1.

INTRODUCTION
Self-help group is a method of organizing the poor people and the marginalized to come together
to solve their individual problem. The SHG method is used by the government, NGOs and others
worldwide. The poor collect their savings and save it in banks. In return they receive easy access
to loans with a small rate of interest to start their micro unit enterprise. Thousands of the poor
and the marginalized population in India are building their lives, their families and their society
through Self help groups. Before the microfinance industry, people around the world have been
borrowing and saving using various sources outside of the formal financial sector. Informal
financial services ranging from loans harks, community members and saving groups were once
the only source for low income individuals who were unbanked or under banked. Such sources
are still commonly used in both rural and urban areas, but now microfinance is a new source for
loans, savings and insurance for the estimated of Indians who do not have access to any type of
financial services and the Indians who might be unhappy with the informal financial services
they use. The World Bank has estimated that upwards of 100 million individuals have taken
advantage of microfinance. As much as $25 billion might be circulating in the industry, a
turnover statistic which represents some fraction of the unmet demand.

1.2 REVIEW OF LITERATURE

 S. Barbara and R. Mahanta (2001) in their paper maintained that the SHG's have helped
to set up a number of micro-enterprises for income generation. Rastriya Gramin Vikas
Nidhi's credit and saving programme in Assam has been found successful as its focus is
exclusively on the rural poor. It adopted a credit delivery system designed especially for
them with the support of a specially trained staff and a supportive policy with no political
intervention at any stage in the implementation of the programme.
 According to Robinson (2001) Microfinance refers to small scale financial services for
both credit and deposit that are provided to people who farm or fish or herd; operate
small or micro enterprises where goods are produced, recycled, repaired or traded;
provide services; work for wages or commissions; gain income from renting out small
amount of land, vehicle, draft animals, or machinery and tools; and to other individuals
and local groups in developing countries in both rural and urban areas”
 Gaiha and Nandhi (2005) reveal that empowerment was corroborated by different sources
and methods in varying degrees. These included gaining self-confidence, greater respect
within the family, amore assertive role in family decision-making, and better buying and
selling skills. Practices such aspolygamy, patriarchal control over resources and
social norms of reproductive responsibilities truncate this success.
 Sumitra Bithi Kachari and Dukhabandhu Sahoo (2008); explains that self-help groups
promote awareness among the women members and provide sufficient opportunities to
combat with poverty .Further the self-help groups have come out as a significant factor in
generation of income and occupations of the members which also requires conditions like
better disbursement of the micro credit to the members and these things should be taken
care of for getting more active success in this area.
 Banerjee (2004) concludes that rural development processes will generate increase in the
capacity of the rural people to control all aspects of rural life- social, economic, cultural
and political and it has some inter-linkages with poverty alleviation.
 Vasanthakumari (2008) made an attempt to examine the role of micro enterprises in
empowering women in Kerala. Sample sizes taken for the study were 328 micro
entrepreneurs. The study revealed that these enterprises helped in empowering rural
women economically, socially and individually. The study suggested giving priority
to commercial viability of enterprises.
 Mehra et al., (2010), conducted a study on 80 SHG members of Indore district, M.P. with
the objectives to understand the empowerment of women through SHG and to explore
income generating activities initiated by SHG members and associated problems.
Findings indicated that SHGs helps in empowerment of women by increasing their
financial position, influence over decisions pertaining to general welfare of the family,
political activities and their own development.
1.3 OBJECTIVES OF THE STUDY

 To study the impact of self help group in women empowerment in the district of
Balangir.
 To analyze the economic gains derived by the members after joining the SHGs in
Balangir district.
 To analyze the social benefits given by the SHGs members to the people of Balangir.

1.4 RESEARCH METHODOLOGY

The study is descriptive in nature which is collected from various published articles in journals,
different websites and internet sources, different books and articles published in newspaper and
etc. The study explores and understand how SHGs is a means towards women empowerment in
the district of Balangir. In line with the objective of the study, data from secondary sources were
collected, analyze and presented in the report.

