups functioning in   U. Kannada, Dharwad, Shivmogga, Davangere, Haveri, Mysore, D.Kannada and  Udupi  districts  for providing valuable and timely information  which has helped me in the preparation of this project report. I cannot forget the help of my wife Smt. Bharati and my son Kumar Vikas without whose co-operation this whole research project would not have seen the light. I thank them.          

                                                                 Dr.Vinayak M. Bhandari

 

 

 

INTRODUCTION AND RESEARCH DESIGN

 

Introduction:

The prevailing traditional deposit and loan, product system, procedure and banking policies were not suited to meet the immediate needs of the poor. Their immediate requirement is a mechanism through which the small doses of credit are delivered with less hassle and minimum cost. This can be achieved through the formation of Self Help Groups (SHG). In this context NABARD launched a pilot project in 1992 for linking SHGs with a bank credit. The experiment of active collaboration between banks and NGOs which started in 1992 has become national programme and has become most successful model of micro credit in India.

Objectives of the study

The study aims to achieve the following objectives.

  1. To study the activities undertaken by the SHGs.
  2. To create awareness about the significance of entrepreneurship among SHG members
  3. To identify the entrepreneurial qualities among SHG members and to motivate them to start new enterprises.
  4. To study the type of enterprise s started by SHGs and its members
  5. To study the problems and progress of enterprises started by SHG members
  6. To study the contribution of SHGs towards socio-economic development of the society.
  7. To recommend a suitable suggestion for the improvement of the enterprise started by enterprise.

  Significance of the study

The study would help in understanding the activities undertaken by the SHGs, enterprises started by SHGs, type of product produced or dealt in by SHGs, problems and progress of the enterprises. The study also helps in understanding the entrepreneurial qualities of the members of the SHGs

Research Methodology

The project report is prepared with the help of data collected both from primary and secondary sources. Primary data has been collected from officials of Self-Help Groups and members of self help groups. For the purpose of collecting primary  data ,SHGs functioning  in different parts of Uttar Kannada district, Udupi  District, Dakshin Kannada  District, Shimoga district, Davngere district, Dharwad district and Haveri district have been contacted and information has been gathered from the sample SHGs  functioning in these regions. SHGs formed by Government organization, Non government Organization and Co operative Banks have been contacted to gather the information. Primary data is collected through personal interview and telephonic interview with a structured interview schedule.

Secondary data is collected by referring to books, journals and other publications relating to entrepreneurship and Self help groups and also from official records of Self Help Groups functioning in the study area.

Data collected are presented through different tables which are further analyzed and interpreted with simple tools like percentage and averages.

 

Review of research and development in the subject

The concept of Self Help Group started to gain importance only after 1990.Study has been conducted by the researchers on the functioning and performance of Self Help Group, SHG-bank linkage progamme, empowerment of SHGs, micro finance and SHGs etc. The present study has mainly focused on entrepreneurial quality of SHG member’s type of enterprises started by SHG members and their contribution to society. The following are the some of the important contributions by the researchers on the subject.

D. Lazar and R Kogila have conducted a study on the performance of the SHGs in Tamilnadu and Pondicherry and opined that SHGs are most powerful tool for empowerment of  the poor in general and women in particular.

In the study conducted by Veenapani on empowerment of SHGs through micro finance in AP state it is observed that most of the SHG members are below poverty line and use loan for education purposes.

Scope and limitation of the study

The study on “moving Self help group towards entrepreneurship; is limited to few districts of  Karnataka  state. Due to limited time period, all the 28 districts of Karnataka state could not be covered in the study. SHGs functioning in Uttara Kannada, Udupi, Shimoga, Davanagere, Dharwad , Haveri and Dakshina Kannada districts are covered in the study.

The study covers only the entrepreneurial activities undertaken by SHGs, its composition, progress, problems, income and employment generated by the group and its members. Type and number of enterprises started by SHGs, willingness to start enterprises, entrepreneurial training attended by SHG members and status of the enterprises in terms of profit is also covered in the study. Other aspects of SHGs are not covered in the study.

                                                                                                                                                      DATA ANALYSIS

                                                                                                                                                              Table-1A

                                                                                                      Bird’s eye view of Self- Help Groups in Karnataka

Self -Help Groups(SHG’s) details(as on 31-10-2013)

Sl No.

