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Women empowerment through self-help groups: The role of information&

communication technology – A case study of Jharkhand state in India

Article  in  International Journal of Applied Engineering Research · January 2014

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International Journal of Applied Engineering Research
ISSN 0973-4562 Volume 9, Number 24 (2014) pp. 28631-28643
© Research India Publications
http://www.ripublication.com

Women Empowerment through Self-Help Groups:

the role of Information& Communication Technology
– A case study of Jharkhand State in India

Soumitro Chakravarty1, Umesh Prasad2, Anant Kumar3 , Amar Nath Jha4

1
Birla Institute of Technology, Mesra
2
Birla Institute of Technology, Mesra
3
Xavier Institute of Social Science, Ranchi
4
Birla Institute of Technology, Mesra
Corresponding Author: Soumitro Chakravarty, E-mail:
soumitrochakravarty123@gmail.com

Abstract

The mechanism of women self-help groups for alleviating poverty and

empowering women have been functional across various parts of India over
the last few decades. This mechanism aims to engage women in income
generation activities and thereby make them economically self-reliant by
providing them with customized savings and credit facilities for their needs,
thereby removing their reliance upon local money lenders in villages.
Self-help groups in India essentially comprise of poor rural women who
utilize the credit facilities provided to them through the group for their basic
needs as well as for setting up income generation activities which further
enhances their socio-economic status.
The present paper seeks to explore and analyze the potential, role, scope &
limitations of Information and communication technology in enhancing the
efficiency of the activities of self-help groups in India based upon an
empirical study carried out across two blocks in the Ranchi District of
Jharkhand state.

Keywords: Women empowerment; Self-help groups; Information &

Communication Technology (ICT); Socio-economic status; India;
28632 Soumitro Chakravarty et al

1. Introduction
In any society the role played by women is of crucial significance and an important
indicator for a nation’s over-all progress and without the active contribution of women
in the economy any society is not expected to prosper (Chakravarty et al. 2013).
Globally, despite representing half of the total population and accounting for
two-thirds of the total work hours, women earn only a meagre one third of the total
income and very sadly they own less than one-tenth of the world’s resources.This
emphasizes the poor socio-economic status of women world-wide and the same is true
in case of a developing nation like India (Reddy et al. 2002).
Women in rural India are forced to play a very sub-ordinate status to their
male counterparts both at home and outside and the wages that they receive for their
work are much lesser as compared to their male counterparts. Further, they are either
compelled to work within the confines of the household and if they are working
outside they are generally engaged in low-paid field activities which do little to
enhance their self-esteem and socio economic status (Kumar, 2006).
Given such a bleak scenario where the status of women in rural areas is even
poorer owing to low levels of literacy and other development indicators, the concept
of Self-help groups (SHGs) as a mechanism for poverty alleviation and women
empowerment has gained a great deal of attention over the last few decades.

1.1 Self-Help Groups (SHGs): Meaning & concept

SHGs which refer to a voluntary association of 10-20 persons (usually women) who
join hands to solve their problems based upon mutual help and cooperation basis have
provided a platform for the poor rural women to come together and solve their
problems based upon mutual help and cooperation.
They have also enabled women to address the social problems they have been
facing by inculcation of a feeling of social-affiliation as a result of belonging to a
group and further, the savings and credit facilities provided in the group by the group
members independently or in collaboration under the mentorship of Non-Government
organizations, banks and/or other institutions have paved the way for economic self
reliance which was so desperately missing in the past (Kumar, 2006).

1.2 Impact of SHGs on Women

There has been a great deal of research conducted by researchers across various parts
of India which has endorsed the positive impact of SHGs upon the participating
women.
Being part of a SHG and having access to micro-credit has helped improving
the economic situation of low-income category women and have also resulted in
inculcating the savings habit among women (Panchakshari & Huddedar, 2012).
Further, it has also been reported that SHGs have been instrumental in
Women Empowerment through Self-Help Groups 28633

developing the latent decision making capabilities of women and have also led to the
development of their leadership skills (Das, 2012).
Financial inclusion, which is a vital prerequisite for economic growth in
context of poor people has been made possible through the SHGs for the poor women
who join these groups (Talwar, 2012).

