Performance Evaluation of Micro Enterprises Initiated Under Kudumbashree in Kerala

PERFORMANCE EVALUATION OF MICRO ENTERPRISES INITIATED
UNDER KUDUMBASHREE IN KERALA
Thesis submitted to THE UNIVERSITY OF KERALA
for the Award of Degree of Doctor of Philosophy in
COMMERCE
By
CATHERINE. E. PEREIRA
Under the Supervision of
Dr. JOSEPH JAMES. V

Associate Professor and Head
PG Department and Research Centre of Commerce

Fatima Mata National College(Autonomous)
Kollam
Kerala, India
March 2018
DECLARATION
I, Catherine E Pereira, hereby declare that the PhD thesis entitled

Performance evaluation of micro enterprises initiated under kudumbashree in
Kerala is an independent work carried out by me and it has not been submitted
anywhere else for any other degree, diploma or title. It is an original work done by
me free of plagiarism.
Place: Kollam CATHERINE. E. PEREIRA
Date:
CERTIFICATE
This is to certify that the work embodied in the thesis entitled, Performance
evaluation of micro enterprises initiated under Kudumbashree in Kerala is a
bona fide piece of work carried out by Smt. Catherine. E. Pereira under my
supervision and guidance and it has not been submitted anywhere else for the award
of any other degree, diploma or title.
Place: Kollam Dr. Joseph James. V
Date:
ACKNOWLEDGEMENT
Prima facie, I am grateful to God for the good health and well-being that were
necessary to complete the thesis. I bow my head before the God almighty, who had
showered his grace in the form of knowledge and wisdom and every other way for
successful completion of this research work.
I wish to express my sincere thanks to Dr. Joseph James V, my research supervisor

and HoD, Department of Commerce, FMNC, Kollam. I am extremely thankful and
indebted to him for sharing expertise, and his sincere and valuable guidance
extended to me. His valuable suggestions, constructive criticisms and constant
encouragement kept me going on with this research work.
I wish to place in record my profound reverence and gratitude to my former

supervising teachers Dr. P.M. Dileep Kumar and Dr. Dayanandan.M.N for the
support provided throughout this research work.
I am also grateful to Dr. Resia Beegam, HOD, Department of Commerce, University

of Kerala, for providing me with all the necessary facilities for the research.
I place on record, my sincere thanks to Dr. G. Raju, Professor and Dean of

Commerce, University of Kerala, for his continuous encouragement.
I must express my very profound gratitude to Dr. Vincent B Netto, Principal, FMNC
for providing me with unfailing support and continuous encouragement.
I would also like to acknowledge all the faculty members of the Department of
Commerce, FMNC, Kollam for their invaluable comments.
I would also like to thank the Librarian, University of Kerala, who steered me in the
right direction.
I am sincerely grateful to Mr. P.B. Sudev, Statistician for his invaluable comments
and for providing me the vital inputs on the analysis of my research work
I am extremely grateful to all the respondents and officers in Kudumbashree for their
unfailing love and affection shown to me in the completion of my thesis.
It is my pleasure to thank Dr. Raju.G, Associate Professor, School of Business

Management CET, Thiruvananthapuram and Dr. Clara Bernadette Reshma,
Assistant Professor, Dept. of English, and Mr. Christy Clement, Dept. of English for
their continuous encouragement.
Finally, I must express my very profound gratitude to my parents whose selfless

sacrificial life and their great efforts with pain and tears and unceasing prayers has
enabled me to reach the present position in life and also, to my husband, J.
Yesudasan, my son and daughter, my family members and all others who helped
directly or indirectly for providing me with unfailing support and continuous
encouragement throughout the years of the study and through the process of research
and writing of the report. This accomplishment would not have been possible without
them. Anyone missed in this acknowledgement are also thanked.
Catherine.E. Pereira
LIST OF TABLES
Table 5. 1 Distribution of individual and groups micro entrepreneurs by their age
Table 5. 2 Distribution of individual and groups micro entrepreneurs by their marital

status
Table 5. 3 Distribution of individual and group micro entrepreneurs by their

educational qualification
Table 5. 4 Distribution of individual and group micro entrepreneurs by their place of

residence
Table 5. 5 Distribution of individual and group micro entrepreneurs by their head of

household
Table 5. 6 Distribution of individual and group micro entrepreneurs by nature of

family
Table 5. 7 Distribution of individual and group micro entrepreneurs by size of family
Table 5. 8 Distribution of individual and group micro entrepreneurs by their religion

community
Table 6.1 Zonal wise Distribution of individual and group micro entrepreneurs
Table 6.2 Distribution of individual and group micro entrepreneurs by Nature of

Business
Table 6.3 Distribution of individual and group micro entrepreneurs by previous

occupation
Table 6.4 Distribution of individual and group micro entrepreneurs by reasons for
joining the Kudumbashree units
Table 6.5 Distribution of individual and group micro entrepreneurs by location of unit
Table 6.6 Distribution by year of inception and location of individual and group units
Table 6.7 Distribution of individual and group micro entrepreneurs by year of

establishment of enterprise
Table 6.8 Distribution by year of inception and sector of individual and group units
Table6.9 Distribution of individual and group micro entrepreneurs by origin of

business
Table 6.10 Distribution of individual and group micro entrepreneurs by purpose of

starting unit with mean

Table6.12 Distribution of full time individual and group micro entrepreneurs by

activity time
Table 6.13 Distribution of individual and group micro entrepreneurs by type of

ownership of building
Table 6.14 Distribution of individual and group micro entrepreneurs by amount of

rent
Table 6.15 Distribution of individual and group micro entrepreneurs by monthly
earnings
Table 6.16 Distribution of individual and group micro entrepreneurs by person

managing the business
Table 6.17 Distribution of individual and group micro entrepreneurs by average

working days in a month
Table 6. 18 Distribution of group units by number of members at beginning and at the

time of survey with mean drop out
Table6.19 Financial statement of Individual Micro entrepreneurs
Table 6.20 Financial statement of group Micro entrepreneurs
Table 6.21. Distribution of individual and group micro entrepreneurs by level of Net
Profit or Net loss
Table 6.22 Distribution of Individual and group Micro Units by their project cost
with mean and SD
Table6.23 Details of cost of investment of Individual and group Micro units
Table 6.24 Distribution of Individual Micro Units by their previous and current year
sales with mean and SD
Table 6. 25 Distribution of Group Micro Units by their previous and current year sales
with mean and SD
Table 6.26 Asset structure of individual and group micro units
Table 6.27 Distribution of asset structure with t distribution of individual and group
units
Table 6.28 Descriptive statistics of profitability ratios of different sectors of

Kudumbashree individual micro enterprise after adjusting notional wages
Kudumbashree individual micro enterprises before notional wages

Kudumbashree group micro enterprises after adjusting Notional wages

Kudumbashree group micro enterprises
Table 6.32 Profitability ratios of different sectors of Kudumbashree individual Micro

enterprises
Table 6.33 Profitability ratios of different sectors of Kudumbashree group Micro

enterprises
Table 6.34 Coefficients of regression model representing effect of location, year of

establishment, income, expenditure and liability on Return on Asset of different
sectors of Kudumbashree individual Micro units

sectors of Kudumbashree group Micro units

establishment, income, expenditure and liability on Return on Investment of different

Table6.38 Coefficients of regression model representing effect of location, year of

establishment, income, expenditure and liability on profit margin ratio of different

Table 6.40 Distribution of individual and group micro units by level of labour
productivity with mean and SD
Table 6. 101 Distribution of individual and group micro units by level of material
Table 6.42 Descriptive statistics of material and labour productivity of individual and
group units
Table 6.43 Mean material and labour productivity by sector in individual units
Table 6.44 Mean material and labour productivity by sector in group units
Table 6. 45 Coefficients of regression model for Material Productivity by its

significant determinants of individual units

significant determinants of group units
Table 6. 47 Coefficients of regression model for Labour Productivity by its significant

determinants of individual units

determinants of group units
Table 6.49 Distribution of individual and group micro units by status of taking loans
determinants of group units
Table 6.50 Distribution of individual and group micro units by type of loan taken
Table 6.51 Distribution of entrepreneurs of individual micro units by number of loan

taken for income generation before establishing the unit with amount and percentage
of repayment
Table 6. 52 Distribution of individual entrepreneurs of micro units by number of loan

taken for income generation after establishing the unit with amount and percentage of
repayment
Table 6. 53 Distribution of entrepreneurs of group micro units by number of loan
repayment

taken for Consumption and Other Purpose before and after establishing the unit with
amount and percentage of repayment
Table 6.55 Distribution of entrepreneurs of group micro units by number of loan taken
for Consumption after establishing the unit with amount and percentage of repayment
Table 6.56 Distribution of entrepreneurs of individual micro units by source of loans

before and after starting the unit
Table 6.57 Distribution of entrepreneurs of group micro units by source of loans after
starting the unit
Table 6.58 Distribution of individual Entrepreneurs by status of default and action

taken against default
Table 6.59 Distribution of group Entrepreneurs by status of default and action taken
against default
Table 6.60 Distribution of individual Entrepreneurs by status of default and sector
Table 6.61 Coefficient of logistic regression of defaulters in individual micro units
Table 6.62 Distribution of group Entrepreneurs by status of default and sector
Table 6. 63 Model summaries of the logistic regression model
Table 6. 64 Coefficients of the initial logistic regression model
Table 6. 65 Coefficients of the final logistic regression model
Table 6. 66 Distribution of Individual and group micro entrepreneurs by their level of

difficulty in arranging capital with mean score
Table 6.67 Distribution of Individual and group micro entrepreneurs by level of
difficulty in marketing the product with mean score
Table6.68 Rank given by Individual and group micro entrepreneurs to the mode of
marketing the product
Table 6.69 Distribution of Individual and group micro entrepreneurs by the level of
satisfaction of performance of micro units
Table 7.1 Descriptive statistics and test for changes in means of individual and group
micro entrepreneurs
Table 7.2 Shift in income based on opinion score
Table 7.3 Changes in savings of individual and group units
Table 7.4 Change in the status of having bank account before and after starting units
with year of starting account before starting unit of individual unit members
Table 7.5 Change in the status of having bank account before and after starting units
with year of starting account before starting unit of group unit member
Table 7.6 Distribution of units by mode of investment after starting the unit
Table 7.7 Sources of borrowing and amount borrowed by individual units before
starting units
Table 7.8 Sources of taking loan from informal source after starting the unit with
mean amount borrowed by inividual units.
Table 7.9 Distribution status of availing loans from money lenders after starting the
unit by individual unit members
Table 7.10 Distribution status of availing loans before and after starting the unit by
Group unit members from formal source
Table 7.11 Distribution of nature of dwelling house of individual unit members

Table 7.12 Distribution of nature and ownership of dwelling house of group unit
members
Table 7.13 Distribution of amenities before and after starting the unit of individual
members
Table 7.14 Distribution of amenities before and after starting the unit of group
members
Table 7.15 Distribution of level of economic empowerment with mean score of

empowerment of individual members
Table 7.16 Distribution of correlation between empowerment attributes of individuals
Table 7.17 Distribution of level of economic empowerment with mean score of

empowerment of group members
Table 7.18 Distribution of correlation between empowerment attributes of group

units
Table 7.19 Distribution of raw canonical coefficients for dependent variables
Table 7.20 Distribution correlations between covariates and canonical variables
LIST OF ABBREVIATIONS
IMF International Monetary Fund
SJSY Swarna Jayanti Gram Swarojgar Yojana
NRLM National Rural Livelihood Mission
NSSO National Sample Service Office
NABARD National Bank for Agricultural and Rural Development
CBO Community Based Organization
ADS Area Development Societies

CDS Community Development Societies
NHG Neighborhood Groups
SHG Self Help Group
NGO Non-Governmental Organization
IRDP Integrated Rural Development Programme
SHPI Self-help promoting institution
CDD Community Drives Development
GDP Gross Domestic Product
TRYSEM Training of Rural Youth and Self-Employment
NREP National Rural Employment Program
RLEGP Rural Landless Employment Guarantee Program
JRY Jawaharlal Rojgar Yojana
LED Local Economic Development
LGS Local Self Government
CDAC Centre for Development of Advanced Computing
WCP Women Component Plan
APSP Anti-Poverty Sub Plan
IGAs Income Generating Activities
DIRM Destitute Identification Rehabilitation and Monitoring
HRD Human Resource Development
KLSS Kerala Legal Services Society
MIS Management Information System
BSUP Basic Services to the Urban Poor
IHSDP Integrated Housing and Slum Development Programme

JNNURM Jawaharlal Nehru National Urban Renewal Mission
VAMBAY Valmiki Ambedkar Awas Yojana
NSDP Net State Domestic Product
BSUP Basic services to the urban poor
SLP Special Livelihood Project
DMC District Mission Co-ordinator
DMT District Mission Team
APSP Anti-Poverty Sub Plan
WCP Women Component Plan
THRS Take Home Ration Strategy
NSSO National Sample Service Office
EDII Entrepreneurship Development Institute of India
JLG Joint liability groups
GOT General Orientation Trainings
PIP Performance Improvement Programmes
NABARD National Agricultural Bank for Rural Development
ROI Return on investment
ROA Return on Assets
PMR Profit Margin Ratio
CHAPTER I
INTRODUCTION
1.1 Introduction
1.2 Significance of the study

1.3 Research problem
1.4 Objectives of the study

1.5 Hypothesis of the study
1.6 Research methods
1.7 Sampling design
1.8 Data collection
1.9 Tools of data analysis

1.10 Sample size
1.11 Scope of study
1.12 Operational definitions
1.13 Limitation of the study
1.14 Scheme of presentation

1.1 Introduction
Recently, there has been an awareness everywhere, about the policy circles
empowering women which support monetary improvement. This can be judged
through the present establishment of W20, an alliance of female pioneers of the G-
20 nations influenced towards empowering women and affirming their presence in
financial development. In the vital address of the W-20 summit, Christine Lagarde,
Managing Director of International Monetary Fund (IMF) penetrating out the
ramifications of setting up of women controlled micro enterprises in creating
nations and in the meantime brought up 70% of women owned enterprises are
either unserved or underserved by the financial associations (Press Trust of India
2015)
Back in India, the present governments have recognized the importance of

empowering women owned micro enterprises for ensuring quicker monetary
development and generation of occupation. Activities, for example, Mudra Yojana
for advancing out conservative credit to small business units, presentation of
subsidizing cells, for example, "swayam" for empowering women owned endeavors
is an increasing appraisal for the ability of women's commitment to the financial
growth.
Poverty eradication through formation of micro enterprises and funding

improvement has been an essential strategy of the administration for over a period
of 10 years. Swarna Jayanti Gram Swarojgar Yojana (SJSY) had been a critical
rural support input of the legislature of India. It was measured to have mounted
1.06 crores independently employed business people amid 1999 to 2008. The
program was later restricted into National Rural Livelihood Mission (NRLM). The
NRLM is, maybe, the biggest poverty reducing thoughts, in the world with its
target of getting about 70 million rural family units. Like the SGSY, progression of
systems of support through development of independent work and enterprise has
been a noteworthy methodology of NRLM.
In India, over 90% of the population is engaged with disrupted area and on account
of rural India, the population is for the most part associated with independent work
and horticulture has impressively added to the income of these family units. But in
case of families with little agricultural landholdings, the income is challenging and
they require three to four sources of income to escape from poverty. Among
nonfarm jobs, skill based work and tiny activities are the enormous bases of
income. As per the most recent NSSO (National Sample Service Office) overview,
just 9% of India's rural work force (34 crore people) are in steady salary jobs. The
rest 91% (31crore individuals) either do selected working or casual labour work.
The number of independently employed is 56% (19 crore individuals) of the rural
work force, however the vast majority of the independently employed undertakings
are to some extent superior to being unemployed (National Rural Livelihood
Mission, 2014). The support of the National Rural Livelihood Mission (NRLM)
shows that, it is critical to convey consistent handholding sustenance and execution
to the endeavors instead of the ability of the one-time arrangement at the time of
the development of the undertaking. Undertakings confront a diversity of decent
variety of troubles attributable to nonexistence of business skills, absence of
financial support and so forth., and regularly these endeavors neglect to proceed or
accomplish to subsist regardless of loses (National Rural Livelihood Mission,
2014).
Entrepreneurs are considered as the foundation of each economy. They start new
pursuits and accelerate the procedure of monetary improvement. In the industrial
and agricultural areas, the limit of new generation entrepreneurs has been invited
for, they do radical and enormous changes in the field of production and
dissemination. Each government aims to attract young talents as business
visionaries through proper training programmes and offers different incentives. In
India, the government at center and states give unique consideration regarding the
entrepreneurship development. In Kerala various unique assistance programs have
been intended for spurring new entrepreneurs to set up tiny and medium
enterprises.
The aim of Entrepreneurship support scheme are the following: -Ganbold, M.

(2016)
1. To provide extensive support to micro, small and medium enterprises and,
2. Give one-time support to entrepreneurs with due regard to special categories

by optimal utilization of funds and giving more flexibility of operation while
implementing the scheme.
Notwithstanding the sincere endeavors by various governmental and different

offices, just a couple of individuals respond to the challenge of beginning new
ventures. The case of women business entrepreneurs is far more worse.
Customarily women as entrepreneurial assets have not been perceived in India.
They are faced with various hindrances i.e. funds, social introduction, family set-
up, market access and orientation, which are restricting women to become a part of
the business world. The procedure of modernization, foundation of current training
offices and sanctioning of women’s security laws have empowered present women
in urban zones to work more quietly earning more respect than some time recently.
Consequently, more women endeavors have developed in urban regions. Be that as
it may, social help is a fundamental indispensable element in women
entrepreneurial improvement. In such manner the part of Kudumbashree in giving
vital help to individuals, particularly to poor women, for beginning a venture is
commendable.
Kudumbashree is an enormous destitution demolition development propelled in

Kerala by the State Government. "Kudumbasree" truly signifies "Progress of the
Family". It focuses on the female population particularly those underneath the
poverty line. Its social point is to enhance the way of life of poor women by setting
up micro scale credit and gainful undertakings. It is working on the premise that
each woman has characteristic quality, which can be successfully used by
promoting her dynamic interest. Rural women, who were viewed as voiceless and
weak, began distinguishing their inward quality, started identifying open doors for
development and their part in reshaping their own particular decision.
Inaugurated on seventeenth May,1998, by the then Prime Minister of India, Atal

Bihari Vajpayee, in Malappuram, is the State Poverty Eradication Mission started
by the Government of Kerala. It is an all-encompassing, participatory, women
organized creative poverty alleviation approach executed through Local Self
Governments. The Mission takes after a process approach instead of project
approach. It gives information, create awareness, develop their ability and capacity,
improve their confidence and show them opportunity for better standardized
savings and empower them physically, socially, monetarily and politically.
Accordingly, it works for annihilating the neediness by improving their capacities
and qualifications of the needy individuals. (Shihabudheen N.2013)
The kudumbashree program is being actualized with the dynamic cooperation

whole self-government organizations in the state by arranging the poor into
Community Based Organization (CBO). The CBO is imagined as a three-level
framework with Neighborhood Groups at the grass root level. Area Development
Societies (ADS) at the Panchayat ward level and Community Development
Societies (CDS)at the nearby self-government level. The initial phase of the
execution of the undertaking is the recognizable proof of poor family units of the
group through a risk index-based survey. A woman from every high-risk household
in the locality will be conceded as an individual from the neighborhood group.
Each such gathering will have 25 to 40 individuals. The neighborhood groups in
each ward are assembled and united into an Area Development Society. Whole
ADS going under a Local Self-Government foundation are then attached to a
Community Development Society. While NHG and ADS are working as informal
gatherings, CDS are registered as charitable societies. Today, there are 2.77 lakhs
NHGs, over 19,854 ADSs and 1073 CDSs in Kudumbashree.
The success of Kudumbashree rests on wholehearted cooperation of women

individuals in the program. It has stirred up silent revolution in the state that within
a time of ten years after initiation, its quality could be felt along the length and
breadth of Kerala. According to the most recent insights, there are 185309
Neighborhood Groups, 1695 Area Development Societies and 1058 Community
Development Societies under the aegis of Kudumbashree. Moreover,
kudumbashree is also connecting with infrastructure development projects like
Swarna Jayanthi Shahari Rozgar Yojana, National Slum Development Program,
Valmike Ambedkar Yojana. This demonstrates that Kudumbashree is an
unavoidably crucial component in the financial condition of Kerala.
Women from low income families get included as to independent work through
setting up microenterprises because of complete responsibility for preservation of a
sensible maintenance opportunity. Difficulty of the problems identified with
innovation, markets and finance, request that skillful, yet cost-impact sustenance
system be built up to help the poorer divisions of the general public. Frequently,
individuals with proficient business information may discover hard to comprehend the
issues of women originating from low wage family units operating small enterprises.
The primary aim of the research is to consider the execution of micro enterprises
started under Kudumbashree completely and break down whether it has been fruitful
in meeting its destinations and furthermore to investigate the monetary strengthening
achieved by them through the establishment of these units.
1.2 Significance of the study
Advent of the Kudumbashree mission is estimated as an extraordinary gift to the

marginalized women in the territory of Kerala. It genuinely gives to the upliftment of
the underprivileged women living in the rural and backward areas. Kudumbashree
has created a remarkable impact in the state and altogether supported to the
development of the marginalized women. The assessment of the overall literature
related with the theme unveils that few investigations have been attempted by people,
establishments and research offices to evaluate the issues and dreams of the
microfinance and financial status of women. The examinations as of now indicated
were general on the relationship amongst SHGs and women empowerment.
Microenterprises should ensure good income to those volunteering into it, to persist
over the long run. Since entrepreneurial movement pays altogether to financial
improvement, coordinators have acquainted a few inclusions with support micro
enterprises that would affirm occupations. In many states, they are creating and
supporting SHGs for microfinance and micro enterprises help to achieve the target of
poverty elimination through micro enterprises.
A micro enterprise, the formation of which is helped through micro credit and worked
by a group of women having a place with SHGs, may perform uniquely in contrast to
ordinary independent business undertakings, which is kept up and worked by women
having a place with SHGs is unique, and there is a non-attendance of fitting search
about the working of such micro enterprises. The study chosen those microenterprises
supported under Kudumbashree.
However, it was seen that objective research studies related with the impact of the
Kudumbashree venture particularly concentrating on the execution of Kudumbashree
microenterprises in Kerala state are few in number. This has stimulated the researcher
to pick this theme for the research. The significance of the examination will deliver
new proof and new dreams, with respect to how far it has added to the improvement
of the poor women in Kerala state. It might likewise assist the specialists and
authorities and policy framers to generalizing and increase profound comprehension
into the pros and cons of its execution. Utilizing the new understandings so picked
up, the deformities, deficiencies, wherever exists, can be effectively cured.
Women in general, appreciate the wide range of opportunities and rights conceded by
constitution and other lawful arrangements. Women who steer all the residential
activities so proficiently well are absolutely great examples in life situation. Women
are a decent wellspring of manpower and contribute successfully towards human
capital for which they must be sufficiently prepared. This possibility must be
appropriately utilized and their productivity and innovativeness ought to be used for
the improvement of the country. This can be made conceivable by empowering them.
In the meantime, realization of the fact that their subordination is not a direct result of
their own insufficiencies causes the women to move towards empowerment. The
Women Reservation Bill is a land mark in the history of women empowerment,
offering open doors for a huge number of women at the grass root level to be a part of
local self-government.
At this juncture, it is essential to examine, how far the women empowerment systems
embraced by Kudumbashree-the biggest organization strategy at grass root level-by
the Government of Kerala, can roll out improvements in the lives of its individuals by
enabling them monetarily safe. Since Kudumbashree concentrated its goal on poverty
alleviation through women empowerment and each area in the state has its activities,
it is fundamental to see whether Kudumbashree gives adequate space to financial
empowerment to its individuals and hence the study is important.
1.3 The Research problem
Kudumbashree Mission is assuming a focal part in encouraging versatile level of

improvement in the state. The thrift and credit societies are going about as door step
banks to the rural poor everywhere throughout the state. The part of the NHGs in the
movement of thrift among the rural poor women needs extraordinary consideration
and it ought to be assessed. Correspondingly, there is an inquiry whether the
arrangement of micro credit to the rural poor is adequate to shield them from the
clutches of money lenders and other casual/informal credit agencies. Likewise, there
is a discussion whether the different income generating activities presented by the
Kudumbashree are giving gainful work to rural women by utilizing the neighborhood
assets.
The Kudumbashree mission is the executing organization of different Central and

State Government Schemes for giving work to the poor women by motivating
different Micro Enterprises/Income Generating Activities. More than 4 crores of small
scale undertakings are agent in the country and urban regions of Kerala by providing
employment and improved income for improving their standard of living. These
endeavours are empowered by the activity of Kudumbashree by organizing banks and
the different legislative offices by providing financial support, subsidies and
technological assistances.
An objective and comprehensive assessment of the working of Micro Enterprises on

project wise or region wise is yet to be done. Subsequently an examination on the
advantages and disadvantages of Micro Enterprises in Kerala State started under
Kudumbashree assume important. Micro enterprises under Kudumbashree is
confronting a few bottlenecks for its ideal execution. Essentially, the Micro
Enterprises are likewise confronting troubles for perceiving suitable Income
Generation Activities and professional marketing strategies for promoting
methodologies for guaranteeing a reasonable return to the women entrepreneurs.
All the above supporting factors encouraged the researcher to undertake a study
entitled – PERFORMANCE EVALUATION OF MICRO ENTERPRISES
INITIATED UNDER KUDUMBASHREE IN KERALA. The study attempts to
make a complete appraisal about the working of the micro enterprises under the
Kudumbashree with respect to performance in terms of profitability, productivity
and loan repayment status and its role in assembling the savings and providing
micro credit to the members. It also probes into the level of economic empowerment
of women attained through the micro enterprises initiated by the Kudumbashree.
Economic empowerment results in women’s ability to influence to make decision,
increased self-confidence, better status and role in household etc.
1.4 Objectives of the study
1) To assess the socio-economic profile of women micro entrepreneurs under

Kudumbashree.
2) To evaluate the performance of Kudumbashree microenterprises on sector

wise (Agricultural, Industrial, and Service) in terms of profitability, productivity and
loan repayment rate.
3) To compare the performance of individual and group Kudumbashree micro

enterprises on sector wise in relation to profitability, productivity and loan repayment
rate.
4) To study the extent of economic empowerment of women micro entrepreneurs

through Kudumbashree.
1.5 Hypotheses of the study
1) There is no significant difference on sector wise profitability of units.
2) There is no significant difference in the productivity of units on sector wise
3) There is no significant difference in the loan repayment status of the units in

three sectors
4) There is no significant difference in the performance of individual micro

enterprises and group micro enterprises with respect to profitability, productivity and
loan repayment rate.
5) There is no significant difference in the economic empowerment of

Kudumbashree micro entrepreneurs before and after establishing the units.
1.6 Research methods
The substantial significance in exploratory research is to find out opinions and

insights when little proof is known about the research problem. Then again, a
descriptive research is concerned about characterizing the recurrence with which
something happens or the connection between two variables (Gilbert and Churchill,
1996). In the long run, each of the three-essential proposition can be viewed as stages
in a persistent procedure (Gilbert and Churchill, 1996). This examination is
fundamentally illustrative in nature yet there are some exploratory and causal research
techniques working for satisfying the targets.
Qualitative techniques like in-depth consultations and interviews with authorities

engaged with SHG advancement and with micro enterprise consultants were included
for the exploratory piece of the investigation. Both primary and secondary
information is utilized as a part of this study.
As the research is presumed to investigate the performance and distinguish the

working of small scale undertakings performed by women belonging to SHGs,
information was gathered from them utilizing a structured interview schedule.
Secondary data was also collected from yearly reports of Kudumbashree and its
different publications, books, diaries, daily papers, magazines, conference
proceedings, and different reports published by administrative and non-legislative
association.
The researcher approached different specialists in the field for absorbing every
possible inquiry associated with the investigation. It was conducted for gathering
basic information in connection with the objectives of the study. The steadiness and
soundness of the outcomes was checked for making factually successful and
dependable. The researcher also identified dependent variables such as Return on
Investment, Return on Asset and Profit Margin Ratios, in the case of profitability
measurement. Productivity is measured with dependent variables such as, material
productivity and labour productivity. The default status is analyzed with rate of
defaulters as dependent variable.
A pilot study was conducted before going for data collection and it helped in deciding
the reasonably good research design. Based on the conclusion of the pilot study, the
schedule was further developed and modified for affirming the required information
to accomplish the study object. The design of the schedule was thoughtfully done
keeping in view the fundamental purposes of the investigation. The fundamental
information was gathered by the researcher through individual meetings with the
respondents and officials.
Each one of those beneficiaries who have attempted Micro Enterprises/Income

Generation Activities as an income generation project are found to be the universe of
the study in Kerala state. The list of the NHG recipients conserved by the Community
Development Societies working at every panchayat level in each District was utilized
for choosing respondents.
1.7 Sampling design
Under the Kudumbashree programme, women from SHGs were continued for
attempting into micro-enterprises either in individual capacity or in groups. Group
enterprises functioned by ‘activity groups’ is spread across all fourteen districts of
Kerala. The state was chosen as the location of the study, as the Kudumbashree model
of micro enterprises was originated in Kerala and it has been in operation for more
than 15 years
The state of Kerala is divided into 14 districts. As on March 2017, the Kudumbashree
network has a membership of more than 41.14 lakhs families, covering over 2.6 lakh
NHGs, 19773ADS, and 1072 CDS spread across all the 14 districts of the state.
(Kudumbashree, 2016). Multi stage simple Random Sampling Method was approved
for selecting area for data collection. Since Kudumbashree is extent across all the
districts of Kerala and also bring out the regional differences of the spread of
Kudumbashree micro enterprises, one district each from the northern, central and
southern part of Kerala was chosen. District of Kozhikode, Ernakulum and Kollam
were selected for the purpose of field work from North of Kerala, Central Kerala and
Southern Kerala respectively for the purpose of study. These districts were chosen
from the respective regions based on the responsiveness of Kudumbashree mission
and the total number of micro enterprises functioning in those districts.
District wise details of data collection were as follows: -
Kollam District situated on the south west cost of Kerala. There were totally 2399
micro units, among them 871 individual units and 1528 group enterprises. For the
study purpose, 65 units were selected each from individual and group units. These
units were selected from 5 panchayats at random, named, Oachira, West Kallada,
Kalluvathukkal, Adichanalloor and Mayyanadu.
Ernakulum District located in central Kerala, the port city of cochin is the commercial
capital of the state. Historically the region had gained prominence as a commercial
and trade Centre and today it has the highest number of all enterprises including 3183
Kudumbashree micro enterprises which is the highest among the central region.
Among 1038 individual and 2145 groups units 65 units were selected from each
section for survey. The selected panchayats were Alangad, Kalady, Cheranalloor,
Mudakkuzha and Nellikkuzhy.
Kozhikode District located in north western region of Kerala, with 2972

Kudumbashree micro enterprises, among them 1208 individual units and 1764 group
units. 65 units were selected each from group and individual from Chelannur,
Kuruvattur, Thalakkulathur, Kakkur and Kadalundi Panchayats.
1.8 Data collection
The study is the performance evaluation of Kudumbashree micro enterprises on sector

wise. For sector wise classification, the units are grouped on the basis of nature of
business undertaken by the women entrepreneurs. Efforts are made to choose the
units on their nature of operation as agriculture, industrial and service.
The enterprises to be visited was decided based on the information given by the
previously visited enterprise or the proposition put forth by the community resource
person who escorted the researcher to the field. The enterprises to be visited were
extent out to the nearly 4 to 5 panchayats or municipalities in the district. Primary data
was collected through a structured interview schedule developed for this purpose and
tested its validity by conducting pilot study by selecting 50 units as sample.
Unscheduled interviews were conducted with the officials, elected representatives and
the community resource persons working with the Kudumbashree Mission, based on
their obtainability. Officials interested were mostly in the Kudumbashree Mission
offices of the concerned districts or else in the head office in Thiruvananthapuram.
Secondary data was composed from books, articles, periodicals and web sites of
related institutions. Former studies showed in the topic, government reports and
studies carried out by NGOs in the topic were also depend on.
1.9 Tools of data analysis
For data analysis, various mathematical and statistical tool like simple averages and
percentages were used. For testing hypotheses, Chi Square test is used for association,
‘t’ test and ANOVA were used for the significance of different dependent variables
on performance and regression models for finding out the significant determinants of
dependent variables. Spearman’s correlation is used for finding out correlation
between different components in the financial statements. Cannonical correlation for
knowing the nature of relationship of empowerment attributes of individual and group
entrepreneurs. For determining the attitude of the respondents, a five-point rating
scale (Likert scale) was designed and used. For assessing the satisfaction level
Confirmatory Factor Analysis was also resorted to.
Chi-square test: It is one of the important non-parametric tests that is used to

compare more than two variables for a randomly selected data. The expected
frequencies are calculated based on the conditions of null hypothesis. The rejection of
null hypothesis is based on the differences of actual value and expected value.
Spearman’s rank correlation: It is used to test the association between two ranked
variables. It measures the strength and direction of correlation between two ranked
variables.
T-test: The t test (also called Student’s T Test) compares two averages (means) and
tells if they are significantly different from each other.
ANOVA: An ANOVA test is a way to find out if survey or experiment results

are significant. In other words, they help us to figure out to reject the null
hypothesis or accept the alternate hypothesis. Basically, testing groups, to see if there
is a difference between them.
Regression: When the regression line is linear (y = a +bx) the regression coefficient
is the constant (b) that represents the rate of change of one variable (y) as a function
of changes in the other (x); it is the slope of the regression line. ‘a’ being the intercept
constant showing the value of ‘y’ when x=0.
Confirmatory factor analysis (CFA): It is a statistical technique used to verify

the factor structure of a set of observed variables. CFA allows the researcher to test
the hypothesis that a relationship between observed variables and their underlying
latent constructs exists.
1.10 Sample size
Total number of Kudumbashree micro units in Kerala was 31261 during the end of
2017. Sample size of 195 units were selected from individual units, that is, 65 units
from each selected district. Likewise, the same number of units from among group
units. Total of 390 units were selected for the survey. Kukeran Formula was used for
determining the sample size. For measuring the level of economic empowerment,
survey is conducted for the total number of members, which constitute, 1023
members in group micro enterprises. The units selected as sample for study in the
respective districts of Kerala having minimum of two years of track record in the
Kudumbashree business.
1.11 Scope of study
The study is confined to Kudumbashree Micro Enterprises in Kerala. It is conducted

on the basis of sample collected from rural and urban areas of the sample districts,
such as, Kozhikode, Ernakulam and Kollam only. Scope of the present study is
confined to the performance of Kudumbashree Micro enterprises in terms of
profitability, productivity and loan repayment status, economic empowerment and
overall economic development. The study also describes the extent of empowerment
of women through Kudumbashree micro enterprises. The systematic method of
multi-stage random sampling implemented in the study along with the application of
scientific technique to determine the sample size, it is expected that the result of the
sample study can well be extended throughout Kerala as a scenario of the state.
1.12 Operational definitions
Microfinance -Microfinance is the setting up of micro-financial facilities namely

investments, micro credit, guaranteeing practical facilities, like training, to the poor
in rural, semi-urban, urban and multinational areas for permitting them to build
assets, to reduction their vulnerability and growth in their living standards.
Micro Credit: Micro-credit states the basis of small amount of credit to the poor,
wherein the financiers, namely Self-Help Groups, NGOs or banks as the case may
be, have excellent to control the rate of interest on its micro-credit. In this study the
terms micro finance and micro credit are used interchangeably.
Self Help Groups: Self Help Group is a familiar relationship of similar, ten to twenty
poor persons in a place, with a collective objective of supporting themselves jointly,
struggling for their economic as well as social improvement and also for their
complete community development. The SHGs offer an exceptional outlook for
providing low-priced credit by enhancing the prevailing banking system, at the door
step with almost definite repayment at the terms and requirements of the poor.
Micro Enterprises: Micro enterprises are small undertakings run by individuals or

groups who take up the commitment of running the business and the family. These
enterprises are based on certain structures like low capital, low technology and low
risk. Though there are many descriptions about micro enterprises, the definition
presumed by Government of Kerala through Kudumbashree is documented for this
study. The definition is based on the following features. (1) Investment between Rs.
5000 and Rs 2.5 lakhs. (2) Individual or group based poor people (3) The business
person should earn a monthly income of at least Rs. 1500/- (4) Enterprise fully
owned, managed and functioned by members themselves, if possible women below
poverty line families as entrepreneurs.
Return on investment (Overall profitability Ratio)
It indicates the percentage of return on the net capital employed in the business. The
term capital employed has been given different meanings by different Accountants.
The popular one is:
Capital(owned) + Reserves and Surplus+Long term Loans - (Fictitious Assets

+Nontrading Assets)
The term return means operating profit before interest and tax. Operating profit does
not consider the notional wages of the owner labour.
Return on asset (Return on Gross Capital Employed)
The term gross capital employed means the total of Fixed assets and Current Assets
employed in the business. Return on assets equal to operating profit before interest
and tax on the gross capital employed.
1.13 Limitation of the study
The study is based on the views expressed by the respondents about their functioning
of the units. The accuracy of information would depend on the compliance of
respondents to understand questions and the views and opinions expressed by them
were subjective in nature. However, in the study the researcher made full efforts to
reduce the bias. The measurement variables for performance, particularly sales
revenue and average income made by the enterprise may be under reported. This, to
some extent is to overcome with careful thought of other variables affecting income.
Majority of the micro enterprises are not following methodical accounting system and
so all the business expenditures sustained by them cannot be accurately recognized.
There may be monetary and non-monetary assistances from the enterprise, of which
only the monetary benefits are quantifiable. The data analysis was done using
statistical methods and thus the normal statistical errors are applicable to the study.
1.14 Scheme of presentation
The report has been presented in Eight chapters.
Chapter One: Introduction – This chapter deals with the background of the study, The
Statement of the problem, Objectives, Hypotheses, Research design, study area, data
collection, statistical tools applied, sample size, operational definition, Limitations
and the Chaptarization of the thesis.
Chapter Two: Review of Literature - This chapter presents a brief review of the
relevant literature on the subject. Relevant studies of foreign and Indian authors were
reviewed. It consists of studies in working papers, journals and doctoral dissertations.
The presentation of the survey of literature spread over four sections, viz, Women
Entrepreneurship in the initial segment, Women Micro Enterprises in the second part,
Micro Finance and SHG in the third part and the last part would be the investigations
on Kudumbashree and Women Empowerment
Chapter Three: Kudumbashree movement in Kerala: This chapter deals with the
theoretical frame work of Kudumbashree and attempts to document the evolution,
growth and different activities of the Kudumbashree mission in the State of Kerala.
Chapter four: Kudumbashree Micro Enterprises: A brief historical review of