Name of the district

Zilla panchayat

(SGSY)

Woman and Child Devt Dept

SKDRDP

Green Foundation

MYRADA

Total

1

2

3

4

5

6

7

8

1

Bangalore Rural

1282

3365

4647

2

Beedar

18643

2939

295

21877

3

Bijapura

5468

3888

9356

4

Chamarajnagar

10160

3928

7686

743

22517

5

Davangere

2888

4822

12745

20455

6

Dharwad

1882

3029

11304

16215

7

chitradurga

4698

5075

10732

210

1250

21965

8

Kodagu

921

1099

6953

8973

9

Gadag

16212

3476

9608

29296

10

Hassan

3793

6471

10264

11

Haveri

13281

4659

15352

33292

12

Uttara kannada

2889

2259

13812

525

19485

13

shimoga

6805

4329

20028

31162

14

yadgiri

1068

2771

65

3904

15

Tumkur

9606

10234

28929

48769

16

Udupi

1284

2846

12824

16954

17

Dakshina Kannada

2137

3663

17856

23656

18

Bagalkote

1813

4010

5823

19

Bangalore Urban

0

3161

3161

20

Mysore

13357

6602

13686

933

34578

21

Belgaum

14134

32094

186

46414

22

Bellary

5220

450

5670

23

Chikkababallapura

4985

52

5037

24

Chikkamangalore

3283

13085

16368

25

Gulbarga

6349

1570

7919

26

Kolar

4217

1063

5280

27

Koppal

2868

7611

10479

28

Mandya

6638

0

6638

29

Raichur

5045

0

5045

30

Ramanagar

4635

0

126

4761

Total

 

104830

140,000

234305

336

7132

486603

Source: NRLM Bangalore office manual

                                                                                                                                                     

   

Table-1B

Mukhyavahini – Stree Shakthi Total Consolidated Report October – 2013

Year

Month

District

No. of Self Help Groups (SHG)