1.5 LIMITATIONS OF THE STUDY

 The main constraint is the area, the study only focuses on the district of Balangir.
 The assessment used only secondary data to plot SHGs and its impact on women
empowerment in Balangir district. Only sample village and blocks were visited to gauge
the status of the functioning of SHGs.

2. SOCIO-ECONOMIC PROFILE OF BALANGIR DISTRICT

Balangir District, also called Bolangir District, is a district situated in the western region
of Odisha, in India. The district has an area of 5,165 km², and a population of 1,648,997 (2011
census). The town of Balangir is the district headquarters. The composition of the land is
predominantly rural. Other important big & small towns in Balangir
district are Titlagarh, Patnagarh, Kantabanji, Loisingha, Saintala, Belpada, Tushra, Agalpur,
Deogaon, Chudapali, Biripali, Bhalumunda, Bangomunda, Sindhekela, Turekela.

Economy

Balangir is a predominantly agrarian district with more than 70% of the population dependant on
agriculture for their livelihood. Cotton plantation is another important bough of agriculture
which has immense popularity in Balangir. Other than that of paddy, till, mustard etc which are
also cultivated in the district. Most of the areas follow a single cropping pattern. According to
1997 survey, out of 4,14,749 house holds, 3,69,273 nos. are Urban and 45,476 nos. are Rural
house holds in the district. Many poor migrate to cities like Hyderabad, Raipur to work there as
“Dadan Sramik”. This is a major constraint for education of their children.50 percent of the
women involve in agro based Activity and 90 percent of rural women supplement their income
through NTFP (Non timbers forest produces) like Kendu leaf, Mahula, Broom and collection of
various forest products. Since last few years, a number of SHG (Self Help Group) have been
organised by both Government. & NGOs to supplement their livelihood. Apart from this, various
Income generating programme for women like SGSY have been introduced by Govt.

Minerals and Industries

Graphite, Bauxite, Manganese, Zinc and diamond are the main natural resources of the district.
Fresh water fish production M.T. is 3630.54. The production of milk and egg in 3392000 M.T.
and 447.01 million respectively. The no of working graphite mines is 35, area covered 73 hector
and no of worker employed is 722. There are 3 quartz mines covering 67 hector with 52 workers
employed. Besides that, there are 105 small scale industries 1560 cottage industries and 12714
hand loom industries in the dist.
On May 13, 2010, Annual Credit Plan for the year 2010-2011 was launched with a projected
plan outlay of Rs. 309.97 crores. Special programmes are envisaged to arrest the flow of labour
to other states in search of work, popularly known as Dadan Shramik.

According to the 2011 census Balangir district has a population of 1,648,997, roughly equal to
the nation of Guinea-Bissau or the US state of Idaho. This gives it a ranking of 302nd in India
(out of a total of 640).The district has a literacy rate of 65.5%. At the time of the 2011 Census of
India, 98.28% of the population in the district spoke Odia and 1.18% Hindi as their first
language. A large chunk of the population of Balangir district consists of Scheduled
Tribes and Scheduled Castes.

2.1 ORIGIN OF SHG

The origin of Self Help Groups (SHGs) is the brainchild of Grameen Bank of Bangaladesh,
founded by Prof. Mohammed Yunus in 1975, who tried out a new approach to rural credit in
Bangaladesh. Grameen gave loans without asking borrowers either to provide collateral or
engage in paper work. In India NABARD initiated SHGs in the year 1986-87 but the real effort
was taken after 1991-92 from the linkage of SHGs with the banks. A SHG is a small
economically homogeneous affinity group of the rural poor voluntarily coming forward to save a
small amount of money regularly, which is deposited in a common fund to meet the members‟
emergency needs and to provide collateral free loans decided by the group. It now addresses the
issues of poverty alleviation and empowerment of poor, health, nutrition and other support
services especially women, in the rural areas of the country.

