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.
- To study the activities undertaken by the SHGs.
- To create awareness about the significance of entrepreneurship among SHG members
- To identify the entrepreneurial qualities among SHG members and to motivate them to start new enterprises.
- To study the type of enterprise s started by SHGs and its members
- To study the problems and progress of enterprises started by SHG members
- To study the contribution of SHGs towards socio-economic development of the society.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
- 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
- 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
- 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.
- 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.
- 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
- Panda Jagannath & Pradhan Punya Prava:Entrepreneurship and Economic Development. WIDE VISION, Jaipur.
- Gorden E & K Natarajan: Entrepreneurship Development: Himalaya Publishing House.
- Varshney G.K.(Dr):Fundamentals of Entrepreneurship-Sahitya Bhavan Publications, Agra.
- Guledgudd M.L (Dr)& Guledgudd S.L (Dr):Entrepreneurship and Small Enterprise Management-Sri Sai Publications Gadag.
- Verma S.B-Role of Self Help Groups and NGOs: IVP Publications New Delhi
- 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
- The Indian Journal of Commerce
- Indian Journal of Social Science Research
- Ushes
- Yojana
- Daily news papers viz Vijay Karnataka and Deccan Herald