Total Groups with less than 15 members

Total No. of Women in SHG SC

Total No. of Women in SHG ST

Total No. of Women in SHG Minorities

Total No. of Women in SHG Others

Total No. of Groups having Bank linkages

No. of Gps. Having Bank Linkages ONLY for the purpose of opening accounts

Total No. of Women of all categories

2013-14

10

Bangalore

3161

1989

13289

1884

722

37609

3161

0

5350

2013-14

10

Bangalore Rural

3365

1701

12170

4595

3730

21023

2985

381

41518

2013-14

10

Bagalkote

4010

1670

10310

3897

6519

48894

4008

5

69620

2013-14

10

Bellary

5220

759

14846

9970

7754

32646

4539

681

65216

2013-14

10

Bidar

2939

2822

10543

3519

3446

24271

2740

199

41779

2013-14

10

Bijapur

3888

753

4968

702

2085

10989

2829

1059

18744

2013-14

10

Chamarajanagar

3928

181

16389

5158

1034

41294

3928

0

63875

2013-14

10

Chikmagalur

3283

901

8911

1697

3304

28475

2975

385

42387

2013-14

10

Chikaballapur

4985

944

14463

7550

1010

32735

4509

403

55758

2013-14

10

Chitradurga

5075

664

12366

10120

1721

31987

4931

144

56194

2013-14

10

Davangere

4822

315

15075

8635

6465

30418

4440

395

60593

2013-14

10

Dakshina Kannada

3663

3309

5262

3141

9578

32382

3663

0

50363

2013-14

10

Dharwad

3029

197

5957

3588

7464

41860

2333

696

58869

2013-14

10

Gadag

3476

1370

5441

2990

6537

26092

2851

625

41060

2013-14

10

Gulbarga

6349

723

25883

6741

9167

50121

4499

1850

91912

2013-14

10

Hassan

6471

1205

22179

3195

2124

89613

6453

18

117111

2013-14

10

Haveri

4659

751

12764

9061

8360

45349

4193

466

75534

2013-14

10

Kodagu

1099

412

3344

1590

2170

9262

1008

74

16366

2013-14

10

Kolar

4217

50

20157

3885

4754

30190

2701

1512

58956

2013-14

10

Koppal

2868

145

10059

6459

3404

24393

2713

155

44315

2013-14

10

Mandya

6638

876

16528

639

3033

89670

6274

364

109870

2013-14

10

Mysore

6602

1940

25837

10043

5144

75629

6379

223

116653

2013-14

10

Raichur

5045

1158

11876

10544

8148

36362

4728

317

66930

2013-14

10

Ramanagar

4635

161

15260

973

1382

59888

4066

569

77503

2013-14

10

Shimoga

4329

1291

10146

2101

3346

32835

4065

264

48428

2013-14

10

Tumkur

10234

698

35315

16628

9264

86630

9653

581

146837

2013-14

10

Udupi

2846

1008

2844

2274

3046

35521

2835

11

43685

2013-14

10

Uttar Kannada

2259

927

2481

564

1480

26343

1944

315

30868

2013-14

10

Yadgiri

2771

10

10837

609

3796

21020

2364

407

36262

 

Total

140000

29140

404682

162055

150284

1297339

124766

15234

2014360

Source: Women and Child Development Department, Bangalore.

 

 

Coverage of the Area and Self –Help Groups

For the purpose of study and analysis, one hundred (100 )Self-Help Groups (SHGs)formed by different NGOs, Banks and Government organizations functioning in eight(8)sample  districts of Karnataka  are covered.  Convenient sampling technique is applied to choose the Self Help Groups. From each district 10 groups are selected giving more representation to U.Kannada district and from each group’s 3 members are selected giving more representation to U.Kannada district. On an average 300 members are selected and interviewed both through personal and telephonic mode. SHGs functioning in both rural and urban areas, Govt. sponsored SHGs like Stree- Shakti groups and SHGs formed by  Non-Government Organizations like SKDRDP, KDDC, MYRADA, MookambicaTrust.etc and members of SHGs belonging  to different caste ,creed  religion and sex are covered in the study. The details of the district covered, SHGs and its members included in the study are presented in Table-2

Table-2

                                 No of SHGs Covered in the Study

Sr. No.

Districts

Total No. of SHG Covered

Total No. of SHG Members Covered

Uttar KannadaDharwadShimoggaDavangereHaveriMysore

Dakshina Kannada

Udupi

30

10

10

10

10

10

10

10

90

30

30

30

30

30

30

30

Total

100

300

     Source: Field survey 

 

Nature and type of activities undertaken by SHGs

Various enterprising activities undertaken by SHGs and its members are studied and information gathered is  analyzed from which it is clear that Self Help Groups and its members are found involved in various enterprising activities like  production, marketing ,agriculture, floriculture, tailoring ,catering services,fishing, service activities etc. The details of the activities undertaken by SHGs and its members are shown in Table 3

Table -3

Nature of activities undertaken by SHGs

Sl No                    Nature of activities undertaken
1 Production and Marketing activities
2 Agriculture, Horticulture and floriculture activities
3 Fishing business
4 Tailoring
5 Dairy and Bakery business
6 Agency business
7 Service  and other activities

Source: Field survey 

                                  Enterprises started by Self-Help Groups

Analysis of enterprises started by Self Help Groups covered in the study are presented in Table-4 which shows that SHGs have not taken any interest in establishing  any business units or enterprises through their groups. Of the 100 groups covered in the study only 9 groups in six districts have started 9 types of enterprises in the form of petty shops, flour mills, floriculture, sweet making, agency business, fishing business catering services etc. SHGs in Mysore and Davangere districts covered in the study have not at all taken any interest in starting any enterprises. However SHGs in Uttar Kannada, Dharwad, Shivmogga, Haveri,D.Kannada and Udupi districts have taken initiative in starting few enterprises. From the above analysis it can be concluded that self –Help Groups are not interested in starting any of the enterprising activities through their groups. However, enterprises started by SHG members shows that, many of the SHG members individually have taken special interest in starting one or the other type of business or enterprises in different places. Out of the 300 members of 8 districts covered in the study 124 (41%) members have taken initiative in establishing different enterprises. Highest number of 22 enterprises is started in D.Kannada district followed by 20 in Mysore and 19 in Udupi districts. Lowest number of enterprises is found opened in U.Kannad and Dharwad districts. The details of the enterprises started by the SHG members are presented in Table -4

Enterprises continued: All the enterprises set up by the SHGs and its members are not continued. Some of the units are either closed or have become sick .As Compared to the enterprises started by                                                     

                                              

 

 

 

 

 

Table-4

                                    Enterprises started and continued by SHGs

Sr. No.