2.2 CONCEPT AND FUNCTION OF SELF-HELP GROUPS

Generally Self-Help Group consists of 10 to 20 women. The women save some amount that they
can afford. It is small amount ranging from Rs. 10 to 200 per month. A monthly meeting is
organized, where apart from disbursal & repayment of loan, formal and informal discussions are
held. Women share their experiences in these groups. The minutes of these meetings are
documented and the accounts are written. The President, Secretary and Treasurer are three
official posts in any SHG. If the SHGs are connected with some NGOs, they take part in other
social activities of those NGOs. Of late, the organizational structure of various micro-financial
groups is undergoing significant changes. There are Thrift groups, Credit management groups,
Income generating groups, Self-help groups and Mutual help groups. Sometimes the institute that
promotes the SHG, itself provides loan facilities. It is called as Micro-finance Institute. All
households are living under ‘Below Poverty Line’ category and their income is less than Rs.
40,000 per year. The National Bank for Agriculture &Rural Development will create an Rs.15.

2.3 Entrepreneurship Development of Rural Women through Self

Help Groups
Women comprise half of human resources they have been identified as key agents of sustainable
development and women’s equality is as central to a more holistic approach towards stabilizing
new patterns and process of developments that are sustainable. The contribution of women and
their role in the family as well as in the economic development and social transformation are
pivotal. Women constitute 90 per cent of total marginal workers of the country. Rural women
who are engaged in agriculture form 78 per cent of all women in regular work. Experience of
NIRD action research projects reveal that, the operational aspects, such as the extent of enabling
that goes into the community self help processes and sharpening the mind set of women. Men
and the project administrators are low or critical components that determine their extent to which
empowerment may or may not take place. The role of micro-credit is to, improve the socio and
economic development of women and improve the status of women in households and
communities. The micro entrepreneurships are strengthening the women empowerment and
remove the gender inequalities. Self Help Group’s micro credit mechanism makes the members
to involve in other community development activities. Micro credit is promoting the small scale
business enterprises and its major aim is to alleviate SHG A Change Agent for Rural Women
Empowerment and Entrepreneurship Development in Western Orissa poverty by income
generating activities among women and poor. Therefore, they could achieve self sufficiency.
Now-a-days economic development is one of the factors that have changed the entire scenario of
social and cultural environment within the country especially for the women. The rural women
are engaged in small-scale entrepreneurship programme with the help of Self Help Groups.
Through that they were economically empowered and attaining status in family and community.
Rural women play a vital role in farm and home system. She contributes substantially in the
physical aspect of farming, livestock management, post harvest and allied activities. Her direct
and indirect contribution at the farm and home level along with livestock management operation
has not only help to save their assets but also led to increase the family income. She performs
various farm, livestock, post harvest and allied activities and possesses skills and indigenous
knowledge in these areas. The women were empowering themselves technically to cope with the
changing times and productively using their free time and existing skills for setting and
sustaining enterprises. They were engaged in starting
individual or collective income generation programme with the help of self-help group. This will
not only generate income for them but also improve the decision-making capabilities that led to
overall empowerment.
Types of empowerment
Economic empowerment
Increased well-being
Social and political empowerment
Empowering women particularly rural women is a challenge. Micro enterprises in rural area can
help to meet these challenges. Micro – enterprises not only enhance national productivity,
generate employment but also help to develop economic independence, personal and social
capabilities among rural women.

Following are some of the personal and social capabilities, which were developed as result of
taking up enterprise among rural women.
• Economic empowerment
• Improved standard of living
• Self confidence
• Enhance awareness
• Sense of achievement
• Increased social interaction
• Engaged in political activities
• Increased participation level in gram sabha meeting
• Improvement in leadership qualities
• Involvement in solving problems related to women and community
• Decision making capacity in family and community
Economic empowerment of women by micro entrepreneurship led to the empowerment of
women in many things such as socio-economic opportunity, property rights, political
representation, social equality, personal right, family development, market development,
community development and at last the nation development.