Kudumbashree is presented in a compact manner.
Chapter Five: Demographic profile of the Kudumbashree Micro Entrepreneurs under

survey.
Demographic profile of the respondents was analyzed in sections, such as, personal
background and family background. Respondents were taken from individual and
group units. Personal background includes details such as, age, marital status,
education and place of residence. While the family back ground is analyzed with
respect to lead of household, nature of family, size of family, religion and community.
Chapter Six: Performance evaluation of Kudumbashree Micro Enterprises.
The performance of Kudumbashree micro enterprises are measured in three angles,

such as, Profitability, productivity and loan repayment status.
For the purpose of finding out the profitability, three types of profitability ratios, such
as Return on asset, Return on Investment and profitability margin ratio are used.
Material and labour productivity is considered for studying productivity of micro
units. Comparison between the performance of individual and group micro
enterprises are also analyzed in this chapter.
Chapter Seven: Measurement of Economic Empowerment of Kudumbashree Micro

Entrepreneurs.
In this chapter economic empowerment of entrepreneurs are analyzed. Economic

empowerment is measured by using variable like, monthly income, monthly savings,
borrowings from formal and informal source, nature and ownership of dwelling
house, amenities in house etc. reveals a considerable improvement in the economic
status after joining the micro enterprises.
Chapter Eight: Findings, conclusions and suggestions – This chapter gives the
summary, major findings, suggestions and conclusions of the study. The scope for
further research in the area is also included in the chapter.
REFERENCES
Churchill, G. A., Brown, T. J., & Suter, T. A. (1996). Basic marketing research.
Ganbold, M. (2016). The impact of the small and medium enterprise support

programmes on the livelihoods of micro-entrepreneurs using sustainable livelihood
framework: a case study of Enterprise Mongolia Project Phase 2 by United Nations
Development Programme in Mongolia: a thesis presented in partial fulfilment of the
requirements for the degree of Master of Philosophy in Development Studies at
Massey University, Palmerston North, New Zealand (Doctoral dissertation, Massey
University)
Report of the committee on credit related issues under SGSY, Ministry of Rural
Development, Government of India. (2015)
Shihabudheen, N. (2013). What is right and wrong with Kudumbashree: the field
Experiences. International Journal of Humanities and Social Science Invention, 2(5),
9-21.
CHAPTER 11
LITERATURE REVIEW
2.1 Women entrepreneurship
2.2 Women micro enterprise
2.3 Micro finance and self-help group

2.4 Kudumbashree and socio-economic empowerment
2.5 Research Gap

Introduction
A vast accumulation of writing is available on Women Entrepreneurs, Women Micro

entrepreneurs, self-help groups and women empowerment by different authors across
the world. An effort to investigate the relevant portion of Indian and foreign
contributions to studies. Research journals, papers presented, papers exhibited in
certain national and global courses and doctoral thesis submitted to different Indian
and outside universities abroad have been referred. These reviews will be useful in
perceiving the research gap in the zone of Kudumbashree micro enterprises and help
to choose the technique that is to be expected for the present investigation.
The end goal of the study purpose is to divide the information into 4 separate sections,
Women Entrepreneurship in the initial segment, Women Micro Enterprises in the
second part, Micro Finance and SHG in the third part and the last part would be the
investigations on Kudumbashree and Women Empowerment
2.1 Women entrepreneurship
Amma, S., et al. (2000) in their investigation on entrepreneurs in Kerala perceived

that every single successful woman entrepreneur had solid family backing. The
majority of them were confined to urban zones. They effectively contended the
necessity for business improvement programs for maintaining women in traditionally
highly capable activities.
Mathialagan, R. (2002) brought out a financial report on women entrepreneurs in

Chennai City. According to this study there are some basic trademark for the
accomplishment in business enterprise i.e. Risk taking, modernism, self-confidence
and accomplishment motivation.
An investigation led by Kerala Women’s Commission (2002) so far by the rank of

women in Kerala, takes into account 912 distinct business entrepreneurs of Kannur
region. It analyzed the position of women in development programmes in Kerala. On
the premise of this study, it is found that the help of authority of Government program
and the help from the responsible field staff of NGOs programs were the critical
predominant factor that energized the arrangement of initiating the endeavors by
women.
D’Cruz, N. K. (2003) conducted a research revealed that, they have taken up this
employment for adding to family income and not the aspiration that has made them
entrepreneurs. Moreover, most of them started business only after all their attempts to
secure a regular and salaried job failed.
Beena, C., et al. (2003) led an investigation from the motivational discernment by
taking an example of 30 women entrepreneurs of Andhra Pradesh. They perceived
that women entrepreneurs were involved in activities like selling vegetables, flowers
and so on because of a few reasons, for example, agricultural activities are thriving in
our nation and these women have irrigated from villages where they were occupied in
farming. Moreover, familiarity with the items and their potential, influencing them to
settle on the business. Setting fruits, flowers and vegetables requires minimum
substance skill but requires high lung power Laundry, selling snacks and tea are skill
based and are determined by cast and custom.
Krishnaveni, et al. (2004) in an investigation that on women entrepreneurs in rural

territories of India pointed out that the vast majority of the women entered the
entrepreneurial ground to boost family income and some for other reasons, such as the
need of government employment, monetary commitment and so forth.
Kumar, et al. (2004) led an investigation about the enterprise site of women
entrepreneurs by choosing a specimen of 120 women entrepreneurs in the state of
Haryana in, India. It is accomplished that greater part of the women entrepreneurs
required to work their business "close to the homes" trailed by "close to the market"
Rao, P. R. M. (2004) in his investigation with unique introduction to access to credit,

perceived that, insufficient framework, high work versatility, lack of electricity and
hindrance in realizing the number of debtors etc. were the main evils faced by women
entrepreneurs. Notwithstanding this access of credit has been confined to the privilege
or benefit of the rich and powerful. Lack of respect is another issue endured by
women entrepreneurs. They have limited access to assets, and, credit and they
required improved methods for generation and marketing skills.
2.2 Women micro enterprise
Pickering, Hela.et al. (1990) perceived in an investigation of women income

generating groups and individual women entrepreneurs in Uganda that the individual
women are observed to be more monetarily powerful than the group because of
reasons like routine procedures and other arrangement of maintaining social
relationship.
Vinze, M. D. (1992) in an investigation of women entrepreneurs pointed out that

enterprise helps women in enhancing their place in their family as well as in general
society where individuals are treated with appreciation. It is accomplished that the
best acknowledged approach to engage women from rich or poor is to impart them the
spirit of business in exceptionally winning way.
In investigation led by Lewis, D. (1996), it is seen that the micro enterprises

supported by NGOs have come to be viewed as a critical move towards generating
restricted business and raising returns. The Garmin bank in Bangladesh has been
tremendously subjective to small scale micro enterprises to diminish poverty.
Subharao, K. (1997) in his investigation called attention to the uniqueness required

for thriving independent work programms' are.
1. Organizing beneficiaries into groups and consolidating motivating forces to

both borrowers and moneylenders
2. Encouraging savings habit among the recipients
3. Dropping transactions lost
4. Not subsidizing interest charge.
Srivasthava, R.M. (1999) in a case study has suggested that in India women are
assuming an integral part in employment generation and trade. They contribute
individual profitability in low capital demanding micro enterprises.
Punitha, M., (1999) in her examination perceived a few shades of malice and points
of confinement faced by women entrepreneurs in Pondicherry region. 120 female
entrepreneurs were personally interviewed during July 1999, out of the women 42
belong to the rural region and 78 to the urban. The accompanying are the
inconveniences faced by the entrepreneurs are: -
1.Opposition from better quality item
2.Marketing inconveniences
3.Complexity in accepting credits by urban business enterprises

4.Unawareness about various plans, agencies and organizations, and so forth by both
urban and rural business entrepreneurs.
Viswanath, et al. (2001) in her exploration article referred to confirmations to

increase the acquiring and extend income sources, it is required long haul
nourishment of the wellbeing for rural women.
Nird (2001) unmistakably enunciated that interfacing of microenterprises and micro

finance through SHG can turn out to be financially self-supporting. Microenterprises
are measured as a part for future arrangement for poverty alleviation.
Barbara, et al. (2001) perceived that, around 85% of the recipients had earned no
returns previously joining SHG, however subsequent to getting credits from SHG,
around 30% of the sample individuals have continuously acquired benefits extending
from Rs 25 to Rs 30 every day. Around 13% of the sample crossed the poverty line.
Lakshmanan, S. (2001) in a reading in Tamilnadu revealed that SHG is really useful

in rural zones, which oversee money related freedom to rural women and make them
monetarily self-governing. The principle inconvenience faced by the micro
entrepreneurs is the issue of the high cost of raw material.
Planning commission (2001) brought up that micro enterprises are the most essential
supply of income and employment for an imperative plan of rural poor. The
association between micro enterprises and poverty reduction is coming up for
extensive debate among the policy makers and development advancement program
implementers.
Dhanuja, S.K. (2002) in his exploration dealt with 175 women endeavors of Punjab,
Haryana and the Union Territory of Chandigarh. It revealed a composite of common
response of women entrepreneurs towards support agencies. The greater part of
women expressed their problems such as lack of co-ordination between support
agencies, unavailability of timely support and the inappropriate motivational role in
discharging duties. Some others disagreed in different statements connected with
support agencies like gender injustice and so on. This study further highlights that,
there is a solid disappointment with the achievement of support agencies.
Anand S. Jaya (2002) underlined that the individual movement is better in the
beginning periods, until the point when the group accomplishes adequate
development and confidence in taking up group endeavours.
Jose, T. K. (2003) in his investigation featured on the Kerala demonstrate that for
water reactor advancement, for the most part embraced as a good example for poverty
diminishing and builds up of public capital. It is a society-based organization with its
main issue on encouraging a consistent pay to poor people, and made out of People's
plan movement, the Kudumbashree with grass root level neighborhood gatherings,
unified into an area development society. It encourages savings and credit
channelling, capacity building and business enterprise development. Different
activities include consciousness mounting to water protection and cleanliness,
promoting small, modest and low innovation extends that individuals can comprehend
and complete.
Pandian, et al. (2004) in an investigation of test of 350 women from two blocks of
Madurai area in Tamilnadu arrived at a finding that there is a connection between
micro enterprises and the degree of borrowing. Another finding of this investigation is
that the environment of big business is inclined by the literary level of the
entrepreneurs. The study accomplished that the issue of rural poverty can be to some
degree understood by the new stream of business people known as micro
entrepreneurs. For fulfilling the favoured point of these micro enterprises relies upon
the broad support framework that the general public and the Govt. are willing to
accommodate them.
Kannan, S. (2004) has directed an investigation in 5 towns around Tuticorin town to

inspect the ramifications of educated women entrepreneurs in producing income for
their families and support for participation in enterprise. The significant reason for
participating in informal trade is to get rid of poverty in their family.
Ntseane, P. (2004) perceived that the accomplishment of business for rural women in
Botswana is in keeping with the socio-cultural background. On close examination, it
is exposed that the prospering business techniques are the consequence of social
esteems. It is concluded that the mainstays of economical business accomplishment
for Botswana women possessed are non-aggressive networks and cross border trade.
Thacker, K. (2007) in his study ought to be verifiable as classification of right
products or activities reasonable for micro enterprises with determined territory
(Kutch for the investigation) with a procedure of helping social, monetary and
political condition of women. The principle point of convergence of this investigation
is on women as opposed to on specialized or financial angles. On the premise of this
study, it ought to be comprehended that organization will compulsorily extend a large
portion of help first from giving them specialized direction to the acquisition of raw
materials, dynamic support in the administration till advancement of produce of
products in early phase.
Chowdhary, et al. (2009) in the study tried to evaluate whether the inclusion in the
micro finance program of the Grameen Bank help the women to create independent
work for them through starting micro enterprises. The examination depends on a
house hold level study, and calls attention to the inclusion in credit programs. It does
not empower independent work for women at the house hold level. However, the
outcome showed that a similar commitment impressively helps husbands of women
members to begin micro enterprises and in this way, builds capital.
2.3 Micro finance and self-help group
Rahman, A. (1999) from the information made from the rural group of Bangladesh in
the year 1994-95, sets out that, to ensure auspicious reimbursement of the credit, the
representatives of bank put strong force on women clients. So, they are implemented
to continue regular reimbursement plans through the procedure of loan recycling that
altogether builds the debt charge on these women which will in turn extends stress
and irritation among the members.
Aswathi, P.K. (2001) asserted that SHGs have influenced an awareness on health and
hygiene and skill information among group individuals. The examination perceived
that after the advancement of SHG, women’s saving and credit behavior which are
critical towards the up gradation of their financial condition are enhance.
Chavan, P. et al. (2002) made an appraisal of the available exploratory verification

on NGO driven micro enterprises and institutions implemented programmes across a
range of developing countries. It was made for the reason of judging the introduction
of these projects and instincts on the premise of an arrangement of four pointers in
evaluation with the state driven credit-based poverty activities which are crucial
towards the upgradation of their financial status improvement projects and
institutions, for example, IRDP and RRBS in India. The investigation found that NGO
led small scale credit projects and organizations, for example, Grameen Bank, have
been winning in fulfillment of their biggest organizations of the poor more effectively
than the state driven projects and establishments, despite the fact that the adjustments
in the earnings of recipients has been immaterial.
An examination by MYRADA (2002) on women’s empowerment of SHG individuals

for the southern areas states studied 13, SHGS and encased four professionally
managed NGO (DHAN, RASS, CHASS and MYRADA) one from every slab. For
investigation purpose four types of savings are used. The consequence of the result
builds up that the majority of the individuals are young married women in both type
of SHGS (less than one yrs old). Larger part of the individuals in both the groups
acknowledged that their financial position and general level of confidence have
changed emphatically implying an improvement in level of strengthening. Moreover,
it is set up that four NGOs have been in assuming a noteworthy part in various
activities under the SHG program. The investigation reveals that in the medium term,
the co-operative banks are probably going to the fundamental SHPI. (Self-help
promoting institution)
Hishigsuren, G. (2004) investigated into what keeps micro enterprises travelling far
from the mission of poverty alleviation even in the wake of scaling up. In light of the
conclusion, he expresses that micro finance institutions can proceed with the mission
during challenges if there is a well set up organizational system which can safeguard a
platform for development and there is a participatory receptive appraisal and
monitoring system.
Anand Jaya, S. (2004) led a probing study in Malappuram District. The motivation
behind the study was to surveying the execution of SHGs and for distinguishing the
elements causal to the accomplishment and supportability of SHGs in Kerala. This
investigation surveyed the practically identical poverty destruction programs and
furthermore inspected its effect on strengthening that the program has brought about
the careful choice of the poorest of poor people and strengthening of around 52% of
the members. There are outside and inside variables which added to the success of the
group. Role of agencies associated with the advancement and motivation are most
essential one, among the outside elements. Among inside components, dynamic
administration, homogeneity of enrollment, democracy, co-operation, solidarity and
collective thoughtful and so on are distinguished as imperative.
Indira, M (2005) in a relative investigation of social externalities achieved by two

distinctive micro finance empowerment interventions in Karnataka arrived at a
finding that the individuals have been engaged and have contributed optimistic public
externalities. Notwithstanding, considerably more astonishing accomplishments in
social externalities can be accomplished, if activities to accomplish monitory
empowerment are joined with awareness about health, legal and political rights
Sunil, R. (2005) addressed the inquiries of empowerment through SHG participation

through an investigation of 368 family unit drawn from 179 SHGs with three years of
permanent credit linkage. The samples were taken from the three Taluk of Wayanad.
The result of the study was the strengthening of the identity in less poor stagnant and
declining economies. In such kind of economies, authorizing credit to country women
will impact in strengthening of such condition. It brings about additional wage and
work as a substitute of making utilization of the credit for addressing sustenance
requirements for repayment of debt.
Mohankumar, S.et al. (2005) opined that micro credits when implemented in
agreement with the strategy of the worldwide organizations turns into a device for
perpetuating the social and financial stability across the board in the nineteenth
century. They guaranteed that the reach out of micro finance and the enrollment of
women give out the twofold reason of empowering the state to detract from monetary
exercises and diffusing any type of encounter against the state in the situation of
globalization by lauding the utilization of cheap women work in micro enterprises as
woman empowerment.
Devi Lekshmi, K.R. (2005) in a forceful investigation of NGO driven microfinance

program and the state driven Kudumbashree program, asserted that Kudumbashree
program is more triumphant in creating better returns and helping women.
Bali, R.S. (2006) referred to that, for microfinance to demonstrate the impact of
microfinance on women’s empowerment as an option of keeping up at the minimum
programme, it should be included by micro finance plus or other non-money related
administrations, such as training, knowledge creation programmes, education and so
on. These sorts of administration can enable women to effectively advance their
circumstances inside the house hold, group and society, and not simply make them
more competent in their roles.
Swaminathan, M. (2007) in view of the investigation, that the components prompted

the accomplishment of Veluyu, which was begun in 2000 as a micro finance
programme, under the world Bank help with six poorest regions of Andra Pradesh,
wanted to do something for Indian states design SHG program that regard poor
women as possibly imperative resource and not as substance of pity.
Gadenne, L.et al.(2007) in an examination in Karnataka and Tamil Nadu referred to

that the individuals are utilizing the loan amounts from a micro finance sources in
promoting investment in industrial assets. The creators revealed that the deficiency of
credit sum is the conceivable reason for this event.
Bhatia, N. (2007) made an examination in Rajasthan taking 245 SHG samples

associated with banks in the state before the end of March 1998. The research focused
on the capacity to sustain and to learn the ways in which their dealings and scale of
function change over time. It was perceived that the groups which got solid help from
the advancing association had high rates of survival. But there were some reasons
like, conflicts, lack of management and troublesome issues etc., within the unit. More
over some outside issues like immigration of group members, ongoing drought, lack
of support etc. caused breakup. That is the reason, it was recommended by the
creators that, keeping in mind the end goal to ensure the supportability of SHGs, the
nature of groups made is most noteworthy.
Khandker, et al. (2007) influenced a pursuit on the repayment practice by the

individuals from 200 gatherings of Grameen Bank. They explored the chance of non-
payment by the individuals and the outcome of default. Examination was set aside by
time series analysis. The examination reasoned that joint responsibility has a solid
critical outcome on the misconduct of the Grameen Banks. It is likewise finished that
there is less credit risk for women than for men.
Wrenn, E. (2007) directed an examination on the significance of microfinance by

analyzing the impacts of three microfinance extends in Kenya, Uganda and Rwanda
helped by the Irish and office Trolaire, on a more extensive territory which
incorporates social, and political effect on customers, their families and the more
extensive individual groups. It is perceived that apart from the affirmative force in
financial, physical, human and social capital of the clients, the more extensive group
additionally profited since the enhanced pay of the customers was exhausted within
the community.
Anjugam, M.et al.(2007) made an investigation predominantly to analyze the family

unit uniqueness, resources and liabilities of the individuals and non-individuals from
SHGs. Here they analyzed the variables formative of the women’s contribution in the
micro enterprises program. It is discovered that the age of the women and value of
useful assets other than land have an important harmful influence on their
contribution. While, social backwardness, indebtness and presence of other micro
finance program in surrounding area have a significant optimistic influence on their
participation.
Swain, R. B.et al.(2007) directed an examination on the scope of status of India in

2003 by taking examples of 961 SHG part house hold it was proficient that the
inclusion has brought about extensively more elevated amounts of strengthening.
Further, they recommended that, the factors like village distinctiveness, religion
norms, behavioral factors of respondents and family members guidance etc. is more
important in attractive empowerment.
Swain, R. B., et al. (2008) in light of the house hold survey information from India,
analyzed what of the two variables i.e. monetary or non-financial, enable them high
level empowerment. They completed that, for SHG members, the factors like village
distinctiveness, religion norms, behavioural factors of respondents and family
members guidance etc. is more important than attractive empowerment.
Kalpana. K (2008) in her paper, from the information gathered from 27 women
SHGs, completed three years’ fruitful execution. These SHGs were linked with banks.
She contended that micro finance programs do not have any natural character that
help their women customers or lessen destitution. The ways in which the poor
experience decrease in poverty or strengthening area matter of concern to the
institutional challenge of the program.
Mohindra, S. (2008) recognized the connection between female support in SHGs and
women’s health in Kottathara Panchayat in Kerala. Essential information was formed
from 928 non-elderly women members in the age group 18-59. The investigation
perceived that, SHG association seem to offer resistance against elimination of health
care, notwithstanding whether the member is an early joiner or late joiner. Indeed,
even a woman who is a non-member however living a in house with SHG member
focus less segregation. It is refined by the investigation that decrease in health
segregation in an inadvertent favourable position of the program.
Bhattacharya, S. (2008) contended that high reimbursement chance can be

guaranteed in loaning by promoting a joint benefit as a substitute of joint obligation as
a substitute instrument to take care of the instructive issues where moral helplessness
is an issue in assemble loaning in micro finance programme.
Shetty, N. K. (2008) in view of the information from the study of 318-member house
hold of 106 women SHGs in tea towns in the province of Karnataka, recommended
that the weak poor who are socially marginalized can be elevated out of neediness by
giving effortlessly accessible and sensible “micro finance plus services” in addition to
money related and non-monetary services.
Karmakar, K. G., et al. (2009) analyzed the monetary addition plans executed by the
government. They tried the accomplishment of different pioneering plans like SHG
bank linkage programs. The investigation contended that the aggregate destitution
moderation is conceivable by offering priority to the season's issues like rural lively
hoods, entitlements agro handling, land /water rights, under employment issues, extra
wage sources and so forth. These serious issues should be talked and not out swept
under the carpet.
Baruah, P. B. (2009) in his exploration considered the Nalbari District of Assam

with the motive behind empowering the SHG as a substitute wellspring of rural credit,
and resources development of the individuals. The investigation prescribed the pre-
requisite of asset creation for raising the general population out of neediness in which
mission the SHGS were not be fruitful.
Deininger, K., et al. (2009) directed an examination in the year 2004, to look into the
significance of strengthening the new and the old women members of CDD
(community Drives Development) program channelized through SHGs in the territory
of Andra Pradesh. They settled 6000 households for the purpose of study. The
examination directed for investigative the effect of the program on three sub groups,
in particular, recently jointed members, individuals from the SHGS which were later
changed over into program groups and non-members. The discoveries prescribed that
there was optimistic drop over effects non-participants also sustaining the
disagreement that the programmes institutional configuration has avoided privileged
capture. There is no expansion in resource structure that shows the financial effect is
for the most part through utilization smoothing. In light of the above
recommendations, in 2004, they arrived at a conclusion as to whether the financial
impacts are limited to individuals who are more entrepreneurial. Moreover, the
investigation discovered that longer programs knowledge absolutely impacts upon the
members and even the poorest accumulate resources.
Kumar, D. S. (2009) made an investigation in Coimbatore, by discretionarily picking

family units of SHG individuals and non SHG individuals (a sum of 750 families
similarly partitioned) 27 small scale water sheds concentrates on the part of SHGs
made under watershed advancement programs and their role in affecting commitment
in SHGs and the effect on household interests. It is perceived that the commitment of
women is inclined by different components like instructional level of women, their
families, number of dependents, pay from other source and stress of their watershed
institutions. Additionally, the program exerts positive pressure on the family benefit.
Basaegekar, R. (2010) composed details through essential information with an

example of 217 individuals from 60 self-help group which were set up under the
program of corporate social responsibility by Department of Social Initiative by
Frobes Marshall Co Ltd. Pune, which perceived that micro finance programme
executed by the affiliation has made a social capital which has an empowering impact
on SHG individuals.
Kala Sasi, et al. (2011) in their examination looked at the part of micro finance and
SHG in the empowerment of women of Hunsur Taluk in Mysore region, Karnataka,
infer that subsequent to joining SHGs, women obtained aggregate quality for battle
against social indecencies. Their self-assurance and confidence reflected in their basic
leadership process which at last brought about the financial advancement of the town.
A portion of the critical changes noticed are –
Increased access to assets and local group activities
Upgraded basic leadership capacity.

Status to battle against social evils.
Duty regarding socio-monetary advancement of the village.
Increased self-esteem and confidence.
2.4 Kudumbashree and socio-economic empowerment
Ajith,D. et al. (2000) led an examination recognized that reimbursement rules are
somewhat lower in non-farming activities due to marketing problem consequential
from the creation of non-tradable while it is respectably fruitful in the rural segment.
High reimbursement rates are stated to be moved by fiery motivators like prospect of
advance rejuvenation. The examination also found that borrowers did considerable
twofold plunging (borrowing from other micro finance programme and borrowed
from non-institutional) sources raising their indebtedness. Most importantly, the
examination called attention to that micro credit programmes not achieved widespread
success in humanizing the occupation of the poor especially in non-agrarian segments.
The investigation contends for a logical frame work which examines the
communication of labour credit and product market to implicit the livelihood of the
poor.
Bhagyalekshmi, J. (2004) in her pieces of work revealed that India as a member to

the UN meeting has found a way to ensure full advancement and progression of
women. The particular projects of women are indicative of valuable outcomes in
enabling women, yet, in fact, there are miles to go and promises to keep. A wide
range of hostility against women, both physical and mental, regardless of whether at
home or group level might be dealt with care. The assistance of women is not really
achieved, despite the fact that their contribution in the field of horticulture and related
areas are desirable to ensure that benefits of training, extension and various
programmes will reach out to make them more successful in their own area of
operation.
A case study by Sahayi (2004) analyzed a variety of issues and issues associated with
the affiliation and administration of Küdumbashree and the amount to which the
different campaigns add to the achievement of goals. The study set forward a time
bound awareness building program about the destinations and elements of NHGs for a
co-ordinate activity of panchayats, the Kudumbashree Mission and the common
society for accomplishing its objective of poverty lessening and women
empowerment
Kurian, et al. (2005) revealed through his doctoral theory, the part of SHGs in
guaranteeing the welfare, concretization, political and financial strengthening of poor
women in Kerala. The study perceives that SHGs should spotlight more on Human
Resource improvement and capacity building ought not be lacking to the pioneers of
the group. Henceforth, every one of the entrepreneurs must be capacitated to take up
administration positions.
Mathew, et al. (2005) in her study examined the importance of income generating
activities undertaken by microenterprises in Wayanad district of Kerala. It is a
comparative study of NGO led micro finance group and NHG of Kudumbashree. The
result of the study reveals that the revolving fund of Kudumbashree is the active force
to restrict the insolvency of the group. In the initial stage, the members find this fund
useful for consumption purposes and it is considered as an important need of the
members. Later these funds are used for productive purposes as this income
generating activities helps them to earn additional funds.
Christabell, P.J. (2005) in her doctoral thesis discussed the role played by
Kudumbashree micro finance in building up the financial and political capability of
women and thereby increasing their level of empowerment. As per the study, it is
concluded that, only one fifth of the beneficiaries contribute to political, social and
cultural organization and another one fifth were attracted to income generating
activities.
Singh, U. B. (2006) in his paper emphasised on three sorts of partialities. They are 1)
inclination against sex, 2) predisposition against equality and 3) predisposition against
education. He repeats the importance of the interest of women in decision making
which begins from the family and goes up to the Parliament. Therefore, one third of
the involvement of women is the need of the hour. He expresses that by enabling
women, we are not supporting the women, but rather we are favoring the general
public. The second and third inclinations describe local and social imbalance which
can be redressed through education, training, group discussion and seminars.
Sasikumar, K., et al. (2006) in their article called attention to the commitment in
Kudumbashree programs that enhances the strengthening of recipients with financial
pay, change of expertise, self-confidence and sense of pride.
Raghavan, V.P. (2006) pointed out in his study perceived the financial effect of
Kudumbahree extends to the rural and urban poor in rescuing them from deficiency
and creating gender equity. It demonstrated that the women empowerment is the best
procedure for poverty destruction.
Priya, K.V. (2006) in her doctoral thesis identified the part and methodology of
Kudumbahree as a program following micro level planning in Kerala. Moreover, she
distinguishes the level to which Kudumbashree prevails in poverty mitigation and
women empowerment. The examination calls close inter association between the
level of input in planning and the economic status of respondents.
Muraleedharan, S. (2007) Executive chef of Kudumbashree called attention to the

power of the neighborhood-based organization is the quality of its course of action -
the lakhs of women who meet weekly to pay out thrift and credit. For the aim of
increment of thrift and credit gadget it is important into preparing the women and
their families into feasible economic activity.
Siwal, B. R. (2008) in his investigation recommended that women are treated as the
agents of growth, yet with the extra earning capacity and the desire that they will go
up against to assume a basic part, if social improvement with novel and supple
practical support. Kudumbashree has been winning in making cognizance among
women about group administrations, for example, incorporated child development
services, public addressal system and Primary Health Centre.
Oommen, M. A (2008) through his working tried to describe the points of interest of
Kerala's Kudumbashree as a women empowerment and antipoverty improvement for
the individuals as well as for the wider group of self-help organization of poor
women, started as a micro finance organization afterwards became an active
subsystem of local management and embarked upon more than a few activities that
deal with the query of poverty lessening.
Sasikumar, K. et al. (2008) examined the issues associated with the perseverance
and survival of micro enterprise under Kudumbashree in the unique test of
globalization by taking examples in three locales of Kerala. According to the
examination they opine that, concentrated on non-ordinary and selective items, where
there can't be no passage by the worldwide organizations who cannot utilize their
large-scale reward, can go at far in advancing the business sectors for results of
Kudumbashree.
Patel, V. (2008) in her examination perceived that politicization follows 10-year-old

Kudumbashree by the recently perceived Janashree constituted by decision party.
Kudumbashree is supported by the left front. There is a peril to Kudumbashree and
union state relationship from the initiation of Janasree.The state Government restricts
any movement for grant of union Governments funds straight to Janasree, overruling
the state Govt or the local self-Government.
George, B. (2008) in her examination among the rural women for assessing
empowerment through Microfinance finds that the financial freedom and autonomy
assimilated by women through micro-finance activities significantly changed the
ways of life. The dominant part of the respondents perceives changes in their parts in
the families and in the general public. There is essential contrast in the gross annual
family income prior and then afterward joining women in self-help groups. The
respondents commonly feel that income generation is indispensable for their
empowerment.
John Gladys Mary. (2008) in a perusal among SHGs demonstrating jasmine farming
in Ernakulam area in Kerala fulfills that in the wake of framing SHGs, the women
accomplished financial autonomy. They have independence in distributions of their
profit. Notwithstanding that, generous ascent was seen in issues like confidence and
wellbeing. The self-assuredness of their spouses also changed.
Lathika, K. K. (2008) in her examination of the rural territories of Kerala assesses

the empowerment of women through kudumbashree and finds that empowerment can
stop the deterioration of the mental state of women. Kudumbashree has made its
mark in establishing another way for women empowerment. She asserts that the
powerlessness of women can turn into an unrecognized epic if kudumbashree put on
its assurance in the correct viewpoint.
Ruby, J. A. (2008) in her persuing about micro finance and women empowerment
records that women empowerment is integral to the method of improvement of the
economy. It assumes a basic part in the diminishing of destitution and in the overall
advancement of the country. The Kudumbashree venture in Kerala has been
contributory in engaging the individuals through micro financing. Kudumbashree at
the NHG level have increased their savings habit and minimize entry to credit
Krishna, et al. (2008) drove an examination in the Kumarakom Grama Panchayat in

Kerala State for assessing the part of micro finance for the development of women
empowerment and the significant discoveries are:
1. There is an upward development in the growth rate of SHGs and microfinancing
bank linkage programme.
2. There is a change with respect to all political/religious groups to appreciate the

individuals from the SHGs and utilized them for their advantage.
3. Women, at the guidance of the men at home and with the support of companions,
seem to choose lending out the loan amount for higher interest than getting
themselves engaged with some other IGAs.
4. They became easy victims of the bad effects of consumerism and grab every
chance to make a display off their proud possessions.
Khari, D.S. (2009) in a contextual analysis of Tamil Nadu reveals that given the best
possible help and supervision, the women driven SHGs were guaranteed to make an
unattainable change in enabling women as well as tap the hitherto unutilized power of
women for viable progress of the general public as a whole. Overpowered by the
activities of the SHG, the Vellore locale Rural Development organization and SBI
delivered credit to the SHG for which it obtained 1.5 acres of land on lease and
developed flower plants and begin marketing of flowers directly at Chennai without
middle men, accordingly gaining considerable income.
Munian, A. (2009) in his paper pronounced that the SHG– Bank linkage strategy is
set up to be a dynamic instrument by which exceptionally very poor individuals can
entrance trouble free formal credit without any collateral security and instantaneously
progress their savings habits. The procedure additionally finances the social
strengthening of the women.
Reddy, A. R., et al. (2009) drove an investigation among 990 SHGs in Tirupati in
Chittoor region in A.P, to perceive the part of SHGs on urban poverty annihilation
found that the linkage between various strategy towards improvement, poverty
lessening and empowerment must be interrelated. SHG activities are basic in making
fluctuations in the lives of women.
Devi, Ambika. R. (2010) through her doctoral proposition influenced an endeavor to

examine the degree to which Kudumbashree has helped the procedure of financial,
social, mental, political and individual empowerment of women. An endeavor was
made to inspect the execution of Kudumbashree mission in terms of training and
awareness programmes conducted and the improvement in the standard of living of
members. The examination affirmed the empowerment of women in this regard
through Kudumbashree program.
Siva Prakash, C. S. et al. (2010) called attention to their examination that the women
ICT program under the administration of Kudumbashree has vast scope as a device
for engaging the poor women. The social and economic barriers could be effectively
overcome by the women through Kudumbashree program. This programme provides
good knowledge and sense in the digital world and helps to know the opening of the
information technology, communication technology to the poor and socially reward
the women below poverty line. Through these activities, the poor women have made
an entry into the lowest range of IT enabled job and also have acquired minimum
level of income adequate to meet the family need. The investigation additionally
demonstrates that, as days pass IT undertakings are confronting certain issues, for
example, trouble to get sufficient sources of input, technological obsolescence and
stiff competition from the digital market.
Kavitha, V. et al. (2011) contemplated on the viability of group performance by the

individuals from women self-help groups in goat farming, working under
Kudumbashree, in Trissur District, Kerala. The examination perceived that the larger
part is the individuals (76%) gathered the effectiveness of their group functioning as
an average. The performance of the group in terms of official procedures was most
successful by the members, followed by that of interpersonal associations and
entrepreneurial actions. The investigation called attention to the need of planning in
goat farming along with provisions of resource arrangements of assets like great
quality breeds, grazing land, feed, market and vertinary care for achievement of the
groups functioning. Districts of west Bengal, tries to test the significance of the
program impact of SHGs by looking at empowerment levels of recently introduced
and elder members from SHGs. The study argues that encouraged by the drive of
ensuring high success rates, the municipality officials target women who are more
likely to repay loan, to those who already contribute economic activities and are
already empowerment to some extent. They also argued that the micro finance
programme through SHG is evaluated in terms of economic parameters only and that
the programme has not succeeded in demanding the traditional social arrangement.
Reshmi, R. (2012) in her article revealed about the marketing strategies of

kudumbasree products. They learned about the promotional measures and advertising
adopted by Kudumbashree units to advertise their items. They analyzed various
promotional measures and advertising adopted by each enterprise. They examined the
problems and hurdles faced in marketing and considered about the strategies to
enhance the marketing ability of Kudumbashree enterprises. The results of these units
can be successfully advertised by presenting proficient promoting strategies
Kalyani, K., et al. (2012) recorded the significance of different projects that were
acquainted together to raise the women from below poverty line in Puthenvelikkara
Grama Panchayat of Ernakulam, Kerala. This investigation perceived that, every
single improvement can be accomplished just when financial advancement is
accomplished. Kudumbashree units fundamentally changed monetary freedom of the
women and their living status.
Venugopalan, K. (2014) in his article gave the insights with respect to the mental and
physical change picked up by Kudumbashree women subsequent to joining the
Kudumbashree. Through the examination, it is distinguished that individual aptitudes,
basic leadership power and consciousness of individuals are enhanced aside from
fearlessness and learning, however women empowerment has not been achieved to
the fullest extent. Much significance ought to be given for the improvement of
fearlessness and learning about intellectual rights due thought ought to be given for
different components for the empowerment of members
Hashimudeen, A. et al. (2014) considered the changing features of micro enterprises

in Kerala and announced that the micro enterprises in Kerala faces various difficulties
extending from reasonable credit, markets beyond immediate area, non- accessibility
of new technologies, supplies and materials, location in isolated rural areas, and
products lacking innovation. In addition, poverty also delimits their development.
PrabhuSanthosh, M, M. (2015) in his examination recorded that overall

performance of Kudumbashree unit with reference to Beeranthabail of Kasaragod
District Kerala State made an endeavour to investigate the working arrangement of
NHGs. Through this examination, it is revealed that necessary steps are taken for
making successful execution of units. It is deduced in the investigation that
Kudumbashree ventures can accomplish women empowerment by endeavouring to
increment monetary empowerment by different plans presented in Kudumbashree
mission.
Devika, J. (2016) offering a brief sketch of the shifts in the region in women’s roles
and responsibilities from the pre-liberalization period to the 1990s and after, the paper
draws upon two spells of field- work to probe the unintended consequences that
neoliberalised welfare has generated, the possibilities thrown up by institutional
change in women’s self-help groups. Also attempts to view the commonalities and
departures between the figure of the ‘Kerala Model Woman’, shaped in the laudatory
literature on the ‘Kerala Model’ of development, and the emerging, apparently more
troublesome, figure of the ‘Kudumbashree woman’.
Ashutosh Kumar, et al. (2016) through this paper pointed out the exercises and
impact of Kudumbashree and the way it fortifies women empowerment and also
female business enterprise. Poverty reduction is not only a matter of an overall
economic growth in a society, but also that is interconnected with various social
aspects like women empowerment and women entrepreneurship. All these multi-
dimensional approaches led the government to form a female community intended
poverty reduction project in the state and resulted in the birth of "Kudumbashree”.
Annie, J. (2017) in a study has given an understanding on women empowerment

gained by Kudumbashree individuals in the wake of joining Kudumbashree.
Monetary improvement is the reason for other advancement. Financial advancement
of women prompts a superior living status. Through Kudumbashree they have
enhanced their trust in saving money and cash exchanges. They could enhance their
communication skills and their aptitudes in arranging and actualizing ventures. The
participation of women in social programmes, open gatherings has improved to a
great extent. Kudumbashree has improved business and authority and the limit of
women to work and gain together.
2.5 Research Gap
The studies concerning to women empowerment disclose that women empowerment

is a development intended at creating constructive modifications in the lives of
women through certain mechanisms like SHGs, NGOs, women led agencies and the
like. Studies relating to women empowerment through kudumbashree also expose the
same results. Kudumbashree is a pioneering model of women empowerment
envisioned by the government of Kerala and has its developments in each and every
district. So many studies have been done in the field of women as a member in
Kudumbashree, but an exclusive study has not been done in the performance of
Kudumbashree Micro enterprises established by these members so far. Further, no
studies are made in comparing the performance of individual and group units run by
these Kudumbashree members and also to what extent they attained economic
empowerment through the establishment of these units. These were not adequately
considered in the previous studies. The present work is an attempt in that direction
REFERENCES
Ajith.D, Sunil.R, Ravi Raman.K.(2000). Study of kudumbashree micro enterprise
programme in Kerala-2000.
Amma, S. and Pillai, S. (2000). A Study on Women Entrepreneurs in Garment