Districts

Total No. of SHG’s Covered

Total No. of SHG Members Covered

No. of Enterprises started

No of Enterprises Continued

By Self Help Groups

By SHG Members

by Self Help Groups

by SHG Members

Uttar KannadaDharwadShimoggaDavangereHaveriMysore

Dakshina Kannada

Udupi

30

10

10

10

10

10

10

10

90

30

30

30

30

30

30

30

03

01

01

00

02

00

01

01

23

09

10

10

11

20

22

19

00

00

00

00

02

00

00

01

20

06

07

06

10

18

21

18

Total

100

300

09

124

03

106

      Source: Field survey 

Type of enterprises started by SHG members

               Information relating to type of enterprises started by the SHG members is collected and presented in Table-5 which shows that varieties of business are started by SHG members in different places of the districts. Of the 300 members covered in the study 124 members (41%) are found involved in different enterprising activities like production, marketing, agriculture, horticulture, service activities etc. Highest number of 32 members have started tailoring units  while 15 members have opened grocery &petty shops and pickle &papad units, 10 members are found involved in fishing, horticulture and floriculture business. Bakery, ornamental business, cement and bricks agencies, pottery and toy making units are started by 2members each respectively. Dairy, agribusiness, flour mills, beauty parlor sweet making, candle making etc are also started by SHG members in various parts of the districts as shown in the Table. As compared to the activities undertaken by the Self Help Groups in common, activities undertaken by SHG members are more in number. On an average 40%members of SHGs have developed enterprising qualities and have tried to establish their own enterprises. It is further observed that SHGs and its members from Udupi and D.Kannada districts have established more enterprises as compared to the enterprises opened by SHG members of the rest of the districts covered in the study.                     

                                                   Table-5

                  Type of enterprises started by SHG members

Sr. No.

Types of enterprises / units started

No of units

18.

19.

Agarbatti UnitsBeauty ParlorBakeryCandle MakingDairyHorticulture & Floriculture Business

Grocery stores & Petty Shops

Agri Business

Ornament Business

Agency Business

Flour Mill

Pottery & Toy Making

Tailoring

Pickle & Papad Units

Sweets making

Vegetable and fruit shop

Vermi Culture

Fishing Business

Other Business

04

03

02

05

04

10

15

05

02

02

04

02

32

15

04

04

04

10

07

     Total

124

      Source: Field survey     

Willingness of SHGs to start Enterprises

 Information regarding willingness of SHGs and its members to start enterprises is gathered and presented in Table -6 which shows that only 44% groups are willing to start enterprises.  Compared to 8 district covered in the study SHGs functioning in D.Kannada district are very much active and as many as 8 out of 10 groups covered in the study have shown interest in starting the enterprises followed by Mysore 7 groups, Haveri and Shimogga 5 groups, Davangere  4, Udupi 2  groups and  3 groups in rest of the districts covered in the study have shown interest.

As far as willingness of the SHG members to start enterprises is concerned it is interested to note that out of 300 members’ 278 (92%) members have shown interest and are willing to start one or the other type of enterprises if they are encouraged, trained and guided by their sponsoring organizations. Majority of the members are of the opinion that they are ready to start any type of the enterprises in their home or nearby convenient places in the form of manufacturing or retailing unit if their financial and marketing problems are solved. Among the eight district covered in the study, highest number of 94 %members from U.Kannada district are ready to be an entrepreneurs while 91% members have shown  interest from Dharwad,Davangere and D.Kannada to start their own enterprises followed by  Shivmogga,Haveri and Mysore(83%).Thus above analysis shows that SHG members are individually interested in starting enterprises rather than in groups.

Table-6

No of Self Help Groups (SHGs) willing to start enterprises

Sr. No.

