Dr V M Bhandari

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

EXECUTIVE SUMMARY of MINOR RESEARCH PROJECT

 

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

      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

       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

      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

                   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