2.4 SELF – HELP GROUPS IN INDIAN MOVEMENT

India has adopted the Bangladesh’s model in a modified form. To alleviate the poverty and to
empower the women, the micro-finance has emerged as a powerful instrument in the new
economy. With availability of micro-finance, self-help groups (SHGs) and credit management
groups have also started in India. And thus the movement of SHG has spread out in India.

Table No 1.1
S.No. State Name Districts Count Blocks Count SHGs Count

Total Districts Total Blocks Total SHGs

Districts (SHGs Blocks (SHGs SHGs (Members
entry has entry has Count less
Started) Started) than 5)
1 ANDHRA PRADESH 13 13 662 662 703298 870
2 ASSAM 33 33 219 219 281637 53
3 BIHAR 38 38 534 534 793392 889
4 CHHATTISGARH 27 27 146 146 174290 576
5 GUJARAT 33 33 248 247 247171 733
6 JHARKHAND 24 24 263 263 224850 16714
7 KARNATAKA 30 30 176 176 265510 4652
8 KERALA 14 14 152 152 234164 319
9 MADHYA PRADESH 52 52 313 313 287602 419
10 MAHARASHTRA 34 34 351 351 456278 996
11 ODISHA 30 30 314 314 399182 4402
12 RAJASTHAN 33 33 295 161 93270 1915
13 TAMIL NADU 31 31 385 385 317967 20967
14 TELANGANA 30 30 543 533 391972 3061
15 UTTAR PRADESH 75 75 821 821 353883 4676
16 WEST BENGAL 22 22 342 342 836958 12209
Sub Total 519 519 5764 5619 6061424 73451
Sources: Ministry of Rural Development, Government of India

2.5 SHG MOMENT AT BALANGIR DISTRICT

Table No 1.2

Grampanchayats Count SHGs Count

S.No. Block Name SHGs

GramPanchayats
Total Total (Members
(SHGs entry has
GramPanchayats SHGs Count less
Started)
than 5)
1 AGALPUR 20 20 740 0
2 BALANGIR 25 25 1302 6
3 BANGOMUNDA 26 26 1591 17
4 BELPARA 25 24 1089 23
5 DEOGAON 26 26 1697 0
6 GUDVELLA 14 14 529 6
 7 KHAPRAKHOL 21 21 1470 0
8 LOISINGA 20 20 801 4
9 MURIBAHAL 22 22 1554 63
10 PATNAGARH 30 30 735 8
11 PUINTALA 25 25 868 0
12 SAINTALA 22 22 1821 1
13 TITLAGARH 24 24 653 0
14 TUREKELA 19 19 1500 24
Total 319 318 16350 152
Sources: Ministry of Rural Development, Government of India

2.6 Advantages of Entrepreneurship among Rural Women

Women’s Found New Identity Balangir District:
One of the most important observations is the emergence of women’s identity and their
empowerment with the coming of SHG as an economic opportunity provider. Another aspect of
understanding SHG and women’s assertion is the growing contribution of women workers to the
sources of their households’ livelihood.

Table No 1.3

Consolidated Micro enterprise/Livelihoods profile of surveyed villages in Balangir district

Name of the activity Number of entrepreneurs engaged in
activity

Livestock activity
Milk production 125
Poultry (backyard) 2015
Goatary 852
Piggery 15
Duckkery 226
Land based activity
Vegetable growing 590

Horticulture (Fruit trees) 35

Trading activity
NTFP 85
Grains 150
Cloth 38
Cosmetics 31
Bangle 10
Service activity
Renting pumpset/engine 45
Hauler 8
Carpenter 116
Barber 25
Tailoring 54
Cycle repair 39
Production activity
Khali & Dona making 158
Bamboo craft 90
Potters 40
Broom Making 30