District

No. of Self Help Groups

No. of SHG Members

Total

Willing

Unwilling

Total

Willing

Unwilling

Uttar KannadaDharwadShimoggaDavangereHaveriMysore

Dakshina Kannada

Udupi

30

10

10

10

10

10

10

10

10

03

05

04

05

07

08

02

20

07

05

06

05

03

02

08

90

30

30

30

30

30

30

30

85

28

27

29

26

25

30

28

05

02

03

01

04

05

00

02

Total

100

44

100

300

278

22

       Source: Field survey 

Entrepreneurial training programme arranged for SHG members

Entrepreneurial training program me arranged for SHG members and number of members benefited from the training programme are presented in Table -7 which indicates that as many as 30 training programmes were arranged by the different agencies in different districts so as to encourage the members to become entrepreneurs. It is interesting to note that out of 300 members covered in the study 214(71 %) members have attended and took the benefit of the training program me. Highest number of 6 training programmes were arranged in D.Kannada district while 4 programmes took place in U.Kannada,Davangere and Haveri and 3 programmes were arranged in Dharwad,Shimoggga,Mysore and Udupi districts respectively.Highest number of 86% members have attended training from Davangere and D.Kannada districts while from Mysore district only 50%members took the benefit of the training .From the above analysis it can be concluded that majority of SHG members underwent entrepreneurial training and are interested in becoming entrepreneurs.

 

Table-7

 Entrepreneurial training programme arranged for SHG members

Sr. No.

District

No. of programmes arranged

 

No. of members participated

Total no. of members covered in the study

Uttar KannadaDharwadShimoggaDavangereHaveriMysore

Dakshina Kannada

Udupi

04

03

03

04

04

03

06

03

70

22

18

26

17

20

26

15

90

30

30

30

30

30

30

30

Total

30

214

300

      Source: Field survey 

Problems in starting enterprises

Though SHG members are interested in starting the enterprises they have expressed that financial, marketing and technical problems are coming in their way of starting the enterprises. When asked about financial problem, 95% members expressed positively. In connection with marketing, 66% members said that they have marketing problem and only 16% of the members told that they have technical problems like registration, government permission etc .Analysis of the above problem indicates that financial and marketing problem of the SHG members need to be given importance so as to encourage them to start enterprises. The details of the problems faced by the SHG members are given in Table- 8

                                                          

Table-8

Problems in starting enterprises

Sr. No.

Nature of Problem

Response

Yes

No

Total

Financial ProblemMarketing ProblemTechnical Problem

285

200

50

15

100

250

300

300

300

      Source: Field survey                                      

 

Ambition for expansion and Diversification of enterprises

SHG members’ ambition for expansion and diversification of entrepreneurial activities are analyzed and depicted in Table-9 from which it appeared that 60%of the members are doing fairly well in their business and have planned for expansion of their business by introducing new product or by opening new units in other places. As far as diversification is concerned only 30% members who are already in business have planned for diversification and rest of the members thought of continuing in the same line of business. However when asked about continuation of business, it is observed that almost all who are involved in business activities wished to continue the business with or without any expansion or diversification.

                                                   Table-9

Ambition for expansion and diversification in entrepreneurial activities

Sr. No.

Future Plan

Response

Yes %

Plan for expansionPlan for diversificationContinuation  in same line of business

60

30

10

Total                                               

100

      Source: Field survey                   

Support extended in starting enterprises

Analysis of the support extended to the SHG members were made and observed that 60% support was extended by their family members and 25% support was given by Government and sponsoring organizations and SHG members and friends support accounted for 15%.Thus SHG members could get support from all the sides and hence could continue their business successfully. The details are shown in Table-10

 

 

 

 

Table-10

Support extended in starting enterprises

Sr. No.

Nature of support

Response

Yes %

Family SupportGovt. and SHG promoters SupportSHG member and friends Support

60

25

15

  Total

100

                   Source: Field survey                                                      

Publicity and advertisement

Table-11 relates to publicity and advertisement of business and product produced  by SHG members as entrepreneurs .Observation made in this connection shows that 50%of the publicity was made by entrepreneurs themselves, 30% publicity was given by SHG members and friends and 20% publicity was accounted from sponsoring organizations including government. Thus business units started by SHG members and products produced by SHG members have attracted many people both from urban and rural.                                                          

 

 

 

 

 

Table  -11

                                                  Publicity and Advertisement

Sr. No.

