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Rural Women Empowerment through SHG in Dharmapuri District: Path

Analysis Approach

Article · September 2017

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C. Velaudham Baskar P.
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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.

Rural Women Empowerment through SHG in Dharmapuri District: Path

Analysis Approach

Dr. C. Velaudham and Dr. P. Baskar

Abstract

The article tries to find out the rural women empowerment through SHG in Dharmapuri District.
One objective of this study is reached through proper methodology. Sample size was 341 in all obtained
through simple random sampling technique in Dharmapuri district. Researcher designed questionnaire is
with 5 point scale in the continuum of agreeing. Reliability of this tool is 0.82 and 0.90. Path analysis
was used for data analysis. The analysis found that there is influence of training & motivation and
financial support on social recognition. The study highlighted that there is influence of social recognition
on rural women empowerment. Hence, it is suggested that SHG has a profound influence on the
economic status, decision making power, knowledge and self worthiness of rural women participants of
self help group linkage program in Dharmapuri district. It is concluded that SHG is playing a vital role
in the social, psychological as well as economic empowerment of rural women in Dharmapuri district.
SHG loan availement and its productive utilization found to be having a profound role and impact on
rural women empowerment.
Keywords: Rural Women Empowerment; Dharmapuri District; Simple Random Sampling Technique;
Path Analysis.
Introduction
The emergence of women entrepreneurs and their contribution to the national economy is quite
visible in India. The number of women entrepreneurs has grown over a period of time, especially in the
1990s. Women entrepreneurs need to be lauded for their increased utilization of modern technology,
increased investments, finding a niche in the export market, creating a sizable employment for others and
setting the trend for other women entrepreneurs in the organized sector. While women entrepreneurs have
demonstrated their potential, the fact remains that they are capable of contributing much more than what
they already are. Women’s entrepreneurship needs to be studied separately for two main reasons.
Assistant Professor, Dept of Business Administration, Joseph Arts and Science College, Thirunavalur,
Tamil Nadu, India.
Assistant Professor, Dept of Business Administration, Annamalai University.

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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
The first reason is that women’s entrepreneurship has been recognized during the last decade as
an important untapped source of economic growth. Women entrepreneurs create new jobs for themselves
and others and also by being different. They also provide the society with different solutions to
management, organization and business problems as well as to the exploitation of entrepreneurial
opportunities. The second reason is that the topic of women in entrepreneurship has been largely
neglected both in society in general and in the social sciences. Not only have women lower participation
rates in entrepreneurship than men but they also generally choose to start and manage firms in different
industries than men tend to do.
Review of Literature
Malhotra, et al. (2002) constructed a list of the most commonly used dimensions of women’s
empowerment, drawing from the frameworks developed by various authors in different fields of social
sciences. Allowing for overlap, these frameworks suggested that women’s empowerment needs to occur
along multiple dimensions including: economic, socio-cultural, familial/interpersonal, legal, political, and
psychological.
Batliwala (1994) identified three approaches to women’s empowerment: the integrated
development approach which focused on women’s survival and livelihood needs; the economic
development approach which aimed to strengthen women’s economic position and the consciousness
approach which organized women into collectives that address the source of oppression.
Mayoux (1997) argues that the impact of microfinance programmes on women is not always
positive. Women that have set up enterprises benefit not only from small increases in income at the cost
of heavier workloads and repayment pressures. Sometimes their loans are used by men in the family to
set up enterprises, or sometimes women end up being employed as unpaid family workers with little
benefit. She further points that in some cases women’s increased autonomy has been temporary and has
led to the withdrawal of male support.
Ranjula Bali Swain (2014) Can Microfinance Empower Women? Self-Help Groups in India”
concluded many strides have been made in the right direction and women are in the process of
empowering themselves and NGOs that provide support in financial services and specialized training,
have a greater ability to make a positive impact on women empowerment.
Ranjula Bali Swaina and Fan Yang Wallentin (2009) in their article ‘Does microfinance
empower women Evidence from self-help groups in India’ concluded that their study strongly indicate
that SHG members are empowered by participating in microfinance program in the sense that they have a
greater propensity to resist existing gender norms and culture that restrict their ability to develop and
make choices.