Making Industries in Kerala - a Profile. Management Researcher VI, VII, pp.45, Oct
2000-March 2001.
Anand Jaya.S.(2002). SHG in empowering women -A case study of selected SHGs

and NHGs, Discussion paper No.28, Centre for development studies.
Anand, Jaya.S.(2002). SHG in empowering women -A case study of selected SHGs

and NHGs. Discussion paper No.28, Centre for development studies.
Anjugam, M., & Ramasamy, C. (2007). Determinants of Women's Participation in
Self-Help Group (SHG)-Led Microfinance Programme in Tamil Nadu. Agricultural
Economics Research Review, 20(2).
Aswathi. P.K. (2001). Working and impact of rural SHG and other forms of micro
finance. Indian Journal of Agriculture Economics,56(3), pp 580-604.
Bali Swain, R. (2006). Microfinance and Women's empowerment: evidence from the
self-help group bank linkage programme in India.
Barbara, Mahantha. (2001). Micro credit through, SHG and its impact -A case study
of RahtriyaVikas Nidhi credit and savings programmes in Assam, Indian journal of
agriculture and economics, pp 27-29.
Baruah, P. B. (2009). Self Help Group and Asset Creation: A Case Study of
Deharkuchi Gaon Panchayat of Nalbari District, Assam. The microfinance, 183.
Basargekar, P. (2010). Measuring Effectiveness of Social Capital in Microfinance: A

Case Study of Urban Microfinance Programme in India. International Journal of
Social Inquiry, 3(2).
Beena, C., & Sushma, B. (2003). Women entrepreneurs managing petty business: A
study from motivational perspective. Southern Economist, 42(2).
Bhagyalekshmi, J, J. (2004). Women’s Empowerment - miles to Go, Yojana48, No.8,

pp 38-41.
Bhatia, N. (2007). Revisiting bank-linked Self-Help Groups (SHGs)-A study of
Rajasthan State‖. Reserve Bank of India Occasional Papers, 28(2).
Bhattacharya, S., Banerjee, S., & Mukherjee, S. (2008). Group lending and self-help
groups: joint benefit as an alternative governance mechanism. The Journal of
International Trade & Economic Development, 17(1), 1-19.
Chavan, P., &Ramakumar, R. (2002). Micro-credit and rural poverty: An analysis of

empirical evidence. Economic and Political weekly, 955-965.
Chowdhary, Jahangir Alam. (2009). Gaps, trends and current research in gender
dimensions of agriculture and rural employment; differentiated pathways out of
poverty, FAQ-IFAD, 31st March -2nd April.
Christabell, P.J. (2005), Women’s Empowerment through capacity Building: The role
of Micro Finance (Ph. D unpublished), University of Kerala, Thiruvananthapuram.
D’Cruz, N. K. (2003). Constraints on Women Entrepreneurship Development in

Kerala: An analysis of familial, social, and psychological dimensions.
Thiruvananthapuram: Centre for Development Studies.
Deininger, K., & Liu, Y. (2009). Economic and social impacts of self-help groups in
India
Devi Lekshmi. K.R. (2005). Micro credit programmes, poverty alleviation and
empowerment of women -some empirical evidence from Kerala, pp 319-324.
Devi. Ambika. R., (2010), A study on women empowerment with special reference to
Kudumbashree, (Ph. D unpublished), University of Kerala, Thiruvananthapuram.
Devika, J. (2016). The ‘Kudumbashree woman’ and the Kerala Model Woman:
Women and Politics in Contemporary Kerala. Indian Journal of Gender
Studies, 23(3), 393-414.
Dhanuja, S.K. (2002). Women Entrepreneurs Opportunities, Performance, Problems,

Deep and Deep Publication Pvt. Ltd., F-159, Rajouri Garden, New Delhi – 110 027.
Gadenne, L., & Vasudevan, V. (2007). How Do Women in Mature SHGs Save and
Invest Their Money. CMF Work.
George, B. (2008). Empowering rural women through microfinancing: A comparative

study of the contributions of governmental and non-governmental organizations in
Central Kerala.
Hashimudeen.A, and Subuuraman.R.(2014). Changing Facets of Women Micro

Enterprises in Kerala Volume-3, Issue-12, ISSN No 2277 – 8160
Hishigsuren, G. (2004). Scaling up and mission drift: Can microfinance institutions

maintain a poverty alleviation mission while scaling up? (Doctoral dissertation,
Southern New Hampshire University).
Indira.M.(2005). Social Externalities of Women's Empowerment Through

Microfinance: a comparative study of two interventions, pp 303-310.
John, A. (2017). Socioeconomic changes and women empowerment through
kudumbashree mission-study of Mukkam municipality. Education, 54, 54.
John Gladys Mary. (2008). Empowerment through SHGs” Southern Economist,

Vol.46, No.21, pp. 28-30.
Jose, T. K. (2003). Micro enterprise initiative in water sector and poverty reduction.
Water science and technology, 47(6), 119-128.
Kalpana, K. (2008). The vulnerability of'self-help': women and microfinance in South

India.
Kalyani, K., &Seena, P. C. (2012). Socio-economic changes of women through

Kudumbasree: A study from Puthenvelikkara (Gp) of Kerala state, India.
International Research Journal of Social Sciences, 1(2), 1-7.
Karmakar, K. G., & Mohapatra, N. P. (2009). Emerging Issues in Rural Credit. The
Microfinance Review, 1(1), 1-17.
Kavitha, V., Jiji, R. S., &Rajkamal, P. J. (2011). Perception of effectiveness of group

functioning by the members of women self-help groups in goat farming. Veterinary
World, 4(11), 507.
Kerala Women's Commission, Status of Women in Kerala, Kerala Women's

Commission, Thiruvananthapuram, 30th May, 2002.
Khandker, Shahidur.R and Pitt.Mark.M.(2007). Individual and Group Default

Incentives in Microfinance: The role of groups in Grameen Bank, World Bank
Institute, Washington DC.
Khari D.S. (2009). Women Empowerment through Entrepreneurship Development,

New Delhi: ALP Books, pp.132-145.
Krishna, Sneha Gopee. (2008). Micro Finance – Equations changing, Kerala calling,
Vol.28, No.10, pp. 22-23.
Krishnaveni, Motha. (2004). Women Entrepreneurship in Rural Areas of India.

SEDME, Vol.No.31, No.37, pp.8-32.
Kumar, A., & Rakhin, J. (2016). Kudumbashree: Promoting the Self-Help Group
Model of Empowerment Through Women Entrepreneurship in Kerala-A Study.
Kumar, Anil. (2004). Enterprise Location: Choice of Women Entrepreneurs. SEDME,
Vol. 31, No.3, pp.18-21.
Kumar, D. S. (2009). Participation in self-help group activities and its impacts:

Evidence from South India. The Bangladesh Development Studies, 1-18.
Kurian, Paily (2005), Role of SGHs in the empowerment of poor women. (Ph. D
unpublished), University of Kerala, Thiruvananthapuram.
Lakshmanan, S. (2001). Working of self-help group with particular reference to

Mallipalayam self-help group, Gobichettipalayam block, erode district, Tamil Nadu.
Indian Journal of Agricultural Economics, 56(3), 457.
Lathika, K. K. (2008). A study on women empowerment in Kerala with special

reference to Kudumbasree project.
Lewis, D. (1996). Understanding rural entrepreneurship in a Bangladesh village—

individuals, roles or structures? Small Enterprise Development, 7(4), 22-31.
Mathialagan R. (20002). Women entrepreneurs in Tamil Nadu – A Socioeconomic

Study of selected Women Entrepreneurs at Chennai City. (Ph.D. Thesis, Madras
University, Madras)
Mohankumar.S. and George Suja.S.(2005). Microenterprises of Self-Help Groups

and State Policies Under a Neo-Liberal Regime: Evidences from a village in Kerala,
pp 97-111.
Mohindra, K. S., Haddad, S., & Narayana, D. (2008). Can microcredit help improve
the health of poor women? Some findings from a cross-sectional study in Kerala,
India. International Journal for Equity in Health, 7(1), 2.
Munian A, (2009). Micro-Finance and Poverty Reduction: Analytical Issues, Southern

Economist, Vol.48 (1), pp.43-46.
Muraleedharan, S. (2003). Gender and Decentralization: Opportunities and

Challenges. Kerala Calling.
MYRADA, (2002). Impact of Self Help Groups (Group Process) on the
Social/Empowerment status of Women members in Southern India, paper presented at
the seminar on SHG-bank Linkage Programme at New Programme at New Delhi.
Nird, (2001). Micro credit for micro Enterprises, National Institute of rural
development, Hyderabad, pp 90-92.
Ntseane, P. (2004). Being a female entrepreneur in Botswana: cultures, values,

strategies for success. Gender & Development, 12(2), 37-43.
Oommen, M. A. (2008). Micro Finance and Poverty Alleviation: The Case of

Kerala's Kudumbashree. Centre for Socio-Economic & Environmental Studies.
Padrakali, Kannan.S.(2004). An informal women enterprise in rural India -rural

entrepreneurship, Discovery publications.
Pandian, Punithavathy, Eswaran. (2004). Micro enterprise and rural entrepreneurship,

Discovery publishing House.
Patel, V. (2009). Women’s Leadership in Micro-finance: Issues and Challenges.

refresher course on emerging trends in economics in post liberalized era by
Department of Economics, University of Mumbai, 11.
Pickering, Helan, Kalura Ellen, Katongole George, Whitworth James, (1990). Women
group and individual entrepreneurs, A Uganda case study, vol.4 No.3.
Planning Commission of India, (2001). Linking micro finance with micro credit
institutions, pp 70-72.
PrabhuSanthosh, M, (2015). A Research Study on Overall Performance of

Kudumbashree Unit with Reference to Beeranthabail of Kasargod District, Kerala
state IOSR Journal of Humanities and Social Science (IOSR-JHSS) Volume 20, Issue
10, Ver. I PP 31-35 e-ISSN: 2279-0837, p-ISSN: 2279-0845.
Priya. K.V. (2006), Micro level planning: A strategy approach in Kerala Society's
Development, (Ph. D unpublished) University of Kerala, Thiruvananthapuram.
Punitha, M., Sangeeta, S., &Padmavathi, K. (1999). Women entrepreneurs: Their

problems and constraints. The Indian Journal of Labor Economics, 42(4), 707-716.
Raghavan. V.P. (2006). Livelihoods and Empowerment: The Kudumbashree projects
in Kerala, India- A New Paradigm of Participatory Economy, Paper presented at the
13th conference of the International Association for the Economics of participation on
13-15 Mondragon University (asque country, Spain).
Rahman, A. (1999). Micro-credit initiatives for equitable and sustainable

development: who pays? World development, 27(1), 67-82.
Rao, P. R. M. (2004). Problems of women micro entrepreneurs in Chennai with

special reference to assess to credit (Doctoral dissertation, Ph. D thesis Madras
University Madras).
Reddy, A. R., &Narasimahulu, K. (2009). SHG in India: A tool for urban poverty
eradication. Southern Economist, 48(1), 39-40.
Reshmi. R. (2012). Role of Kudumbashree Micro enterprises in alleviation of poverty

with special reference to their marketing strategies’. Vol.1 Issue 12, Pp 174-177,186-
187, ISSN 2277 3630.
Ruby, J. A. (2008). Microfinance and women empowerment: a study of Kudumbasree

Project in Kerala.
Sasikumar. K., and Devi, Ambika. R. (2006), poverty Eradication through

Kudumbashree projects in Kerala, Management research, octo-Dece, vol. XIII, No. 2,
pp 40-55.
Sasikumar.K. and Devi. Ambika. R. (2008), Globalization -A threat to Micro

Enterprises? A study of Kudumbashree projects in Kerala ', paper presented at the
International Seminar on, ' Globalization, Emerging Issues ', Department of
Management Studies, School of Commerce and Management Studies, Kannur
University Kerala, March 9 and 10.
Shetty, N. K. (2008). The Microfinance Promise in Financial Inclusion and Welfare

of the Poor: Evidence from Karnataka, India (pp. 1-34). Institute for Social and
Economic Change.
Singh, U. B. (2006). Empowerment of women in urban administration: experiences

and strategies. Serials Publications.
Siva Prakash, C. S., &Chandrasekar, K. S. (2012). SHGs and socio-economic
empowerment: A descriptive analysis based on Kudumbashree project in Kerala.
International Journal of Business and Management Tomorrow, 2(2), 1-10.
Siwal, B. R. (2009). Gender framework analysis of empowerment of women: a case
study of Kudumbashree programme.
Srivasthava, R.M. (1998). Emerging profile of small women enterprises cum manager
in India- A case study in KT Sogra women management.
Subharao.K. (1997) .Net programmes and poverty reduction lessons from cross
country experience, Washington DC -World Bank.
Sunil.R.(2005). Micro finance Informal finance and empowerment of the Poor:

Lessons from a case study of the SHG Bank Linkage Programme in Backward
District in India, pp 173-182.
Swain, R. B., &Wallentin, F. Y. (2008). Economic or non-economic factors: What

empowers women? (No. 2008: 11). Working Paper, Department of Economics,
Uppsala University.
Swain, R. B., &Wallentin, F. Y. (2009). Does microfinance empower women?

Evidence from self‐help groups in India. International review of applied economics,
23(5), 541-556.
Swaminathan, M. (2007). The microcredit alternative? Economic and Political

Weekly, 1171-1175.
Thacker, K. (2007). Feasibility Study for Micro Enterprises with Women SHG's in
Kutch (Gujarat, India).
The status of Kudumbashree Ayalkootams: Their links with LSGs' in Kerala. (2004).
Newsletter by Sahayi, vol.6, No.2,
Venugopalan, K. (2014). Influence of Kudumbasree on Women Empowerment–a

Study. J. Bus. Manag, 16(10), 35-44.
Vinze, M. D. (1987). Women Entrepreneurs in India: A Socio-Economic Study of

Delhi, 1975-85. Mittal publications.
Viswanath, Vanitha (2001). Women’s micro enterprise for food security in India.v:44:
Y:2001: i :4: p:90-92.
Women in India International Journal of Interdisciplinary Social Sciences, 5(9) ,405-

420
Wrenn, E. (2007). Perceptions of the impact of microfinance on livelihood security.

Research and Perspectives on Development Practice.
CHAPTER THREE
KUDUMBASHREE- EVOLUTION, GROWTH AND DEVELOPMENT
1. Introduction
1.2. Kudumbashree and livelihood development
1.3 Emergence of Kudumbashree programme in the state of Kerala
1.4 Focus areas for Kudumbashree
1.5. Micro-credit –bank linkage

1.6. Other empowerment programmes
1.7 Urban poverty alleviation
1.8 Administration set up of Kudumbashree Mission
1.9 Kudumbashree- as a decentralized agency
1.10. The positive after effects of Kudumbashree

1. 1ntroduction
The Indian economy has been enrolling development regarding Gross Domestic
Product (GDP) however keep on battling against poverty, though development is a
fundamental condition for managed poverty alleviation, independent from anyone else
may not be adequate (Ali and Son, 2007; Rao, 1990). Development alone, without
financial advancement, may build imbalance and further underestimate poorer
segments of the general public (Nayak et al, 2010, Unni and Raveendran, 2007), as in
the case with peasants, landless labourers, artisans and the women, who has remained
largely side-lined.
The idea of microfinance is estimated as critical and rising inclination in the current
situations for the empowerment of women. Microfinance through SHGs is performing
obvious all-inclusive as the new device to battle destitution and for rural
advancement. SHGs are going about as an effective gadget for dropping poverty,
enhancing and engaging women and making consciousness and engaging them which
will direct to reasonable development of the town, nation and country.
The approach paper to the Eleventh Five Year Plan (2007-12), had commented that
development-oriented approach ought to be joined with strategies guaranteeing wide
based per capita wage extension, benefitting all segments of the population, for the
most part the individuals who were underprivileged like poor people and the
marginalised. Sensible and extensive development would require employment
formation, which may guarantee economical occupations to the underestimated, in
both urban and rural territories of the nation. Individual work can be created through
the advancement of micro enterprises.
Women enhancement got priority in all the poverty abolition programmes propelled
amid the Fifth Plan and ensuing Five Year Plans. The significance of these projects is
on monetary advancement of women by giving the effort and income generating
resources. The popular poverty abolition programmes like the Integrated Rural
Development Program (IRDP), the Program for Training of Rural Youth and Self-
Employment (TRYSEM), The National Rural Employment Program (NREP), The
Rural Landless Employment Guarantee Program (RLEGP), The Jawaharlal Rojgar
Yojana (JRY), were fused as unique instrument for the women who are seen as
extraordinary targeted group for providing aid for undertaking various performance.
In the above setting Kudumbashree with a wide system of NGHs is extremely

prominent, as these groups empower combined strength of poor people and offer
noteworthy help in this crisis condition, in this manner dropping dependence of the
poor on rich. Kudumbashree is complete poverty annihilation program in Kerala in
regards to gender development.
1.2. Kudumbashree and livelihood development
Kudumbashree, fitting from its beginning, perceived conservation development as a

main target if it somehow happened to support monetary empowerment and credit
tasks, the premise of Kudumbashree, helped to experience the working capital
necessity of the poor women who needed to begin new ventures and in addition bring
out monetary outlets on a little scale, alongside moving the act of sparing among poor
women to engage them to experience their social and individual needs. Despite the
fact that the impression of micro enterprises is not new to self-improvement group
(SHG) activities, Kudumbashree contributed micro enterprises a new explanation and
built up a restrictive approach for setting them up. Due consideration has additionally
been paid to empowering undertakings in both the rural and urban parts of the state.
The present approach of Kudumbashree is that business enterprise should upsurge the
per capita income of beneficiaries with the goal that it prompts an improvement in
their living standards.
A micro enterprise that stands alone is uncertain to pick up the assistance it should
when connected to undertakings that have provision from different sources. So, its
genuine welfare does not increment to the business people or the local public.
Kudumbashree, which has extended learning in these thoughts through its information
throughout the years, has stressed Local Economic Development (LED) as the
principal significance on its program while empowering monetary activities. LED is
defined as, "a procedure in which local government perceives the need of people in
general, distinguishes the accessible nearby assets, to be specific, human and their
assets, and successfully assimilates them to rise formation, in this way motivating
monetary development and lessening poverty." Local government accomplishes this
objective by:
- Perceiving the necessities of people in general
- Identifying the few neighborhood properties-human and natural.
-Utilizing neighborhood assets effectively
-Adapting different divisions and foundations
-Permitting the arrangement of new occupation, and
-Managing public finances adequately
A merging of various extension, government supports, banks, training establishments,

research associations, local self-governments and, in conclusion, public contribution
is guaranteed in Kudumbashree micro enterprises and in all the upkeep prospects it
promotes.
1.3. Emergence of Kudumbashree programme in the state of Kerala
Kudumbashree is propelled by Government of Kerala in 1998 for wiping out

destitution from the state through coordinated group activity under the administration
of Local Self Government (LGS). Kudumbashree is today one of the biggest women
empowering tasks in the nation. The program has 37 lakhs individuals and covers
over half of the family units in Kerala.
Worked around three basic segments-micro credit, entrepreneurship and

empowerment, the Kudumbashree activities has today prevailing with regards to
tending to the fundamental needs of the less privileged women along these lines
giving them a more honourable life and better future.
The period from 2006-2010 was elementary for Kudumbashree in extending its
movements to other income creating and marketing activities and combining the prior
growth. By the year 2004, the Kudumbashree community group association network
has been built up in all LSGs. The bylaws of the CDSs were overhauled to empower
this in changing the bye laws two key issues were addressed.
The two key issues are:
1. Enable the group community system to work as self-ruling foundation of poor

people and marginalised.
2. Facilitate structures and systems that would guarantee interest of the group
organize in neighborhood administration forms and in turn, would empower the
nearby self-governments to fortify their improvement and poverty alleviation
mandate.
An enormous capacity developing drive was taken to sensitise the group, its pioneers
and self-governments on the opportunities offered by the changed bye-laws. The CDS
Action Plan was acquainted as the device to compile development demands of the
poor and converge them effectively into the local governance agenda. It involves
extraordinary pride that Kudumbashree Mission and the group association activities
responded to the new opportunities and challenges so as to create far reaching positive
outcomes.
1.4. Focus areas for Kudumbashree
1. Human resource development.
2. Community wellbeing
3. Education – exceptional school for handicapped youngsters/buds
4. Balasabha-kids' NHG
5. Minimum infrastructure advancement
6. Micro-credit linkage banking.
7. Asraya-Destitute Identification Rehabilitation and Monitoring(DIRM)
8. Lease Land faming
9. Micro Housing
10. Micro Enterprise Development

11. Self-dependent, self-sufficient and sustainable Panchayat
1.4.1. Human resource development
It is distinguished that when an association shapes competence, it penetrates learning

and expertise within the group and empowers attitudinal changes. The span of each
and every individual can be uplifted on the off chance if they are properly trained. To
accomplish this objective, Kudumbashree conveys a variety of capacity building of
CBOs officials preparing for limit working of CBOs authorities. This comprises
general training for CBO functionaries, preparation for newly development, basic
training to new members of LSG and Performance Improvement Training for
entrepreneurs.
1.4.2. Eksat-human resource development training centre
EKSAT – stands for empowerment through knowledge, skills, attitudinal change and
training.
Eksat is the HRD training centre supported by Kudumbashree, since its start in
December 2005, Eksat has given training on capacity building, Entrepreneurship
Development Programme, accounting skills, building of organisational capabilities for
SHGs, NGOs and CBOs. Eksat showed training programs in the zone of child
development also They are compensated by the Kudumbashree mission. The
administrations of Eksat were also utilised by neighborhood self-government
associations, government divisions, NGOs and even by private establishments.
A group of women were assigned from NHGs to work organized for a superior world.
The group comprises of 28 women having ability, awareness and aptitude in various
fields which they obtained through training given by Kudumbashree mission.
Moreover, the team members attended different skill training, management training
and personality development courses at their own cost. The commitment towards
their responsibility, the reaction from the trainees and the regularly fluctuating
aptitude, administration rehearses, in the business world incite them to refresh this
information, ability and capacities as trainers. Subsequently the group is sufficiently
approved to rebuild the women and the general public through their complex
programs.
The projects of Eksat are isolated into 3 gatherings. They are:
1. GOT-General Orientation Training
2. EDP-Entrepreneurial Development Program
3. Skill Training
The real projects of Eksat are:
1. Karma-A micro enterprise development programme for entrepreneurs.
2. Amma – An extraordinary preparation program for mothers and high school

girl students.
3. Excellence – an outstanding training program for helping brilliance in various

fields.
4. Time – A program for creating administration distinction
5. Career organization – An examination program for students educated jobless

youth.
6. Plus, and minus – A preparation programs for human association management.
1.4.3. Community health
In spite of the outstanding accomplishments of the state in the well-being sector, the
extent to which these achievements have infected to poor families is a reason of
concern. The living conditions of the poor make them more vulnerable against large
number of sicknesses, specifically the water-borne diseases like diarrhoea, dengue,
fever, jaundice and typhoid., The greater part of this malady can be controlled, to a
great extent by consciousness campaigns and precautionary health care.
Kudumbashree CBOs has a solid arrangement of 160 lakhs health volunteers,
executing as barefoot doctors. The health volunteers have a record about the fitness
connected characteristics of the considerable number of individuals from the NHGs.
This helps in suitable coordinating of a few health campaigns conducted of the
Government, lot of accomplishment of attainments like 100% immunisation in the
state can be recognized to the role by the health volunteers.
1.4.4. Balassbha
Balasabha are grassroots level gatherings of offspring of BPL families. The

assignment composes the offspring of poor groups of the state into Balasabhas as a
piece of its comprehensive technique to smear out poverty. Catch them young and
pinch destitution in the bud is the administrative motto behind Balasabha program
presented by the Mission. Balasabha are grassroots level gatherings of the offspring of
BPL families.
1.4.5. Micro Enterprise Development
Micro enterprises nurture the monetary position of women as an agent intends to

dispose of poverty. The income making activities under individual and group
endeavours to experience the systems of support of poor women are enormously
energized. Electronic units, toy units, basic supply shops and so on are a portion of the
cases of micro enterprises commenced by poor women under Kudumbashree.
1.4.6. Micro housing /bhavanashree
Under this program poor families, who are in genuine prerequisite of building new
houses can propel credits from banks and the repayment of which is ensured by tri-
party contract between the beneficiaries, the Community Development Societies and
the Financial institutions /Bank.
1.4.7. The destitute identification, rehabilitation and monitoring programme/

ashraya
This program, named as'' Ashraya"in local language (signifying "depending") aims at
lifting the denied of the poor from their destitution. Poorest of the poor families, in
need of sufficient sustenance, drinking water, shelter, educational facilities for
children sanitation facilities, employment opportunities and land for convenience and
poorest suffers of ailment and dependable maladies are perceived and changed under
different frameworks. The program impelled in 391 town panchayats and two
districts.
1.4.8. Special school for the disabled children / buds

Extraordinary schools called Buds are set up pointing at accommodating the
developing, social and sensitive prerequisites of the debilitated children. These
children are being conveyed with the fundamental medical consideration, physical
and mental treatment, mobility equipment and professional and scholastic preparing.
1.4.9. Lease land farming/ Haritashree
Lease Land Farming project named "Haritashree"in local language offers helping to
those cultivators who are having no land by any means. So Kudumbashree pools
uncultivated arrive on lease and provide the agreeable cultivators to farming
procedures.
1.4.10. Self-employment programme under SJSRY
Swarna Jayanthi Sahari Rozgar Yojana (SJSRY) is an anti-poverty program moved by

the government of India and is proposed for the urban territories of the state. It covers
the 53 Municipalities and 5 towns. Individual endeavours and group enterprises with a
minimum number of 10 people can be set up.
1.4.11. The S3 program
Kudumbashree tends to the multidimensional scarcities of the poor families, which

need nourishment, human services, education, basic amenities, for example, shelter,
drinking water, safe latrines and work. The project emphases on independence,
confidence and manageability of the town panchayats. The project visualizes to
talking the troubles of child improvement, emotionally and physically challenged
education, adolescent care, women empowerment, enterprise development,
unemployment of educated youth, agriculture/ animal husbandry, dairy development,
restoring the old-style sectors, basic minimum needs and impoverished identification
and rehabilitation.
1.5. Micro-credit –bank linkage
The idea of micro credit to finance micro enterprises in rural arrears has grown
fundamentally amid the current past. It is fundamentally revolving investment done to
urge poor to engage themselves and apply the overall hypothesis of ' save for the
future and use those resources during the time of need’. Micro credit implies making
necessities for little working capital advances to take up micro enterprises.
Under Kudumbashree, thrift and credit societies are set up at NHG level to empower
the poor to advantage simple credits, which have now created up to informal banks of
the poor women at their entryways. The NHGs, which can benefit advances, are
associated with banks.
Kudumbashree of Kerala is an augmentation of the expansive microfinance venture in

the country. Experiences of different anti-poverty and other prosperity programs have
demonstrated that the way to accomplishment lies in the improvement and
contribution of group-based associations at the grass root level. The Kudumbashree
program in Kerala hail from under the SHG Bank Linkage display where the social
transitional is a state government element (Kudumbashree).
1.5.1. Kudumbashree model of micro finance
The diverse stages engaged with Kudumbashree Model of micro finance fund are
1. Thrift deployment
2. Authorizing credit
3. Repayment and monitoring of credit.
4. Categorizing of NHGs
5. Connecting with banks
6. Development of small scale ventures by availing of credit from NHGs
7. Training
8. Market extension
9. Generation of income and repayment of credit to NHGS
10. Reimbursement of loans by NHGs

1.5.2. Thrift and credit operation
Kudumbashree NHGS goes about as the Thrift-credit Societies and empowers the
poor to spare and convey them with cost operative and simple credit. The individuals
acquire small sums as week after week pool funds, frame an amount and take credits
to meet their instant needs. The thrift and credit processes also require a recognized
bank account that is functioned mutually by the President and the Secretary. The most
exceptional component of thrift and credit societies of Kudumbashree is thrift
gathering; internal lending, account keeping and so forth are finished by the poor
women themselves. They are the investors, borrowers, directors and clerks of thrift-
credit societies. Thrift credit societies supported by Kudumbashree are fast
developing as ''informal Banks of the Poor Women "at their success.
1.5.3. Thrift mobilisation
Thrift establish a critical wellspring of assets for the NHGs. The abundance of the
NHGs be subject to altogether on its ability to mobilise thrift. The NHG thrift has
turned into a group resource and subsequently the women in the BPL families can
devour it as security for benefiting credits. The aggregate measure of thrift activated
as on 12th March 2018 remained at Rs. 3772.6 crores.
1.5.4. Internal lending
Inward lending has turned into a critical movement of Kudumbashree NHGs and it is
estimated as another huge benchmark for deciding the improvement of the
Kudumbashree venture. Savings together through Kudumbashree Community Based
Organizations are utilized for various responsibilities stretching out from consumption
loans to income generation loan. The reimbursement is collected weekly during the
routine NHG meetings and the interest used for re-loaning to its members. The
internal loans generated are to the tune of Rs. 15,302.42 crores.
1.5.5. Velocity of internal lending
Velocity Internal Lending is an index of the viable thrift and credit systems of the
Kudumbashree Neighborhood groups. It is arrived at by partitioning the credit by
thrift mobilised. A lending rate of more than one is estimated as an indication of
viable thrift credit techniques.
1.5.6. Linkage banking
Kudumbashree impelled the Linkage-Banking program amid 2002-2003 subject to the

reviewing of the NHGS according to NABARD norms. Up to 12th March 2018,
1,66,689 NHGs were connected with banks and an aggregate of Rs. 5,58,700 lakhs
have been made accessible to the NHGs as advance. The advance of bank-linkage
program over a time of three years is given beneath:
1.6. Other empowerment programmes
1.6.1. Interest – subsidy system
For the financial advancement of the Kudumbashree NHG women, the state
Government began interest subsidy scheme in the year 2009, in this way at a less
expensive (@4% credits were open up to Rs.3,00,000. Under this game plan, this
NHGs having bank linkage are entitled keeping money advance @ 4% which they
past acquired @9%. The benefit of this scheme will be available to the NHGs from
April 2016.
1.6.2. Development of SC/ST women
From the year 2008, excellent concern is given to women having a place with SC/ST
classification. The state government allocated 5 lakhs to the District mission for the
advancement of SC/ST women. In Ernakulum District there were 42 SC/ST NHGs
and the task design new courses of action for the SC/ST women.
1.6.3. National rural employment guarantee scheme (NREGS)
Kudumbashree is given the implementation of the program. Under Kudumbashree

each family below poverty line is sorted out into a NHG at the local level comprises
of 15 to 40 families. NHGs united into ADS and ADS are unified into CDS. Each
NHGs, CDS and ADS has 5 volunteers doing distinctive functional parts. The ADS
has been endowed with the task of organising public work under NREGS
1.6.4. Legal literal workshop

Kudumbashree has exploited the services exhibited by the Kerala Legal Services
Society (KLSS) for its different lawful literary developments. A booklet, women and
law on the different laws for the protection of women was organized by
Kudumbashree and scattered all through the framework.
1.6.5. Matching grant
Matching grant is a support distributed to NHGs. This allow going with the amount of
thrift organized, performance of NHG in the evaluating and credit benefited from
banks. A measure of 10% of funds of the NHG subject to a greatest of $5000 is given
as matching grant to each NHG.
1.6.6. Management information system – pilot of microfinance modules
With the assistance of the Centres for Development of Advanced Computing (C-
DAC) Kudumbashree has built up a digitized Management Information System (MIS)
which would approve Kudumbashree to introduce the activities from the grassroots
level to the Mission head quarter's level. Watching of micro finance, business
enterprise, collective cultivating, Ashraya, Balasabha, SJSRY etc can be showed
through the capability. The details a NHG once sustained on to the plan at the CDS
level can be delivered at 4 levels is the improvement of this web-based MIS. This
helps to track the particulars of any NHGs from the part of the State helping for more
clear working. The software advancement is supported by the Ministry of Information
Technology, Government of Kerala.
1.6.7. KAHSS
Kudumbashree Accounts and Audit Service Society is a review group drawn from
unemployed Commerce graduates among NHG families. As the name advocates, the
group was outlined with the aim of evaluating CDS, ADS and NHG accounts. The
accounts of undertakings are also tried by the group. Training on Book-Keeping by
the units is conveyed by KAASS units. The mission at present has a 342-member
strong team to upkeep the mission on this task.
1.7. Urban poverty alleviation

Kudumbashree mission is the State Urban Development Agency of the administration
of Kerala and in this way assumes a noteworthy part in co-ordinating poverty
mitigation of the central and state governments. It is the state level Nodal Agency for
execution of different courses of action and projects of Government of India, for
example, Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum
Development Programme(IHSDP) – segments of the Jawaharlal Nehru National
Urban Renewal Mission (JNNURM) for coordinated advancement of plans and
cluster of Urban poor through IHSDP. Swarna Jayanti Rozgar Yojana (SJSRY) for
urban employment generation and destitution mitigation.
17.1. Coordinated housing and slum development program (IHSDP)
This is the central government venture for the slum inhabitants in the urban territories.
This undertaking has been made absorbing the centrally upheld ventures VAMBAY
and NSDP as incorporated housing and slum improvement program (IHSDP). This
venture is actualized in regions where the populace is up to five lakhs.
1.7.2. Basic services to the urban poor (BSUP)
The Basic services to the urban poor (BSUP), a Central government upheld project is
visualized to give essential infrastructural skill and urban poverty alleviation in urban
regions. This venture has been executed in Thiruvananthapuram and Kochi
corporations in Kerala. An extensive development of the slums giving sufficient
shelter and essential foundation is visualized in this project.
1.7.3. Special Livelihood Project (SLP)
It is a project to warrant comprehensive occupation development for urban poor. The

project is employed through perceiving the exact needs, convey training to discover
an occupation and authorise normal income from the work. This venture is finished
through the funds created from SJSRY and Kudumbashree urban projects.
1.8. Administration set up of Kudumbashree Mission
The government of Kerala act as a positive fascinator of the Kudumbashree Program

and the mission is accomplished and estimated by a pervasive body incorporating of
the Ministers of Local Self Government as Chairman, Secretary to Government, local
self-Government as Vice administrator and Executive Director, Kudumbashree as its
Convener. All policy matters related with the task are presented and chosen by the
executive committee. The mission has its headquarters at Vazhuthakkadu,
Thiruvananthapuram and one regional office each for Northern, Central and Southern
locations operative at Kasaragod, Ernakulum and Thiruvananthapuram
correspondingly. The officers of the mission have been drawn from different
government divisions or enterprises or other government offices. The coordination
and control of Kudumbashree units at area level is depended with District Mission
office, which has a District Mission Co-ordinator (DMC), two Assistant District
Mission co-ordinators (ADMCs) and office Secretarial staff to work. The District
offices are operative in all the 14 districts of the state. The Regional Directors for
every region convey the fundamental direction to the District Mission Team (DMT) in
the District concerned for executing the projects. The program officers co-ordinate the
activities of the task at the head office.
1.9. Kudumbashree- as a decentralized agency
Kudumbashree has taken part in a responsible role in decentralization in Kerala,

affirming involvement in the grama Sabhas, helping panchayats through intensive and
sensible accumulation of beneficiaries and by setting track for the decentralized
procedure itself, leading it to till now unattended divisions of Kerala society.
Kudumbashree taps 75% of its properties from the assets of regionalized NHGs meant
for women and poor people and aims it to the disadvantaged through its NHGs that
functions almost as voluntary mini grama sabhas for beneficiary assortment.
Kudumbashree has operationalised the responsiveness of advancement of a vital
strategy for participatory planning for poverty lessening through empowerment of
poor. Groundwork of anti-poverty sub-plan according to the methodology built up by
Kudumbashree is obligatory for all local government. The procedures for the
preparation of the eleventh Five Year Plan go significantly encourage in cutting out
reliance for Kudumbashree in decentralized planning. Kudumbashree is characterized
in all the working groups and in certain working groups like Anti-Poverty Sub Plan
(APSP) and Women Component Plan (WCP), there is representation of more than one
member from Kudumbashree in the group.
Kudumbashree is affirmed and recognized by local self-government in Kerala as a
further step in the reorganization procedure. It has an exclusive opportunity to design
communal awareness in the decentralized planning and control. Community
Development Society depiction in the working groups on women’s constituent
technique and antipoverty sub plan is affirmed through dispersed planning strategies.
The antipoverty sub plans of local self-government create from the planning
procedure of Kudumbashree linkage. All levels of Kudumbashree community-based
organizations are complex in the preparation of antipoverty sub plan at the Local Self
Government level. Today the CDS is comprehended by most local self-governments
as a sub organization for the execution of their women development and poverty
alleviation programmes. Every neighbourhood Group makes a development micro
plan based on the requirements of the members as acknowledged through
investigations and negotiations. These mini plan designs outlined at the
neighbourhood group level will be consolidated at the ADS level to practice a mini
plan.
The CDS arranges extension plans at the local government level by associating the
plans sorted out by the ADS. This CDS approaches turns into the anti-poverty sub
design of the town panchayat or district, for which one-third of the local development
properties of local government is set aside. The spiralling procedure of advancement
from micro plan at NHG level, to mini plan of the LSG is to destroy destitution in a
way which assesses the women to be firmly in the planning process as key supporters.
1.10. The positive after effects of Kudumbashree
1. Consciousness about different projects and administrations has enhanced,

resulting in enhanced accessing of such projects and services
2. The effort of different services of the legislature has enhanced in scale and
also efficiency.
3. There has been a moderate yet discernible advancement in the assurance levels
of the poor with the goal that they have initiated enunciating their tensions. What's
more, from 'voice ' they simply ahead and utilize the energy of 'decision'.
4. Group achievements have prompted awesome consistency helping as common
security in the midst of crisis, plunging the impression of vulnerability.
5. The habit of frugality has annihilated in and significant investment funds have
been produced by bringing about the formation of informal banks of poor people. The
credit from these thrift banks basically keeps running into consumption expenditure
and expenditure on emergencies. Future it helps in raising winning financial
improvement activities and lastly, however is a few number of cases, it has energized
new micro enterprises by captivating bank credit in light of the energy of the
speculations.
6. The 'flexibility ' has swelled and the 'capability 'have been increased in small but
substantial degrees.
7. The involvement rate of women from this set up in the Grama Sabhas is extensively
created. The groups have revealed a capacity for micro level plan for development
facilities. Dynamically they are evolving into lobbies for the poor inside panchayats
and regions. In unusual cases the women groups have exposed against latent for
public action against social and money related partiality.
REFERENCES
“Gender Framework Analysis of Employment of women” – A case study of