Publicity

Response

Yes %

Own PublicitySHG MembersGovt. /Promoters

50

30

20

Total

100

      Source: Field survey                                                                                           

Success of entrepreneurs in terms of profitability.

As far as success of entrepreneurs is concerned it is happy to note that almost all SHG members who have started various enterprises in various places have become success in managing their enterprises. Analysis of the success rate shows 76% enterprises have earned profit up to Rs 1 lakhs, 4% units have earned profits up to Rs 5 lakhs and  20% proprietors opined that they have neither earned profits nor incurred loss but have continued their business. The details of success of entrepreneurs is shown in Table-12

Table-12

Success of Entrepreneurs in terms of profitability

Sr. No.

Rate of Profit

(Since inception)

No of Enterprises

Up to  Rs 1 LakhRs. 1 Lakh to Rs. 5 LakhRs. 5 Lakh and aboveNo profit – no loss units

95

05

00

24

Total

124

       Source: Field survey                                      

Summary of findings and conclusion

The study and analysis made on moving self help groups towards entrepreneurship has revealed the following findings.

  1. Self-Help Groups are formed by both government and Non government organizations (NGOs) including Trusts and Co-operative banks   in the entire districts covered in the study.
  2. Govt. sponsored Stree Shakhty groups and SHGs formed by NGOs like SKDRDP,KDDC,MYRADA, Navodaya  Charitable Trust, Mookambica Trust are the leading groups functioning in various districts covered in the study. Some of the groups are voluntarily formed by the different community members for their benefit without taking any benefit from govt. or any other organizations.
  3. As on 31-10-2013 there are in all.4, 86,603 self help groups formed by different organizations belonging to different caste, creed, religion and community in the state. Out of 4, 86,603 SHGs 1, 95,797 SHGs are functioning in 8 districts covered in the study.
  4. It is happy to note that 41% Self Help Group members covered in the study are found involved in various enterprising activities like  production, marketing, agriculture, floriculture, tailoring ,fishing, service activities etc. However Self Help Groups have not taken an interest in establishing any productive enterprises.
  5. Analysis of entrepreneurial activities undertaken by SHGs shows that Self Help Groups have not taken special interest in establishing any enterprises in the entire districts covered in the study .Of the 100 groups covered in the study only 9 groups in five districts have started 9 types of enterprises in the form of petty shops, flour mills, floriculture, sweet making, agency business, fishing business etc. SHGs in Mysore and Davangere districts have not at all taken any interest in starting any enterprises. However SHGs in Dharwad,Haveri ,Shivmogga,D.Kannada U Kannada and Udupi districts have taken initiative in starting few enterprises in the form of petty shops, flour mills, agency business etc. Three groups have started 3 types of business units in U.K district where as in Haveri districts two groups have opened hotel and food processing units through SHGs.
  6.  Though the enterprises are hardly started by SHGs, all the enterprises are not continued and only 3 units are found continued in three districts.  Some of the enterprises are either closed or have become sick. Due to non cooperation among the members and severe competition in the market, all the enterprises started by SHGs are not continued.
  7. It is happy to note that enterprises started by SHG members are continued and are functioning successfully. Of the 300 members covered in the study 124 members (41%) are found involved in different enterprising activities like production, marketing, agriculture, horticulture, service activities etc .Highest number of 36members have started tailoring units either in their home or in market while 15 members have opened grocery and petty shops and 10 members are found involved in fishing, horticulture and floriculture business respectively. Agarbatti units, bakery, ornamental business, cement and bricks agencies, readymade garments shops are started by 2members each respectively. Dairy,agribusiness,flour mills,pickle and papad units beauty parlor ,sweet making,vermiculture etc are also started by SHG members in various parts of the districts.
  8. As compared to the activities undertaken by the Self Help Groups in common, activities undertaken by SHG members are more in number. On an average 40%members of SHGs have developed enterprising qualities and have tried to establish their own enterprises. It is further observed that SHGs and its members from Udupi and D.Kannada districts have established more enterprises as compared to the enterprises opened by SHGs of the rest of the districts covered in the study
  9. Analysis of the willingness of SHGs to start enterprises shows that only 44% are willing to start enterprises and 56%of the groups covered in the study are not interested in starting any of the enterprises .Though 44% of the groups are willing to start the enterprises, type of the enterprises and place where the enterprises need to be started are the big problems for   the groups. Compared to 8 districts covered in the study, SHGs functioning in D.Kannada district are very much active and as many as 8 out of 10 groups covered in the study have shown interest in starting the enterprises followed by Mysore 7 groups, Haveri  5 groups, Davangere  and Udupi  4 groups and  3 groups in rest of the districts have shown interest in starting the new enterprises.
  10.  In order to motivate SHG members ,30 entrepreneurial training programmes were conducted for SHG members  and it is interesting to note that out of 300 members covered in the study 214(71 %) members have attended and took the benefit of the training program me. Highest number of 6 training programmes were arranged in D.Kannada district while 4 programmes took place in U.Kannada,Davangere and Haveri and 3 programmes were arranged in Dharwad,Shimoggga,Mysore and Udupi districts respectively.Highest number of 86% members have attended training from Davangere and D.Kannada districts while from Mysore district only 50%members took the benefit of the training.
  11. It is observed that majority of the SHG members are interested in starting the enterprises but they have expressed that financial, marketing and technical problems are coming in their way of starting the enterprises. 60% members expressed financial problem while 30% said about marketing problem and only 10% members told about technical problems like registration, government permission etc
  12. It is important to note that SHG members have shown interest   for expansion and diversification of their entrepreneurial activities. 60%of the members are doing fairly well and they are in favor of expansion of their business by introducing new products or by opening new units in other places. As far as diversification is concerned only 30% members who are already in business have planned for diversification and rest of the members thought of continuing in the same line of business. However when asked about continuation of business, it is observed that almost all who are involved in business activities wished to continue the business with or without any expansion or diversification
  13. Analysis of the support extended to the SHG members were made and observed that 60% support was extended by their family members and 25% support was given by Government and sponsoring organizations and SHG members and friends support accounted for 15%.Thus SHG members could get support from all the sides and hence could continue their business successfully.
  14.  It is also observed that product produced and business started by SHG members were given wide publicity.Observation made in this connection shows that 50%of the publicity was made by entrepreneurs themselves, 30% publicity was given by SHG members and friends and 20% publicity was accounted from sponsoring organizations including government. Thus business units started by SHG members and products produced by SHG members have attracted many people both from urban and rural areas.
  15.  As far as success of entrepreneurs is concerned it is happy to note that almost all SHG members who have started various enterprises have become success in managing their business. Analysis of the success rate shows that 95( 76%) enterprises have earned profit up to Rs 1 lakh, 5( 4%) units have earned profits above 1lakh but up to Rs 5  lakh  and  24 units(20%)proprietors opined that they have neither earned profits nor incurred loss but have continued their business.