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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
Research Methodology
Research Design
To obtain better answer to the research question, a proper research design is to be framed (Cooper
& Schindler 2001; Davis & Cosenza 1988). Descriptive research design has been adopted for the present
study. Descriptive study is a fact-finding investigation with adequate interpretation. It focuses on
particular aspects or dimensions of the problem studied. It is designed to get the descriptive information
and provided information and formulation of more sophisticated studies.
Research Gap
Training and motivation, financial support, social recognition and rural women empowerment,
which are studied individually alone but combined research is not found in previous studies. This study is
unique in introducing the dependent variable rural women empowerment, mediator variable social
recognition and independent variables training and motivation and financial support. The title is
“RURAL WOMEN EMPOWERMENT THROUGH SHG IN DHARMAPURI DISTRICT: PATH
ANALYSIS APPROACH.”
Framework of the Study

Figure 1: Framework of the Study

This framework of the study is unique in introducing the dependent variable rural women
empowerment, mediator variable social recognition and independent variables training and motivation
and financial support.
Objective of the Study
To study the rural women empowerment through SHG in Dharmapuri District.
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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
Hypotheses of the Study
 There is no influence of training and motivation on social recognition.
 There is no influence of financial support on social recognition.
 There is no influence of social recognition on rural women empowerment in Dharmapuri district.
Population of the Study
As on March 30th 2010 6807 groups were formed and the women enrolled are
108912 with a saving of Rs. 6665.92 lakhs (Lakshmi and Vadivalagan 2010).
Sample Size Determination
Yamane (1967) provides a simplified formula to calculate sample sizes. This formula was used to
calculate the sample size in this study.
𝑁
𝑛=
1 + 𝑁(𝑒)2

Where n is the sample size, N is the population and e is the level of precision. A 95% confidence level
and P = 0.5 are assumed. When this formula is applied this study,
108912
𝑛=
1 + 108912(.05)2

𝑛 = 340.7

Hence the total sample size of 341 numbers which is above the prescribed number of sample has
been maintained by the researcher throughout the study.
Sampling Technique
Simple random sampling technique was adopted for the study. Srivastava (2008) there is only a
less effort need to collect the data. Actually no pre plan of executing is there.

Data Collection
The sample size of the study is 341 in all. The study was conducted in Dharmapuri district,
Tamilnadu. Questionnaire with 5 point scale is used.
Reliability
For all the items in the questionnaire design the alpha was 0.82 to 90. This indicates high
reliability of the items in the questionnaire. With these results the consistency, dependability and
adoptability are confirmed.

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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
Statistical Tools Used
Path analysis was adopted in this study. It is used to know the correlation and regression of
independent variables with respect to rural women empowerment. Likewise the independent variables are
training and motivation and financial support. The variable social recognition is considered as mediator
variable. Rural women empowerment is considered as an outcome variable.
Analysis and Interpretation
Path Analysis of Rural Women Empowerment
The above path analysis is run on a sample of 341 to know the correlation and regression of
independent variables with respect to rural women empowerment. Likewise the independent variables are
training and motivation and financial support. The variable social recognition is considered as mediator
variable. Rural women empowerment is considered as an outcome variable.

Figure 2: Path analysis of rural women empowerment through SHG

Model Fit Indication

Chi- p GFI AGFI CFI NFI RMS
Square
20.284 0.001 0.953 0.904 0.941 0.943 0.064

From the above table it is found that the calculated chi-square value is 20.284, p value is 0.0014
which is less than 0.05, which indicates that perfectly fit. Here GFI (Goodness of Fit Index) value and
AGFI (Adjusted Goodness of Fit Index) values are greater than 0.90 which represent it is a good fit. The
calculated CFI (Comparative Fit Index) value and NFI (Normed Fit Index) values are greater than 0.90