Kudumbashree Programme- Published by National Institute of Public Corporation
and Child Development – 2008.
“Kudumbashree”, htpp://Kollam.nic.in/Kudm.html
“Kudumbashree”, http://www.Kudumbashree.org
A micro-enterprise, as per the notification No.S.O.1722 (E), dated October 5, 2006 in

the Micro, Small and Medium Enterprises Development (MSMED) Act.
Aboobacker, M.A. (Ed.) (2001) Small Steps Great Leaps: Success Stories of
Kudumbashree Micro Enterprises, Trivandrum: Government of Kerala.
.
Annexure, “Kudumbashree-Empowering women to Fight Poverty”,
http://www.Kerala Planning Board. Org.
Community Mobilisation (Draft),http://www.Kudumbashree .org.
Government of Kerala, 51st meeting of the National Developmental Council, Mid

Term
Appraisal of the Tenth Five Year Plan, New Delhi, 27th -28th June 2005,
http://Planning Commission.nic.
Government of Kerala, Economic Review, State Planning Board,

Thiruvananthapuram, 2006.
Human Development Report 2005, Page 154.
Human Development Report, 2005 Page,156
Ibid
Ibid
Johansen, C., Musa, A. M., Kumar Rao, J. V. D. K., Harris, D., Yusuf Ali, M.,
Shahidullah, A. K. M., & Lauren, J. G. (2007). Correcting molybdenum deficiency of
chickpea in the High Barind Tract of Bangladesh. Journal of Plant Nutrition and Soil
Science, 170(6), 752761.
Kudumbashree –Enth? Enthinu? (Mal) Kudumbashree Mission, Kollam.
Kudumbashree mission hope magazine.
Kudumbashree Mission Hope, 2011
Measuring individual agency or empowerment: A study in Kerala, pg 15-16.
Naithani, P. (2001). Micro-Financing the Self Employment Activities. Kurukshetra,

July. A Journal on Rural Development 49, (12)12-13.
Nashi S.K, Micro Finance: A study on Shree Shakti (SHG)Programme Southern

Economist, Vol 43, No.8, August 2004, P9
Nidheesh, K. B. (2009). Study on the changing process of Kerala women through
Kudumbashree in Kerala. International NGO Journal, 4(8), 352-361.
Pattanaik, F., & Nayak, N. C. (2013). Trends and forecasting of employment intensity
of growth in India. Journal of the Asia Pacific Economy, 18(3), 438-459.
Pillai N, V., &Alkire, S. (2007). Measuring individual agency or empowerment: a

study in Kerala. MPRA Paper.
Shetty, S. L. (1997). Financial sector reforms in India: An evaluation. Prajnan, 25(3-

4), 253-287.
CHAPTER IV
KUDUMBASHREE MICROENTERPRISES–A BRIEF HISTORY
1. Introduction
1.2. Special Interventions/Innovative Programs of Kudumbashree
1.3. Micro Enterprise Consultants
1.4. Support Provide
1.5. Second Dose Support to ME
1.6 Marketing
1.7 Collective Farming

1. Introduction
Kudumbashree, since its commencement deliberated smaller scale undertakings as a

feasible means for poverty diminishing and neighborhood monetary progress. It gives
a wonderful coincidental to making favorable work to the overall population below
poverty line and subsequently increasing their income and anticipation for everyday
relaxations. It supports the enhancement of the private area, the empowerment of
women and the tradition of group improvement by private initiative that decreases
poverty and add to a more pleasant wage appropriation. Small scale undertakings can
be considered as critical vehicles through which low-pay individuals can escape from
poverty.
The Kudumbashree defines a micro enterprise as an enterprise that has:
i.Investment ranging from Rs. 5000 to Rs. 2.5 lakhs.
ii.A turnover ranging from over of Rs. 1 lakh to Rs. 10 lakhs.
iii.The potential to generate a net income of at least Rs. 1500 per member per month.
iv.And is fully owned, managed and operated by members themselves.
1.1. Process of Identification of Micro Enterprises
The fundamental element of the Micro Enterprise procedure is the correct

identification of imaginative and innovative exercises suited to the particular
condition in which the poor are living, which attempt to take care of the issues
confronted by the group and furthermore by utilizing the mechanical know-how as of
now available. Hence Kudumbashree distinguishes the small-scale endeavors
essentially taking into consideration three diverse methodologies, for example,
a. Problem solving b. Gap filling c. Grabbing the emerging opportunities.
a. Problem solving: Kudumbashree advances micro enterprises by making answers

for the issues and dangers confronted by the general population in their everyday life
under the predominant financial frame works of the general public. The possibility of
answers for the issues will prompt an open door for setting up a venture e.g.
Kudumbashree has framed gathering micro scale undertakings in urban territories for
the accumulation and safe transfer of solid waste from houses, hotels, shops and so
forth as the then won waste transfer framework was very unhygienic and a danger to
the earth.
b. Gap Filling: Kudumbashree focuses on those segments where enough space is

accessible to set up new ventures however various endeavors as of now exist in the
specific areas concerned. e.g.in the catering sector in spite of the existence of well-
established hotels and restaurants, there is scope for new hotels and catering units and
Kudumbashree concentrates attention in starting enterprises in that sector.
c. Grabbing Emerging opportunities: The worldwide economy gives a lot of

chances to the informed youth in different divisions particularly in the IT area.
Kudumbashree goes for those developing open doors for considering new
undertakings e.g. IT @ school program began by Kudumbashree.
The main areas of concern as regards micro enterprises are
• Identification of demand led potential.
• Timely supply/ accessibility of raw materials.
• Technology/skill upgradation.
• Access to market statistics.
• Accessibility of proper supportive infrastructure.
• Other backward and forward linkage.
Micro finance programmes are being advanced as a key procedure for and at the same
time tending to both poverty alleviation and women empowerment. Where money
related administrations arrangement prompts the setting up or development of small
scale ventures, there are a potential effect including:
1. Increase in women's income level and control over income, leading to greater
level of economic independence.
2. Access to networks and markets giving wider experiences of the world outside
at home, access to information and possibilities for development of other social and
political roles.
3. Enhancing perceptions of women contribution to household income and

family welfare, increasing women's participation in the household decisions about
expenditure and other issues and leading to greater expenditure on women welfare.
4. More general improvements in attitude to women's role in the household and

community.
1.2. Special Interventions/Innovative Programs of Kudumbashree
1. Amrutham Nutrimix
Amrutham Nutrimix is a new Kudumbashree programme that was impelled in 2006.

When the State government, under directions from the Supreme Court of India, arose
up with the Take Home Ration Strategy (THRS), a nourishing programme for
children in the zero to three age group from below the poverty line (BPL) families
through Anganwadis, the mission come near the government to secure orders for the
source of the food supplement.
To inspire economies of scale, to address related matters confronted by the units in

obtaining of raw materials and transportation, to improve a centralized delivery
network and to develop value added products and complete to make the units to face
opposition from the market the mission established the notion of Amrutham Nutrimix
consortium in 2011.
2. Santhwanam
Like Amrutham, Santhwanam has been another major Kudumbashree involvement in

the State. With lifestyle sicknesses on to rise, an official visit to hospitals and clinics
for periodical examinations has become common among the poor as well as the elite.
This encouraged Kudumbashree to think of a substitute and it is its involvement in the
field of health and health care.
3. Cafe Kudumbashree
Cooking is always measured a domination of women. The Mission discovered the

prospective of cooking as a means of livelihood and fortified Kudumbashree women
to start canteen and catering groups through the state. Concentrated training on health,
food habits, customer management, the notion of service etc. were carried to the
possible beneficiaries. The most highlighted feature is that no modification in the
guidelines is made in order to preserve the taste and favor of ethnic delicacies of each
neighborhood. The Kudumbashree canteen groups are frequently attached to
government & other department offices.
4. Kudumbashree Travels
Safe journey to women and children particularly at strange timings made the Mission
to think of an original enterprise- the Kudumbashree Travels. The women taxi service
concentrating in Thiruvananthapuram the State capital was extended to almost all the
districts. Call Centre, GPS monitoring system, web supported services are the key
features which a professional taxi service has is connected with Kudumbashree travels
also. Precise design & colour combination having Kudumbashree design makes the
vehicle simply traced and identified. The project is implemented in the urban areas,
however women from rural areas too can become part of the service.
5. Kudumbashree wellness centres
Kudumbashree wellness centres originated as an outcome of Santwanam programme.

Women who are unwilling and are not having capability to work out or to find time
for their health care are stimulated to visit wellness centres run by Kudumbashree
women. Contemporary equipment, classes on health habits, cookery courses are
showed as part of these centres. The project is executed in urban areas and at present
three centres are running.
6. Kudumbashree Women Construction Teams
The notion is established and planned with the support of HUDCO. Women having
civil engineering background are trained as consultants, diploma/ITI holders in civil
engineering are provided site supervision training & unskilled/ semi-skilled women
laborers (masons) are assumed skill up gradation training in building techniques. The
training module is established by Laurie Baker Centre for Habitat Studies and training
is provided by KITCO, Kochi & Archana Women’s Centre, Kottayam. The objective
is to advancement, specialize and certify the skills of worker in new technologies and
developing criteria in the construction industry. As a pilot, the project is executed in
Ernakulum and based on its accomplishment will be replicated in cities.
1.3. Micro Enterprise Consultants
Lack of a local expert support mechanism that offers sustenance to entrepreneurs was
among the key gaps identified through the ME Survey. The CDS leadership could not
be likely to carry-out such specialized roles, given their governance responsibilities.
In some cases, however, the CDS leadership did provide this support. There was the
need for an institutionalized support process.
Thus, the mission recognized and placed Micro Enterprise Consultants (MEC) in each
Gram Panchayat. These were men and women recognized by the CDS from among
Kudumbashree families who were provided training by the Mission. The training
support was provided by the Entrepreneurship Development Institute of India (EDII).
1.4. Support Provided
The support, the mission provides to enterprises also wants attention. Firstly, support
from Kudumbashree Mission was provided only for starting new enterprises. Based
on the conclusions of the ME Survey and the assessment that there is the necessity for
enduring support for micro-enterprises to function correctly, Kudumbashree Mission
has established several arrangements for providing support to prevailing enterprises.
Several training programmes were also scheduled to deliver to the needs of surviving
enterprises. Financial support, training, marketing and convergence support are the
thrust areas.
Financial support: As financial support, Kudumbashree provides sponsorships to

entrepreneurs, interest subsidy schemes for joint liability groups (JLGs), and second
dosage support for working capital. It has an innovation fund for innovative ideas, a
technology fund for technological improvement and a revolving fund and crisis
management fund for entrepreneurs who need working capital to meet crucial needs
1.4.1 Crisis management fund
Crisis management fund is intended for responding to an unpredictable negative event

to avoid it from intensifying into an even bigger problem linked to Micro enterprise
events of Kudumbashree. Proposals forwarded by the District Mission Team are
scrutinized and approved by a screening committee constituted for the purpose at
State level.
1.4.2 Revolving fund
Revolving fund is intended for meeting essential requirement of working capital.

Enterprises are qualified for revolving fund @ 15% of the total project cost subject to
a maximum of Rs.35, 000 per group. The fund will be provided to the units after 6
months of working.
1.4.3 Innovation fund
This fund is meant for covering the early risk of innovative micro enterprises. This
fund was for the purpose of supporting the innovative micro enterprises. Samagra
teams in District and Head office submit suggestions to the Head office of the project
of Micro Enterprises. The maximum amount qualified should not exceed 50% of total
project cost including subsidy plus innovation fund.
1.4.4 Technology fund & Technology up gradation fund
This fund is meant for acquiring innovative and new technologies for starting
Kudumbashree Micro enterprises. This fund can be utilised for the purpose of
developing new technology, know-how and can be utilised for purchasing technology
from laboratory, or from individuals etc. District mission are enrolled the project
suggestion for obtaining and expansion of technology for micro enterprises. A
screening committee established for the purpose of examining the projects at state
level. Technology up gradation fund is to update the technology already acquired by
the MEs.
1.5. Second Dose Support to ME
Another support programme for assisting micro enterprises for improving the
advanced strategies. The fund will be authorized for modification and development of
present business action.
1.5.1 Training:
Persons recognized by the NHG/ADS and CDS are obligatory to go through a process
of direction and preparation before they developed qualified for support to start
micro-enterprises.
General Orientation Trainings (GOT) contribute a general placement about

enterprises, entrepreneurship, the support delivered by various agencies and
departments for setting up enterprises and on Kudumbashree schemes. Entrepre-
neurship Development Programmes (EDP) emphases on developing the abilities of
entrepreneurs.
In addition to these there are training programmes for the existing micro enterprises
like Performance Improvement Programmes (PIPs) & Accounting Trainings
1.5.2 GOT and EDP
The two-stage positioning procedure comprises of the General Orientation Training

(GOT) and the Entrepreneurship Development Programme (EDP). GOT delivers a
universal coordination about enterprises, entrepreneurship, the sustenance delivered
by different organisations for setting up enterprises and on Kudumbashree structures.
EDP, done over three to five days by competent resource persons or specialized
training agencies, covers them essential to progress basic entrepreneurial skills of the
members.
1.6 Marketing
Kudumbashree acquired its first steps in the arena of marketing when it understood
this was a severe subject faced by operative units and one of the key explanation for
units closing down. Entrepreneurs who do not have a concrete educational
circumstantial or any business experience are incapable to recognize the influences
touching their market such as price, quality, technology, branding and packing,
consumer trends, purchasing behaviour, and so on. In short, they are ignorant of the
seven Ps of marketing. The mission, which had not actually assumed of marketing as
a problem, was required to think of various marketing opportunities to help
entrepreneurs.
i. Monthly Markets
The first monthly markets became functional on 2 October 2007, precisely a year after
the study on micro enterprises. The Kudumbashree mission prepared its first monthly
markets at the district level in all the 14 districts of the State on the same day. As it
was unidentified how enthusiastic entrepreneurs would be to contribute in the
markets, the perception was interconnected to the CDSs and through them to the
entrepreneurs, who were demanded to contribute based on their wellbeing. The
obligation of directing the monthly markets was entrusted in the corresponding
district missions. Fixing dates and venues, arranging stalls, and acquiring products
were left to district mission teams. Wide advertising processes were commenced to
create public consciousness such as socializing notices and stall proclamations,
putting up posters and asking media coverage.
ii. State Trade Fair
Kudumbashree as part of product image formation and to stimulate state wide

products of Kudumbashree conducts special trade fair, food fest and cultural fest
containing Kerala’s cuisine, art forms and various products made by Kudumbashree
women. The uniqueness of the trade fair is that the products are prepared in 4
categories viz, food items, garments, health & hygiene and handicrafts giving chances
to show only branded products. The Mission conducts the fairs in regional
headquarters welcoming the participation of entrepreneurs from across the districts.
iii. Food fests
Food fests are conducted in association with eminent news papers and other
departments of the state for the promotion of canteen and catering units of
Kudumbashree.
iv. Community Marketing Home shop
Kudumbashree imagines a homegrown production and marketing network model,

which could become a substitute to conventional marketing. Community marketing is
one of the major creativities taken by the Kudumbashree mission in 2009-10 under
the brand name “Home shop”. It is a procedure of marketing products made by
Kudumbashree recipients to the local community through the maintenance of CBOs
in the local community. The delivery system or the marketing groups are
accomplished by a professional management team. Thus, three systems- production,
marketing and management- work in close harmonization to run this.
v. Sales and Marketing Enterprises (SME)
The RME, 50K & centrally supported maintenance programmes of the mission are
planned with the production enterprises in mind. A special micro enterprise
programme, Sales and Marketing Enterprises (SME) to market & promote
Kudumbashree products is established as a substitute. SME was planned for
marketing enterprises for Kudumbashree products which purposes in two areas like
Local SMEs and Mission originated SMEs. The SMEs would help to found the
marketing and management of various Kudumbashree enterprises like the Community
Marketing, EMG groups, Retail Distribution groups, Retail shops, Responsible
Tourism etc. The objective of SMEs is to promote the entrepreneurs by providing
market relationships and thereby help in the provisions and growth of micro
enterprises.
vi. Retail Shops
After monthly markets became a systematic event and Kudumbashree developed self-
assurance about its products being acknowledged by the public, the perception of
retail shops earlier needed by customers made a response. The retail shops are
suggested to set up with the help and sustenance of LSGs. If space is provided by
LSGs then Kudumbashree will deliver economic support for working capital and for
scheming and developing centres. Inspecting will be done by the concerned LSGs and
CDSs.
1.6.1 Employing modern technologies in marketing
Modern technologies accessible with research institutions for product modification,

quality improvement and value- added products could be well harmonized if the
mission gets support for doing so. Samagra even comprises new strategies for
packing, branding and networking.
Twelve districts in Kerala have one or more Samagra programmes and there is now a
total of 17 Samagra projects through districts. The connections made, the departments
or agencies related with, and the nature of funding varies considerably among these
projects. If one Samagra is an agricultural produce, the other could be associated to
animal husbandry and the next to a service, and so on. In common, the projects could
be characterized under three heads—produce/cultivation-based Samagras’ (agriculture
products); animal husbandry-based Samagras’ (livestock); and processing-based
Samagras’ (kondattoms or crisps, honey, cashew, readymade garments, footwear
uppers). Another amazing feature is that Kerala seriously wants vital supplies such as
vegetables, paddy, milk, meat and other products. Almost all Samagras’ have been
shaped keeping this in mind.
1.7 Collective Farming
As the name proposes, this is a Kudumbashree involvement in agriculture. It is also

done as a part of the system poverty reduction programmes. Poor women who have
no land of their own can acquire land within the authority of their LSGs for
agriculture. As with any other micro enterprise, Kudumbashree gives area
encouragements and production incentives to encourage agriculture among its
beneficiaries. Like Samagra, women or their families can come under the programme.
A grouped approach becomes attainable in such schemes.
One of the outstanding characteristics of Kudumbashree collective farming is that the

task is able to assimilate the NABARD perception of Joint Liability Groups (JLGs)
into farming practices. The mission with the sustenance of (PIPs) & encourages JLG
location for agricultural practices so that welfares of interest subsidy programme
could be made available to the farmers. i.e. 5% subsidy on interest on short term loans
which would affect in the cut down cost of loan to 2% interest. In addition, the
inducement for rapid repayment of loan would be another 2% which would help the
group to advantage an interest free loan.
References:
Micro Enterprise Development http://www.kudumbashree.org/Micro% 20

enterprise/project overview.htm.
Gender framework analysis of empowerment of women A case study of

kudumbashree programme 2008
Felendra K Sudan "Revitalizing micro income generating activities through SHGs and
micro credit for women" Quoted in VB Jugale (eds)" Globalization and poverty"
Serial Publications New Delhi 2004.
Meenashi Malhothra 'Empowerment of women TSHAbooks New Delhi 2002.
Kudumbashree Mission Hope 2012b
Chapter 5
Demographic profile of Kudumbashree Micro entrepreneurs
5.1 Analysis of personal profile
5.2 Analysis of family back ground and structure

Introduction
In social sciences research personnel characteristics of respondents have very

important role to play in communicating and giving the reactions about the problem.
Understanding the demographic profile also provides an idea over the present status
of the respondents and thereby the population they belong, regarding the implication
towards socio economic position. This is also important in making inferences on the
other objectives and rendering suggestions over the matter. Keeping this in mind, the
present study evaluates a set of personal characteristics namely, age, marital status,
education, occupation, income etc. of the sample comprising of 390 respondents (195
individual and 195 representatives of groups).
5. Analysis of Demographic profile
The sample of the study consists of two types of respondents. The first type is
individual micro entrepreneurs consisting of 195 women entrepreneurs who run their
business as sole proprietorship concern (designated as individual micro
entrepreneurs). The second consists of 1023 women entrepreneurs working in 195
Kudumbashree micro enterprises run as group units (designated as group micro
enterprises). The demographic profile of the Kudumbashee micro entrepreneurs is
analysed under two heads, viz, Personal profile and Family profile. The personal
profile and family profile are assessed an explained using appropriate
variables/attributes explained in due course. The profile of individuals and group
members are obtained separately and evaluated individually and collectively in the
forth coming pages.
5.1 Analysis of personal profile
The study analyses personal profile of individual and group micro entrepreneurs with
respect to age, marital status, educational qualification and place of residence.
5.1.1Age
Age contains an unresolved concern over one's personal/identity profile. It is an

energetic factor affecting person's psychological and social acknowledgments. It is a
natural phenomenon, yet it is essential to sociologists/examiners since it is joined by
changes by the way it is seen and treated in people in general eye and it impacts one's
social and financial activities. It chooses one's status and demonstrates the part to be
performed in people in public eye and in addition towards social and monetary
commitments and its continuance. In the life of an individual, age has an essential part
in making sense of what is typical from a man in performing diverse parts in the
general population field and occupation and financial circle. The social and
occupational engagements and responsibilities increment/decrease with age at various
levels and at different degrees. In this way, it is imperative to find the age dispersal of
the division of respondents of the present study. Age holds the central key in picking
the status of a man in the family and society. It goes about as an unequivocal factor in
guiding the social and financial exercises to a significant degree.
Table 5.1 shows the age wise composition of the respondents. From the table it can be
seen that, in the case of individual units, the highest percentage (44.10 percent) of
respondents belongs to the age group of 40-49 years. Second highest percentage
belongs to the age group of 30-39 years. The result indicate that majority of the
respondents belong to age interval of 30-49 years.
In the case of group units, the highest number of members fall under 40-49 age group.
Least percentage of respondents fall under the age group of 20-29. In both the case
large number of respondents are under the same age group.
Table 5. 11 Distribution of individual and group micro entrepreneurs by their age
Individual Group
Age
N % N %
20-29 17 8.70 131 12.80
30-39 68 34.90 335 32.70
40-49 86 44.10 391 38.20
50-59 24 12.30 166 16.20
Total 195 100.00 1023 100.00

Source: Primary Data
The representation of respondents of age group 50-59 years is 12.30 percent and that
of the women below 30 years is only 8.70 percent. From the distribution of the
respondents by age, it can be inferred that, the benefit of Kudumbashree mission is
obtained by the most deserved women members, i.e., women in the age group 30-49
who were considered as the most responsible and financially committed members in
every family. The modal age for individual entrepreneurs is 42 and those working in
group is 41-49 (approximately 42). So, it is safe to conclude that people hailing from
the maturity sphere of the life cycle are predominantly engaged in Kudumbashree
activities for their livelihood and economic improvement.
This job is not attractive to the extreme limit generation with respect to age and
among the majority of the middle-aged women who have come to this field at a much
later age when they have to severely support their family. This discloses that the
respondents who are in their prime and productive age group are more involved in the
social and economic activity promoted by the Kudumbashree. The predominance of
women in their middle-ages may be due to the fact that women who had completed
child bearing responsibilities and with older children may be more motivated towards
enterprise activities than younger women, who had lesser time due of small children
and other family nurturing and set up responsibilities.
In order to know the association of age groups within the type of enterprise, a chi
square test is performed. It is computed against the null hypothesis that, there is no
significant differences with respect to age in being a part of individual or group micro
enterprise unit. Chi square value is 5.605 and the table value is 7.815, which is
higher. The result showed that the null hypothesis is failed to be rejected. It shows
that people undertake own micro enterprises or join in the group for the purpose
without any regard to their age. Age is, therefore, not an influencing factor to choose
individual running of unit or being a part of a group in running micro enterprise unit.
It implies that people join in different types of micro enterprise activities irrespective
of age amidst the concentration of middle ages groups to join in the units and the
extreme age groups to abstain from.
5.1.2 Marital status
Marriage is one of the most experienced formations; it has held on all through most
far reaching and most unique of human institutions. There is no record of any society,
however basic its monetary and political frameworks, that does not have marriage
framework as one of the key components of its social structure (Fuchs, 1983). As the
general public gained progress and propelled people began broadcasting marriage
either socio-religious association of man with a lady. Hence, marriage is the social
energy about joining of a man with a lady. Accordingly, marriage is the general
population acknowledgment of joining of two genders, under socially determined
controls, of a man and lady as a couple. As indicated by Lundberg (1958) marriage
comprises of "the principles and controls which characterize the obligations and
benefits of a couple concerning each other." Another humanist Mazumdar (1966)
characterized marriage as a socially endorsed association of male and female, for
reason for (a) setting up a family unit (b) going into sex relations (c) multiplying and
(d) giving consideration to the off springs. Prof. Vinogradoff (1960) watches that it
isn't just an organization controlling sex relationship and kept by marital artificiality,
yet in addition a game plan for raising of kids and an association for monetary
closures and social co-activity.
Consequently, conjugal status and family status have an extremely essential part to
play in ones' financial and social communications. These leads individuals to be in
duration in existing monetary exercises and following new openings and endeavours.
The entire buildings of the very presence of good family connection is based upon the
financial and social framework. Being one of the aspects of judging the family status
of the members, the marital status of the members of Kudumbashree is evaluated. For
the purpose, respondents were classified into four categories, such as, married, single,
Divorced/Separated and Widow
The following table presents the distribution of the respondents in this regard.
Table 5. 12 Distribution of individual and group micro entrepreneurs by their marital
status
Individual Group
Marital status
N % N %
Married 173 88.70 1001 97.80
Single 8 4.10 22 2.20
Divorced/Separated 6 3.10 - -
Widow 8 4.10 - -
Total 195 100.00 1023 100.00
Source: primary Data
Table 5.2 shows that, 173 respondents i.e., 88.70 percent of the sample are married
and the remaining 22 respondents, 4.10 percent were single and the remaining were
widow. Only 3.10 percent are divorced/separated. While in the case of group units, 22
respondents out of 1023 were single and the remaining were married. Widows were
confident in individual units, that they can earn and live by doing this job in
Kudumbashree, without the help and support of their family members. There is only
six divorced women and they earn their livelihood through this job. It can be seen
that, women, especially married, are actively engaged in making their family
economically well through Kudumbashree. As seen earlier, most of the members in
Kudumbashree hails from maturity level of the life cycle and hence, the number of
non-married group is very low. Thus, the dependence of Kudumbashree women on
others has gradually come down and they have also become equally good in
contributing towards the economic well-being of the family or even became self-
reliant.
5.1.3 Level of Education
Education is considered as a legitimate factor in expressing the financial status of the

present-day society. Education prompts not clear changes rather gets incomparable
change in the viewpoint of the general population and helps in enhancing regards.
Training altogether builds the person's status specifically towards the monetary and
the social standpoint. It quickens the range of effects of instruction towards a course
in enhancing one's monetary and social picture. The educational level of respondents
has been classified into five broad categories such as illiterate, Below S.S.L.C.,
S.S.L.C, Plus Two, and Degree and above. The distribution of the respondents has
been shown in the table given below.

educational qualification
Individual Group
Educational qualification
N % N %
Illiterate 21 10.80 53 5.20
Below SSLC 50 25.60 154 15.10
SSLC 66 33.80 552 54.00
Plus Two 47 24.10 218 21.30
Degree and above 11 5.60 46 4.50
Total 195 100.00 1023 100.00
It is clear from Table 5.3 that a very prominent group of respondents have an
education level of plus two and below. Many of the jobs like waste removal and
disposal, goat rearing, tailoring, door to door selling jobs required only less training
and lower educational qualifications. All workers with minimum common education
can do this work without any technical skill and educational qualifications.
The modal educational qualification in the case of individual and group units is SSLC
So, it is inferred that, most of the members in both cases fall under the same education
level.
As per chi square test performed against the null hypothesis that, there is no
significant difference with respect to educational qualification in both individual and
group units, the calculated value of chi square is higher (30.49) than the critical value
at 0.05 significance level (9.488). Hence, there is significant association between
both type of members with respect to educational qualification. It indicates that in
Kudumbashree activities, experience matters more than the education. Proper training
and development programme on a continuous basis help for making them
economically and socially independent.
5.1.4 Place of residence
It is normally felt that the region of habitation impacts the methodologies and conduct
of the general population. Habitation of an individual is a vital pointer of a social
circumstance of a man. Habitation much of the time makes it simple to make
conclusions with respect to the status of the people. It helps in understanding the
prospect for everyday comforts of a person. The nature and qualities of activities and
group interaction of individuals can be perceived concerning the place of habitation.
In the present study, according to native place, the respondents are divided into three
categories such as Urban, Semi-urban and Rural. The distribution of the respondents
has been shown in the table given below.
Table 5. 14 Distribution of individual and group micro entrepreneurs by their place

of residence
Individual Group
Place of residence
N % N %
Urban 83 42.60 421 41.2
Semi Urban 14 7.20 5 0.5
Rural 98 50.30 597 58.4

Total 195 100.00 1023 100.00
From the Table 5.4, it is identified that in both categories of units’, highest percent of
members were living in rural area. The respondents are living in rural areas are 50.30
percent followed by Urban, 42.60 percent and 14 percent are living in semi urban
areas in the case of individual units. 58.4 percent were in the case of group units
living in rural areas.
Based on the chi square test, the calculated value is 49.47 against the critical value of
5.991, reject the null hypothesis that “there is no significant difference with respect to
the place of residence”.
Majority of the women in both cases hail from rural area. So, it is deduced that, rural
women are the key agents for achieving the transformational economic,
environmental and social changes required for sustainable development irrespective
of the type of unit. So, empowering the rural women is important not only for the
well-being of the rural communities, but also for overall economic productivity.
5.2 Analysis of family back ground and structure
The family back ground and structure are analyzed using the variables, such as, head
of household, type of family, size of family, religion and community.
5.2.1 The Family Head
An individual in one family setting who provides actual support and maintenance to
one or more individuals who are related to him or her through adoption, blood, or
marriage is designated as head of family, and/or is applied to one whose authority to
exercise family control and to support the dependent members. For the purpose of
study, the head of the family classified into the respondent herself, husband or others.
Table 5. 15 Distribution of individual and group micro entrepreneurs by their head of

household
Head of household Individual Group

N % N %
Respondent 36 18.50 28 2.70
Husband 157 80.50 915 89.40
Others 2 1.00 80 7.82
Total 195 100.00 1023 100.00
As per Table 5.5, it is identified that, husbands prefer authoritative parenting styles
than wives. Hence, there is significant difference in the controlling power of husbands
and wives. Husbands were, by virtue of this difference, considered as head of the
family. Moreover, in many families they were the main bread earners. However,
women participate in their family earning role but still under the control of the family
head.
The result of chi square test shows that the calculated value of 3.85 against the table
value of 5.991, the null hypothesis is failed to be rejected, as there is no significant
difference between individual and group units with respect to head of household.
5.2.2 Nature of Family
Family is the fundamental foundation in the socialization procedure of a person. In

addition, the families attribute an underlying status to the person preceding his
accomplishing status all alone. As indicated by MacIver "family is a gathering
characterized by sex relationship adequately exact and persisting to accommodate the
reproduction and infantile of children". In India we can discover different sorts of
families, for example, nuclear families, joint families and more detached families. For
the present examination the families are ordered into two noteworthy classes i.e. the
nuclear and joint families. As needs be, the nuclear family comprises of one conjugal
match with or without different relations and the joint families comprise of at least
two marital sets with or without different relatives. The sort of family in which an
individual life has noteworthy impact on his own and financial life. The distribution in
this regard is presented in the following table.
Table 5. 16 Distribution of individual and group micro entrepreneurs by nature of

family
Individual Group
Nature of family
N % N %
Joint Family 78 40.00 183 17.9
Nuclear Family 117 60.00 840 82.1
Total 195 100.00 1023 100
As per the Table 5.6, it was identified that majority of the sample respondents in both
cases, are of nuclear family, i.e., 60 percent belong to nuclear family in the case of
individual and 82.1 percent in the case of group units. 40 percent of the respondents
stated to be belonged to joint family, in the case of individual units and 17.9 percent
in group units, indicating that more than half of the sample women live in nuclear
family, where the support and control extended is limited.
The modal value for both type of units is high for nuclear family. The chi square
value for testing the association with respect to nature of family of the respondents of
individual and group units, the result rejects the null hypothesis, as there is no
significant difference with respect to the nature of family. The chi square value is
higher than critical value. From the result, it is deduced that, majority of the members
in both type of units is from nuclear family. They can engage in the business as full-
time members due to the fact that their children are school going students, as majority
of the members in both cases falls under the age group between 30-49. Moreover, the
nuclear family fits the needs of industrial society, as independent of the kin network,
is free to move as the economy demands.
5.2.3. Size of family

The size of the family is a matter of great importance not only for the country as a
whole but also for the welfare and health of the individual, the family and the
community. Our country has adopted the goal of universalizing the two-child family
norm by the end of this century. The achievement of this goal has consequences both
at the micro level that is the level of individuals and family and at macro level. The
size of the family effects of quality of life of human beings. In the present study the
respondents have been divided into three categories relating to their size of the family
(on the basis of number of children). The first group constitutes those respondents
whose size of the family as members less than 3, second group ranges between 4-5,
and the third group with size of the family of 6 and above. The distribution of the
respondents in this regard is presented in the table given below:
Table 5. 17 Distribution of individual and group micro entrepreneurs by size of

family
Individual Group
Size
N % N %
Less than 3 11 5.60 186 18.1
4-5 110 56.40 695 68.0
6 and above 74 37.90 142 13.9
Total 195 100.00 1023 100.0
In Table 5.7, it is being identified that 56.40 percent of respondents ‘family consists
of members between 4 to 5, 37.90 percent of them are having more than 6 members
and the remaining 5.60 percent family consists of less than 3 members in the case of
individual units and 68 percent of group units consists of 4 to 5 members. In
individual units, 94.4 percent units and 81.9 percent in group units, the members have
to support more than four children. In both case highest number of respondents’
family consists of members between 4 and 5. Therefore, the size of family is found to
have a significant influence in the participation and utilization of Kudumbashree.
Chi square test is conducted for testing the null hypothesis. The null hypothesis is
that, there is no significant difference between individual and group units with respect
to size of family. The calculated value of chi square is 2.29 against the table value of
5.99, which is higher. So, the null hypothesis is failed to be rejected.
5.2.4 Religion
Religion is a most important amongst the imperative aspects of individual like, birth,
training, marriage, death, and so forth. It is exceptionally sensitive and private matter
of human life touches each transient part of social and social existence of people. As
Karl Marx says, 'religion is the opium for the masses’ a person's states of mind,
convictions, confidence and activity design are thought to be affected by the religion
to which the individual is connected. Religion applies a vital impact in outlining the
custom, qualities and conviction of a man. Alongside a few different elements,
religion contends in outlining the financial states of the respondent, which has an
expansive effect on the empowerment status. The proportion of the religious
affiliation of the respondents in the presents study is given in the table cited below. -

religion
Individual Group
Religion
N % N %
Hindu 113 57.90 737 72.04
Muslim 48 24.60 147 14.37
Christian 34 17.40 139 13.59
Total 195 100.00 1023 100.00
Table 5.8 depicts the religion-wise status of respondents. Hindus constitute the
majority in both the units. 57.90 percent Hindus followed by Muslims, 24.60 percent
are Christians, 17.40 percent in the case of individual units. In the case of group units,
72.04 percent belongs to Hindu religion. The trend is in conformity with national and
state level figures, which sets priority in Hindus, Muslims and Christian order.
As against the null hypothesis, “there is no significant difference with respect to

religion of individual and group units” the chi square result rejects the null hypothesis
as the calculated value (17.25) is higher than critical value at 0.05 significance level
(5.991). So, it is concluded that there is significant association with respect to
religion in both type of units.
5.2.5 Community
Community too has been considered as an imperative factor for social stratification
(Ghurye. 1961, D'Souza, 1972). The caste system is a very deep rooted and mighty
institution in the Indian society. It has vital effect on every other foundation, for
example, social, monetary, political, religious and furthermore education. As cast
system is capable in all parts of life, in this manner, it was viewed as basic to gather
data about the caste foundation of the respondents. This data was fundamental since
one of the speculation of the present study is that caste foundation of an individual is
probably going to impact his/her execution in all kinds of different backgrounds. In
the present study the castes have been classified into General, OBC, and SC/ST. The
distribution of respondents according to the above-mentioned categories are shown in
the table given below.

