Professional Documents
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A Study On Self Help Group
A Study On Self Help Group
SUBMITTED BY:-
K.SANGEETHA
(3510910676)
S.SANGEETHA
(3510910677)
SARANYA VEERARAGHAVAN
(3510910689)
O.SARANYA
(3510910690)
SANTOSH KUMAR
(3510910687)
SUBMITTED TO:-
KATTANKULATHUR
KANCHIPURAM DISTRICT-603203
TAMILNADU, INDIA
ACKNOWLEDGEMENT
BONAFIDE CERTIFICATE
SHG is group of rural poor who have volunteered to organize themselves into a group
for eradication of poverty of the members. They agree to save regularly and convert
their savings into a Common Fund known as the Group corpus. The members of the
group agree to use this common fund and such other funds that they may receive as a
group through a common management. The group formation will keep in view the
like deserts, hills and areas with scattered and sparse population and in case of minor
irrigation and disabled persons, this number may be from 5-20. The difficult areas have
to be identified by the State Level SGSY Committee and the above relaxation in
Generally all members of the group should belong to families below the poverty line.
essentially required, upto a maximum of 30% of the members in a group may be taken
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from families marginally above the poverty line living contiguously with BPL families
and if they are acceptable to the BPL members of the group. This will help the families
marginally above the poverty line, or who may have been excluded from the BPL list to
become members of the Self Help Group. However,the APL members will not be
eligible for the subsidy under the scheme. The group shall not consist of more than one
member from the same family. A person should not be a member of more than one
group. The BPL families must actively participate in the management and decision
making, which should not ordinarily be entirely in the hands of APL families. Further,
APL members of the Self Help Group shall not become office bearers( Group Leader,
The group should devise a code of conduct (Group management norms) to bind itself.
The group should be able to draw up an agenda for each meeting and take up
The members should build their corpus through regular savings. The group should be
able to collect the minimum voluntary saving amount from all the members regularly in
the group meetings. The savings so collected will be the group corpus fund.
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The group corpus fund should be used to advance loans to the members. The group
should develop financial management norms covering the loan sanction procedure,
The members in the group meetings should take all the loaning decisions through a
The group should be able to priorities the loan applications, fix repayment schedules,
fix appropriate rate of interest for the loans advanced and closely monitor the
The group should operate a group account preferably in their service area bank
branch, so as to deposit the balance amounts left with the groups after disbursing
The group should maintain simple basic records such as Minutes book, Attendance
register, Loan ledger, General ledger, Cash book, Bank passbook and individual
passbooks. The sample proforma for maintenance of above records by the group is in
the Annexure II for guidance. These could be used with necessary changes/
50% of the groups formed in each block should be exclusively for the women. In the
disability-specific groups are not available, a group may comprise of persons with
Introduction
initiate, organize and operate a business enterprise. Government of India has defined
minimum financial interest of 51% of the capital and giving at least 51% of employment
entrepreneur has many functions. They should explore the prospects of starting new
administration and control of business and providing effective leadership in all aspects
of business.
Women in business are a recent phenomenon in India. By and large they had confide
engaged in business due to push and pull factors. Which encourage women to have an
decision-making on their life and career is the motivational factor behind this urge.
Saddled with household chores and domestic responsibilities women want to get
independence Under the influence of these factors the women entrepreneurs choose a
described as pull factors. While in push factors women engaged in business activities
Women in India are faced many problems to get ahead their life in business. A few
1. The greatest deterrent to women entrepreneurs is that they are women. A kind of
patriarchal – male dominant social order is the building block to them in their way
towards business success. Male members think it a big risk financing the ventures run
by women.
2. The financial institutions are skeptical about the entrepreneurial abilities of women.
The bankers consider women loonies as higher risk than men loonies. The bankers put
"despite evidence that women's loan repayment rates are higher than men's, women
still face more difficulties in obtaining credit," often due to discriminatory attitudes of
developing nations have little access to funds, due to the fact that they are
(Starcher, 1996; UNIDO, 1995a). The women entrepreneurs are suffering from
inadequate financial resources and working capital. The women entrepreneurs lack
access to external funds due to their inability to provide tangible security. Very few
4. Women's family obligations also bar them from becoming successful entrepreneurs
in both developed and developing nations. "Having primary responsibility for children,
home and older dependent family members, few women can devote all their time and
women entrepreneurs on the belief that they can at any time leave their business and
become housewives again. The result is that they are forced to rely on their own
5. Indian women give more emphasis to family ties and relationships. Married women
have to make a fine balance between business and home. More over the business
success is depends on the support the family members extended to women in the
They have to depend on office staffs and intermediaries, to get things done, especially,
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the marketing and sales side of business. Here there is more probability for business
fallacies like the intermediaries take major part of the surplus or profit. Marketing
means mobility and confidence in dealing with the external world, both of which women
have been discouraged from developing by social conditioning. Even when they are
otherwise in control of an enterprise, they often depend on males of the family in this
area.