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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
which means that it is a perfectly fit. It is found that RMS (Root Mean Square) value is 0.064 which are
less than 0.08, which indicates that it is perfectly fit.
Ho: Training and motivation do not influence by social recognition.
HA: Training and motivation influence by social recognition.
Through the path analysis, regression weight as the value of CR is 2.758. The Beta value is 0.194
which indicates that 19.4% of influence is through training and motivation towards social recognition.
The p value is 0.01; here the p value is less than 1% and the hypothesis is rejected; hence it can be
concluded that the training and motivation positively influences social recognition.
Regression Weights Rural Women Empowerment
DV IV Estimate S.E. C.R. B p
Social Recognition <--- Training and Motivation 0.171 0.062 2.758 0.194 0.006
Social Recognition <--- Financial Support 0.242 0.060 4.007 0.282 0.001
Women Empowerment <--- Social Recognition 0.709 0.112 6.315 0.409 0.001

Ho: Financial support do not influence by social recognition.

HA: Financial support influence by social recognition.
Through the path analysis, regression weight as the value of CR is 4.007. The Beta value is 0.282
which indicates that 28.2% of influence is through financial support towards social recognition. The p
value is 0.01; here the p value is less than 1% and the hypothesis is rejected; hence it can be concluded
that the financial support positively influences social recognition.
Ho: Social recognition do not influence by women empowerment.
HA: Social recognition influence by women empowerment.
Through the path analysis, regression weight as the value of CR is 6.315. The Beta value is 0.409
which indicates that 40.9% of influence is through social recognition towards women empowerment. The
p value is 0.01; here the p value is less than 1% and the hypothesis is rejected; hence it can be concluded
that the social recognition positively influences women empowerment.

Covariance Rural Women Empowerment

IV IV Estimate S.E. C.R. R p
Training and Motivation <--> Financial Support 7.979 1.579 5.054 0.384 0.001

Ho: Financial supports do not positive relationship with organic training and motivation.
HA: Financial support positive relationship with organic training and motivation.

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SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
Through the path analysis, covariance weight as the value of CR is 5.054. The covariance value is
0.384 which indicates that 38.4% of covariance is through financial support towards training and
motivation. The p value is 0.01; here the p value is less than 1% and the hypothesis is rejected; hence it
can be concluded that the financial support positive relationship with training and motivation.
Findings of the Study
 The analysis found that there is influence of training and motivation on social recognition.
 Path analysis identified that there is influence of financial support on social recognition.
 It is found that there is influence of social recognition on rural women empowerment in
Dharmapuri district.
Recommendations of the Study
It is suggested that SHG has a profound influence on the economic status, decision making power,
knowledge and self worthiness of rural women participants of self help group linkage program in
Dharmapuri district.

Conclusion
The article tries to find out the rural women empowerment through SHG in Dharmapuri District.
One objective of this study is reached through proper methodology. Sample size was 341 in all obtained
through simple random sampling technique in Dharmapuri district. Researcher designed questionnaire is
with 5 point scale in the continuum of agreeing. Reliability of this tool is 0.82 and 0.90. Path analysis was
used for data analysis. The analysis found that there is influence of training & motivation and financial
support on social recognition. The study highlighted that there is influence of social recognition on rural
women empowerment. Hence, it is suggested that SHG has a profound influence on the economic status,
decision making power, knowledge and self worthiness of rural women participants of self help group
linkage program in Dharmapuri district. It is concluded that SHG is playing a vital role in the social,
psychological as well as economic empowerment of rural women in Dharmapuri district. SHG loan
availement and its productive utilization found to be having a profound role and impact on rural women
empowerment.

30
SUMEDHA Journal of Management Special Issue, Vol.6, No.3, Sep-2017.
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Lakshmi and Vadivalagan (2010). Impact of Self Help Groups on Empowerment of Women: A Study in
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Malhotra, A. Schuler S.R. and Boender, Carol, (2002) Measuring Women’s Empowerment as a Variable
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