community
Individual Group
Community
N % N %
General 64 32.80 585 57.18
OBC 113 57.90 381 37.24
SC/ST 18 9.20 57 5.57

Total 195 100.00 1023 100.00
With respect to community, the respondents were mixed with those from forward
castes/general category, women belonging to other backward classes, scheduled
castes and Tribe. Majority of the sample respondents belonging to other backward
class i.e., 57.90 percent in the case of individual units. General class constitute 32.80
percent and 9.20 percent belongs to SC/ST. While 57.18 percent members were in
general category in the case of group units. The purpose of poverty eradication
programme like Kudumbashree is to uplift the backward classes and the poverty
stricken to a better standard of living. Therefore, the participation of these classes is
inevitable for the success of the programme. The study clearly reveals the increased
participation of backward communities in the developmental activities of the
Kudumbashree projects. Moreover, as per population report more than 50 percent of
Kerala population constitute OBC category.
Based on the chi square test, the null hypothesis is accepted as, there is no significant
difference between individual and group units with respect to community. The chi
square value is 1.55 against the table value of 5.991. The calculated value is less than
the table value, hence the null hypothesis is failed to be rejected.
SUMMARY
Demographic profile of the respondents was analyzed in sections, such as, personal
background and family background. Respondents were taken from individual and
group units. Personal background includes details such as, age, marital status,
education and place of residence. While the family back ground is analyzed with
respect to lead of household, nature of family, size of family, religion and community.
Majority of the respondents of individual and group units belongs to an age group of
30-39. Most of the respondents in both type of business is married with an education
level of plus two and below. Most of the respondents in both type of business is
married with an education level of plus two and below. Majority of the sample
respondents in both cases were from nuclear family. Hindus constitute majority in
both individual and group units. In the case of individual units, the highest percent of
respondents belongs to OBC category. While in group units’, general category
respondents are highest.
Based on the hypotheses test, the following results were found out:
 There is no significant difference between individual and group entrepreneurs

with respect to age.
 There is significant association between both type of members with respect to

educational qualification.
 There is no significant difference with respect to the place of residence of both

individual and group members.
 There is no significant difference between individual and group units with

respect to head of household.
 There is no significant difference with respect to the nature of family between

individual and group members.

respect to size of family.
 There is significant association with respect to religion in both type of units.

respect to community.
REFERENCES
D'Souza, Leela (2007) Cultural History of Ancient India, Diversity, Syncretism,

Synthesis, Rawat Publications, New Delhi.
Fuchs, E., & Havighurst, R. J. (1973). To Live on This Earth; American Indian
Education.
Ghurye, G.S. (1950) Caste and Class in India, Popular Book Depot, Bombay.
Ghurye, G.S. (1961) Caste, Class and Occupation, Popular Book Depot, Bombay.
Lundberg .1958. Lundberg on Sociology. New Delhi: Harper and Bros.
Mazumdar .1966. Grammar of Sociology. Asia Publishing House.
Chapter 6
Performance evaluation: An Analytical Spectra of Kudumbashree micro enterprises
6.1 Business Profile
6.2 Details of Financial Statements

6.3. Profitability profile
6.4. Productivity
6.5. Loan repayment
6.6. Level of difficulty in raising of capital and marketing difficulties
6.7. Level of satisfaction of performance
Introduction
Performance is a widely used concept in many areas. Performance is a measure of

how well a mechanism or process achieves its purpose. In enterprise management,
Moullin (2003) defines an organization’s performance as “how well the organization
is managed” and “the value an organization delivers for customers and other
stakeholders”. For the purpose of the present study performance is related to
achieving the investor interest specified in the content of study.
Performance Evaluation
Needy (1998) defines performance measurement as “the process of quantifying the

efficiency and effectiveness of past actions through acquisition, collection, sorting,
analysis, interpretation and dissemination of appropriate data’. It shows that the
performance measurement is a structured system and a process of gathering,
monitoring, and assessing the information about an organization’s activities, in order
to achieve the proposed goals and objectives.
Delmar (2003) discussed the various performance measures and suggested that if only
one indicator has to be chosen as a measure of firm growth, then the preferred
measure of growth should be sales. Sales figures are relatively easy to obtain and
reflect both short-term and long-term changes in the firm.
Employment has been considered as alternative measure for performance and with the
public interest in new employment, there are arguments that employment growth is an
important dimension to capture (Wiklund 1999).
Growth in assets is another useful performance measure. However, measuring growth

in terms of assets can be difficult from an accounting perspective. Service firms, for
example, may have considerable intangible assets which may not be reflected in the
firm’s balance sheet (Weklund 1999).
Profitability is another important measure of performance that must be considered as

it is unlikely that firm growth can be sustained without profit being availed for
reinvestment in the firm. Growth along these dimensions can be considered in terms
of net profit margin or return on assets.
On the measures of financial performance Chong (2008) identified profit and asset
turnover to assess short term duration but steady revenue growth rate and growth in
the employment size to measure long term capacity. The Kennas Chartered
Accountants (2014) considered profitability and return on assets as the key
performance indicators that are critical in understanding the state of financial health of
business.
A significant problem in the measurement of performance outcomes of

entrepreneurship is to reach consensus on suitable measures of performance. In this
study, due importance is given to the performance evaluation at the unit level. The
performance of Kudumbashree micro enterprises are measured in three angles, such
as, Profitability, productivity and loan repayment status.
In evaluating the profitability and productivity profile, the business profile in general,
has an inevitable influence. Therefore, as a prelude and pre-specification for properly
analyzing and interpreting the financial profile, (profitability, productivity and loan
repayment status) the overall business profile is evaluated in the first stage. Specific
analysis and interpretation of financial profile is performed after the analysis of
business profile.
In this chapter, analysis was conducted to assess the business profile of women micro
enterprises under Kudumbashree, as these factors exerts a decisive role in determining
the empowerment status of any individual especially women. Another attempt was
made to evaluate the performance of Kudumbashree micro enterprises in terms of
profitability, productivity, and sector wise loan repayment status.
6.1 Business Profile
Business Profile is a brief history of the business. It is designed to be an overview of

the business and business plan. It should provide a quick check of the business
activities. This section provides details regarding the Zone, nature of business,
location, year of establishment, origin of business, nature of ownership, place of
business, earnings, management and details regarding the number of working days per
month. It also covers the reasons for joining to Kudumbashree micro enterprises and
the type of work engaged in by the respondents before joining to these units.
6.1.1 Zone
Any continuous area that differs in some respect, or is distinguished for some
purpose, from adjoining areas, or within which certain distinctive circumstances exist
or are established as zones. The study functionally defines a zone as a geographic
entity with common structural and functional characteristics which can be defined in a
conceptual model and quantified by measurement. The total study area is divided
into three zones such as, North, Central and south.
Table 6.1 Zonal wise Distribution of individual and group micro entrepreneurs
Individual Group
Zone
N % n %
North 65 33.33 65 33.33
Central 65 33.33 65 33.33
South 65 33.33 65 33.33
Total 195 100.00 195 100.00
Source: Primary data
From Table 6.1, it is clear that the number of respondents were selected equally from
three regions. Hence, we can clearly depict the regional variations on the overall
performance of the micro units. Total members in group units consists of 1023, and
total members are considered for measuring economic empowerment.
6.1.2 Nature of Business
An occupation can be pronounced as a particular action or course of action in which

one is engaged, particularly and regularly to earn one’s living. Sociologically, it may
be planned as a specific activity having value, which allows an individual to find a
steady flow of income. It is one of the social elements of one’s financial status and it
touches the life style, performance, conduct and even morale as well as one’s role in
the society. It assists as an indicator of socio-economic status and stature of the
family. Changing degrees of honor and esteem is attached with each employment. The
nature of business of the respondents has been categorized into three broad categories
such as Agriculture, Industrial and Service.
Table 6.2 Distribution of individual and group micro entrepreneurs by Nature of

Business
Individual Group
Nature of business
N % n %
Agriculture 26 13.33 19 9.74
Industrial 96 49.23 91 46.67
Service 73 37.44 85 43.59
Total 195 100.00 195 100.00
Table 6.2 reveals that 49.23 percent respondents were engaged in industrial sector and
it is the highest percentage in the case of individual units whereas, it is 46.67 percent
in group units. 37.44 percent belongs to service sector and 13.33 percent were
engaged in agriculture sector in individual and 9.74 percent agriculture sector in
group units. In both cases the highest percentage of units are in industrial sector.
Chi square test is conducted for testing the significant difference between group and
individual with respect to nature of business. The null hypothesis fixed as; Ho: There
is no significant difference between group and individual with respect to nature of
business. Based on the result, the calculated value is (2.12) is less than the table value
(5.991). Thus, the null hypothesis is failed to be rejected and showed that the nature
of micro enterprises does not differ with respect to individual and group units.
6.1.3 Type of work done before joining to Kudumbashree
The members of Kudumbashree were engaged in different types of work before

joining to Kudumbashree units. They were worked as sales girls, maid servant, care
taker etc. In the case of group units, this response was given by the leader of the unit.
The previous engagement of the members, of course, will have a bearing on the
endurance of the Kudumbashree engagement. The thriving factors behind joining
Kudumbashree will also depend upon the previous engagement.
Table 6.3 Distribution of individual and group micro entrepreneurs by previous

occupation
Individual Group
Occupation
N % n %
Sales girl 8 4.10 5 2.56
House wife 124 63.59 167 85.64
Self-employment 31 15.90 18 9.23
Maid servant 31 15.90 3 1.54
Others 1 0.51 2 1.03
Total 195 100.00 195 100.00
From the table 6.3, it is identified that 63.59 percent of respondents are house wives,
15.90 percent were engaged in self-employment, 9.23 percent were worked as maid
servant, and 6.67 percent as care taker and 4.10 percent were sales girls. Majority of
them are housewives as they don’t have any public space for exposure and were
engaged only with the activities of their family. While in group units’ 85.64 percent
respondents were housewives, and no one as maid servant.
Chi square test is conducted for testing the significant difference between group and
individual with respect to previous occupation. The null hypothesis fixed as; Ho:
There is no significant difference between group and individual with respect to
previous occupation. Based on the result, the calculated value is (3.6) is less than the
table value (9.488). Thus, the null hypothesis is failed to be rejected. Thus , the
previous occupation remain the same irrespective of the type of units.
6.1.4. Reason for joining into Kudumbashree Unit
Women joined in the Kudumbashree units due to various reasons. Some of the
important reasons mentioned are for getting more remuneration, or sometimes for
getting a job with permanent income, or no other opportunity for getting a better job
because of less education.
Table 6.4 Distribution of individual and group micro entrepreneurs by reasons for
joining the Kudumbashree units
Reasons* Individual Group
Expectation of getting more remuneration 3 3
Less education 1 1
Job of permanent income 2 2
*Multiple response
As per Table 6.4, it is seen that the first reason for joining the units in both type is less
education and, job of permanent income and expectation of getting more
remuneration is the second and third reason as expressed by both type of units.
Education has a great impact on individual’s status in the society. Education, of
course may affect the individual's chances for bringing in a given occupation. It may
be inferred from the above that less education leads to attract more people to join
groups were no special skill and traits are required. Such people may also enjoy more
consciousness in joining groups rather than finding employment of their own. The
reasons for joining micro enterprises are reasonably in logical hierarchical order as
reflected from both individuals and groups.
6.1.5 Location of Present business unit
Location is the place where a firm decides to site its tasks. Location decisions can
have a big bearing on costs and revenues. There are a number of factors that essential
to be deliberated in choosing a location for a business. The entrepreneur would need
to look at the assistances which each area had to offer as well as any government help
which might be accessible. Business location may be in urban area, Semi urban or
rural area.
Table 6.5 Distribution of individual and group micro entrepreneurs by location of

unit
Individual Group
Location
N % N %
Urban 105 53.85 94 48.21
Semi Urban 6 3.08 5 2.56
Rural 84 43.08 96 49.23
Total 195 100.00 195 100.00
It is clear from the Table 6.5, 53.85 percent of the individual micro units are situated
in urban area, 43.08 percent of units are in rural area and only 3.08 percent are in semi
urban areas. But in group units, 49.23 percent were in rural areas. 94 units were in
urban areas in group units. The location of units as per sample is justifiable on the
ground that, Kudumbashree’s work in Urban Kerala is set in the specific context of
urban poverty in the State. 21% of the urban population of the State is classified as
'poor' by the Planning Commission. About 5% of the urban population is estimated to
be living in slum-like conditions. Urban unemployment in Kerala (10%) is the
second-highest in India.
Table 6.6 Distribution by year of inception and location of individual and group units
Individual units Group units
Year of inception Location

Year of inception Location
Up to 2005 19 Urban 105 Up to 2005 21 Urban 94

2006-2010 39 Semi 6 2006-2010 47 Semi 5
urban urban
After 2010 137 Rural 84 After 2010 127 Rural 96
Total 195 Total 195 195

195
Above table shows the year of inception and location of individual and group units.
For finding out, whether, there is any association between year of establishment and
location of the both units, chi square test is conducted. Null hypothesis is that, Ho:
there is no significant difference between age of unit and location of both the units.
In case of individual units, the calculated value is 96.1 against the table value of
9.488. So, the null hypothesis is rejected.
As regards group units, the calculated value of chi square is 84.2 against the table
value of 9.88. Here also, the null hypothesis is rejected as there is association
between age and location of the group unit.
6.1.6 Year of Establishment
From the sample taken for study, units are classified on the basis of year of
establishment of the micro units. Three groups are made such as units established
before 2005, units stated in between 2006 and 2010 and units started after 2010, to
understand the trend of growth in micro enterprises.
Table 6.7 Distribution of individual and group micro entrepreneurs by year of

establishment of enterprise
Individual Group
Year
N % N %
Up to 2005 19 9.74 21 10.77
2006-2010 39 20.00 47 24.10
After 2010 137 70.26 127 65.13

Total 195 100.00 195 100.00
As per Table 6.7, it was identified that 70.26 percent of individual units are
established after 2010, whereas it was 65.13 percent in the case of group units. 20
percent was established after 2006 and before 2010 and only 9.74 percent was before
2005 in the case of individual units. Number of units established on year wise is more
or less same in both the cases. So, it is clear that, in both type of units, majority of the
units were started after 2010, as from the early stage itself, there is a clear indication
of sustainability and around 75 percent of units are running on profit.
Table 6.8 Distribution by year of inception and sector of individual and group units
Individual units Group units
Year of inception Sector

Year of Sector
inception
Up to 19 Agriculture 26 Up to 21 Agriculture 19
2005 2005
2006- 39 Industrial 96 2006- 47 Industrial 91

2010 2010
After 137 Service 73 After 127 Service 85

2010 2010
Total 195 195 Total 195 195
Again, chi square is tested for finding out the association between age of unit and
sector. The Null Hypothesis fixed as, Ho: there is no significant difference between
age of unit and sector in both individual and group units. In both cases the null
hypothesis is rejected as the calculated value is higher than table value. In individual
units, 44.84 is the calculated value against the table value of 9.488. In group units, it
is 22.44 against 9.488.
6.1.7 Purpose and nature
Kudumbashree units were originated from inheritance, purchased ones or newly

started units.
Table6.9 Distribution of individual and group micro entrepreneurs by origin of

business
Individual Group
Origin
N % N %
Inherited 3 1.54 4 2.05
Purchased 7 3.59 1 0.51
Newly started 185 94.87 190 97.44
Total 195 100.00 195 100.00
Table 6.9 reveals that 94.87 percent micro units are newly started; 3.59 percent are
purchased units and only 1.54 percent is inherited in case of individual units. In
group units, 97.44 percent units are newly started and only one unit is purchased. It
may be deduced from the above that the existing micro enterprises were few in
number and the attitude towards micro enterprises were developed and accelerated
gradually after the popularization of Kudumbashree.
6.1.8 Purpose of starting Business
The respondents were asked to the reason for starting their units. Responses were
obtained by giving ranks from 1 to 5 in the order of preference. The following table
shows the responses of individual and group micro units.
Table 6.10 Distribution of individual and group micro entrepreneurs by purpose of starting unit with mean
Type of unit Individual Group
Rank 1 2 3 4 5 1 2 3 4 5
Mean Rank Mean Rank
Score 5.00 4.00 3.00 2.00 1.00 5.00 4.00 3.00 2.00 1.00
For getting loans 6 18 35 101 35 2.28 4 20 28 32 63 52 2.49 5
For accumulate savings 39 56 80 12 8 3.54 2 8 56 35 48 48 2.63 4
For family commitment 110 48 12 20 5 4.22 1 32 35 80 28 20 3.16 3
Settlement of old debts 33 68 59 30 5 3.48 3 36 68 44 12 35 3.30 2
For social status 7 5 9 32 142 1.48 5 99 8 4 44 40 3.42 1

Table 6.10 shows the purpose of starting the micro unit. Among the choice 1st rank is
given for family commitment and 5th rank was given for social status is the reason for
starting the units in the case of individual units. While this is not the case with group
units. They rank 1st for social status and 5th rank for getting loans. The highest mean
score of individual unit is 4.22 and group is 3.42.
6.1.9 Nature of activity

Nature of activity n %
Full Time 179 91.80
Part Time or Seasonal 16 8.20
Total 195 100.00
As per the table 6.11, nature of activity is displayed. The activity of the units is full
time and part time or seasonal. Out of 195 units 179 units are engaged in full time
activity and the remaining 8.20 percent are doing part time or seasonal activity.
6.1.10 Activity Time
The time spent by the respondents in their units vary from one to another. Hence, it is
suitable for the study to analyze the activity hours of both individual and group
enterprises.
Table6.12 distribution of full time individual and group micro entrepreneurs by

activity time
Individual Group
Activity Hours n % Mean SD n % Mean SD

1 1 0.60 0 0.00
2 2 1.10 0 0.00
3 1 0.60 0 0.00
4 20 11.20 8 4.10
5 19 10.60 5.82 1.11 19 9.74 6.10 0.81
6 99 55.30 123 63.08
7 33 18.40 36 18.46
8 2 1.10 8 4.10
9 2 1.10 1 0.51
Total 179 100.00 195 100.00
It is clear from Table 6.12 that the units engaged in full time activity hours’ ranges
between 1 to 9 hours. Among 195 individual units, only 179 units were expressed the
opinion about the activity hours. Others have no fixed time for their activity. Out of
179 units, 55.30 percent were engaged in their activity for 6 hours per day. Only 2
units each are engaged in 9 hours and 8 hours per day. Whereas in group units, no
units were having activity hours below 4 hours. 123 units were with activity hours of
6 hours. The mean activity hours in group units was 6.10 and except 8 units, all other
units were above mean activity hours.
The average working hours fall below the norms of 8-hour day. However, the spread
is in between 6.93 and 4.71 hours in individual units, whereas it is 6.91 and5.29 hours
in group units. It may be safely stated that the units, on an average works for 5-7
hours per day which may reasonably sustained a continuous and permanent operation
of business in the case of individual units.
Besides, in order to know whether there is significant difference in the duration of
work of individual and group units an ANOVA test is conducted. Null hypothesis is
fixed as, Ho: There is no significant difference between the mean activity hours of
individual and group units, reject the null hypothesis, as the calculated test value is
11.68 against the critical value of 4.54. It implies there is significant difference
between the mean of the activity hours of individual and group units. So, it may be
inferred that, group units are more properly scheduled and operated than individual
units.
6.1.11 Nature of ownership of building
In the absence of proper space, many of the micro units were forced to operate in
rented places, which were sometimes far away from their place of residence. This
caused difficulty in managing the transportation cost and the increasing rent with
passage of time. A substantial part of their income is spent on for paying for the rent.
So, the nature of ownership of building was considered as an important variable
influencing profit and the same was investigated and presented in the following
tables.
Table 6.13 Distribution of individual and group micro entrepreneurs by type of

ownership of building
Individual Group
Type of
ownershi Net Profit Net Profit

n % n %
p
Mean SD Mean SD
11 42507.3 56564.8 10 70352.7 112590.9

Owned 57.95 51.79
3 6 3 1 8 7
36845.3 38780.9 80136.1 126798.8

Rented 82 42.05 94 48.21
4 9 3 5
19 100.0 40126.4 49829.4 19 100.0 75068.8 119439.8

Total
5 0 1 8 5 0 6 9
Based on the analysis, Table 6.13, reveals that 57.95 percent of individual units have
owned building for their business and 42.05 percent are in rented building. Same is
the case with group units, that is, the highest percent of 51.95percent were in owned
building and the remaining were in rented building. Expenses can be reduced to some
extent, as no amount is allocated for rent.
Based on the chi square test, with the null hypothesis is that, there is no significant
difference between individual and group enterprises with respect to the nature of
ownership of building. The calculated value is 1.5 which is less than the critical value
of 3.841. The null hypothesis is failed to be rejected and found that individual and
group units are identified with respect to influence of rent on profit.
6.1.12. Extent and impact of Rent
Rent is a tenant's regular payment to a landlord for the use of property or land. For
the purpose of analysis rent is classified into three ranges, such as, rent below
Rs.1000, between 1000 and 1,999 and Rs. 2,000 and above per month.
Table 6.14 Distribution of individual and group micro entrepreneurs by amount of

rent
Individual Group
Amount of rent
N % N %
Below 1000 44 53.66 38 40.43
1000-1999 23 28.05 28 29.79
2000 and above 15 18.29 28 29.79
Total 82 100.00 94 100.00

Table 6.14 shows that, in case of individual unit’s majority (53.66%), were paying
rent below 1000. Only 15 units were in the payment group of 2000 and above. In the
case of group units also, the majority of respondents were paying rent below Rs.
1000. (40.43%)
Profit is the amount that the business ultimately earns, after subtracting expenses,
such as operating costs from gross revenue. Earning a healthy profit is essential to the
healthy operation of any business. Profit provides with the money to pay the
expenses, pay yourself and pay off debts and invest in further growth of the
enterprise. However, low production costs do not necessarily guarantee a high profit.
Business may have unsustainably high fixed costs, such as rent, or may cut production
costs to the point where you're producing an inferior product that nobody wants. The
reduction in sales will unfavourably affect the performance.
In the case of micro enterprises, whether individual or group, rent is found to be an

insignificant variable affecting profit as the most of the units works in owned
building. In the case of those working in rented premises too, the quantum of rent is
less than Rs. 1000 in majority of the units.
Chi square result shows that, against the calculated value of 0.85, the critical value is
5.991. Thus, the null hypothesis is failed to be rejected as there is no significant
difference between individual and group unit with respect to the amount of rent.
6.1.13 Average monthly Income of the business
Income is considered to be the most important variable in determining socio-

economic status of an individual. The income of an individual also influences the
quality of life. In the present day materialistic world economic condition of an
individual or the family plays an important role in getting higher education or
achieving social status. In the present study the range of income have been divided
into five categories. The distribution of the respondents in this regard is presented in
the table given below:
Table 6.15 Distribution of individual and group micro entrepreneurs by monthly

earnings
Individual Group
Monthly earnings
N % N %
Below 2000 10 5.13 6 3.08
2000-4000 32 16.41 18 9.23
4000-6000 103 52.82 59 30.26
6000-8000 38 19.49 75 38.46
Above 8000 11 5.64 37 18.97
Total 195 100.00 195 100.00
Table 6.15 reveals that 52.82 percent respondents in individual units are in the income
group of 4000-6000, 19.49 percent were under 6000-8000 income group, 16.41
percent were belonging to income group between 2000-4000 ranges. Only 5.13
percent belongs to income group under 2000. 5.64 percent were belonging to income
group of above 8000. From this we can conclude that most of the sample
respondent’s fall around 5000 income group and the others were of scattered to above
and below this amount. While in group unit’s the highest percent of respondents were
under income group of 6000-8000 (38.46) and only3.08 percent were belonging to
income below Rs.2000. It is clear that, income could be legitimately attributed to the
fruitful implementation of the Kudumbashree activities in the state and there is every
reason to reckon that there will be more economic prosperity as a result of the
continuity of the various schemes of the Kudumbashree in the area especially the skill
development and various income generation programmes.
Chi square test is conducted for finding out the association of distribution of income
between individual and group units. The null hypothesis fixed is that there is no
significant difference between individual and group units with respect to monthly
income. As the calculated value is less than (3.6) the critical value of 9.488. The null
hypothesis is failed to be rejected and the income distribution is found not to be the
same for individual and group units.
6.1.14 Management of business
Kudumbashree micro units were sometimes managed by the respondent herself, or by

herself and husband. Very rarely, paid employees are appointed for managing the
business.
Table 6.16 Distribution of individual and group micro entrepreneurs by person

managing the business
Individual Group
Individual managing business
N % N %
Self 176 90.30 - -
Both 17 8.70 - -
Permanent Employees 2 1.00 - -
All jointly NA - 195 100.00
Total 195 100.00 195 100.00
Table 6.16 depicts the details relating to the management of business of the
respondents. Based on the analysis it is identified that 90.30 percent individual
business units were managed by the respondents themselves in individual units. 8.70
percent units were managed by both respondent and husband and only 1 percent was
by paid permanent employees. Whereas, in group units, all units are jointly managed
by the members. From this it is evident that women were empowered so much to take
responsibilities of managerial activities.
6.1.15. Average working days in a month

Working days of the units are grouped into three ranges such as working days up to
20, in between 21 and 25 and above 25 days.
Table 6.17 Distribution of individual and group micro entrepreneurs by average

working days in a month
Individual Group
Working days
n % n %
Up to 20 55 28.20 28 14.36
21-25 79 40.50 95 48.72
Above 25 61 31.30 72 36.92
Total 195 100.00 195 100.00
Table 6.17 reveals that 40.50 percent individual units were doing their activities for
21 to 25 days, 31.30 percent were engaged in their business for more 25 days and
28.20 percent were having their activities for less than 20 days, in individual units. In
case of group units, 48.72 percent units were average working days in a month were
between 21 to 25 and only 28 units were below 20 days. It is evident that only 31.30
percent in individual units and 36.92 percent in group units are working in full
capacity with respect to working days in a month.
As per the ANOVA test, the null hypothesis is that, Ho: There is no significant
difference in the mean value of two types of units, with respect to the average
working days in a month. The null hypothesis is failed to be rejected that the
calculated value is zero which is less than the table value of 5.99. It shows that the
mean number of days worked are not significantly different.
The chi square test also supported the result attained in ANOVA. Based on the chi
square test, it is seen that there is no significant difference between individual and
group units with respect to number of working days in a month. The calculated value
is 1, which is less than the table value of 5.991. So, the null hypothesis is failed to be
rejected.
6.1.16 Number of members in Group units
Table 6. 38 Distribution of group units by number of members at beginning and at the

time of survey with mean drop out
At the beginning At the time of survey

No of members Mean Dropout
n % n %
Up to 5 139 71.28 151 77.44 0.62
6-10 46 23.59 38 19.49 1.30
Above 10 10 5.13 6 3.08 2.70
Total 195 100.00 195 100.00
As per Table 6.18, number of members at the beginning and at the time of survey in
the case of group units. Mean drop out is higher in the case of group units having
members above 10, which was 2.70. Drop out is less in case of units having members
up to 5. During personal discussion with the members, they expressed their views
that, some members are not interested in continuing in the business due to some
vested interest of dominating and active members. Also, there is dispute between
members themselves and so on. This is the main reason for high mean score of drop
out in the case of units having more members.
6.2. Details of Financial Statements
Financial statements for businesses usually include income statements, balance sheets,
statement of retained earnings and cash flows. It is a standard practice for businesses
to present financial statements that adhere to generally accepted accounting principles
(GAAP) to maintain continuity of information and presentation across international
borders. Financial statements are often audited by government agencies, accountants,
firms, etc. to ensure accuracy and for tax, financing or investing purposes.
6.2.1. Financial Variables at a glance
For the present study, the financial statements include financial variables of output
and input. Under output, variables like, cash sales, credit sales and other income were
included. Input constitute, materials consumed, wages and salaries, electricity
expenses, interest paid, rent paid, depreciation, selling and distribution expenses, and
other expenses. Difference between total income and total expenses is net profit or
net loss.
Table6.19 Financial statement of Individual Micro entrepreneurs
Minimu Maximu
Financial variables Mean SD % n
m m
110341.3 100195.7 19
93.50 4500 1000000
Cash sales 8 6 5
Credit Sales 42497.71 65478.47 36.01 1200 250000 34

Outp
ut
Other Income 10104.00 11382.89 8.56 2260 30000 5
118010.3 111456.9 100.0 19

4500 1017500
Total Income 2 6 0 5
Input 19
47379.84 40141.59 64.48 1000 300000
Material consumed 2
19
13306.09 14410.87 18.11 250 84000
Wages and Salaries 5
17
5449.42 5977.81 7.42 250 50000
Electricity expenses 9
Interest Paid 17927.27 18246.21 24.40 400 60000 11
Rent Paid 14498.61 18180.32 19.73 500 96000 72

Depreciation 5138.73 6105.65 6.99 2 20000 22
Selling and
Distribution 4755.16 6070.09 6.47 150 26000 43

Expenses
. . . .
Other Expenses 2696.68 2875.22 3.67 500 14000 38
100.0 19
Total expenditure 73477.75 57219.93 3000 349600
0 5
19
Net Profit 44532.56 78465.93 -25000 886700
5
Total expenditure
19
excluding interest 71940.96 55056.96 3000 349600
5
and other expenses
From the Table 6.19, it is reveals that, the mean of total income was 118010.32 and
SD 111456.96. The minimum and maximum range of income was Rs.4500 and Rs.
10, 17,500. Likewise, the mean of total expenditure is 73477.75 and SD is 57219.93.
The minimum and maximum expenditure range was between Rs.3000 and Rs.349600.
The mean and SD of total expenditure excluding interest and other expenses was
71940.96 and 55056.96 respectively. The mean and SD of net profit or loss was
44532.56 and 78465.93 respectively. The minimum and maximum of net profit falls
between net loss of Rs.25000 and profit of Rs. 886700.
Table 6.20 Financial statement of group Micro entrepreneurs
Financial variables Mean SD % Minimu Maximu N

m m
197968. 159506. 900000.0

Cash sales 50 67 90.07 2976.00 0 195
59398.7 79171.1 375000.0

Credit Sales 2 4 27.02 2000.00 0 47
Outp
ut
244057. 236425. 111.0 568644.0
Other Income 33 80 4 41000.00 0 6
219794. 200009. 100.0 1132660.

Total Income 57 87 0 2976.00 00 195
Input 92677.2 105992. 909160.0

63.82 350.00
Material consumed 7 98 0 189
Wages and 36215.0 95159.1 750000.0

24.94 1000.00
Salaries 5 2 0 176
Electricity 11042.2 21927.6 150000.0

expenses 4 2 7.60 100.00 0 183
16914.8 20457.0
Interest Paid 0 5 11.65 840.00 76000.00 15
15197.4 18416.6 120000.0

Rent Paid 4 6 10.47 300.00 0 86
14701.7 37226.5 200000.0

Depreciation 9 8 10.12 100.00 0 28
Selling and
Distribution 14918.0 34233.2 215000.0

Expenses 9 3 10.27 200.00 0 45
Income Tax 20856.6 33102.2 14.36 1000.00 59070.00 3

7 2
22210.5 36938.8 150000.0

Other Expenses 9 1 15.30 400.00 0 61
145213. 168506. 100.0 1402000.

3700.00
Total expenditure 99 65 0 00 195
-
74580.5 31503.2
Net Profit 352000.0 956000.0
8 2
0 0 195
Total expenditure
excluding
136922. 159019.
interest and other expenses 41 52 3200.00 1356000 195
From the Table 6.20, it shows that, the mean of total income was 219794.57 and SD
200009.87. Likewise, the mean of total expenditure was 145213.99 and SD
168506.65. The statement separately showed the total expenditure excluding interest
and other expenses and including these expenses. The mean and SD of total
expenditure excluding interest and other expenses was 136922.41 and 159019.51
respectively.
Moreover, it is seen from result that, the spread of total income of group units is in
between 4,19,804.57 and 19,784.70. So, it may be stated that the units on an average
income of 2,19,794.63, which is substantially a moderate income for the unit.
6.2.2. Net profit
Profit is a financial benefit that is realized when the amount of revenue gained from a
business activity exceeds the expenses, costs and taxes needed to sustain the activity.
Any profit that is gained goes to the business’s owners who may or may not decide to
spend it in the business. Profitability is the profit-making ability of an enterprise. It
indicates how well management of an enterprise generates earnings by using the
resources at its disposal. Profitability is a measure of evaluating the overall efficiency
of the business. The best possible course for evaluation of business efficiency may be
input-output analysis.
Table 6.21. Distribution of individual and group micro entrepreneurs by level of Net
Profit or Net loss
Individual Group
Reason for loss Reason for loss

Net profit or
High cost
loss High cost
N Percent N Percent
Unfavorabl of Unfavorable
of
e market productio market
production
n
Net Loss 5 2.60 3 (60%) 2 (40%) 9 4.62 3(33.33%) 6(66.67%)
Up to 20,000 72 36.90 28 14.36
20,001-40,000 63 32.30 44 22.56
40,001-
40 20.50 74 37.95
1,00,000
Above
15 7.70 40 20.51
1,00,000
Total 195 100.00 195 100.00
From Table 6.21, it is clear that, the highest percent of (36.90 percent) individual units
were under the net profit bracket below Rs. 20,000 and 32.30 percent were having net
profit between Rs.20, 001 and 40,0000. 20.50 percent units were earned net profit
between 40,001 to 1, 00,000. 7.70 percent units were earned net profit above Rs.1,00,
000. While as in group units’ 4.62 percent units were at loss, only 2.60 percent units
were running on loss in individual units among those, 6 were expressed their opinion
as unfavorable market condition and others as high cost of production. Proper control
on production process can be done for reducing the cost of production and also by
giving new channels for marketing the products of Kudumbashree products will help
for avoiding the loss of units. 74 units, (37.95) which is highest among the total were
earned net profit between 40,000 and 1,00,000 in group units. 20.51 percent units
were net profit of above Rs.1,00,000. It is seen that group units are more profitable
than individual units.
As per the result of chi square test, the null hypothesis fixed is that Ho: There is no
significant difference between individual and group units with respect to net profit or
loss. The calculated value is less than (3.34) the critical value of 9.488. so, the null
hypothesis is failed to be rejected.
6.2.3. Project cost
Table 6.22 Distribution of Individual and group Micro Units by their project cost
with mean and SD
Individual Group
Project cost
N % Mean SD N % Mean SD
<50,000 40 20.50 19 9.74
50,000<100,00
72 36.90 41 21.03
0
111803. 102908. 218465. 176210.
100,000<200,0 59 90 38 97
48 24.60 65 33.33
00
200,000 and
35 17.90 70 35.90
above
19 100.0 19 100.0
Total
5 0 5 0
Table 6.22 showed the project cost of sample individual and group micro units with
its mean and SD 20.50% of the units were having the project cost below Rs.50, 000.
36.90% of the units were with project cost between Rs. 50,000 and Rs.1,00,000, while
24.60% of the units were with investment cost ranging between Rs.1,00,000 and
Rs.2,00,000 and 17.90% were having investment cost of Rs. 2,00,000 and above in
the case of individual units. The spread of project cost of individual unit is in between
2,14,712.49 and 9,894.69. Thus, the average project cost is 2,24,607.18. While, in
group units 70 units were invested for more than Rs. 200,000. The spread of project
cost in the case of group unit is in between 3,94,676.35 and 42,254.46. Hence, the
average cost is 2,18,465.38. The mean project cost is higher in group as compared to
individual units as compared to group units.
The result of chi square test shows, the acceptance of null hypothesis that, there is no
significant difference between individual and group units with respect to the project
cost, as the calculated value is 2.21 as against the critical value of 7.815. Hence, the
null hypothesis is failed to be rejected and the project cost remain the same
irrespective of the type of unit.
6.2.4. Initial and additional investment
Table6.23 Details of cost of investment of Individual and group Micro units
Individual Group
Investment
Mean SD N Mean SD N
111803.5
Initial Investment 102908.90 195 217541.03 178004.86 195
9
Additional
19470.99 33536.64 181 27210.09 30422.79 176
Investment
129876.6
Present investment 122194.28 195 242099.87 191036.69 195
7
Table 6.23 reveals the details of initial and additional investment of Kudumbashree
micro units. The mean amount of initial investment is higher in group units with
Rs.217541.03, whereas it is 111803.59 in individual units. Individual units are made
additional investment more than group units.
6.2.5. Total sales
Table 6.24 Distribution of Individual Micro Units by their previous and current year
Previous year Current year

Sales
N % Mean SD n % Mean SD
31.3 18.5
<50,000 61 36
0 0
50,000<100,00 39.0 45.6

76 89
0 0 0
103096. 123445. 123340. 138262.
97 37 47 63
100,000<200,0 17.9 21.0
35 41
00 0 0
200,000 and 11.8 14.9

23 29
above 0 0
19 100. 19 100.
Total
5 00 5 00
Table 6.24 shows the distribution of previous and current year sales with their mean
and SD respectively. 31.30 percent of units were with sales of previous year was
below Rs. 50,000, 39 percent of the units were the sales between 50,000 and
Rs.1,00,000, 17.90 percent of the units were with sales between Rs.1,00,000 and
Rs.2,00,000 and 11.80 percent units were with sales above Rs.2,00,000. The mean
and SD of the sales of the previous year were 103096.97 and 123445.37 respectively.
During the current year, in group units, 45.60 percent of the sample units were the
sales between the range of Rs.50, 000 and Rs.1, 00,000. 21 percent of the units with
current years’ sales between Rs.1,00,000 and Rs.2,00,000, while 18.50 percent of
units were sales below Rs. 50,000. 14.90 percent of the units realized current year
sales of Rs. 2, 00,000 and above. The mean and SD of current year sales were
123340.47 and 138262.63 respectively. The current year sales were higher than the
sales of previous year. There was an increase in the performance of the micro units.
Table 6. 45 Distribution of Group Micro Units by their previous and current year
Previous year Current year

Sales
N % Mean SD n % Mean SD
<50,000 28 14.36 210368.4 548084. 18 9.23 256445.6 589513.5