7. The male - female competition is another factor, which develop hurdles to women
entrepreneurs in the business management process. Despite the fact that women
entrepreneurs are good in keeping their service prompt and delivery in time, due to
constraints from competition. The confidence to travel across day and night and even
different regions and states are less found in women compared to male entrepreneurs.
This shows the low level freedom of expression and freedom of mobility of the women
entrepreneurs.
skills are the basic requirement to run a business. Getting the raw materials from
different souse with discount prices is the factor that determines the profit margin. Lack
bargaining skills are the factors, which affect women entrepreneur's business
adventures.
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9. Knowledge of latest technological changes, know how, and education level of the
person are significant factor that affect business. The literacy rate of women in India is
found at low level compared to male population. Many women in developing nations
lack the education needed to spur successful entrepreneurship. They are ignorant of
new technologies or unskilled in their use, and often unable to do research and gain
the necessary training (UNIDO, 1995b, p.1). Although great advances are being made
technical training prevent the technology from being beneficial or even available to
Economist, this lack of knowledge and the continuing treatment of women as second-
class citizens keeps them in a pervasive cycle of poverty ("The Female Poverty Trap,"
2001). The studies indicates that uneducated women donot have the knowledge of
10. Low-level risk taking attitude is another factor affecting women folk decision to get
to the women folk to engage in business, which is continuous risk taking and strategic
cession making profession. Investing money, maintaining the operations and ploughing
back money for surplus generation requires high risk taking attitude, courage and
confidence. Though the risk tolerance ability of the women folk in day-to-day life is high
11. Achievement motivation of the women folk found less compared to male members.
The low level of education and confidence leads to low level achievement and
12. Finally high production cost of some business operations adversely affects the
expansion of the productive capacity and like similar factors dissuades the women
Right efforts on from all areas are required in the development of women
efforts can be taken into account for effective development of women entrepreneurs.
2. Better educational facilities and schemes should be extended to women folk from
government part.
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community.
entrepreneurs.
entrepreneurs.
11. Activities in which women are trained should focus on their marketability and
profitability.
12. Making provision of marketing and sales assistance from government part.
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13. To encourage more passive women entrepreneurs the Women training program
should be organized that taught to recognize her own psychological needs and
express them.
14. State finance corporations and financing institutions should permit by statute to
16. The financial institutions should provide more working capital assistance both for
17. Making provision of micro credit system and enterprise credit system to the women
18. Repeated gender sensitization programs should be held to train financiers to treat
19. Infrastructure, in the form of industrial plots and sheds, to set up industries is to be
20. Industrial estates could also provide marketing outlets for the display and sale of
21. A Women Entrepreneur's Guidance Cell set up to handle the various problems of
22. District Industries Centers and Single Window Agencies should make use of
local level.
24. Training in entrepreneurial attitudes should start at the high school level through
Self-help groups for mental health provide mutual support and peer support. Mutual
support is a process by which people voluntarily come together to help each other
Five theoretical frameworks have been used in attempts to explain the effectiveness of
self-help groups.
Social support: Having a community of people to give physical and emotional comfort,
people who love and care, is a moderating factor in the development of psychological
other members have obtained through living with severe mental illness. Validation of
Social learning theory: Members with experience become creditable role models.
Social comparison theory: Individuals with similar mental illness are attracted to each
other in order to establish a sense of normalcy for themselves. Comparing one another
to each other is considered to provide other peers with an incentive to change for the
downward comparison (seeing an example of how debilitating mental illness can be).
Helper theory: Those helping each other feel greater interpersonal competence from
changing other's lives for the better. The helpers feel they have gained as much as
they have given to others. The helpers receive "personalized learning" from working
with helpless. The helpers' self-esteem improves with the social approval received from
those they have helped, putting them an a more advantageous position to help others.