Source: Western Orissa Rural Livelihoods Project

2.7 Source of Income through different SHG for women

1. Mamtaz Banu – of Phatapada village of Maljharan watershed with her livelihood assets
Mamtaj Bano, a widow of other caste with household no 76 and very poor according to WBR
ranking of Maljharan, was living in her brother’s residence after sudden death of her husband
due to diabetes in the year 2000. At that time she had one six year old son and one four year old
daughter. After her husband’s death she decided to stay with her kids at his brother’s residence,
as she had no other options. After the intervention of WORLP, she came under very poor
category of beneficiary. She was given grant support of Rs. five thousand to start chudi (Bangle)
business. She purchased chudi out of this grant and started selling chudi in nearby villages as an
IGA. She sells chudi worth Rs. 250 to Rs. 300 per day, out of which she earns Rs. 100 to 120 as
profit. Now her son and daughter have started continuing their studies in school and studying in
class 9th and 7th class respectively. Now she is very happy and satisfied and hopes that her
children will become good citizens of the country and serve the society.

Cost benefits Analysis:

A. Purchasing price
I. Cost of 1 dozen chuddi in loose = Rs.18.00
ii. Cost of 1pkd chuddi (12 Chuddi) = Rs.20.00
Total (i+ii) = Rs.38.00
B. Selling price
I. Selling price of 1 dozen chuddi = Rs.25.00
ii. Selling price of 1 pkt chuddi = Rs.40.00
Total (i+ii) = Rs.65.00
Net Profit (B-A) = Rs.27.00
2. Name of Self Help Group: Jai Sri Ram SHG
Village: Patamara, Saintala
District: Balangir

Patamara is a small village with 113 households and situated in Jhinkidunguri Panchayat, about
20 km. from Saintala block in Balangir district. Majority of the villagers collect Mohua seeds
(tol) and other forest produce as a livelihood option because of insufficient rains to support
agricultural activities in the locality. Till 2007, they used to take these seeds to Saintala town for
processing at oil mills owned by traders who kept the Pidia (extracts of seed after expelling its
oil) as price for their services. However, in this process, less than optimal oil content of the seeds
were only expelled and the traders used to usurp the remaining seed content. Processing one
quintal of tol at those mills incurred a loss of 8 to 10 lt. of oil to the villager (optimal oil output
per quintal of seeds is 44 lt.). Besides, the residues of the seeds were getting sold profitably by
the traders depriving villagers of their proportionate share. They unknowingly succumbed to this
injustice and exploitation by the traders. Besides, while going to town for oil processing, they
had to face several complications like difficulty in transportation and reduced productivity
because of having to skip daily works. The WORLP PIA (SVA) got to know about their plight
and sought to find a solution. In the process of implementing micro planning, the PIA had
successfully formed an SHG named Jai Shree Ram SHG comprising 12 women members of
Patamara. Since its formation in 2002, the SHG has emerged as a potential force in carrying out

a number of welfare measures like keeping village sanitation, raising nurseries and campaigning

Members of Jai Sri Ram SHG collecting oil from seeds

against alcoholism in the village. Under guidance of the PIA the SHG members went on an
exposure trip to an oil expeller at Kalahandi where they learnt about operation of the oil expeller
machinery and profitability of the trade. Upon their return they were facilitated to get agrant of
Rs.50, 000/- from the Gram Swaraj watershed committee for collection of forest produce and
Revolving Fund of Rs. 50, 000/- for procuring an oil expeller machine. With an additional loan
of Rs.70,000/-, the group could buy and set up an expeller machine.

Source: Sri Dinabandhu Meher LST –ME & Sri Ujal Patel WDTSocial,PIA-WORLP, SVA
Saintala, Balangir

3. Name of Self Help Group: Jayalaxmi SHG members

Village: Bubel,Puintala
District: Balangir
Members: 11 women

Earning their livelihoods and getting wide recognition by producing homemade nutritious dry
food (Chhatua) - Bubel, Puintala, Balangir Until 2005, poverty stricken women in Bubel, a tiny
village in Puintala block of Balangir district, led a lackluster life. Being dependent on their male
counterparts and confined to household chores, the women had no chance of taking self
decisions and contributing to their family income. Drudgery and dependency had sealed their
fate to lead a free and self-sufficient life. Their first chance to find a breakthrough came in May,
Jayalaxmi SHG members earning their livelihoods and getting wide recognition by producing homemade nutritious
dry food (Chhatua) - Bubel, Puintala, Balangir