3
50,000<100,000 46 23.59 37 18.97
100,000<200,00 62 31.79 61 31.28

0
200,000 and
59 30.26 79 40.51
above
100.0
195 195 100.00
Total 0
As per Table 6.25, 59 units were earned sales above 200000, which is more or less the
same as that of mean sale in the previous year. In the current year 79 units, that is,
40.51 percent units earned sales up to mean sales. The position is better in current
year with increased mean of sales.
6.2.6. Asset Structure
Table 6.26 Asset structure of individual and group micro units
individual Group
No. No.
Assets
Mean SD Unit Mean SD Unit
s s
Cash and Bank 17395.0
70668.00 155 17710.69 41037.65 170
Balance 0
Debtors 3581.64 15477.63 34 54330.74 82699.36 39
13400.8 163544.9
Stock 26402.01 172 52603.34 178
2 7
Furniture 7318.46 13335.69 161 17106.43 28275.18 171
23650.7
Machinery 73863.08 134 53871.77 96315.11 163
7
26012.8 107868.6 432500.0 946016.1
Land and Buildings 24 26
2 8 0 2
91359.5 172200.1 192022.6 508504.2
Total asset 195 195
3 9 1 0
22444.2
Total Liability 60484.75 169 33057.33 80830.00 166
2
Table 6.26 exhibit the asset structure of individual Kudumbashree units. The assets
structure constitutes current assets like, cash and bank balance, Debtors and stock,
while fixed assets comprises Furniture, Machinery and Land and Building. The mean
score of cash and bank balance, Debtors, Stock, and Furniture. Machinery and land
and Buildings were, 17395.00, 3581.64, 13400.82, 7318.46, 23650.77 and 26012.82
respectively. The SD are respectively, 70668, 15477.63, 26402, 13335.69, 73863.08,
107868.68 and 172200.19. The mean score and SD of total assets were 91358.53 and
172200.19, while for total liabilities, mean was 22444.22 and SD was 60484.19.
In case of group units, the mean of total asset is 192022.61 and the SD is 508504.20.
As compared with individual units, it is higher in group units. The mean of total
liability is 33057.33 and SD is 80830.00.
Pearson's correlation is calculated for finding out the correlation between assets and
labilities of both individual and group units. In the case of individual units, the value
of correlation is 0.332 (0.000), which means the variables have a moderate positive
correlation, and the correlation is significant as the significance level of correlation is
below 0.05.
In group units, the value of correlation is 0.464(0.000), which indicates that there is
strong positive relationship is there between the variables and the relationship is also
significant as the significance level is below 0.05.
Table 6.27 Distribution of asset structure with t distribution of individual and group
units
Assets individual Group

No. No.
Mean SD Mean SD t Sig.
Units Units
Cash and
17710. 41037. 0.05 0.68
Bank 17395 70668 155 170
69 65 0 0
Balance
3581.6 15477. 54330. 82699. 3.47 0.00
Debtors 34 39
4 63 74 36 6 0
Stock 13400. 26402. 172 52603. 163545 178 3.09 0.00
82 01 34 6 0
7318.4 13335. 17106. 28275. 3.98 0.00
Furniture 161 171
6 69 43 18 2 0
23650. 73863. 53871. 96315. 2.97 0.00
Machinery 134 163
77 08 77 11 2 0
Land and 26012. 107868 946016 2.05 0.04
24 432500 26
Buildings 82 .7 .1 0 8
91359. 172200 192022 508504 2.61 0.00
Total asset 195 195
53 .2 .6 .2 2 0
Total 22444. 60484. 33057. 1.35 0.21
169 80830 166
Liability 22 75 33 8 7
As per the above table, it reveals the relationship between the structure of assets and
liabilities of both type of units. For testing the relationship, the null hypothesis fixed
as, H0; There is no significant relationship between the asset structure of individual
and group units. The result shows that except in the case of cash and bank balance
there is significant relationship between assets of both units. Thus, null hypothesis is
rejected. As regards liabilities, the null hypothesis is fixed as, H0: There is no
significant relationship between individual and group units with respect to liabilities.
The result, failed to be reject the null hypothesis, as the significance level is above
0.05.
6.3. Profitability profile
The amount of profit earned in relation to capital measures the efficiency of a

business. The greater the volume of profit, and the ways in which it is earned, the
higher is the efficiency of the concern. The profit of a business may be measured and
analyzed by studying the profitability attained by the business. Thus, profitability may
be regarded as a comparative term assessable in terms of profit and its relation with
other elements that can directly affect the profit (Barad 2010)
Profitability ratios are a class of financial matrices that are used to assess a business's
ability to produce earnings compared to its expenses and other pertinent costs incurred
during a specific period of time. For most of these ratios, having a higher value
relative to a competitor's ratio or relative to the same ratio from a previous period
point out that the company is doing well. For the purpose of finding out the
profitability, here, applied three types of profitability ratios, such as Return on asset
and Return on Investment and Profitability Margin Ratio.
6.3.1. Return on Assets (ROA)
For the calculation of profitability, Return on total Asset was used as a dependent
variable. It is considered that, it includes all the influences of the assets’ management
and it is acknowledged as a key indicator of increasing units’ performance, it also
defines economic growth potential (Helfert 2002).
Return on assets (ROA) is a financial ratio that shows the percentage of profit that a
company earns in relation to its overall resources (total assets). Return on assets is a
key profitability ratio which measures the amount of profit made by a company per
rupees of its assets. Unlike other profitability ratios, such as return on equity (ROE),
ROA measurements include all of a company's assets – including those which arise
from liabilities to creditors as well as those which arise from contributions by
investors. So, ROA gives an idea as to how efficiently management use company
assets to generate profit. This indicator expresses the company’s ability to generate
profit as a consequence of the productive use of resources and of the efficient
management, and it is used as a dependent variable in the assessment of economic
performance.
Return on assets is calculated by dividing a company's net income (usually annual

income) by its total assets, and is expressed as a percentage. There are two acceptable
ways to calculate return on assets: using total assets on the exact date or average total
assets:
Profit
ROA=
TotalAsset
6.3.2. Return on Investment (ROI)
Return on investment (ROI) is the performance measure used to evaluate the

efficiency of investment. It compares the magnitude and timing of gains from
investment directly to the magnitude and timing of investment costs. It is one of most
commonly used approaches for evaluating the financial consequences of business
investments, decisions, or actions.
If an investment has a positive ROI and there are no other opportunities with a higher
ROI, then the investment should be undertaken. A higher ROI means that investment
gains compare favourably to investment costs.
Profit
ROI=
TotalInvestment
6.3.3. Profit Margin Ratio
Different profit margins are used to measure a company's profitability at various cost
levels, including gross margin, operating margin, pretax margin and net profit margin.
The margins get smaller as layers of additional costs are taken into consideration,
such as cost of goods sold (COGS), operating and non-operating expenses, and taxes
paid. Gross margin measures how much a company can mark up sales above COGS.
Operating margin is the percentage of sales left after covering additional operating
expense. The pretax margin shows a company's profitability after further accounting
for no operating expense. Net profit margin concerns a company's ability to generate
earnings after taxes.
Profit
PMR=
Total Sales
6.3.4. Notional Wages
In the case of evaluating profitability of Kudumbashree micro enterprises, notional

wages are of critical importance. As the enterprises are run by individual or group
micro entrepreneurs, the profit declared by the accounts is merged with the wages of
the work/ service contributed by the entrepreneurs of their own. It is very difficult to
segregate the same from profit because it is not measured or accounted by the
entrepreneurs and they consider that it is sufficient to be kept included in their profits.
Here, for the purpose of the study, the researcher has tried to segregate notional wages
from profits for the purpose of analysis of profitability. The Kudumbashree mission
does not mention any fixed daily wage rate for the micro entrepreneurs. For
computing a standard wage rate, the researcher adopted a combined minimum wage
rate per day by considering the wage rate as per Minimum Wage Act,1948, and wage
rate as per MNREGP Act 2005 (Mahatma Gandhi National Rural Employment
Guarantee Programme) for Kerala for unskilled workers. As per Minimum Wage
Act, the wages for unskilled, semi-skilled and skilled workers are Rs. 374, Rs. 414
and Rs. 455 per day respectively. As per MNREGP, Rs.258 per day for unskilled
workers. A single wage rate is calculated under Minimum Wage Act by giving
weightage of 1, 2 and 3 respectively for skilled, semi-skilled and unskilled workers
and calculated weighted average wage rate per day. The wage rate so calculated is
Rs.428 per day. Then, based on a proportion of 2:1 as regards Rs.428 and Rs.258, a
standard wage rate of Rs.371 is taken as notional wage rate per day of a
kudumbashree micro entrepreneur. Then an annualized notional wage is calculated
based on average annual working days.
6.3.5. Sector wise variation of profitability variables
In this section, analysis was done with respect to selected dependent variable
such as Return on Asset, Return on Investment and Profit Margin Ratio. Mean,
median and mode with the minimum and maximum are taken for these dependent
variables separately on three sectors of micro units.

Kudumbashree individual micro enterprise after adjusting notional wages
Nature of Business
Agriculture Industrial Service
PMR after
ROA after
ROA after
PMR after
ROA after
PMR after
ROI after
ROI after
ROI after
Notional
Notional
Notional
Notional
Notional
Notional
Notional
Notional
Notional
Mean -4.82 -2.25 -2.15 -5.66 -1.37 -1.28 -5.17 -0.85 -0.99
SD 4.94 2.81 2.41 14.22 2.98 2.56 7.66 0.88 0.85
Median -3.35 -0.98 -1.06 -2.5 -0.65 -0.85 -3.44 -0.76 -0.94
Mode -18.19 -7.91 -5.93 -19.3 -21.51 -15.88 -56.03 -0.23 -0.94
Minimum -18.19 -9.24 -8.55 -19.3 -21.51 -15.88 -56.03 -6.11 -4.98
Maximum 1.68 0.42 0.27 1.41 1.43 0.56 4.22 0.74 0.25
It is evident from the table 6.28 that the profit is the reward for bearing risk and
uncertainties. When we segregated the annualized notional wages from the profit,
many of the undertakings were found to run at a loss. It shows that the micro
enterprises, though capable of providing a livelihood to the poor women micro
entrepreneurs, are not capable of providing a fairly sufficient reward to the
entrepreneurs in terms of profit. The same is seen as evidence from the negative
ROA, ROI and PMR of all the sectors. Comparing the three sectors, the performance
of service industrial sectors is trailing behind the agricultural sector.
When we see the micro entrepreneurs, purely as a whole-time entrepreneur, we need

not consider notional wages while calculating profits. When notional wages are not
taken into accounts, the following results are obtained.

Kudumbashree individual micro enterprises before notional wages

Statistics
ROA ROI PMR ROA ROI PMR ROA ROI PMR
Mean 1.749 0.426 0.362 1.008 0.489 0.346 1.378 0.289 0.287
SD 2.11 0.43 0.36 1.91 0.64 0.22 1.00 0.31 0.16
Median 0.862 0.337 0.303 0.760 0.257 0.326 1.212 0.247 0.273
Mode 0.910 0.400 0.280 2.000 0.260 0.330 0.920 0.270 0.250
Minimum 0.020 0.040 0.150 -13.350 -0.210 -0.610 -1.200 -0.920 -0.610
Maximum 8.800 2.200 0.730 6.000 3.350 0.850 4.860 2.010 0.870

Table 6.29 exhibits the mean, SD, median, mode, minimum and maximum value of
the descriptive statistics of profitability ratios on Agriculture, Industrial and Service
sectors in individual units’. Mean score of Return on Asset is highest in Agricultural
sector in individual units. While Return on Investment is highest in industrial sector.
The mean score of Return on Investment is more or less same in agriculture and
industrial units, which is, 0.426 and 0.489 respectively. The mean score of Profit
Margin Ratio is highest in agriculture sector with 0.362. Mean score on all
profitability variable is highest in agriculture sector. So, it is concluded that overall
profitability is higher in agriculture sector among these three sectors.

Kudumbashree group micro enterprises after adjusting Notional wages
Nature of
business
ROA after
PMR after
ROA after
PMR after
PMR after
ROA after
ROI after
ROI after
ROI after
notional
notional
notional
notional
notional
notional
notional
notional
notional
Mean -23.81 -3.63 -4.07 -27.05 -5.62 -12.01 -19.99 -2.98 -4.09
SD 19.95 3.28 3.32 79.51 11.85 35.05 20.14 2.76 5.03
Median -19.42 -2.63 -2.81 -5.36 -2.11 -2.42 -15.31 -2.05 -2.51
- - - - -
Mode -63.32 -14.44 -70.57 -1.94
12.63 354.84 68.24 126.73 26.46
Minimu - - - - - - -
-63.32 -14.44
m 12.63 555.50 68.24 253.15 111.15 14.57 26.46
Maximu
-0.58 -0.19 -0.22 0.97 1.77 0.85 -0.80 -0.44 -0.48
m

Table 6.30 shows the descriptive statistics of group kudumbashree micro
entrepreneurs. In this case also, all profitability variables show negative result, that is
loss. However, it may be noted that the variability is higher than the mean values of
all matrices in the industrial sector indicating an improved performance with respect
to profit even if not apparent.
A further analysis is done by merging notional wages into profit considering notional
wages as a reward to entrepreneurs.

Kudumbashree group micro enterprises

Statistics
ROA ROI PMR ROA ROI PMR ROA ROI PMR
Mean 0.727 0.290 0.250 1.710 0.530 0.400 2.570 0.310 0.310
SD 7.25 .79 1.12 3.27 0.92 0.38 4.37 0.72 0.20
Median 2.188 0.340 0.400 0.600 0.280 0.360 1.875 0.270 0.310
- -
0.400 0.056 0.070 0.300 0.010 0.180 0.400
Mode 28.478 2.620
- - - - - - - - -
Minimum 28.478 2.620 4.090 0.276 0.170 1.820 0.909 3.420 0.670
25.00 38.42
7.385 1.650 1.910 6.050 1.650 5.380 0.900
Maximum 0 9
Table 6.31 exhibits the mean, SD, median, mode, minimum and maximum value of
the descriptive statistics of profitability ratios on Agriculture, Industrial and Service
sectors in group units. The mean score of Return on Asset is highest in case of group
units is in service sector. While the mean score of Profit Margin Ratio and Return on
Investment is highest in industrial sector. On an overall assessment of profitability
variables, agriculture sector is with least mean score on all variables.
Table 6.32 Profitability ratios of different sectors of Kudumbashree individual Micro

enterprises
Sector
Profitability Ratios Total F Sig.

Agricultur Industria
Service
e l
Return on asset 1.245 1.749 1.008 1.378 2.41 0.093
Return on investment 0.405 0.426 0.489 0.289 3.228 0.042
Profit Margin Ratio 0.326 0.362 0.346 0.287 2.418 0.092
Table 6.32 shows, the variation of three profitability ratios on three different sectors
of Kudumbashree micro enterprises. It can be seen that; Return on Asset is not
varying on sector wise as the significance level is higher than 0.05. The same is the
result with Profit Margin Ratio as the significance level is 0.092, which is higher than
0.05. In the case of profitability measurement with Return on Investment, there is
sector wise variation as significance is 0.042 and profitability is very less (0.289) in
service sector as compared to agriculture and industrial sector. The result indicates
that return on asset and profit margin ratios have no significant difference with respect
to sector. At the same time return on investment vary significantly with respect to the
sectors. It means that one of the profitability ratio vary significantly with respect to
sector. Hence, the result rejects null hypothesis that there is no significant difference
in the profitability of sector wise units other than in the case of ROI.
Table 6. 33 Profitability ratios of different sectors of Kudumbashree group Micro

enterprises
Profitability Ratios Total Sector F Sig.

Agricultur Industria
Service
e l
Return on asset 1.989 0.727 1.710 2.570 1.805 0.167
Return on
0.413 0.291 0.530 0.314 1.729 0.180
investment
Profit Margin Ratio 0.344 0.247 0.398 0.309 1.337 0.265
Table 6.33 shows, the variation of three profitability ratios on three different sectors
of Kudumbashree group micro enterprises. It can be seen that; all profitability ratios
are varying on sector wise as the significance level is higher than 0.05. The result
indicates that all profitability ratios has no significance with respect to sector.
Hence, the result rejects null hypothesis that there is no significant difference in the
profitability of sector wise units.
6.3.6. Determinants of ROA, ROI and PMR
It was experienced that among the Kudumbashree micro enterprises, the most
influencing determinants of Return on Asset are location of the unit, its year of
establishment, level of income, expenditure and liability. It was also seen that; the
financial performance of units is obviously differ with respect to sector.
To find out the effect of location, year of inception, income, expenditure and liability
on Return on Asset, a multiple regression model is fitted separately for three sectors.
The financial variables, namely, income, expenditure and liability were converted to
their natural logarithm so as to get their intrinsic effect on the Return on Asset. Since
location of the unit being a categorical variable, it was converted into dummy variable
in such a manner that the variable is given a value of 1 if urban and 0 if rural. Table
6.34 presents the regression results of these variables on ROA.

Variables
B Sig. B Sig. B Sig.
0.01
(Constant) -6.722 0.207 -7.595 0.909 0.691
9
L: 1 if urban, 0.78
Location 1.439 0.105 0.115 -0.322 0.152
0 otherwise 5
0.00
Year of Establishment -0.595 0.266 0.990 -0.254 0.173
1
Predictor variables
0.00
Log of Income 1.063 0.540 2.926 0.957 0.061
0
0.00
Log of expenditure 0.040 0.983 -2.009 -0.522 0.287
1
0.00
Log of liability -0.371 0.196 -0.608 -0.448 0.002
1
R Square 0.377 0.301 0.175

Model summary
F 1.453 6.374 2.753
Sig. 0.275 0.000 0.026
From the table 6.34, it can be seen that Return on Asset is not significantly related to
the selected predictor variables in agriculture sector as the significance level is greater
than 0.05. In industrial and service sectors Return on Asset was significantly related
to the predictor variables as the significance level is less than 0.05.
The R square of the regression equation of industrial sector is 0.301, which indicates
that 30.1 percent variation in the Return on Asset is explained determined by the
selected predictor variables. Whereas the extent of explanation are 37.7 percentage
and 17.5 percentage respectively for agriculture and service sectors. From the table, it
can be seen that all the predictor variables except location have significant effect on
Return on Asset as the significance levels related to their regression coefficients are
less than 0.05. From the result it is evident that Return on Asset of industrial sector is
not varying significantly with respect to location of Kudumbashree micro units. The
other variables significantly influence ROA within the limited explanatory power
controlled by extraneous variables.
The regression coefficient of year of establishment of unit and their income are
positive and equal to 0.990 and 2.926 respectively in industrial sector. The result
indicates that as year of establishment and income increases, the Return on Asset of
the unit increases simultaneously. It means that Return on Asset is significantly
higher among recently established Kudumbashree industrial units and also the units
which are having comparatively higher income. At the same time the regression
coefficient of expenditure and liability are negative and are equal to -2.009 and -0.608
respectively. It indicates that as the expenditure and liabilities of the unit increase, the
Return on Asset significantly decreases. Among the four significant predictors of
Return on Asset, the impact of income and expenditure are crucial on Return on Asset
of industrial units as absolute value of the regression coefficient are highest compared
to other two variables. From the analysis it can be concluded that the most important
determinant of Return on Asset in Kudumbashree industrial unit is income followed
by expenditure, year of establishment and their level of liability.
The percentage variation in Return on Asset is determined by the predictor variables

among service sector is 17.5 percent. It indicates that 17.5 percent variation in
Return on Asset is determined by the selected predictor variables. Only the variable,
liability is having significant effect on Return on Asset, as its significance level is less
than 0.05. All other predictor variables have no significant effect. Hence, Return on
Asset in service sector is not varying with respect to location, year of establishment
and income. The regression coefficient of the variable liability is negative, which
indicates that, with the increase in the amount of liability, the Return on Asset of the
service sector decreases. So, it is concluded that, only one predictor variable, that is
liability have effect on the Return on Asset of the service sector and the effect of
interest on capital to be explored.

Variables
347.76 0.57 13.38 0.90 - 0.54

(Constant)
9 5 6 5 61.041 6
Locatio L: 1 if urban, 0.62 0.30 0.50

-0.871 0.420 -0.197
n 0 otherwise 2 8 3
0.53 0.91 0.54

Year of Establishment -0.194 -0.006 0.030
4 8 2
Predictor variables
0.00 0.00 0.00

Log of Income 12.505 2.048 3.999
1 0 0
0.00 0.00 0.00

Log of expenditure -10.609 -1.728 -3.473
1 0 0
0.11 0.00 0.00

Log of liability 1.842 -0.575 -0.627
4 0 0
Model summary
R Square 0.873 0.385 0.543
F 15.122 8.908 15.690
Sig. 0.000 0.000 0.000
From the table 6.35, it can be seen that Return on Asset is significantly related to the
selected predictor variables in all sectors as the significance level of F value is less
than 0.05, in group units.
The R square of the regression equation of agriculture, industrial, and service sectors
are 0.873, 0.385 and 0.543 respectively, which indicates that 87.3 percent variation in
the Return on Asset is determined by the selected predictor variables in agriculture
sector and so on. From the table, it can be seen that the predictor variables such as
income and expenditure have significant effect on Return on Asset as the significance
levels related to their regression coefficients are less than 0.05 in agriculture sector,
while in industrial sector, in addition to income and expenditure, liability have
significant effect. The same is the position in service sector.
The regression coefficient of income is positive and equal to 12.505, 2.048 and 3.999
respectively in agricultural, industrial and service sector. The result indicates that as
income increases, the Return on Asset of all sectors increases simultaneously. It
means that Return on Asset is significantly higher in all sectors which are having
comparatively higher income. At the same time the regression coefficient of it
expenditure is negative in all sectors, indicates that as the expenditure of the unit
increase, the Return on Asset significantly decreases. Among the four significant
predictors of Return on Asset, the impact of income and expenditure are crucial on
Return on Asset of industrial units as absolute value of the regression coefficient are
highest compared to other two variables. From the analysis it can be concluded that
the most important determinant of Return on Asset in Kudumbashree unit is income.
The percentage variation in Return on Asset is determined by the predictor variables

among agriculture sector is 87.3, in industrial sector, it is 38.5 and 54.3 percent in
service sector. It indicates that the above said percent variation in Return on Asset is
determined by the selected predictor variables in these sectors. The variable, liability
is having significant effect on Return on Asset, as its significance level is less than
0.05 in industrial and service sector. So, it is concluded that, only two predictor
variables, that is income and expenditure have effect on the Return on Asset of all
sectors.


(Constant) -0.296 0.451 -1.301 0.137 -0.434 0.444
L: 1 if urban, 0
otherwise 0.048 0.451 -0.272 0.020 -0.132 0.019
Year of Establishment 0.017 0.673 -0.228 0.004 -0.118 0.012
Log of Income 0.260 0.063 0.755 0.000 0.637 0.000
Log of expenditure -0.211 0.162 -0.542 0.001 -0.519 0.000
Log of liability -0.016 0.435 -0.025 0.622 -0.050 0.158
R Square 0.445 0.404 0.389
F 1.924 10.032 8.286
Sig. 0.164 0.000 0.000
From the table 6.36, it can be seen that Return on Investment is not significantly
related to the selected predictor variables in agriculture sector as the significance level
of F value is greater than 0.05 in all regression. In industrial and service sectors
Return on Investment was significantly related to the predictor variables as the
significance levels of F value are less than 0.05.
The R square of the regression equation of industrial sector is 0.404, which indicates
that 40.4 percent variation in the Return on Investment is determined by the selected
predictor variables. From the table, it can be seen that all the predictor variables
except liability have significant effect on Return on Investment as the significance
levels related to their regression coefficients are less than 0.05. From the result it is
evident that Return on Investment of industrial sector is not varying significantly with
respect to liability of Kudumbashree group micro units.
Naturally, in the case of Kudumbashree, the most effecting variable on Return on

Investments the income generating capacity as evidenced by the regression co-
efficient of 0.755. At the same time the regression coefficient of location, year of
establishment and expenses are negative and equal to –0.272, -0.228 and -0.542
respectively. The results indicate that the values related to these variables increases,
the Return on Investment also significantly decreases. Among the four significant
predictors of Return on Investment, the impact of expenditure is vital on Return on
Investment of industrial units as absolute value of the regression coefficient are
highest compared to other three variables. The backdrop leads to a deduction that the
most important determinant of Return on Investment in Kudumbashree industrial unit
is expenditure followed by location and year of establishment.
The percentage variation in Return on Investment is explained by the predictor
variables among service sector is 38.9 percent. All predictor variables except liability
have significant effect on Return on Investment as the significance levels related to
their regression coefficients are less than 0.05 in service sector. Among the four
significant predictors of Return on Investment, the impact of expenditure is vital on
Return on Investment of industrial units as absolute value of the regression coefficient
are highest compared to other three variables.

(Constant) -4.912 0.871 -67.152 0.263 75.864 0.007
L: 1 if urban, 0
-0.096 0.280 0.054 0.806 0.111 0.168
otherwise
Year of Establishment 0.002 0.920 0.032 0.272 -0.036 0.009
Log of Income 1.172 0.000 0.467 0.028 1.223 0.000
Log of liability 0.138 0.024 -0.041 0.596 -0.025 0.555
R Square 0.967 0.094 0.534
F 65.098 1.470 15.103
Sig. 0.000 0.211 0.000
From the table 6.37, it can be seen that in the case of group units, Return on
Investment is not significantly related to the selected predictor variables in industrial
sector as the significance level of F value is greater than 0.05. In Agricultural and
service sectors, Return on Investment was significantly related to the predictor
variables as the significance levels of F value are less than 0.05.
The R square of the regression equation of Agriculture sector is 96.7 percent, which
indicates that 96.7 percent variation in the Return on Investment is determined by the
selected predictor variables. From the table, it can be seen that the predictor variables
such as income, expenditure and liability have significant effect on Return on
Investment as the significance levels related to their regression coefficients are less
than 0.05. From the result it is evident that Return on Investment of Agriculture sector
is varying significantly with respect to these variables in Kudumbashree group micro
units.
The regression coefficient of income is positive and equal to 1.172, indicates that as
the income increase, the Return on Investment of the unit also increases in
Agricultural units. It means that Return on Investment is significantly higher among
Kudumbashree Agricultural group units which are having comparatively higher
income. At the same time the regression coefficient of liability is negative and equal
to –1.134. The result indicates that the values related to this variable increase, the
Return on Investment significantly decreases. Among the three significant predictors
of Return on Investment, the impact of income is vital on Return on Investment of
Agricultural units as value of the regression coefficient is highest compared to other
two variables. From the analysis it can be concluded that the most important
determinant of Return on Investment in Kudumbashree Agricultural unit is income.
In industrial sector, only determinant of Return on Investment is income, as its

significance level is less than 0.05.
The percentage variation in Return on Investment is explained by the predictor

variables among service sector is 53.4 percent. It means 53.4 percent variation in
Return on Investment is determined by the selected predictor variables. Year of
establishment, income and expenditure have significant effect on Return on
Investment as the significant level is below 0.05. So, year of establishment, income
and expense are having significant effect on Return on Investment in service sector.

0.08
(Constant) 0.123 7 -0.110 0.402 0.202 0.054
L: 1 if urban, 0 0.38
otherwise 0.010 7 0.014 0.437 -0.019 0.065
0.69
Year of Establishment -0.003 8 0.014 0.243 -0.007 0.393
0.00
Log of Income 0.530 0 0.563 0.000 0.460 0.000
0.00
Log of expenditure -0.529 0 -0.544 0.000 -0.463 0.000
0.50
Log of liability -0.002 5 -0.007 0.340 -0.001 0.820
R Square 0.987 0.894 0.902
F 175.657 125.412 120.251
Sig. 0.000 0.000 0.000
From the table 6.38, it can be seen that Profit Margin Ratio is significantly related to
the selected predictor variables in all sectors as the significance level is less than 0.05.
The R square of the regression equation of agricultural sector, industrial sector, and
service sector were 98.7 percent, 89.4 percent and 90.2 percent respectively. From the
table, it can be seen that the predictor variables, income and expenditure have
significant effect on Profit Margin Ratio in all sectors as their significance level less
than 0.05.
The regression coefficient of income on agriculture, industrial and service sectors is

0.530, 0.563 and 0.460 respectively, which is more or less equal in all sectors. Also,
in the case of expenditure, the absolute value of regression coefficient is 0.529, 0.544
and 0.463 correspondingly. It is clear that there is only a minute difference in the
absolute value of regression coefficient of income and expenditure in all sectors. It is
concluded that income and expenditure has more or less same effect on profit in all
three sectors.

(Constant) 33.062 0.551 -20.749 0.134 -0.818 0.857
L: 1 if urban, 0
-0.235 0.153 0.021 0.681 0.005 0.728
otherwise
Year of Establishment -0.019 0.505 0.010 0.146 0.000 0.861
Log of Income 1.662 0.000 0.542 0.000 0.741 0.000
Log of liability 0.251 0.024 -0.008 0.641 0.003 0.630
R Square 0.951 0.673 0.923
F 42.847 29.161 157.398
Sig. 0.000 0.000 0.000
From the table 6.39, it can be seen that Profit Margin Ratio is significantly related to
the selected predictor variables in all sectors as the significance level is less than 0.05.
The R square of the regression equation of agricultural sector, industrial sector, and
service sector were 95.1 percent, 67.3 percent and 92.3 percent respectively. From the
table, it can be seen that the predictor variables, income and expenditure have
significant effect on Profit Margin Ratio in all sectors as their regression coefficients
are less than 0.05. In agriculture sector, liability also have significant effect.
The regression coefficient of income on agriculture, industrial and service sectors is

1.662, 0.542 and 0.741 respectively, which is significantly vary in all sectors. Also,
in the case of expenditure, the absolute value of regression coefficient is 1.520, 0.456
and 0.740 correspondingly. It is clear that there is significant difference in the
absolute value of regression coefficient of income and expenditure in all sectors. It is
concluded that income and expenditure have significant effect on profit in all three
sectors.
6.4. Productivity
Productivity is the efficiency with which firms convert inputs (labor, capital, raw
material) into output. Productivity grows when output grows faster than inputs, which
makes the existing inputs more productively efficient. Productivity does not reflect
how much we value the output – it only measures how efficiently use our resources to
produce them. The generation and application of technological and organizational
knowledge (innovation) are the main drivers of firm level productivity growth.
Productivity is the relationship between output and inputs. It rises if an increase in

output occurs with a less than proportionate increase in inputs, or when the same
output is produced with fewer input. In either case, the ratio between the value of
output and the value of input has increased. Here, material and labour productivity is
considered for studying productivity of micro units. Material productivity is
measured by comparing total sales with material consumed for such production.
Labour productivity, the most common indicator, is a single factor measure. It results
from a calculation of output divided by the amount of labour used. Productivity
increase allows for greater return on the factors of production. If increase in the
labour productivity arises from the use of additional machinery, then the gains will
need to pay for this machinery. This means that enterprise with high capital
investments are obliged to have higher labour productivity because they need to pay
for the additional capital.
Here, the labour productivity was calculated based on the ratio of output to wages and
salaries. As a result, the labour productivity was classified into ranges varying from
below five to 20 and above.
Table 6.40 Distribution of individual and group micro units by level labor
individual Group
Labour
n % Mean SD n % Mean SD
Productivity
Less than 5 24 12.30 41 21
5-9.99 66 33.80 47 24.1
10-14.99 42 21.50 14.37 12.95 32 16.4 15.12 14.02
15-19.99 30 15.40 23 11.8
20 and above 33 16.90 52 26.7
Total 195 100.00 195 100.00
Table 6.40 is a pointer to the labour productivity of individual and group Micro units
of Kudumbashree business. A glance at the above table brings us the fact that in
individual units the highest percentage, such as, 33.80 percent units falling under the
range of 5 and 9.99, follows by 21.50 percent falls in between 10 and 14.99, 16.90
percent units were above 20, and 15.40 percent falls under the range of 15 and 19.99
percent. The least percentage of 12.30 of units are with productivity less than 5. The
mean score and SD of productivity is 14.43 and 12.92 respectively. Whereas in group
the mean of labour productivity is 15.12. 75 group units are above the mean labour
productivity level. In individual units the mean productivity is 14.37, which is less
than group units. About 63 units were above the mean labour productivity level.
For testing the association between individual and group units with respect to the
labour productivity, chi square test was tested. The calculated value is 14.19 against
the critical value of 9.488, the null hypothesis is rejected as there is no difference
between individual and group units with respect to labour productivity.
Table 6. 201 Distribution of individual and group micro units by level of material
individual Group
Material n % Mean SD n % Mean SD

productivity
Below 2.00 75 38.50 57 29.2
2.00-2.49 43 22.10 53 27.2
2.50-2.99 19 9.70 3.27 4.23 24 12.3 3.95 5.64
3.00-3.99 29 14.90 22 11.3
4.00 and above 29 14.90 39 20
Total 195 100.00 195 100.00
Table 6.41 depicts the material productivity of individual and group units with mean
and SD. In the case of individual units 58 units are with material productivity of
above the mean productivity of 3.27 and in group units, it is 61 units, which is higher
than individual units. The mean productivity is higher in group units with 3.95.
The calculated value of chi square is 5.83, which is lower than the critical value of
9.488. Hence, the null hypothesis is accepted as there is no significant difference
between individual and group units with respect to the material productivity.
Table 6.42 Descriptive statistics of material and labour productivity of individual and
group units
individual Group
Material Labour Material Labour
Productivity Productivity Productivity Productivity
Mean 3.269 14.374 15.12 3.95
Median 2.167 10.071 10.20 2.35
Mode 2.000 10.000 10.00 2.00
Minimum 0.630 0.750 0.27 0.20
Maximum 40.630 81.250 83.33 40.00

It is clear from Table 6.42, that the mean of material productivity is higher in group
units and mean of labour productivity is higher in individual units.
Table 6.43 mean material and labour productivity by sector in individual units
Industria
Total Agriculture l Service F Sig.
Material Productivity 3.27 3.06 3.75 2.71 1.273 0.282
14.3
Labour Productivity 7 13.25 18.11 9.86 9.275 0.000
Table 6.43 shows the overall productivity of the three sectors of Kudumbashree
individual micro units. It is evident from the table that, there is no variation in
material productivity of three different sectors. There is no significant difference in
the material productivity of the units in three sectors, as its significance level is higher
than 0.05. As in the case of labour productivity, there is very much variation between
three sectors. It is seen that, labour productivity is 13.25 in agriculture sector, 18.11,
in industrial sector which is highest among the three sectors, but least in service
sectors (9.86). There is significant difference in the labour productivity between three
sectors, as its significance level is less than 0.05. Labour productivity is having
significant variation in all sectors as compared to material productivity. From this
result, it is concluded that, there is significant difference in the overall productivity of
three sectors of Kudumbashree individual micro units. So, the null hypothesis is
rejected.
Table 6.44 mean material and labour productivity by sector in group units
Total Agriculture Industrial Service F Sig.
material 3.95 3.80 5.37 2.45 6.216 0.002

productivity
labor productivity 15.12 18.25 17.15 12.24 3.293 0.039
Table 6.44 shows the overall productivity of the three sectors of Kudumbashree group
micro units. It is evident from the table that, there is significant difference in the
material productivity of the units in three sectors, as its significance level is less than
0.05. It is higher in industrial sector with value 5.37. It is seen that, labour
productivity is 18.25 in agriculture sector which is higher among three sectors, 17.15
in industrial sector, but least in-service sectors (12.24). There is significant difference
in the labour productivity between three sectors, as its significance level is less than
0.05. Material and Labour productivity is having significant variation in all sectors in
group units. From this result, it is concluded that, there is significant difference in the
overall productivity of three sectors of Kudumbashree group micro units. So the null
hypothesis is rejected.
6.4.1. Determinants of Productivity
In order to find out the determinants of productivity multiple regression analysis was
conducted. Two separate regression models were fitted, one for material productivity
and the other for labour productivity. Productivity was taken as dependent variable
and age of respondent, education, location of the unit, working hours in a day,
working days in a month and year of establishment were taken as independent
variables. As age, education, location, year of establishment and sector were taken as
categorical variables, they were converted into dummy variables. The details of the
dummy variables are given below.
A1: 1 if 20-29, 0 otherwise

Age
Reference category: 50 and above
Education E1: 1 if Iiietrate, 0 otherwise
E2: 1 if Below SSLS, 0 otherwise
E3: 1 if SSLC, 0 otherwise
E4: 1 if Plus Two, 0 otherwise
Reference category: Degree and
above
L: 1 if Urban, 0 otherwise
Location
Reference category: Rural
Y1: 1 if Up to 2005, 0 otherwise
Year of
Y2: 1 if 2006-2010, 0 otherwise
establishment
Reference category: After 2010
S1: 1 if agriculture, 0 otherwise
Sector S2: 1 if Industrial, 0 otherwise
Reference category: Service
As age was grouped into four categories, three dummy variables were created by
taking age above 50 years as reference category. Degree and above is the reference
category of education, rural is the reference category of location, the year after 2010
is the reference category of year of establishment, and service is the reference
category of sector. In order to extract the significant determinant of material and
labour productivity, multiple
.6.4.2. Determinants regression
of Material with backward selection method is adopted.
Productivity
Out of the total of 14 independent variables, the backward selection method

eliminated 7 insignificant independent variables from the regression equation and at
the 8th step the final regression model was computed. Table 6.45 presents the
coefficients of regression model for Material Productivity by its significant
determinants. From the table, it can be seen that age of the respondent, their level of
education and working hours per day are the significant determinants of their material
productivity. The R square of the regression equation is found to be 0.069, which
indicates that 6.9 percentage of variation in the material productivity of the units is
determined by the retained independent variables in the final regression model. The
significance level of F value related to the regression model is less than 0.05, which
indicate that the final regression model can be used to explain the variation in the
material productivity of the units by age, education and working hours per day.
significant determinants of individual units
Unstandardized Standardized
t Sig.
Variables Coefficients Coefficients
B Std. Error Beta
(Constant) 4.844 2.019 2.399 0.017
A3: 1 if 40-49,
Age 1.002 0.567 0.118 1.767 0.079
0 otherwise
E1: 1 if illiterate,
-6.607 1.466 -0.485 -4.508 0.000
0 otherwise
E2: 1 if Below SSLS,
-6.166 1.313 -0.638 -4.694 0.000
0 otherwise
Education
E3: 1 if SSLC,
-6.032 1.281 -0.676 -4.709 0.000
0 otherwise
E4: 1 if Plus Two,
-4.527 1.314 -0.459 -3.444 0.001
0 otherwise
Working hours per day 0.588 0.258 0.153 2.283 0.024
R Square = 0.069, F =2.818, Sig. = 0.018Source: Primary data
It is seen from table 6.45, the unstandardized regression coefficient of age is 1.002,
which indicates that material productivity of the units run by individual micro
entrepreneurs of age between 40 and 49 have significantly higher compared by units
run by other age groups. The increase of material productivity among the units is
found to be 1.002 units higher than units run by people of other age group.
The regression coefficients of dummy variables representing education are negative,

which indicate that compared to the reference category of entrepreneurs with degree
and above, the material productivity is significantly lower among units run by less
educated entrepreneurs. The absolute value of the regression coefficients of dummy
variables representing education are found to be decreasing as education increases.
From the result it can be inferred that, as education of the entrepreneur increases, the
material productivity of the units also increases. It means that, the material
productivity of the unit is directly related to the educational level of the entrepreneurs.
Similarly, the working hours per day is also found to be positively related to material
productivity of the units. As one-hour increase in the working hour, the rate of
material productivity of the units increased by 0.588 units. The final regression
equation is presented below.
MP=4 . 884+ 1. 002 A 3 −6 . 607 E 1−6 .166 E2 −6 . 032 E 3 −4 . 527 E4 +0 . 588WH
From the analysis, it is evident that, the location of the unit, its year of establishment
and nature of business have no significant effect on the level of material productivity
of the Kudumbashree micro individual enterprises. At the same time, age, education
and working hours are the significant determinants of these micro enterprises. It was
evident from the result that; the material productivity is high among the units run by
well-educated entrepreneurs in the middle-aged group.

t Sig.
Coefficients Coefficients
Std.
B Beta
Error
5.00 0.00
(Constant) 2.697 0.539
4 0
S2: 1 if Industrial, 0 3.39 0.00

2.675 0.789 0.237
otherwise 1 1
R Square = 0.056, F =11.496, Sig. = 0.001Source: Primary data
From the table 6.46, it can be seen that, Material productivity is significantly high in
Industrial units compared to others sectors by an amount of 2.675 of group units. The
nature of business is the only determinant of material productivity in case of group
Kudumbashree micro enterprises.
6.4.3Determinants of Labour Productivity

determinants of individual units
t Sig.
Coefficients Coefficients
B Std. Error Beta
0.00
(Constant) 20.653 3.808 5.423
0
E1: 1 if Ilitrate, 0.01

-11.379 4.596 -0.273 -2.476
0 otherwise 4
E2: 1 if Below SSLS, 0.01

-10.069 4.109 -0.340 -2.450
0 otherwise 5
E3: 1 if SSLC, 0.00

-10.939 4.013 -0.401 -2.726
0 otherwise 7
E4: 1 if Plus Two, 0.01

-10.125 4.152 -0.335 -2.438
0 otherwise 6
S2: 1 if Industrial, 0.00

7.457 1.840 0.289 4.053
0 otherwise 0
R Square = 0.118F = 3.182 Sig. = 0.013Source: Primary data
From the table 6.47, it is seen that, out of the total 14independent variables, the
backward selection method eliminated 9insignificant independent variables from the
regression equation and at the 10thstep, the final regression model was computed.
From the table, it can be seen that, level of education of the entrepreneurs and nature
of business (sector) are the significant determinants of their labour productivity. The
R square of the regression equation is found to be 0.118, which indicates that 11.8
percent of variation in the labour productivity of the individual units is determined by
the retained independent variables in the final regression model. The significance
level of F value related to the regression model is less than 0.05, which indicates that
the final regression model can be used to explain the variation in the labour
productivity of the units by level of education and the nature of business.
For regression coefficient of dummy variables representing education are negative,
which indicates that compared to the reference category of entrepreneurs with degree
and above, the labour productivity is significantly lower among units run by less
educated entrepreneurs. The absolute value of the regression coefficients of dummy
variables representing education are found to be decreasing as education increases.
From the result, it can be inferred that, as education of the entrepreneur increases, the
labour productivity of the units also increases. It means that, the labour productivity
of the unit is directly related to the educational level of the entrepreneurs. Similarly,
the nature of business (sector) is also found to be positively related to labour
productivity of the units. Analysing labour productivity on sector wise, it is seen that
in industrial sector, it is higher as compared to other sectors (7.457) and the value is
positive.
From the analysis, it is evident that, the location of the unit, its year of establishment
and age has no significant effect on the level of labour productivity of the
Kudumbahree individual micro enterprises. At the same time, education and nature of
business are the significant determinants of these micro enterprises. It was evident
from the result that the labour productivity is high among the units run by well-
educated entrepreneurs in the industrial sector.