On the basis of the above findings it can be concluded that majority of the SHG members have developed entrepreneurial qualities and have established different types of enterprises in different places. Almost all the enterprises /business units established by them are functioning fairly well and some of them are even planning to expand their business. Some of the members have very good potential to become entrepreneurs. Through proper guidance, motivation and training they can be converted in to a successful entrepreneurs.

 

 

 

 

 

 

 

 

BIBLIOGRAPHY

BOOKS

  1. Panda Jagannath & Pradhan Punya Prava:Entrepreneurship and  Economic Development. WIDE VISION, Jaipur.
  2. Gorden E & K Natarajan: Entrepreneurship Development: Himalaya Publishing    House.
  3. Varshney G.K.(Dr):Fundamentals of  Entrepreneurship-Sahitya Bhavan Publications, Agra.
  4. Guledgudd M.L  (Dr)& Guledgudd S.L  (Dr):Entrepreneurship and Small Enterprise Management-Sri Sai Publications Gadag.
  5. Verma S.B-Role of Self Help Groups and NGOs: IVP Publications New Delhi
  6. Bhandari Vinayak.M.(Dr)-Role of Self Help Groups in rural development  with reference to U.Kannada district.A Minor Research Project report submitted to UGC,SWRO,Bangalore in 2011.

 

Journals and Periodicals

  1. The Indian Journal of Commerce
  2. Indian Journal of Social Science Research
  3. Ushes
  4. Yojana
  5. Daily news papers viz Vijay Karnataka and Deccan Herald

 

 

Dr. Ramakrishna R. Shastri, M.A. Ph.D. 

  Associate Professor