1.3 Information and communication technology (ICT): An introduction

The term ICT refers to those technologies that are responsible for providing access to
information to the users through telecommunications and allied techniques. Being an
umbrella term ICT includes the Internet, wireless networks, cell phones and other
mediums of communication.
The spread of ICT across various sectors and countries has been huge in the
last few decades. Further, there is an increasing belief among policy makers all around
the globe that ICT fosters development and subsequently there has been a great deal
of funds that have been used in setting up and implementing ICT infrastructure in
developing countries (Gholami et al. 2010).
Further, though it is widely believed that ICT has potentially a very important
role to play in development but the precise nature of the link between ICT and
development is yet not very clearly examined till-date. Therefore, there is a need to
thoroughly re-examine, conceptualize and justify the role of ICT in development
(Harindranath & Maung, 2007).
Taking into account the intriguing assumption that ICTs foster development, it
is felt that the potential role of ICT in a developing country like India could be an
interesting area for research. Further, how ICT can facilitate the functioning of SHGs
which have emerged as a very widely adopted development model for the poor in
India could result in useful insights and ideas.

1.4 The rationale of using ICT for effectiveness of SHGs

Women self-help groups in India are majorly performing with a view to engage poor
rural women in income generation activities and thereby making them economically
self-reliant by providing them with customized credit and saving facilities
(Chakravarty et al. 2013).
ICT which essentially comprise of an integrated collection of hardware,
software, internet and other related communication networks and media which
provide adequate support for decision making and facilitates the work carried out by
various organizations. (ICT) have made deep inroads in almost all sectors across India
with an impact that is very well documented in the economy. It has been argued that
ICT can provide valuable resources for women in developing countries that lack
access to knowledge and productive resources for a sound socio-economic status (De
& Aishwarya, 2009).
28634 Soumitro Chakravarty et al

Use of ICT has a great deal of potential in terms of empowering women and
ensuring that the social and economic barrier faced by women are effectively
overcome to ensure that they actualize their true potential in life Certain aspects of
SHGs like training, educating and motivating women for success can be done more
effectively if backed up by a proper ICT framework.The potential of ICT if properly
tapped and utilized can ensure that women empowerment becomes more noticeable
and it would add to the enrichment of the life of women joining SHGs and the social
dimensions of SHGs would get a boost in the process (Nimbalkar et al. 2014).
The present working research paper tries to explore the extent to which the use
of ICT can be helpful for the purpose of enhancing the effectiveness of SHGs in India
based on an empirical study conducted in the Ranchi district of Jharkhand state in
India.

2. Research Design and Methodology

Research Design refers to the conceptual framework within which a given study needs
to be conducted.The importance of a proper and accurate research design is very
important for any study as it is a plan of action for any research project and its role is
analogous to the role of a blue-print which is prepared before any building is
constructed. It is in fact the road map for the study that has been taken up.

2.1 Objectives of the study

The broad objective of the study is to assess the scope and limitations of ICT in
enhancing the activities of SHGs and thereby influence the socio-economic status of
the members.

The specific objectives of the study are as mentioned below:

1. To study the awareness levels of ICT among the members of the SHGs.
2. To examine the role played by ICT in SHGs and their benefits to the members.
3. To identify the barriers encountered by women for using ICT tools and
propose solutions for the same.
4. To explore the linkage between the educational level of the members and their
use of ICT tools in SHGs.

2.2 Nature of Research

The study is both descriptive and exploratory in nature. The descriptive section
describes the socio-economic characteristics of members of the SHGs and the
exploratory section aims to explore the extent to which ICT has benefitted the
members and the barriers experienced by them in using ICT tools in order to suggest
solutions and also pave the way for future research in the area.
Women Empowerment through Self-Help Groups 28635

2.3 Sources of Data Collection

The study relies upon both primary and secondary sources of data collection. The
primary data has been collected from the respondents, group leaders and project
coordinating staff of NGOs by means of a semi-structured questionnaire and in-depth
personal interviews along with Focus Group Discussions (FGDs). Secondary data has
been collected from the available sources like the SHG book of records and accounts
maintained by the respective NGOs, their websites, earlier works done in the area by
fellow researchers etc. The data collection for the study was done in the period from
January to July 2014.