2002 through initiatives of an NGO named, Palli Aloka Pathagara which motivated them to form
an SHG. Under its supervision, 11 women of Bubel formed the Jayalakshmi SHG and started
activities like conducting group meetings, village sanitation and savings. Opening a bank account
with Utkal Gramya Bank at village Bairasar, these women started savings by contributions from
individual members of their group. When their savings increased to a sizable figure, the bank
offered them loan. With bank loans, five of the group members have run profitable business by
opening petty shops in their village. Besides, the group started producing and selling Chhatua, a
dry food prepared by proportionately mixing flour of wheat, pulses (dal), groundnuts, sugar and
cashew nuts in the village.

4. Name of Self Help Group: Maa Sarla Shakti

Village: Belpada
District: Balangir
Members: 10 women
Earlier, these women cultivated pulses, but with WORLP’s support they learned pisciculture
through which they have benefitted the in terms of food, employment and income generation.
WORLP provided them with guidelines and basic necessities including farm ponds, fishnets and
fishlings. Through field exposure visits, the women were educated in aquaculture. Prior to the
introduction of pisciculture, the village women earned Rs 40 per kilogram of pulses, but with
fish farming they are earning Rs 100 per kilogram. This SHG has been fish farming for the past
five years. In the beginning, they took Rs 20,000 out of RF and after selling 13 quintals of fish in
the first year, they earned Rs 25000, earning a profit of Rs 5000.

3.1 FINDINGS
The study is basically based on to seek those factors which may be stated as the boosting and
motivating factors for women entrepreneurship. Study finds that Leading attitude, determination
and Risk taking attitude are the major areas and factors which may be stated as the motivational
factors for the growth of women entrepreneurship and they found new identity in their locality.

At last SHG: A change agent towards motivational factors for the growth of women
entreneurship in Balangir dist. And it’s just a beginning and long way to go for developing
Entrepreneurial Spirit in western Orissa.

3.2 SUGGESTIONS

 Literacy and numeric training is needed for the poor women to benefit from the micro-
credit schemes.
 Complete knowledge about the SHG model and the benefits to them
 Training in legal literacy, rights and gender awareness are important complements to
micro-credit for the empowerment of women.
 The members of the SHG should be more active, enthusiastic and dynamic to mobilise
their savings by group actions. In this process NGOs should act as a facilitator and
motivator.
 The office bearers managing the group should be given nominal financial benefits, which
will enable them to be more involved in the activities of the Group.
  The bank should advance adequate credit to the SHG according to their needs.
 Uniformity should be maintained in formation and extension of financial assistance to
them by banks in all blocks.
 The procedure of the banks in sanctioning credit to SHG should be simple and quick.
 Marketing facilities for the sale of products of SHG may be created.
 Periodical exhibitions at block-level may be organised where the products of SHG can be
displayed.
 Meetings and Seminars may be organised where the members will get a chance to
exchange their views and be able to develop their group strength by interactions.
 Active intervention by district administration, professional bodies and voluntary
organisations is precondition for the successful conception of micro enterprises in terms
of skill training, designing products, providing new technology and access to market.

3.3 CONCLUSION

In this twenty-first century, we must take along an active people-centred and growth-oriented
poverty alleviation strategy – a strategy which seems to incorporate women’s aspirations,
dynamism and involvement. It is envisaged that self-help groups will play a vital role in such
strategy. But there is a need for structural orientation of the groups to suit the requirements of
new business. Hence, there is a need for the development of an innovative and diversified
microfinance sector, which will make a real contribution to women empowerment.
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 Bhatia Anju (2000), “Women Development and NGOs”. Research paper on Micro Small
and Medium Enterprises (MSME) and Economic Development of Odisha by Dr
Krupasindhu Pradhan. Rawat Publication, New Delhi. P. 45-70.
 Project Memorandum by Ministry of Rural Development, Government of India
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 www.worlp.com
 https://balangir.nic.in/economy/