(TRYSEM), Supply of Improved Toolkits to Rural Artisans (SITRA) and Ganga Kalyan
Yojana (GKY) were conceived to be complementary to each other, for achieving the
larger goal of poverty alleviation in the rural areas. Over the years, however, there was
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integrated programs with the objective of supplementing each other efforts to ensure
energy. However each program has been implemented as a separate and independent
program that focused more on the achievement of individual program targets. The
over all impact of the programs in poverty alleviation, therefore was less than what was
expected of them. The programs were, therefore reviewed and the Swaranjayanti
Gram Swarozgar Yojana (SGSY) was launched on April 1999as the single self-
Women owned businesses are highly increasing in the economies of almost all
changing with the growing sensitivity to the role and economic status in the society.
Skill, knowledge and adaptability in business are the main reasons for women to
challenging role to meet her personal needs and become economically independent. A
who is capable of contributing values in both family and social life. With the advent of
media, women are aware of their own traits, rights and also the work situations. The
glass ceilings are shattered and women are found indulged in every line of business
from pappad to power cables. The challenges and opportunities provided to the
women of digital era are growing rapidly that the job seekers are turning into job
India, although women constitute the majority of the total population, the
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entrepreneurial world is still a male dominated one. Women in advanced nations are
recognized and are more prominent in the business world. But the Indian women
competence. The family members and the society are reluctant to stand beside their
women and yet to face a tremendous change to increase the rate of growth in
entrepreneurship.
great barrier for succeeding in business career. Only few women are able to manage
both home and business efficiently, devoting enough time to perform all their
responsibilities in priority.
c) Market-oriented risks – Stiff competition in the market and lack of mobility of women
business women find it difficult to capture the market and make their products popular.
They are not fully aware of the changing market conditions and hence can effectively
d) Motivational factors – Self motivation can be realized through a mind set for a
successful business, attitude to take up risk and behavior towards the business society
by shouldering the social responsibilities. Other factors are family support, Government
policies, financial assistance from public and private institutions and also the
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constantly to acquire the skills and knowledge in all the functional areas of business
management. This can facilitate women to excel in decision making process and
f) Awareness about the financial assistance – Various institutions in the financial sector
extend their maximum support in the form of incentives, loans, schemes etc. Even then
every woman entrepreneur may not be aware of all the assistance provided by the
institutions. So the sincere efforts taken towards women entrepreneurs may not reach
g) Exposed to the training programs - Training programs and workshops for every type
duration, skill and the purpose of the training program. Such programs are really useful
to new, rural and young entrepreneurs who want to set up a small and medium scale
h) Identifying the available resources – Women are hesitant to find out the access to
cater their needs in the financial and marketing areas. In spite of the mushrooming
growth of associations, institutions, and the schemes from the government side,
women are not enterprising and dynamic to optimize the resources in the form of
encouraged for managing their own business, rather than dependent on wage
employment outlets. The unexplored talents of young women can be identified, trained
and used for various types of to increase the productivity in the industrial sector. A
values and involve greatly in business dealings. The additional business opportunities
• Eco-friendly technology
• Bio-technology
• IT enabled enterprises
• Event Management
• Tourism industry
• Telecommunication
• Plastic materials
• Vermiculture
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• Mineral water
• Sericulture
• Floriculture
Membership
From one family, only one person can become a member of an SHG.(More families
The group normally consists of either only men or of only women. Mixed groups are
Women’s groups are generally found to perform better. (They are better in savings and
Members should have the same social and financial background.(Advantage: This
makes it easier for the members to interact freely with each other. If members are both
from rich as well as poor class, the poor may hardly get an opportunity to express
themselves.)
Those with a per capita income not exceeding Rs. 250 per month.
If a family has at least four of the above 9 common living conditions, it can be
considered poor, and one member of that family can be encouraged to become a
member of an SHG.
Meetings
The group should meet regularly. Ideally, the meetings should be weekly or at least
monthly. (Advantage: They become closer, if they meet regularly. This helps them to
Compulsory attendance : Full attendance in all the group meetings will make it easy for
Membership register, minutes register etc., are to be kept up to date by the group by
making the entries regularly.(Advantage: This helps you to know about the SHG easily.
If no member is able to maintain the books, the SHG may take outside help. (It has
been seen that a boy or girl from the village with some educational qualification does
this job enthusiastically. After some months, the group can even consider giving him or
All registers and account books should be written during the course of the meeting.