2.4 Choice of the study location

The study is based in Ranchi district of Jharkhand state in India. The reasons behind
choosing Ranchi among the 24 districts in the Jharkhand state is that being the state
capital, Ranchi has a relatively greater number of women SHGs as compared to other
districts and further, there is a network of renowned NGOs like Nav Bharat Jagriti
Kendra (NBJK), NEEDS etc which have been working with the SHGs in the region
for a considerable length of time. Moreover, though various studies have been
conducted in this region related to SHGs and their impact upon the socio-economic
status of participating women, there has not been even a single study that explored the
linkage between ICT tools and the effectiveness of SHGs. This study aims to fill in
this research gap.

Table 1: Administrative set-up of Ranchi District

Subdivision Block Panchayat Village

Inhabited Uninhabited Total
Kanke 36 101 3 104
Ranchi Ratu 27 84 0 84
Chanho 17 67 0 67
Mandar 19 69 0 69
Lapung 11 78 1 79
Burmu 23 93 0 93
Bero 26 114 0 114
Namkum 23 93 6 99
Ormanjhi 18 88 3 91
Angara 23 91 1 92
Silli 22 106 3 109
Bundu Bundu 11 87 1 88
Sonahatu 19 101 0 101
Tamar 23 128 1 129
(Source:www.ranchi.nic.in)
28636 Soumitro Chakravarty et al

The blocks chosen for the purpose of the study are Bero and Silli with the
reason being an increased concentration of villages and women SHGs in those blocks
and they are being mentored by reputed NGOs of the region.

2.5 Sample size and details:

For the purpose of the study 20 SHGs have been selected (10 from each block) with
10 respondents being selected from each SHG. Only those SHGs have been included
in the study which have been functional for more than 3 years as the newer SHGs are
very much in the developing stages and it was felt that the validity of data gathered
will be more in case of older SHGs. Further, out of the 10 participants chosen from
each SHG the selection was done keeping in mind that group leaders are chosen as
respondents in all cases owing to their administrative experience and exposure in
conducting the group related activities.

2.6 Statistical tools & techniques employed:

The study employs both qualitative and quantitative tools. The quantitative data was
analyzed using Statistical Package for Social Sciences (SPSS) software and simple
descriptive statistics was used to generate the tables which were then imported to
Microsoft word for ease of viewing & discussions. Likert scales were used for
recording data related to qualitative aspects of the questionnaire with scores being
assigned for the responses depending upon the respective degree of
agreement/disagreement.

2.7 Limitations:
Due to lack of time and resources, this being a research work that was carried out
independently by us, the sample size was relatively lesser for a study of this
magnitude. We feel that it may not be proper to generalize the results of this study for
a state in totality based on the analysis of two blocks of a given district only. We feel
that this small study will pave the way for greater and more in-depth research across
other parts of the state of Jharkhand to get more decisive information about the status
of ICT and its role in SHGs. Further, barriers were encountered in gathering responses
to some of the questions included in the questionnaire and therefore after pre-testing,
the questionnaire had to be revised and some questions had to be excluded which may
have affected the quality of data gathered. Though local language was used for the
ease of understanding of the respondents but still approximations/assumptions were
needed in case of some questions owing to the low level of literacy and understanding
of some of the respondents.
Women Empowerment through Self-Help Groups 28637

3. Findings of the study

The findings of the data collected from the 200 SHG members through pre-tested,
semi-structured questionnaire are presented below in form of tables:

Table 2: Socio-economic profile of the Respondents

Variable Details Count Percentage

Age of the respondent (in years) 18-25 10 05
26-35 60 30
36-45 114 57
46 and above 16 08
Marital Status Married 162 81
Unmarried 28 14
Widow 10 05
Education Details Literate 40 20
Class 5 110 55
Matriculation 30 15
Intermediate 20 10
Graduate 00 00
Caste/Category SC/ST 114 57
OBC 74 37
General 12 06
Occupation Self-employed 122 61
Daily wages 66 33
Small farmers 10 05
Others 02 01
Type of family Joint 188 94
Nuclear 12 06
Family Size 0-3 38 19
4-7 144 72
7-10 10 5
More than 10 4 2
Family Income < 2000 Rupees 46 23
2001-3000 Rupees 58 29
3001 – 4000 rupees 80 40
More than 4000 rupees 16 08
(Source: Survey data)
28638 Soumitro Chakravarty et al

Table 3: Respondent’s Perception about ICT and its role in SHGs

Variable Details Count Percentage

Are you aware of ICT? Yes 144 72
No 56 28
Do you have information about Yes 146 73
Government Schemes? No 54 27
Have you got any training on ICT use? Yes 144 72
No 56 28
*If yes, training provider? Mentoring NGO 140 97.2
Other(s) 04 2.77
*Is the training being utilized for Yes 44 3.05
practical purposes? No 10 6.94
Can’t say 90 62.5
What difficulties you encountered in Language barrier 110 55
context of ICTtraining? Time limitations 60 30
Unable to attend 20 10
regularly
Other(s) 10 05
Government assistance in getting Received 0 0
training? Not received 90 45
No information 110 55
*Calculation of percentage done in context of only those respondents who received
training
(Source: Survey data)
Women Empowerment through Self-Help Groups 28639

Table 4: Perceived Impact of ICTs upon business activities of participating

women

Variable Details Count Percentage

Where do you sell your products produced using Local 120 60
credit facilities extended by the group? market
Nearby 40 20
Village
Nearby 30 15
town
Other(s) 10 5
To what extent ITC has helped to increase your To a large 0 0
market reach? extent
To a certain 40 20
extent
Very little 80 40
impact
No Change 60 30
No answer 20 10
Has the ICT related activities enhanced your To a large 0 0
income? extent
To a certain 110 55
extent
Very little 40 20
impact
No Change 0 0
No answer 50 25
Has the ICT initiatives brought about increased To a large 10 5
knowledge & awareness about your extent
product/service? To a certain 40 20
extent
Very little 110 55
impact
No Change 40 20
No answer 0 0
Has ICT helped in business office keeping To a large 20 10
responsibilities like keeping records etc? extent
To a certain 30 15
extent
Very little 100 50
impact
No Change 50 25
No answer 0 0
(Source: Survey data)
28640 Soumitro Chakravarty et al

4. Analysis of the findings, in-depth interviews and focus-group discussions

From the above tables it can be clearly seen that the impact of ICT upon participating
rural women has been non-existent to very little in almost across all parameters. A
majority of the respondents were married (81% ) and belonged to the middle age
category (57%) and thereby they had the responsibilities of managing the household
in addition to attending the group meetings and taking part in various activities.
Further, as far as education level is concerned 75% of the respondents had not done
formal schooling and this acted as a barrier to their understanding and accepting the
role of ICT as a mechanism for enhancing their social welfare and status as a result of
being part of the group. Further, other limiting factors were their size of family which
was on the higher side for most respondents and this added the responsibilities of
looking after children who were either studying in nearby schools or those who were
unemployed after finishing schools but not pursuing their higher studies.70% of the
respondents had a family income of less than rupees four thousand per month and
they had a hand to mouth existence struggling to make ends meet. 61% of the women
were self-employed and relied upon selling their home made products across
households and shops to earn a living. They reported a good income in festival
periods when the consumption of their home-made products (candles, soaps, pickles
etc) is higher. But, the economic situation reported otherwise was far from
satisfactory.
However, being part of the group did make a difference in terms of their
economic stratus and freedom as is evident from the views of the following
respondent:
“Earlier we were dependent upon the local money lender for our day-to-day
needs of money and he charged very high rates of interest. But, now after joining the
group my reliance on him has reduced. Now I get the credit facilities from the group
itself and repayment terms are also very flexible. I am happy to be a part of this
group.” [Respondent 37]