Standardize
Unstandardize
d t Sig.
d Coefficients
Coefficients
Std.
B Beta
Error
1.57
(Constant) 11.375 7.231 0.000
3
Y2: 1 if 2006-2010, 4.102 2.31 0.125 1.774 0.078

2
0 otherwise
S1: 1 if agriculture, 3.50

5.800 0.123 1.657 0.099
0 otherwise 0
S2: 1 if Industrial, 2.08

4.694 0.167 2.254 0.025
0 otherwise 3
R Square = 0.049 F = 3.269 Sig. = 0.022Source: Primary data
From the analysis, it is evident that, the location of the unit and age has no significant
effect on the level of labour productivity of the Kudumbahree group micro
enterprises. At the same time, year of establishment and nature of business are the
significant determinants of group micro enterprises. The backward selection method
selected Y2 and S1 for the final regression model in spite of significance level greater
than 0.05, because of its importance in determining labor productivity.
6.5. Loan repayment
The challenge faced by Kudumbashree micro enterprises starts right from the
preliminary stage of obtaining loans. The difficulty of obtaining loans has reduced
considerably over the course of years. Enterprises which were seasonal in nature or
for enterprises which were run by women belongs to the older age group finds
difficulty in obtaining loans from banks. Difficulty in getting loans from the banks
forced them to arrange for funds of their own either by relying on their family
members or by borrowing from informal sources. Loan repayment capacity remains a
challenge that threatens the future. Using financial statements data for the year 2016-
17, from 195 Kudumbashree micro enterprises in Kerala State and using descriptive
statics, the study examines the relationship between financial performance and loan
repayment capacity. It, thus, examines the extent by which they are capable of
repayment of the loan taken and also explain the loan repayment status.
Table 6.49 Distribution of individual and group micro units by status of taking loans
individual Group
Status of Taking Loan
N % N %
Have taken 164 84.10 156 80.00
Have not taken 31 15.90 39 20.00
Total 195 100.00 195 100.00
As per Table 6.49, 84.10 percent units were taken loans for their activities in
individual units and 80 percent in group units and remaining 15.90 percent units were
doing their business without availing any loans in the case of individual.
For the purpose of studying the different types of loans availed by Micro enterprises
are grouped as Direct bank loans, NGO/CDS loans, Loans from thrift and from other
sources.
Table 6.50 Distribution of individual and group micro units by type of loan taken
, Individual Group
Type of Loan N %
Direct bank loans 139 84.75 146 93.60
NGO/CDS loans 13 7.93 5 3.20
From thrift 12 7.32 5 3.20
Total 164 100.00 156 100.00

It is clear from Table 6.50, that, most of the units availed their loans both in individual
and group units from banks. 84.75 percent units in individual and 93.60 percent in
group units were availed their loan directly from bank. 7.93 percent micro units were
from NGO/CDS loans and 7.32 percent from thrift in individual units.
For testing any association between individual and group units with respect to the
type of loan taken, Chi-square test was used. Based on the calculated value (7.48)
against critical value (5.991), the null hypothesis is rejected. There is no significant
difference between both units with respect to the type of loan taken.

taken for income generation before establishing the unit with amount and percentage
of repayment
No. of Amount in rupees Percentage of repayment

No. units status of Last Outstanding
of Total Loan Last loan
(N =19) Loan
Loa
ns 70-
N % Mean SD Mean SD >90% <70%
90%
1 63.1 60000. 82326. 60000. 82326.

1
2 6 00 40 00 40
7 6 6
26.3 34000. 10839. 15000. 7071.0
2 5 (36.84 (31.58 (31.58
2 00 74 00 7
%) %) %)
10.5 35000. 7071.0 10000.
3 2 0.00
3 00 7 00
Table 6.51 shows the number of entrepreneur’s availed loan before starting the units,
and the frequency of loans availed. The table also depicts the mean amount and SD
of total loan availed, last loan amount and also the percentage of repayment status of
the last outstanding loan. Only 19 members were availed loan before starting the unit
for income generation purpose. Among them 12 were availed only for one time and
they represent 63.16 percent of the total. The mean amount of total loan and last loan
were the same as Rs.6000. The SD was also same for these two loans as Rs. 82326.
40. Two times loans were availed by 5 members and their mean amount of total loan
and last loan were Rs.34000 and Rs.15000 respectively. The SD was 10839.74 and
7071.07 correspondingly for total and last loan amount. 10.53 percent of the
respondents which constitute 2 members availed loans for 3 times. The mean amount
was correspondingly Rs.35000 and Rs.10000.
The percentage of repayment status of last outstanding loans were, that, 36.84 percent
of the members such as 7 members repaid more than 90 percent of the loan amount
and 6 members, were repaid 70percent to 90 percent and less than 70 percent of their
loans by the remaining 6 respondents.
Table 6. 52 Distribution of individual entrepreneurs of micro units by number of loan

repayment
No. No. of units Amount in rupees

Percentage of repayment status
of of Last Outstanding Loan
(N = 156) Total Loan Last loan
Loan
s N % Mean SD Mean SD >90% 70-90% <70%
64893.8 10 47 99
1 113 72.44 64893.81 67520.59 67520.59
1 (6.41% (30.13%) (63.46%)
)
23529.4
2 34 21.79 49588.24 33152.65 16358.18
1
11833.3
3 6 3.85 54833.33 50736.25 7359.80
3
100000.0 25000.0
4 1 0.64 0.00 0.00
0 0
5 2 1.28 70000.00 28284.27 21000.0 5656.85

0
As per Table 6.52, it is identified that, 156 respondents were availed loans after
starting their units for income generation purpose in the case of individual units.
Among them 113 respondents, such as 72.44 percent, were availed loan for only one
time. The mean of total and last availed loan amount was same as Rs.64893.81 and
SD was also the same as Rs.67520.59. 34 units availed loans for two times, which
were 21.79 percent of the total units. The mean amount of total and last availed loan
was Rs.49588.24 and Rs.23529.41 respectively, and SD was 33152.65 and 16358.18
correspondingly. 3.85 percent of the units, which constitute 6 numbers of units, were
taken loan for 3 times. The mean of total and last loan availed were Rs.54833.33 and
Rs.11833.33. Only one unit taken loan for 4 times. The mean of the total loan amount
and last loan availed were Rs. 100000 and Rs.25000. Two units were taken loans for
5 times which is 1.28 percent of the total units. The mean for total amount of loan
availed and last loan availed were Rs.70000 and Rs.210006.41 percent units that is 10
units were repaid more than 90 percent of their last outstanding loan. 47 units repaid
their outstanding loan amount in between 70 percent and 90 percent. 63.46 percent
units were repaid their loan below 70 percent. 99 units were under this category.
Table 6. 53 Distribution of entrepreneurs of group micro units by number of loan

repayment
Amount in rupees Percentage of

No. of
repayment status of
units (N =
No. of Total Loan Last loan Last Outstanding
156)
Loans Loan
>90 70-
N % Mean SD Mean SD <70%
% 90%
1 85 59.40 92235. 10983 82195. 94256. 7 28 109

29 8.18 29 57
(4.90 (19.4 (75.7
78780. 92437. 40243. 62238.
2 41 28.70
49 69 90 97
17946 33462 12553 23785

3 15 10.50 %) 0%) 0%)
6.67 1.08 3.33 9.46
72500 50000
4 2 1.40 0.00 0.00
0.00 0.00
Table 6.53 exhibits the details of income generation loan taken by the group units
after establishing the units. From the table, it is seen that, 156 units availed, and
109units were repaid below 70 percent of their loans and 7 units repaid more than 90
percent of their loan s taken. Only 2 units taken loans for four times.
Table 6.54 Distribution of entrepreneurs of individual micro units by number of loan taken for Consumption and Other Purpose before and after
establishing the unit with amount and percentage of repayment
Amount in rupees Percentage of repayment status of Last

No. of No. of units
Purpose Time Total Loan Last loan Outstanding Loan
Loans
N % Mean SD Mean SD >90% 70-90% <70%
1 4 80.00 12500.00 8660.00 12500.00 8660.00 4 1

Before -
Consumption
3 1 20.00 30000.00 0.00 10000.00 0.00 (80.00%) (20.00%)
1 1
After 1 2 100.00 32500.00 24749.00 32500.00 24749.00 -
(50.00%) (50.00%)
1
Before 1 1 100.00 200000.00 0.00 200000.00 0.00 - -
(100.00%)
Others
1 1 50.00 40000.00 0.00 40000.00 0.00 1 1

After -
2 1 50.00 35000.00 0.00 7000.00 0.00 (50.00%) (50.00%)
Table 6.54, reveals the details about the consumption and other purpose loans availed by the
individual respondents before and after establishing the units. Details of the mean amount of
total loans and last loans availed were exhibited. SD of both were also displayed. Another
detail in the exhibit is that of the percentage of repayment status of last outstanding loan.
Total 5 units availed consumption loan before starting the unit. Among the 5, 4 were availed
loan only for one time and the remaining one unit taken 3 times. The mean amount of total
and last loan availed for the 4 units were the same as Rs. 12500. The SD was also the same
for Rs.8550 for these two types of loans. Only one unit which taken loan for three times was
the mean amount of Rs.10000, which is the same for these two types of loans. Only one unit
was taken consumption loan after starting the unit. Their mean amount of total loan availed
and last loan were same as Rs.32500. SD was 24749 as same for total and last availed loan.
As regards the repayment status, 4 units repaid more than 90 percent of the last loan, who
were availed the loans before starting the unit and the other one unit repaid the loan in
between the range of 70 percent to 90 percent. Two respondents availed loan after starting
the units, where the repayment status more than 90 percent for one unit and other having a
range between 70 percent to 90 percent.
The other purpose loan was availed by only one respondent before starting the unit once with
same mean of RS. 20000 for the total amount and the last loan availed with repayment status
below 70 percent. Two respondents were availed loans after starting their units. Among this
two, one unit availed loan only for one time with same mean amount of Rs.20000 for total
loan and last loan amount availed. The other unit availed loan for two times with mean
amount of Rs.35000 and Rs.7000 respectively for total loan and last loan availed. The
repayment status for one unit was in between 70 percent and 90 percent and for the other, it
was less than 70 percent.
Table 6.55 Distribution of entrepreneurs of group micro units by number of loan taken for
Consumption after establishing the unit with amount and percentage of repayment
Amount in rupees Percentage of

No. of
No.
repayment status of
of units Total Loan Last loan
Purpose
Last Outstanding Loan

Loan
>90 70-
s N % Mean SD Mean SD <70%
% 90%
41. 206250. 196187. 39000. 23021.

1 5 1 7 4-
Consumption
7 00 62 00 73
(8.3 (58.3 (33.3
58. 112142. 131651. 50714. 69187.
2 7 %) %) %)
3 86 60 29 46
As per Table 6.55, it is seen that only 12 units availed loans for consumption purpose, and
only 4 units are with repayment status of below 70 percent. 7 units repaid upto 90%.
Table 6.56 Distribution of entrepreneurs of individual micro units by source of loans before
and after starting the unit
Before After Percent of Subsidy to the last loan

Source of loan
N % n % Mean SD N
Direct bank loans 20 80.00 136 85.50 17.96 9.15 119
NGO/CDS loans 3 12.00 12 7.50 13.31 8.21 6
From thrift 2 8.00 11 6.90
Total 25 100.00 159 100.00

Table 6.56, shows the details of the different sources of loan of individual micro units. The
sources are from direct bank loans, NGO/CDS loans and from thrift. A total of 25
respondents were taken loan before starting the unit and 159 were taken loan after starting the
unit from above sources. 20 respondents availed loans directly from direct bank ,12 percent
of the respondents which constitute 3 respondents taken loan from NGO/CDS loans. Only 2
respondents which were 8 percent of the total availed loans from thrift before starting their
units. In the case of loans after starting the unit, 85.50 percent respondents, that is 136
numbers, availed loans directly from bank. 12 respondents that is 7.50 percent unit’s availed
loans from NGO/CDS and only 6.90 percent were availed loans from thrift. Details of
subsidy for the last loan were also revealed in the table. 119 units got subsidy. 13.31 and
8.21 were the mean and SD of the subsidy given by NGO/CDS loans and got the benefit for
only by 6 units.
For finding out the difference in the source of loan taken by individual and group units before
and after starting the unit chi square test was conducted, based on the result the null
hypothesis is failed to be rejected, as the calculated value is 0.633 and the critical value is
5.991 which is higher. There is no significant difference in the source of loan taken by
individual units before and after starting the unit.
Table 6.57 Distribution of entrepreneurs of group micro units by source of loans after
starting the unit
After Percent of Subsidy to the last loan

Source of loan
n % Mean SD N
Direct bank loans 146 93.59 53.71 82.15 117
NGO/CDS loans 5 3.21 753.75 1055.36 2
From thrift 5 3.21 - -
Total 156 100.00 65.48 155.69 119

Table 6.57 exhibits the source and the subsidy of loans of group units. Out of 146 units taken
loan from banks, 117 units got subsidy for their loans.
Table 6.58 Distribution of individual Entrepreneurs by status of default and action taken
against default
Action taken
Extent the
Extent the
Status n % period
period with fine
without fine
n % n %
Have made default 16 9.88 3 18.75 13 81.25
Not have made default 146 90.12
Total 162 100.00
Table 6.58 shows the distribution of the status of default of repayment and the action taken
against default of individual units. Among 162 total respondents 146 do not defaulted
forming 94.40 percent. Only 16 respondents that is 9.88 percent were made default. The
action for default was either extent the period with or without fine. 13 respondents
mentioned the action taken for default was the extension of period with fine and 3 were
showed the action as the extension of period without fine.
Table 6.59 Distribution of group Entrepreneurs by status of default and action taken against
default
Action taken
Extent the Extent the

Status n % period without period with
fine fine
n % n %
Have made default 21 13.5 17 81.0 4 19.0
Not have made default 135 86.5
Total 156 100.00
As per table 6.59, it is seen that, in the case of group units, out of 156 units availed loans, 21
were made default for repayment, and as part of action for default, the period for repayment
was extended for 4 units with fine and extension without fine is allowed for 17 units.
Table 6.60 Distribution of individual Entrepreneurs by status of default and sector

Chi-square Sig.
n % n % n %
Yes 6 27.27 8 10.53 2 3.13

10.793 0.005
No 16 72.73 68 89.47 62 96.88
Total 22 100.00 76 100.00 64 100.00
As per Table 6.60, it is seen that, the default rate is the highest in the agricultural sector. As
chi-square statistics falls below the significance level of 5 percent, the null hypotheses of
existence of similarity among units is rejected. There is significant difference with respect to
default existed among the three sectors.
Table 6.61 Coefficient of logistic regression of defaulters in individual micro units
B S.E. Wald df Sig. Exp(B)
Constant -3.574 0.585 37.28 1 0 0.028

S1: 1 if agriculture, 0
2.188 0.871 6.304 1 0.012 8.917
otherwise
Nagelkerke R Square = 0.20Source: Primary data
Table 6.61 shows the co-efficient of logistic regression of defaulters. For the purpose of
finding out the effect of independent variables on defaulters, three such variables as, year of
establishment, nature of business and amount of loan are taken. Through backward
elimination only one independent variable remained and it is the nature of business (sector).
From the result, it is seen that, possibility of default is higher in agriculture Sector as the
regression coefficient of dummy variable representing agricultural sector is positive value of
2.188 and the significance level is 0.028 which is less than 0.05.
Table 6.62 Distribution of group Entrepreneurs by status of default and sector

Chi-
Sig.
square
n % n % n %
Yes 1 5.88 6 10.00 14 17.720

2.686 0.261
No 16 94.12 54 90.00 65 82.280
Total 17 100.00 60 100.00 79 100.00
As per Table 6.62, it is seen that, the default rate is the highest in service sector. As chi-
square statistics falls above the significance level of 5 percent, the null hypotheses of
existence of similarity among units is accepted. There is no significant difference with
respect to default existed among the three sectors.
6.5.1. Logistic regression coefficient of Group
Logistic regression was calculated for find out significant variables affecting default of loan
among group units. Year of establishment, sector and amount of loan taken as independent
variables and dummy variable representing default of loan is taken as dependent variable.
Backward conditional selection method was applied in the logistic regression analysis.
Backward selection method eliminated all the independent variable from the regression
analysis because of the fact that the significance level of regression coefficients is greater
than 0.05. From the result, it can be inferred that year of establishment, sector and amount of
loan are not significantly affect the status of default of loan, in the case of group units.
6.5.2. Comparison of performance of Individual and Group enterprises
In order to compare the performance of individual and group Kudumbashree micro

enterprises, logistic regression was computed. Dummy variable representing, Type of unit,
was taken as dependent variable, which is coded as below:
T: 1 if group, 0 individual
Return on asset, Return on Investment, Profit Margin Ratio, Labour Productivity, Material
Productivity and status of default of loan were taken as independent variables. Status of
default of loan repayment is taken as dummy variable, which is coded as below:
D: 1 if default, 0 otherwise
Conditional backward selection method was adopted for computation. The backward
selection method eliminated 4 insignificant independent variables from the final regression
equation. The eliminated variables are Return on investment, Labour productivity, Material
productivity, Status of default of loan repayment.
Table 6. 63 Model summaries of the logistic regression model
Step -2 Log likelihoods Cox & Snell R Square Nagelkerke R Square
1 422.742 0.055 0.073
5 426.325 0.044 0.059

Table 6.63 presents the model summary of initial and final regression model. From the
model, it can be seen that, 4 percent of the variation in the type of units is determined by
Return on asset and Profit Margin Ratio.Table 6. 64 Coefficients of the initial logistic
regression model
B S.E. Wald df Sig.
ROA 0.260 0.074 12.323 1 0.000
ROI 0.221 0.313 0.499 1 0.480
PMR -1.866 0.649 8.267 1 0.004
LPro 0.009 0.010 0.858 1 0.354
MCon 0.011 0.030 0.131 1 0.717
D.d 0.474 0.365 1.682 1 0.195
Constant -0.131 0.198 0.437 1 0.508
Table 6.64 presents the co-efficient of initial regression model.
Table 6. 65 Coefficients of the final logistic regression model
B S.E. Wald df Sig.
ROA 0.233 0.069 11.309 1 0.001
PMR -1.409 0.515 7.477 1 0.006
Constant 0.055 0.162 0.113 1 0.737
The result indicates that, Return on Asset is significantly higher among group units compared
to individual units. The Return on Asset in group unit is 0.233 units. Similarly, the co-
efficient of Profit Margin Ratio is negative and is equal to 1.409, which indicates that Profit
Margin is significantly lower among group units, as compared to individual units. From the
result, it can be concluded that the performance of group and individual units are significantly
different. Return on Asset is significantly higher among group units and Profit Margin Ratio
is significantly higher among individual units. Hence, the result rejects the null hypotheses
that, there is no significant difference in the performance of individual and group units and,
accept the alternate hypotheses that there is significant difference in the performance of
Kudumbashree individual and group micro enterprises.
6.6. Level of difficulty in raising of capital
Table 6. 66 Distribution of Individual and group micro entrepreneurs by their level of

difficulty in arranging capital with mean score
Individual Group
Working Working
Initial Capital Initial Capital
Level of Capital Capital
difficulty
N % n % n % n %
Very low 3 1.50 4 2.10 5 2.60 9 4.60
Low 15 7.70 17 8.70 13 6.70 18 9.20
Moderate 156 80.00 165 84.60 155 79.50 146 74.90
High 20 10.30 9 4.60 18 9.20 22 11.30
Very High 1 0.50 - - 4 2.10 0 0.00
Total 195 100.00 195 100.00 195 100.00 195 100.00
Mean 3.01 2.92 3.02 2.93
SD 0.513 0.46 0.59 0.62

Table 6.66, reveals the difficulty level of arranging initial and working capital of both type of
units. 80 percent units expressed moderate difficulty in raising initial capital, which consists
of 156 numbers of units. 20 units which constitute 10.30 percent of the total expressed high
level of difficulty in raising initial capital, while 7.70 percent units revealed low level of
difficulty. 1.50 percent units were facing very low difficulty and 0.50 percent units were
having very high difficulty in raising their initial capital. In case of group units, more or less
same is the phenomenon as, 155 units (79.50%) were expressed moderate difficulty in raising
initial capital. 4 units opined very high difficulty for raising initial capital. The mean opinion
score for both type of units was 3.01 and 3.02 respectively. Difficulty level for raising initial
capital is more or less same in individual and group units.
In the case of raising of working capital of individual units, 84.60 percent were having
moderate difficulty. The number of respondents was 165 of the total and it is 146 units in
group units. 17 respondents that is 8.70 percent were having low level of difficulty in raising
their working capital in individual units. 4.60 percent, which consists of 9 units were having
high level of difficulty. Only 4 units, that is, 2.10 percent were facing very low level of
difficulty. The mean score opinion about raising of working capital is 2.92 in individual units
and 2.93 in group units. It is inferred that the level of difficulty in raising working capital is
moderate in both type of units.
6.6.1 Level of Marketing Difficulty
Table 6.67 Distribution of Individual and group micro entrepreneurs by level of difficulty in
marketing the product with mean score
Individual Group
Level of difficulty N % N %
Very low 1 0.50 6 3.10
Low 15 7.70 12 6.20
Moderate 160 82.10 154 79.00
High 12 6.20 21 10.80

Very High 7 3.60 2 1.00
Total 195 100.00 195 100.00
Mean 3.05 3.01
SD 0.55 0.58
T 0.697
Sig. 0.490
Table 6.67 exhibits the marketing difficulty of the entrepreneurs. 82.10 percent of the units
expressed moderate level of difficulty in marketing their products in individual units and it is
79 percent in group units. 7 units which constitute 3.60 percent were facing very high
marketing difficulty. 0nly 0.50 percent units, that is one unit enjoying very low marketing
difficulty. 2 units in group units facing very high difficulty in marketing their products. The
mean score opinion about marketing difficulty is 3.05 and 3.01 correspondingly in individual
and group units. It is seen that, there is no difference in the difficulty level of marketing in
both individual and group units as the significance level is above 0.05
Table6.68 Rank given by Individual and group micro entrepreneurs to the mode of marketing
the product
Responses Rank
individua Grou
Mode of marketing the product
l p
Taking the goods/service to the customers’ door-step with a regular

3 4
clientele
Having of marketing tie-up with a better-established business/ co-

2 2
operative
Waiting for the customers to come to unit and buy product 1 1

Using of multiple means (monthly bazaars; selling directly; previous
4 3
orders)
From the Table 6.68, it is seen that, based on the ranking method relating to the mode of
marketing of products in individual and group units, in both cases, first and second rank is
given for the same responses by the entrepreneurs. The first rank is given for the response,
“Waiting for the customers to come to unit and buy product” and the second rank for the
response, “Having of marketing tie-up with a better-established business/ co-operative”.
Any occupation is not free of tension, stress, and anxieties in today’s competitive age.
Individual attitude, views and perceptions are likely to be affected by their level of
satisfaction from the present occupation, and therefore the responses about their level of
satisfaction were investigated by the researcher and the same was presented in the following
table.
Table 6.69 Distribution of Individual and group micro entrepreneurs by the level of
satisfaction of performance of micro units
Individual Group
Level of satisfaction N % N %
Highly dissatisfied 0 0.00 0 0.00
Dissatisfied 0 0.00 0 0.00
Neutral 10 5.10 7 3.60
Satisfied 168 86.20 148 75.90
Highly satisfied 17 8.70 40 20.50
Total 195 100.00 195 100.00

Mean 4.04 4.17
SD 0.37 0.46
t 3.067
Sig. 0.000
Table 6.69 shows the level of satisfaction of performance of the units by both type of units.
86.20 percent of the respondents were satisfied with their performance in individual units and
it is 75.90 percent in group units. While 8.70 percent and 20.50 percent of entrepreneurs are
highly satisfied in individual and group units respectively. 5.10 percent and 3.60 percent
units were neutral in expressing their level of performance in individual and group units
correspondingly. Mean satisfaction level of performance in individual units is 4.04 and 4.17
in group units respectively. From the result, it is concluded that, there is difference in the
satisfaction level of individual and group units, as the significance level is less than 0.05. The
level of satisfaction is higher among group units.
Chapter Summary
The performance of Kudumbashree micro enterprises are measured in three angles, such as,
Profitability, productivity and loan repayment status. Business profile provides details
regarding the Zone, nature of business, location, year of establishment, origin of business,
nature of ownership, place of business, earnings, management and details regarding the
number of working days per month. It also covers the reasons for joining to Kudumbashree
micro enterprises and the type of work engaged in by the respondents before joining to these
units.
For the purpose of finding out the profitability, three types of profitability ratios, such as
Return on asset, Return on Investment and profitability margin ratio are used.
In the case of evaluating profitability of Kudumbashree micro enterprises, notional wages are
of critical importance. As the enterprises are run by individual or group micro entrepreneurs,
the profit declared by the accounts is merged with the wages of the work/ service contributed
by the entrepreneurs of their own. It is very difficult to segregate the same from profit
because it is not measured or accounted by the entrepreneurs and they consider that it is
sufficient to be kept included in their profits.
Here, for the purpose of the study, the researcher has tried to segregate notional wages from
profits for the purpose of analysis of profitability.
In individual units mean score of Return on Asset is highest in Agricultural sector in

individual units with 1.479. While Return on Investment is highest in industrial sector. The
mean score of Return on Investment is more or less same in agriculture and industrial units,
which is, 0.426 and 0.489 respectively. The mean score of Profit Margin Ratio is highest in
agriculture sector with 0.362. Mean score on all profitability variables except Return on
Investment is highest in agriculture sector. So, it is concluded that overall profitability is
higher in agriculture sector among these three sectors.
The mean score of Return on Asset is highest in case of group units is in service sector.
While the mean score of Profit Margin Ratio and Return on Investment is highest in
industrial sector. On an overall assessment of profitability variables, agriculture sector is with
least mean score on all variables.
Material and labour productivity is considered for studying productivity of micro units.
Material productivity is measured by comparing total sales with material consumed for such
production. Labour productivity is measured by comparing total sales with wages.
The mean of material productivity and labour productivity is higher in group units.
There is no significant difference in the material productivity of the units in three sectors, as
its significance level is higher than 0.05. There is significant difference in the material
productivity of the units in three sectors, as its significance level is less than 0.05.
As regards the status of loan default on sector wise in individual units, the default rate is the
highest in the agricultural sector. In the case of group units, the sector wise default rate is the
highest in service sector.
The performance of group and individual units are significantly different. Return on Asset is
significantly higher among group units and Profit Margin Ratio is significantly higher among
individual units.
Difficulty level for raising initial capital is more or less same in individual and group units.
There is no difference in the difficulty level of marketing in both individual and group units
as the significance level is above 0.05. There is significant difference in the satisfaction level
of individual and group units, as the significance level is less than 0.05. The level of
satisfaction is higher among group units.
The variables used to measure the extent of economic empowerment are income, savings,
nature and ownership of dwelling house and amenities. Analysis is done in two parts with
respect to income, such as shift in income level and change in income based on opinion or
response. There is significant increase in the mean income after starting the unit as the
significance level is below 0.05. The mean increase in the income was 1465.41. While, it is
higher in group unit members. The mean score opinion for the level of change in income was
3.95, which indicate a clear increase in income as in the case of individual units. In the case
of group units, the members mean opinion score was high as compared with individual
entrepreneurs, it is 4.50. There is significant improvement in the mean savings of the
respondents after starting the units with 1571.13 in individual units. In group units also, there
is increase in savings with 1332.73. In both cases, there is significant difference in savings
towards the positive side as per t test as the p value is below 0.05. There is tremendous
increase in the number of members having bank accounts after starting the both units.
For finding out the economic empowerment, an analysis is made for finding out, the
significant difference in ownership of dwelling house before and after starting the unit. Also
made an investigation about the type of dwelling house, whether it is tiled one, thatched, tin
sheet or a concrete one. There is tremendous increase in the number of owned houses and
also increase the number of concrete houses after starting the units in both type of units. All
amenities increased after starting the units in both type of units, as the significance level is
below 0.05.
As regards the economic empowerment attributes, all attributes have positive influence on
economic empowerment of individual units. The highest mean score opinion is for
employment attribute in individual units. Weighted rank method is also conducted for
finding out the highest influencing empowerment attribute. Based on that result also, the
highest rank got for employment attribute (47.2). The highest mean score for group units is
for living condition (3.56), and the result is substantiated with weighted average rank, the
result is same as the highest rank got for living condition (243.1).
REFERENCES
F Delmar, P Davidsson, WBGartner - Journal of business venturing, 2003 – Elsevier H Gin
Chong, Journal of business and public affairs, ISSN 1934-7219 Volume 2, Issue 1, 2008
Measuring performance of small-and-medium sized enterprises: the grounded theory
approach
J Wiklund - Frontiers of entrepreneurship research, 1998
JohanWiklund , First Published October 1, 1999 Research Article
Kennas Chartered Accountants. (2014). Introduction to Key Performance Indicators for

SMEs. Paper 06.73
Moullin, M. (2003), “Defining performance measurement”, Perspectives on Performance,

Vol. 2 Nos 1/2, p. 3
Roztocki, KL Needy - Proceedings from the 1998 ASEM National Conference, 1998
The Sustainability of the Entrepreneurial Orientation—Performance Relationship
Chapter 7
Economic empowerment of Kudumbashree micro entrepreneurs
7.1 Income
7.2 Savings
7.3 Modes of investment of savings after starting the unit
7.4 Loan and borrowings
7.5 Loans from money lenders
7.6 Nature of dwelling house
7.7Amenities
7.8 Economic empowerment attributes

Introduction
Micro finance programmes for women have been promoted over the years not only as a
strategy for poverty alleviation but also for women’s empowerment (Mayaix 1999). Most of
the studies published on women empowerment relate to micro finance /micro credit.
Empowerment of women is supposed as crucial to the development and growth of family and
community. The concept of women empowerment consists of four important components
like, economic, social, political and legal. Among these four, economic empowerment is the
most significant.
Empowerment of women means making women economically independent, self-reliant,

confident and positive in attitude. Empowerment is considered as critical to the development
and growth of family and community. Empowerment is a process that addresses all sources
and structures of power. The process of empowerment has to work both at individual and
collective level. Poor women individually cannot overcome subjection. But they can do it
only collectively. Hence, it is recommended that women have to be organized and have to be
recognized as a political force. It involves equal participation in decision making, control
over resources and mechanisms used for attaining these gains.
For attaining women empowerment, they must have access and control over productive
resources and a great extent of freedom in their economic activities. This is usually
hampered by the pressure of lot of household work. In order to achieve a high level of
economic empowerment, there is an urgent need of change in the attitude of the entire society
towards the social and economic activities of women.
In rural areas, changes of development yet to reach and so many economic needs are yet to
be satisfied. Farm labour is the main source of employment of women in rural areas. The
trademark of rural life of women are indebtness. Involvement in self-help groups helps them
to save some part of money out of their daily household expenses. Moreover, they can avail
loan from these self-help groups at lower rate of interest. This has led a kind of change in the
views of society towards women. In short, the effects of economic empowerment through
self-help group such as Kudumbshree pay a vital role in their families.
Borbora, S., & Mahanta, R. (2001) evaluated the RGVN’s (Rashtriya Gramn Vikas Ndhi)
Credit and Saving Programme (CSP) in Assam over the years. The study indicated that the
SHGs helped to set up a number of micro enterprises for income generation. The CSP was
found to be successful in Economic Empowerment of Women through 367 Self-Help Groups,
as its focus was wholly on the rural poor; it adopted a credit delivery system planned
especially for them with the support of a specially trained staff and a helpful policy with no
political involvement at any stage in the completion of the programme.
Vasanthakumari (2011) studied the role of micro enterprises in the economic empowerment
of women in India and found that micro enterprises have paved way for the economic
empowerment of the rural poor women. Her study also probed into the financial performance
of 20 micro enterprises reporting high operating cost as a result of high material and labour
costs. They also found that the debt-equity ratio was turned out to be negative due to erosion
of funds and excessive drawings by members
Saroj &Singh, (2015)): The paper intends to study the role of micro-finance through Self
Help Groups (SHGs) in the socioeconomic empowerment of women. The study has been
carried out in Ajmer district of Rajasthan covering a sample containing 75 beneficiaries, 4
villages, 8 SHGs and 2 blocks. The study concludes that Socio-economic empowerment has
been considered significant for overall development. Women’s empowerment is evidently
necessary for escalating socio-economic condition of the women in the society. The SHGs
enabled women to aware about their rights, entitlements, taking part in various development
programs and economic activities for their substantial development. Thus, SHGs made a
noteworthy impact on women empowerment.
Baghel & Shrivastava, (2015)): This study deals with the understanding of the impact of Self-
Help Group (SHG) on the overall socioeconomic development of rural women of Durg
district of Chhattisgarh. The study considered four independent variables Individual Social
Indicators, Community Social Indicators, Individual Economic Indicators and Community
Economic Indicators to analyze the socioeconomic development of rural women. The study
indicates that economic and social indicators have significant positive impact on Socio-
economic Development of rural women of Durg. The background of social respect and
communication of Individual Social Indicators have a significant impact on Development of
women of Durg district of Chhattisgarh.
Shettar, (2015)): The paper makes an attempt to analyze the position of women
empowerment in India. The study based on the secondary data with variables like, crime
against women, government scheme for women empowerment, gender gap index and
constitutional provisions for women. The study explains that, in spite of many efforts
undertaken by the Government, the women in India are to a large extent disempowered and
enjoy lower status than men. Acceptance of biased gender norms by women is still
prevailing in the society. The major conclusion of the study is that the enabling factors to
women empowerment are access to employment, education and change in social sector. From
the above literature, it is evident that self-help groups play much important role in the
economic empowerment of the women entrepreneurs.
Self- Help Groups are the voluntary organizations which disburse micro credit to the
members and facilitate them to enter into entrepreneurial activities. SHGs have made a
lasting impact on the lives of the women particularly in the rural areas.
Their quality of life has improved a lot. There is an increase in their income, savings and
consumption expenditure. This shows an improvement in their standard of living. The women
have gained self-confidence. They got an opportunity to improve their hidden talents after
joining the SHGs. They can speak freely in front of large groups of people. They got
recognition in the family and society. SHGs have also given women a greater role in
household decision making.
Besides, the SHGs have created better understanding between the members of the different
religious groups as the members of SHGs belong to different religions. This is a welcome
change to have understanding and tolerance towards the members of other religions
particularly in a country like India where there is a diversity of religions and castes.
Likewise, Micro Enterprises play an important role in economic empowerment of women.