(Advantage: This creates confidence in the minds of members who are unable to read
and write.)
i) Minutes Book:
The proceedings of meetings, the rules of the group, names of the members etc. are
Details of individual loans, repayments, interest collected, balance, etc. are entered
here.
Individual members’ pass books in which individual’s savings and loan balance
* All SHG members regularly save a small amount. The amount may be small, but
savings have to be a regular and continuous habit with all the members.
* SHG members take a step towards self-dependence when they start small savings.
They learn financial discipline through savings and internal lending. (Advantage: This is
b. Internal lending:
* The SHG should use the savings amount for giving loans to members.
c. Discussing problems:
In every meeting, the SHG should be encouraged to discuss and try to find solutions to
the problems faced by the members of the group. Individually, the poor people are
weak and lack resources to solve their problems. When the group tries to help its
members, it becomes easier for them to face the difficulties and come up with
solutions.
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The SHG takes loan from the bank gives it as loan to its members. Soon after an SHG
is formed and one or two meetings held where the savings are collected, a savings
SHG
Year of establishment-2008
Idea Generation:
Their residency is at potheri; their family business is a canteen service outside the
campus. For this their major customers were SRM students. Out of which maximum
were boys hence they found a scope for starting a canteen at girls hostel. This was
considered to be the opportunity for starting up their business. Moreover, they found
that there were no competitors inside the girl’s hostel.
Thus, the respective authorities were met and they got approved for the business.
Later with the help of SHG, the canteen was established.
Partnership: the canteen was established with the partnership of two sisters.
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Women entrepreneurs face lots of threats and problems in today’s competitive world.
So there should be a balance in their business and the personal life.
Raw materials:
The business is a canteen service and hence the raw materials are follows:
Outsourcing:
The vegetables are purchased every two days from koyambedu market and stored in
refrigerator. Other raw materials are got from tambaram.
Labour:
Two men are working in the kitchen for cooking and there is a helper to do other works.
The labours are from North India and they are paid on a monthly basis.
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Sources of customers:
The customers are from girls hostel and other staffs working in the hostel.
Dishes served:
FINANCIAL STATEMENT
CAPITAL
GOVERNMENT 200000
LOAN 65000
300000
RAW MATERIAL
RICE
20000
VEGETABLES
6000
KINDS OF MASALAS
15000
CHICKENS
18000 64000
EXPENSES:
RENT 2500
ELECTRICITY 2000
SALARIES 8500
CYLINDER 6000
19000
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5000
Problem identification:
• The canteen size is too small that accomplishes too many activities with five
persons working simultaneously.
• The time taken to deliver the dishes is very late. This makes the students to lose
their patience.
• No Diversification of products.
• No sufficient labours for serving and taking order.
• Non-availability of south-Indian dishes
• Communication gap between the women entrepreneur and the labours.
• Store opening timings-dissatisfies the students while pushing up to buy certain
emergency things.
• No token system.
• No separate counters for main dishes and other things
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There are few problems that has been analyzed during the study. These problems can
be sort out easily and major changes can be brought about when some changes are
carried out.
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• There can be an addition in the cook so that the food is served as quickly as
possible
• Fresh juices, fruit salads, ice-creams and snacks can also be served with the
main items.
• South-Indian dishes can be introduced. This attracts even more students.
• There can be a uniform dress code for the cooks.
• More hygiene should be maintained.
• Introduction of token system is the immediate need to avoid over crowding.
• Provision of menu cards.
• Room delivery can also be taken care of.
• Packed food can also be introduced in the canteen services.
CONCLUSION
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women and laws guaranteeing for their equal rights of participation in political process
and equal opportunities and rights in education and employment were enacted. But
small section of women. The large majority of them are still unaffected by change and
development activities have benefited only a small section of women i.e. the urban
middle class women. The large majority of them are still unaffected by change and
development. The reasons are well sighted in the discussion part of this article. It is
hoped that the suggestions forwarded in the article will help the entrepreneurs in
particular and policy-planners in general to look into this problem and develop better
schemes, developmental programs and opportunities to the women folk to enter into
more entrepreneurial ventures. This article here tries to recollect some of the
successful women entrepreneurs like Ekta Kapoor, Creative Director, Balaji Telefilms,
Kiran Mazumdar Shaw, CEO, Biocon, Shahnaz Husain and Vimalben M Pawale, Ex
The existing scenario has been analyzed in the study. Various problems have been
identified and suitable suggestions have also been given. With the help of these
suggestions and recommendations this SHG can gain more profit and attract more
number of customers in the future.
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