When quizzed upon their familiarity and other related aspects of ICT and its
role in SHGs the responses were very varied in nature. Quite surprisingly, despite
their low educational level a relatively high percentage of respondents (61%) reported
that they were aware of ICT though their awareness centered around only computers
and its use for office works and mobile phones usage in some cases. Further, 72% of
the respondents also received training through the mentoring NGOs related to use of
ICT but a very high percentage was unsure of the impact ICT has made in their
activities in the group and their day-to-day lives. Thus, the mentoring NGO had done
its bit in trying to make the respondents IT friendly, but their approach was a little
academic in nature and it did not translate into tangible benefits for the respondents as
observed in the views of the following respondent:
Women Empowerment through Self-Help Groups 28641

“I have attended computer training courses with my friends which were held
twice a week. I was finding it very interesting but soon the training ended and now I
have almost forgotten the things taught to me. I want to undergo training again.”
[Respondent 58]

Language barriers and time constraints were the major causes of their low
developments in getting friendly with IT tools and their usage as the training though
provided in their local language utilized software that supported English fonts and
letters and this was something that acted as a very severe limiting factor from the
respondents’ point of views.
Further, taking into account the low penetration levels of ICT usage among
members it was no surprise to know that as far as their marketing activities were
concerned the impact of ICT was very weak. A majority of the respondents in most
cases were either unsure of or of the opinion that ICT had a very little role to play as
of now as far as impact upon their marketing activities were concerned (Table 4).
The NGO project coordinating staff pointed out their problems in context of
the present ineffective reach and impact of ICT despite their best efforts of training
the women regularly by citing factors like high cost of software in local language,
limited infrastructure facilities and the lack of interest shown by the respondents
towards training owing to their family compulsions, time constraints etc.

5. Conclusion, suggestion and scope for future research

It can be inferred based on the above discussions that the impact of ICT as of now has
not been up to the mark as far as enhancing the activities of a SHG is concerned going
by our observations in context of the two blocks chosen for the purpose of our study
in Ranchi district, the state capital of Jharkhand.
Suggestions for NGOs and program implementers are as mentioned below:
1. Low level of literacy is a severe limiting factor for the women in these regions
and this acts as a barrier in their development and ICT usage despite training
provided to them. The trainings are not yielding desirable results owing to the
low levels of understanding among the respondents. So, for socio-economic
development education should be given a priority. Personalized attention is
needed for women who are school drop-outs but are interested in pursuing
studies in addition to income generation activities as well. An increase in
literacy level may result in greater interest towards learning about ICT and its
potential benefits. Further, increase in literacy will also bring about an
increase in awareness levels related to benefits of family planning, welfare
schemes in place for them etc which will ultimately result in enhanced status
and well-being.
2. SHG meetings should be encouraged to spread ICT awareness and its
28642 Soumitro Chakravarty et al

importance for the women to bring about an enhanced reach and impact.
3. NGOs should take into account the fact that ICT applications are generally in
the English language which is not the language the respondents are familiar
with. They should emphasize upon use of software in the local language of the
respondents to make them more aware of the use of ICT.
4. The NGOs should take up the role of the mentor more seriously in ensuring
that the benefits of ICT as tools for marketing the products made by the
women translate into action better.

In a nutshell it can be said that the need of the hour is that the mentoring
NGOs and program implementers of micro-credit based SHGs should diversify in
terms of their roles and move away from their predominantly economic-centered role
other additional roles like counseling, training, guiding and encouraging women to
realize their full potential and encourage them to benefit from the usage of ICT in
their day-to-day lives and business related activities.
As already mentioned, our study is a very small one in scope and it covers
only two blocks of the Ranchi district of Jharkhand state. For more authentic results
we urge a greater and more in-depth study conducted across the other districts of
Jharkhand and other states in India to gather more evidence related to the impact and
role of ICT in SHGs. This would help in understanding the reasons behind the success
or failure in part of the policy makers and NGOs which would help us in suggesting
ways and means by which the huge difference in impact of ICT across urban and rural
areas of India can be viewed in the right perspective and needed corrective actions
may be initiated.

Acknowledgments
The authors duly acknowledge the support of the SHG members and staff of the
project coordinating NGOs for their whole hearted cooperation in data collection
phase of the research work.

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