Micro enterprise is an effective instrument of social and economic development. It helps to
generate employment for a number of people within their own social system. This is
more beneficial for women in rural areas as it enables them to add to the family income while
taking care of their own home. 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.
Microcredit is promoting the small-scale business enterprises and its major aim is to alleviate
poverty by income generating activities among women and poor. Therefore, they could
achieve self-sufficiency.
Therefore, the present chapter analyses the extent of economic empowerment of
Kudumbashree micro entrepreneurs both in individual and group units. The variables used to
measure the extent of economic empowerment are income, savings, loans and borrowings,
nature of dwelling house and amenities.
7.1 Income
Income is a variable that can vary between data units in a population and can also vary over
time for each data unit. Income of a person plays an important role in shaping the economic
conditions of an individual which in turn is likely to have bearing on the responses about the
problem posed to them. The researcher, therefore in this study attempted to investigate the
income as the variable and the data related to income of the respondents. Analysis is done in
two parts with respect to income, such as shift in income level and change in income based
on opinion or response.
7.1.1 Analysis of shift in income
In order to find out the extent of change in the income level of micro entrepreneurs of
Kudumbashree, the mean income before and after starting the units in the case of both
individual and group units. The shift in the income level is obtained for the two transitionary
periods, viz, before and after joining the units. The mean and SD of income during both the
periods are calculated and presented in Table7.1. The table also shows the result of t the test
with respect to change in income with the null hypothesis that,
Ho; There is no significant difference in income before and after starting the units.
Table 7.1 Descriptive statistics and test for changes in means of individual and group micro
entrepreneurs
Mean SD t Sig.
Individual Monthly income before starting the 10.848 0.000

671.92 1619.38
unit
Monthly income after starting the unit 2137.33 1532.16

Increase in the Income 1465.41 1886.46
Monthly income before starting the

1169.90 3265.90
unit
17.857 0.000
Group
Monthly income after starting the unit 2819.30 2630.50
Increase in the Income 1649.40 2954.24
Table 7.1 exhibits the mean income ranging between 671.92 and 2137.33 was the savings
before and after starting the units in the case of individual units. There is significant increase
in the mean income after starting the unit as the significance level is below 0.05. The mean
increase in the income was 1465.41. While, it is higher in group unit members. There is the
mean increase in income of 1649.40 in group members. The explicit difference in the mean
level of income is substantiated with the t test performed on the unpaired samples. The value
of the test is near zero and therefore, the result is shown in favor of the alternate hypothesis,
that there is significant difference in the mean values before and after joining the units.
7.1.2 Shift in income level based on responses
The respondents were asked to express their opinion about the level of satisfaction in
connection with the change in income level after starting the units. The responses were
framed in five-point scale, such as, highly decreased, decreased, neutral, increased and highly
increased.
Individual Group
Mea Mea Sig

Response n % n SD T Sig. n % n SD T .
Highly 0 0.00 3.95 0.6 20.4 0.00 22 2.20 4.50 0.9 48.6 0.0
decreased
Decreased 0 0.00 56 5.50
23.5
Neutral 46 9 67 6.50
5 15 0 8 41 0
11 57.4 12.2
Increased 2 4 125 0
highly 18.9 73.6

increased 37 7 753 0
19 100. 102
Total 5 00 3 100
Table 7.2 shows the analysis with respect to the responses of the entrepreneurs collected on a
five-point scale. Majority of the respondents, i.e., 57.44 percent expressed their attitude as to
increase in income as the income level is increased. 37 respondents (18.97%) expressed as
highly increased their level of income after starting their units. The mean score opinion for
the level of change in income was 3.95, which indicate a clear increase in income. It should
be noted that, no one has responded negatively towards increase in income.
In the case of group units, the members mean opinion score was high as compared with
individual entrepreneurs. It is 4.50, which is high as compared with individual unit members.
73.60 percent members opined that their level of income highly increased.
The t test performed for the unpaired groups also substantiated a significant difference in
means. It shows that the perception towards increase in income is more positive in case of
group units rather than the individual units.
7.2 Savings
The economic conditions and social conditions are closely related to each other. The surplus
money in the hands of any individual gives her a sense of satisfaction, security and comfort.
Savings could lead to prosperity, the physical and psychological comforts. The researcher,
attempted to investigate the savings as the variable and the data related to savings of the
respondents. The data presented below shows the improvement in savings. The analysis with
respect to savings is being done both in direct and indirect manner. The savings of individual
and group were directly obtained from the respondents and evaluated using statistical
parameters. The indirect way used for analyzing the impact of savings is the analysis of
information using the status of bank accounts.
7.2.1 Analysis of nature of savings
It is required to analyse the improvement in savings habit of respondents, it is necessary to

scrutinize the savings before and after starting the unit. As a result, it makes the provision for
calculating the increase in income.
Table 7.3 exhibits the average position of savings before and after starting the units both in
case of individual units and group units.
Table7.3 Changes in savings of individual and group units
Mean SD t Sig.
Individual Before starting the unit 631.95 1584.67

5.716 0.000
After starting the unit 2203.08 3948.27
Increase in the saving 1571.13 3838.11
Group Before starting the unit 948.0368 1715.4897

6.384 0.000
After starting the unit 2280.7692 4809.5706
Increase in the saving 1332.73 3610.01
Table 7.3 shows that, there is significant increase in the savings of respondents after starting
the units. The mean savings ranging between 631.95 and 2203.08 before and after starting in
the case of individual unit members. There is significant improvement in the mean savings of
the respondents after starting the units with 1571.13. In group units also, there is increase in
savings with 1332.73. In both cases, there is significant difference in savings towards the
positive side as per t test as the p value is below 0.05.
7.2.2 Change in the status of bank account
Kudumbashree members are mainly from BPL category. For their financial strengthening,
financial literacy is essential. The operation of a bank account is essential for Kudumbashree
members to familiarize themselves with the financial matters. The following table shows the
details of the status of bank account, such as, number of units having bank account before and
after starting the units, the year of starting the account etc.
Table 7.4 Change in the status of having bank account before and after starting units with
year of starting account before starting unit of individual unit members
Status of having bank account
Before starting the unit After starting the unit

Particulars
Yes No Yes No
n % n % n % n %
Status of having bank account 54 27.70 141 72.30 193 98.97 2 1.03
Year of Up to 2000 13 24.07

starting
2001-2010 25 46.30
bank
account After 2010 16 29.63
Total 54 100.00
Details of the status of having bank account of the respondents before and after starting the
units were exhibits in Table 7.4. Also showed the year of starting the account, before starting
the units. Out of 54 units (27.70%) having bank account before starting the units, 13 units
(24.07%) were started their account before the year 2000 and 16 units opened their account
after 2010. Still 2 units have not opened bank account in individual units. After starting the
units, the financial literacy of the individual respondents increased, and thereby majority of
them were aware of banking transactions hence increased the savings habit.
Table 7.5 Change in the status of having bank account before and after starting units with
year of starting account before starting unit of group unit member
Status of having bank account
Before starting the unit After starting the unit

Particulars
Yes No Yes No
n % n % n % n %
1009 98. 14 1.4

Status of having bank account 175 17.1 848 82.9 6
As per Table 7.5, it is seen that only 175 members are opened bank account before starting
the unit. It is increased to 1009 after starting the unit by the group unit members. There is
tremendous increase in the number of members having bank accounts. It is a sign of
economic empowerment of members.
7.3 Modes of investment of savings after starting the unit
Prior to the emergence of Kudumbashree micro enterprises, majority of the respondents

under study area do not have regular savings habits. The investment avenues were limited to
only in Neighborhood groups. After starting micro units, they start savings habits in the form
of chitti, post office savings or in banks savings accounts. Savings habits is considered as a
symptom of economic improvement.
Table 7.6 Distribution of units by mode of investment after starting the unit
Individual Group
Mode of savings
n % n %
Bank 78 40.00 680 66.47
Chitti 104 53.33 240 23.46
post office 13 6.67 103 10.07
Total 195 100.00 1023 100.00
Most of the respondents were made their savings in the form of chitti. 104 units come under
individual units (53.33%). Only 13 of them (6.67%) were saved their cash in post office.
(Table 7.6). In case of group members, 66.47percent members deposit their savings in banks.
Chi square test is applied for testing the significant difference with respect to the mode of
investment between individual and group units. For testing the significance, the null
hypothesis is framed as;
Ho: There is no significant difference between individual and group units with respect to
mode of savings after starting the unit.
The calculated value of t test is 77.471, which is higher than the table value of 5.991. Hence,
reject the null hypothesis and accept the alternative hypothesis that, there is significant
difference between individual and group units with respect to mode of savings after starting
the unit.
7.4 Loan and borrowings
This section is an attempt to analyze the various sources of loans and borrowings made by
individual units, before and after starting the unit. The section also analyze the loans and
borrowings made by the group units after starting the unit. The individual members depend
on the sources like, friends, relatives, money lenders and from other sources (not mentioned
here).
Table 7.7 Sources of borrowing and amount borrowed by individual units before starting
units
Source Frequency Amount

n % Mean SD
Friends 45 23.44 14646.7 23076.2
Relatives 133 69.27 9950.4 17600.9
Money lenders 9 4.69 21277.8 37374.1
Others 5 2.60 48200.0 47918.7
Total 192 100.00 12578.1 22044.6
Table 7.7 shows the major source of borrowings of individual units before starting the unit.
Major source is from relatives, usually, informal source with low rate of interest or without
interest. This source forms 69.27 percent of total borrowings. The mean amount of
borrowings is 9950.4 and SD is 17600.9.
Second highest percent of borrowings from friends (23.44%) with mean amount of 14646.7
and SD is 23076.2. Number of borrowers from money lenders and other sources is very low
(7.29%), but its mean and SD are high. Number of respondents approaching money lenders
are less but the influence with respect to amount of borrowing is high.
Table 7.8 Sources of taking loan from informal source after starting the unit with mean
amount borrowed by inividual units
n % Mean SD
Yes 13 6.70 20000 15545.63
No 182 93.30
Total 195 100.00

Table 7.8 exhibits the status of loan taken from informal source after starting the units. Only
13 units were taken loans from such sources after starting the units. The mean amount
borrowed was Rs. 20000. It is clear from the analysis that, there is considerable reduction in
availing loan from informal sources after establishing the units by individual unit members.
7.5 Loans from money lenders
Poor households depend on informal sources of credit because of the reasons, such as, banks
are not present everywhere in rural Kerala, or even when they are present, getting loan from a
bank is much more difficult. Hence taking a loan from informal sources. Bank loans require
proper documents and collateral. Absence of collateral is one of the major reasons, which
prevents the poor from getting loans. Informal lenders like money lenders, know the
borrower personally and hence, are often willing to give a loan without collateral. The
borrower can, if necessary, approach the money lender even without repaying their earlier
loans. However, money lenders charge high rates of interest, keep no records of the
transactions and harass the poor borrowers.
Table 7.9 Distribution status of availing loans from money lenders after starting the unit by
individual unit members
Reasons of depending on money lenders

Total
status of availing delay in getting loans from other
Respondents insufficient fund
loans sources
n % n % n %
Availed 7 3.6 4 57.1 3 42.9
Not availed 188 96.4
Table 7.9 shows that; 7 respondents were availed loans from money lenders even after
starting their units. Among these 7, four of them expressed their reason of depending
money lenders is that, funds are insufficient for their operations. Remaining three are of the
reason that, there is delay in getting loans from other sources.
From the above result, it is concluded that, there is a substantial reduction in availing loans
from informal sources. Only 7 respondents were availed loan from money lenders. It is seen
that only 13 members were taken loan from informal sources, which means they are
economically empowered.
Table 7.10 Distribution status of availing loans before and after starting the unit by Group
unit members from formal source
Mean SD t Sig.
Amount of loan taken(Before) 9912.617 22520.19 2.934 0.000
Amount of loan taken(After) 21408.75 50889.35
One important thing noted here that, the members of group are not availed loan from informal
source after joining the unit. But they depend on formal source for their monetary
requirement. Their mean loan amount increased after joining to the unit is an evidence to this
phenomenon. Another thing, here reveals that depending only on formal source is considered
as economically a safer side of cash management. Based on t test analysis, it is seen that,
there is significant difference in the amount of loan taken by the group members before and
after starting the units from formal source, as the level of significance is below 0.05. Hence
the null hypothesis is rejected, as there is no significant difference in the amount of loan
taken from formal source before and after starting the units.
7.6 Nature of dwelling house
The type of dwelling house in which a person lives and socializes is likely to have impact on
her belief system and in moulding own personality. The possession of a house is a status
symbol in our society. The ownership of dwelling house is considered as an important
variable and the same was investigated and presented in the following tables.
7.6.1 Nature and ownership of dwelling house of individual members.
As the ownership of house property is the status symbol of an individual, thus an effort was
made to examine the ownership of dwelling house of individual micro entrepreneurs. For
finding out the economic empowerment, an analysis is made for finding out, whether the
respondent is in owned or in rented house before and after starting the unit. In addition to the
percentage of respondents with owned or rented house, chi square test was conducted for
analyzing the significant difference in ownership of dwelling house before and after starting
the unit. Also made an investigation about the type of dwelling house, whether it is tiled one,
thatched, tin sheet or a concrete one.
Table 7.11 Distribution of nature of dwelling house of individual unit members
n %
owned 156 80.00

Before
rented 39 20.00
Nature of ownership
owned 171 87.69
After
rented 24 12.31
tiled 84 43.08
thatched 20 10.26
before starting the unit
tin sheet 42 21.54
concrete 49 25.13
Nature of dwelling house
tiled 86 44.10
thatched 11 5.64
after starting unit
tin sheet 19 9.74
concrete 79 40.51
Table 7.11 shows the nature of ownership of dwelling house, the person to whose name the
dwelling house is owned and the nature of dwelling house before and after starting the unit.
80 percent of the respondents (156 numbers) were in owned house and remaining 39 were in
rented house before starting the unit. The number of owned house increased to 171 after
starting the unit. This increasing trend in number is considered as a symptom of economic
improvement.
In case of nature of dwelling house, before and after starting the unit, it is seen that, the
number of respondents having concrete house, increased considerably from 49 to 79 numbers
after starting the unit. As in the case of thatched house, the numbers are reduced to 11 and
the same is the case with tinned house, it is reduced to 10. From this result, it is clear that,
measurement of economic empowerment with the nature and ownership of dwelling house,
there is tremendous positive change in the standard of living of the respondents after starting
the units.
Based on the chi square test with null hypothesis, Ho; there is no significant difference in the
nature of ownership of dwelling house before and after starting the unit, and the null
hypothesis is rejected, as the calculated value is 4.33 against the table value of 3.841. As in
the case of nature of dwelling house, chi square test rejects the null hypothesis that, there is
no significant difference in the nature of dwelling house before and after starting the unit. The
calculated value is 15.76, which less than the table value of 7.815.
Table 7.12 Distribution of nature and ownership of dwelling house of group unit members
Particulars n %
owned 373 36.5
Before
rented 650 63.5
Nature of ownership
owned 742 72.5
After
rented 281 27.5
tiled 402 39.30
thatched 339 33.14
before starting the unit
tin sheet 240 23.46
concrete 42 4.11
Nature of dwelling house
tiled 425 41.54
thatched 325 31.77
after starting unit
tin sheet 42 4.11
concrete 231 22.58
In case of nature of ownership of dwelling house, it is seen from the Table 7.12, of the group
members, 650 members are in rented house before joining the unit, which was reduced to 281
members after joining the unit. As in the case of nature of dwelling house, which is also
tremendously increased from 42 to 231 members having concrete houses after joining to the
unit. It is a positive symptom of economic empowerment of members after joining to the
unit.
The null hypothesis for chi square test is that Ho; there is no significant difference in the
nature of ownership of dwelling house before and after starting the unit. The calculated value
is 268.47 and the table value is 3.841. So, reject the null hypothesis. As regards the nature of
dwelling house also, the chi square test rejects the null hypothesis. The calculated value is
270.32 against the table value of 7.815.
7.7 Amenities
Amenity means something that helps to provide comfort, convenience or enjoyment. As for
the study purpose, the amenities decided to consider are the household articles enjoyed by the
respondents. These include radio, TV, Fridge, Phone, cooking gas, Sewing Machine and
other household articles. Possession of these amenities considered as an increased level of
living of the respondents. So due care is given for amenities before and after starting the
units both by individual and group units.
Table 7.13 Distribution of amenities before and after starting the unit of individual members
Before After Chi-

Sig.
n % n % square
Radio 35 17.95 35 17.95
TV 60 30.77 183 93.85
Fridge 50 25.64 169 86.67
Phone 97 49.74 182 93.33
542.960 0.000
Cooking gas 168 86.15 182 93.33
Sewing machine 29 14.87 52 26.67
Other households’
15 7.69 35 17.95
articles
Table 7.13 exhibits, the amenities before and after starting the unit. It is evident that the
amenities in the house were considerably increased, as in all items, except radio. The
respondents having radio is as same as before and after starting the unit. All amenities
increased after starting the unit. From the analysis, with chi square, it is seen that, there is
significant increase in the amenities after starting the units as the significance level is below
0.05. It is concluded that the level of empowerment increased with regard to the amenities
after starting the unit of individuals.
Table 7.14 Distribution of amenities before and after starting the unit of group members
Before After Chi-square Sig.
n % n %
Radio 69 6.74 78 7.62
TV 156 15.25 160 15.64
Fridge 200 19.55 212 20.72
Phone 156 15.25 200 19.55 17.260 0.008
Cooking gas 340 33.24 280 27.37
Sewing machine 75 7.33 80 7.82
Other households articles 27 2.64 13 1.27
1023 100.00 1023 100.00
From Table 7.14, it is evident that, all amenities except cooking gas and other household
articles, there is an increase in amenities of group unit members. Based on the chi square test
result, it is seen that, there is significant increase in the amenities of members after joining the
unit, as the level of significance is below 0.05. It is concluded that there is evidence of
economic empowerment.
An attribute is a characteristic of a system for which numerical measurements cannot be

made and therefore, cannot be treated as a variable in quantitative analysis. As such
economic empowerment attributes are measured on five major levels, such as, employment
attributes, technical skills, living condition, economic status and social security. Ranks are
assigned for various level of empowerment. Level of empowerment is classified as Very
low, Low, Moderate, High and Very high and rank 1 for very high and 5 for very low.
Employment Attributes
This attribute includes, communication skills, technical competency, determination and

persistence, ability to work in harmony with co-workers, eager and willing to add to their
knowledge base and skills.
Technical skills
Technical skills refer to the ability to perform tasks that require the use of certain tools, with
tangible and intangible, technological traits to complete them. In this regard, the knowledge
in a technical skill area is seen as practical in nature as it allows a person to complete a
designated task in real and no theoretical, way. Technical skills include, technical
proficiency, technical know-how, technical expertise, technical aptitude etc.
Living condition
It means the circumstances affecting the way in which people live, especially with regard to
their well-being such as, shelter, food, clothing, safety, access to clean water etc.
Economic status
In assessing economic status, measuring variables other than household income may be
useful, for example, assets such as inherited wealth, savings, employment benefits or
ownership of houses and motor vehicles.
Social status
Social status means, a persons’ standing or importance in relation to other people within a
society or a group. It is the relative rank an individual hold, with attendant right, duties and
lifestyle, in a social hierarchy based upon honor or prestige.
Ranks are assigned for various level of empowerment. Level of empowerment is classified
as Very low, Low, Moderate, High and Very high. Scores assigned are 5 for very high and 1
for very low.
Table 7.15Distribution of level of economic empowerment with mean score of empowerment
of individual members
Economic
Level of
empowerment Count % Mean SD t Sig.
empowerment
attributes
Very low 0 0.00
Low 1 0.51
Employment
Moderate 81 41.54 3.63 0.60 14.725 0.000
attribute
High 102 52.31
Very high 11 5.64
Very low 1 0.51
Low 5 2.56
Technical
Moderate 92 47.18 3.53 0.69 10.784 0.000
skill
High 83 42.56
Very high 14 7.18
Very low 0 0.00
Low 2 1.03
Living
Moderate 104 53.33 3.52 0.64 11.215 0.000
condition
High 75 38.46
Very high 14 7.18
Very low 0 0.00
Low 5 2.56
Economic
Moderate 101 51.79 3.50 0.67 10.495 0.000
status
High 75 38.46
Very high 14 7.18
Social Very low 0 0.00 3.56 0.68 11.456 0.000

Low 2 1.03
Moderate 101 51.79

security
High 73 37.44
Very high 19 9.74
As per Table 7.15 shows that the level of economic empowerment in terms of the predefined
five attributes, the mean score of employment attribute is 3.6. It is 3.53 for technical skill,
3.52 for living condition, 3.50 for economic status and 3.56 for social security. In all the
attributes, the mean score is above moderate level (above 3). The highest mean score opinion
is for employment attribute. On an overall, all attributes have positive influence on economic
empowerment of individual units.
Based on the t test, all these attributes significantly influence the economic empowerment, as
the significance level for all the attribute are below 0.05.
Weighted rank method is also conducted for finding out the highest influencing
empowerment attribute. Based on the result, the highest rank got for employment attribute
(47.2) followed by social security (46.27), living condition (45.73), economic status (45.53)
and technical skill (40.6). It may be noted that the variations in the weighted average ranks
are very low indicating influence of all attributes on empowerment. So, it may be concluded
as evidenced from the above that all the identified attributes of empowerment are relevant
and almost equally influencing.
Table 7.16 Distribution of correlation between empowerment attributes of individuals
Living Social
Employme Technica conditio Economi securit
Attributes nt attribute l skill n c status y
Employment
attribute 1 .716** .538** .415** .446**
Technical skill .716** 1 .615** .510** .513**

Living condition .538** .615** 1 .672** .581**
Economic status .415** .510** .672** 1 .828**
Social security .446** .513** .581** .828** 1
Table 7.16 shows the correlation matrix of empowerment attributes of individual members
and group members. A significant correlation is seen between the different combinations of
attributes. It tempts the researcher to calculate that the empowerment attributes between
individual and group unit members do not vary significantly.
Table 7.17 Distribution of level of economic empowerment with mean score of empowerment
of group members
n % Mean SD t Sig.
very
18 1.76
low
Low 13 1.27
Employme
moderat
nt 532 52.00 3.41 0.63 21.001 0.000
e
attributes
High 451 44.09
Very
9 0.88
high
Technical very 3.37 0.69 16.872 0.000

24 2.35
skill low
Low 50 4.89
moderat
482 47.12
e
High 461 45.06
Very 6 0.59
high
very
4 0.39
low
Low 28 2.74
Living moderat
386 37.73 3.56 0.58 30.935 0.000
condition e
High 597 58.36
Very
8 0.78
high
very
4 0.39
low
Low 11 1.08
Economic moderat
540 52.79 3.45 0.55 25.773 0.000
status e
High 461 45.06
Very
7 0.68
high
very
4 0.39
low
Low 18 1.76
Social moderat
509 49.76 3.46 0.56 26.148 0.000
security e
High 487 47.61
Very
5 0.49
high

Table 7.17 reveals the economic empowerment attributes of group members. Here also, the
mean score is above 3 in all attributes and the level of significance is below 0.05. So, it is
concluded that, there is significant difference in the level of economic empowerment.
The highest mean score for group units is for living condition (3.56), followed by, social
security (3.46), economic status (3.45), employment attributes (3.41) and technical skill
(3.37) On an overall, all attributes have positive influence on economic empowerment of
group units.
Based on the t test, all these attributes are significantly influence the economic
empowerment, as the significance level for all the attribute are below 0.05.
empowerment attribute. Based on the result, the highest rank got for living condition (243.1),
followed by social status (236), economic status (235), employment attribute (232.6) and
Technical skill (230.2).
Table 7.18 Distribution of correlation between empowerment attributes of group units
Employment Technical Entrepreneuri Living Economic

Attributes
attributes skill al skill condition status
Employment
1 .098** .186** .097** .087**
attributes
Technical skill .098** 1 .226** 0.007 .073*
Entrepreneurial
.186** .226** 1 .124** .129**
skill
Living
.097** 0.007 .124** 1 .622**
condition
Economic
.087** .073* .129** .622** 1
status

As per table 7.18, it can be seen that, all economic empowerment attributes are highly
correlated, except between economic status and technical skill of group units.
For testing the hypothesis, the variables, income, savings, nature of dwelling house and
amenities of the respondents before and after starting the units were used with appropriate
statistical tools. The result of the analysis indicates that, income, savings and amenities have
significantly improved after starting the unit in both type of members of the unit. In addition
to this, respondents were asked about the level of empowerment attained after starting the
unit. According to their opinion, they have attained empowerment in various attributes such
as, employment attributes, technical skills, living condition, economic status and social
security. It is seen from the result that the mean score of all the attributes were above 3 in
group and individual unit members. The level of empowerment of all the attributes are
significant as the level of significance in all cases are below 0.05.
From the above result, it is evident that the respondents attained economic empowerment
after starting the unit. All the variables taken for measuring the empowerment were found to
be low before establishing the unit and have significantly improved after starting the unit.
Hence, the result rejects the null hypothesis that there is no significant difference in the
economic empowerment of the of Kudumbashree micro entrepreneurs before and after
establishing the unit and accept the alternative hypothesis as there is significant difference in
the economic empowerment of the Kudumbashree micro entrepreneurs before and after
starting the units.
7.9. Canonical correlation analysis
In order to know the nature of relationship of empowerment attributes of individual unit

members and that of group unit members, a canonical correlation analysis is also performed.
Table 7.19 Distribution of raw canonical coefficients for dependent variables
Variable 1 2 3 4 5
B21EAs 1.42066 -.03447 -1.46523 .85740 -1.04858
B21TSs -.91341 -.07502 .68973 1.06641 1.66447
B21LCs -1.70549 -.73751 -.45968 -.58360 -1.22841

B21ESs .31229 2.87492 .24982 .46993 -.25613
B21SSs .76938 -2.15484 1.32280 -.34430 -.32091
The relationship of empowerment attributes of individual unit members with each of the
attributes of group members by holding other attributes constants are showed by Table 7.19.
Table 7.20 Distribution correlations between covariates and canonical variables
Covariate 1 2 3 4 5
EmAtrI -.83723 -.34150 -.28774 -.25808 .18175
Tskill -.03748 -.61981 -.77624 -.01936 -.10725
EntSkil -.04988 -.55617 -.33488 -.02565 .75854
Lcondi .01177 .45109 -.73438 .31383 .39821
EcoStat .15389 .38543 -.71632 -.42186 .36971
Similarly, the relationship of empowerment attributes of group members with the

corresponding attributes of individual members holding another attributes constant are
shown I table 7.20
Both shows almost similar relationship leading to a conclusion that the influence of
empowerment variables in individual and group units are the same. The analysis of the
magnitude of relative importance of the variables are not attempted.
Chapter Summary
The women got freedom of work and favourable working atmosphere especially group
activity and they enjoy the division of labour. They got the freedom to spend the money or
purchase the things according to their will and wish. They came out of the kitchens and
developed a positive attitude towards the society.
Economic empowerment is measured by using variable like, monthly income, monthly

savings, borrowings from formal and informal source, nature and ownership of dwelling
house, amenities in house etc. reveals a considerable improvement in the economic status
after joining the micro enterprises. Hence, the hypothesis framed for testing chi square is:
Ho; There is no significant difference in economic improvement of Kudumbashree micro
enterprises during pre-and post-formation periods of units.
As in the case of income there is significant increase in the income after starting the units.
Analysis with respect to the opinion score of the shift in income after joining the units,
reveals that, there is tremendous increase in the income level, which is high in group units
than individual units. The mean score opinion was 3.95 in individual units and 4.50 in group
units. Based on the t test, the result sustained a significant difference in the mean sore of
individual and group units.
As regards savings, there is significant difference in the mean savings of the respondents after
starting the units with 1571.13. The result of t test shows that, there is significant difference
in savings as the p value is less than 0.05. There is an increase in the members having bank
accounts after starting the units. This shows that the improvement in savings habit both in
individual and group units. It is a sign of economic empowerment.
The respondents also opined about getting the awareness of the prioritization of the savings.
Chi square test is applying for testing the significant difference with respect to the mode of
investment between individual and group units. The null hypothesis is rejected and accepted
the alternative hypothesis that, there is significant difference between individual and group
units with respect to mode of savings after starting the units.
In the case of borrowings, the number of respondents approaching to moneylenders are less,
but the influence with respect to amount of borrowings is high in individual units. T test was
conducted for analyzing the significant difference with respect to the amount of loan taken
from informal sources before and after starting the units. The test accepts the null hypothesis
that there is no significant difference in the amount of loan taken from informal sources
before and after starting the unit. Moreover, there is substantial reduction in availing loans
from informal sources by individual units, which shows the economic empowerment of micro
entrepreneurs. As regards group units, they are not availed loans from informal sources after
joining the units. They depend only on banks for their financial requirements. Depending
only on formal source for monitory requirements is considered as a safer side of cash
management.
Another variable for testing economic empowerment is the dwelling house, its nature and
ownership. There is considerable increase in the owned house of individual and the number
of concrete house also increased after joining the unit in case of both type of units. The result
of chi square accepts the null hypothesis that, there is no significant difference in the nature
of dwelling house before and after starting the units of individual entrepreneurs. In the case
of nature of ownership of dwelling house also, the null hypothesis is accepted, that there no is
significant difference in the nature of ownership of dwelling house before and after joining
the unit. As regards the of group units also the number of owned house and the number of
concrete houses increased tremendously. Also, for chi square test, the null hypothesis is
accepted as regards the nature of ownership. There is no significant difference in the nature
of dwelling house before and after starting the unit. As regards the ownership of dwelling
house also, the chi square test accepts the null hypothesis. There is no significant difference
in the ownership of dwelling house before and after starting the unit.
In the case of amenities, all amenities increased after starting the unit. From the analysis,
with chi square, there is significant increase in the amenities after starting the units as the
significance level is below 0.05. It is concluded that the level of empowerment increased
with regard to the amenities after starting the unit of individuals.
All amenities except cooking gas and other household articles, there is an increase in
amenities of group unit members. Based on the chi square test result, it is seen that, there is
significant increase in the amenities of members after joining the unit, as the level of
significance is below 0.05. It is concluded that there is economic empowerment with regard
to amenities.
For measuring the level of economic empowerment, the mean score opinion of employment
attribute is highest in individual units and for technical skill in group units. The result of t
test shows that all attributes are significantly influence the economic empowerment of both
types of units.
Weighted average rank is conducted for finding out the highest influencing attribute to
economic empowerment of micro entrepreneurs. First rank got for economic status in the
case of individual units and for group units, it is for technical skill.

empowerment variables in individual and group units are the same.
REFERENCES
Baghel, D., & Shrivastava, D. (November (2015)). Role of Self Help Groups in Socio-
Economic Development of Rural Women: A Study on Durg District of Chhattisgarh. Excel
International Journal of Multidisciplinary Management Studiesvol.5 (11), 1-23
Borbora, S., & Mahanta, R. (2001). Micro finance through self-help groups and its impact: A
case of Rashtriya Gramin Vikas Nidhi-credit and saving programme in Assam. Indian
Journal of Agricultural Economics, 56(3), 449.
Mayoux, L. (1999). Questioning virtuous spirals: micro-finance and women's empowerment

in Africa. Journal of international development, 11(7), 957.
Saroj, L., & Singh, C. S. (November (2015)). Women Empowerment Through Microfinance
(Shgs): A Study of Ajmer. International Research Journal of Social Science. 4(11), 1-6.
Shettar, D. (. ((Apr. 2015)). A Study on Issues and Challenges of Women Empowerment in

India. Iosr Journal of Business and Management (Iosr-Jbm) Volume 17, Issue 4.Ver. I, 13-19
Vasanthakumari, P. (2011). Progress and performance of SHG affiliated micro enterprises in

india and its impact on women empowerment with focus on Kerala. international journal of
micro finance, 141.
CHAPTER VIII
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS
Introduction
8. 1 Significance of the study

8.2. Objectives of the study
8.3. Hypothesis
8.4. Findings of the study
8.5. Performance evaluation

8.6. Determinants of profitability variables
8.7. Productivity
8.8. Determinants of productivity
8.9. Loan repayment
8.10. Comparison of performance of individual and group enterprises
8.11 Constraints in raising capital, marketing of products and services

8.13 Economic empowerment of micro entrepreneurs

8.15. Suggestions and recommendations
8.16. Conclusion
8.17. Scope for further research
8.18. Articles published

INTRODUCTION
Poverty is a crucial problem for all developing and underdeveloped countries. The South
Indian state of ‘Kerala’ has long been held up as a model of development. Inspired by the
innovations in participatory development in the early and mid-1990s, the Government of
Kerala, initiated “Kudumbashree” in 1998 to alleviate poverty in the state by 2008 by
empowering women through collective action. The Government of Kerala State in India has
introduced a novel scheme of poverty eradication based on micro finance namely
“Kudumbashree”. The scheme aims at improving the living levels of poor women in rural
and urban areas. The projects aim at removing poverty among rural women households
through setting up of micro credit and micro enterprises. The programme has been found
very effective, since the women got involved with the activities who were home bound earlier
and were not able to interact with outsiders are found to be more confident, articulate and
decision makers.
Micro Enterprise Development is a means for empowering women, especially economic

empowerment. These Micro Enterprises are carried out on a group as well as individual basis
at the rural and urban area in all districts of Kerala. Micro Enterprises open up opportunities
for risk taking, decision taking, problem solving and management of production, marketing
and earning profit. The sum total of all these meaningful activities is the enrichment of the
personality of the women leading to their empowerment and self-employment. In this
research work, an effort is made to study the performance of Kudumbashree Micro
Enterprises and to what extent the women entrepreneurs became economically empowered.
Also tries to compare the performance of individual and group Kudumbashree micro
enterprises.
8. 1 Significance of the study
A micro-enterprise, the creation of which is assisted through micro-credit and functioned by a

group of women belonging to SHGs, may perform differently from normal small business
enterprises. The micro-enterprise which is maintained and functioned by women belonging to
SHGs is different, and there is an absence of appropriate research about the working of such
micro enterprises. Thus, the study chose those microenterprises sponsored under
Kudumbashree.
However, it was witnessed that objective research studies associated with the influence of
the Kudumbashree project especially focusing on the performance of Kudumbashree
microenterprises in Kerala state are more or less very small in number. This has stimulated
the researcher to choose this topic for the study. The importance of the research will
produce new evidence and new visions, as to how far it has contributed to the development
of the poor women in Kerala state. It may also help the authorities and policy framers to
generalize and gain deep understanding into the pros and cons of its execution. Leveraging
the new understandings so gained, the defects, shortfalls and shortages wherever exists can
be successfully remedied.
8.2. Objectives of the study
1. To assess the socio-economic profile of women micro entrepreneurs under

Kudumbashree.
2. To evaluate the performance of Kudumbashree microenterprises on sector wise

(Agricultural, Industrial, and Service) in terms of profitability, productivity and loan
repayment rate.
3. To compare the performance of individual and group Kudumbashree micro

enterprises on sector wise in relation to profitability, productivity and loan repayment rate.
4. To study the extent of economic empowerment of micro entrepreneurs through

Kudumbashree.
8.3. Hypotheses
1. There is no significant difference in the profitability of units on sector wise
2. There is no significant difference in the productivity of units on sector wise
3. There is no significant difference in the loan repayment status of the units in three
sectors
4. There is no significant difference in the performance of individual micro enterprises

and group micro enterprises with respect to profitability, productivity and loan repayment
rate.
5. There is no significant difference in the economic empowerment of Kudumbashree

micro entrepreneurs before and after establishing the units.
8.4. Findings of the study
Findings of the study is presented under four major heads: -
1. Demographic profile
2. Economic and financial profile of Kudumbashree Micro Entrepreneurs
3. Comparison of the performance of individual and group Kudumbashree micro

enterprises
4. Economic Empowerment of Kudumbashree Micro Entrepreneurs
8.4.1. Demographic profile
1. To assess the demographic profile of women micro entrepreneurs under

Kudumbashree.
Demographic profile of the respondents was analysed in sections, such as, personal
background and family background. Respondents were taken from individual and group
units. Personal background includes details such as, age, marital status, education and place
of residence. While the family back ground is analysed with respect to lead of household,
nature of family, size of family, religion and community.
8.4.2. Personal Background
Majority of the respondents of individual and group units belongs to an age group of 30-39.
The chi square result accepts the null hypothesis, as there is no significant difference between
individual and group units with respect to age. Most of the respondents in both type of
business is married with an education level of plus two and below. The modal education
level is S.S.L.C. in both type of units. Based on the chi square test, the null hypothesis is
rejected, so there is significant association between both type of units with respect to
educational qualification.
As regards the place of residence, highest percentage of members in both cases were living in
rural area. Chi square test reject null hypothesis, as there is no significant difference between
individual and group units with respect to place of residence.
8.4.3. Family Background

Majority of the sample respondents in both cases were from nuclear family. It is 60 percent
in case of individuals and 82.1 percent in group units. The result of chi square, reject the null
hypothesis, as there is no significant difference between individual and group units with
respect to the nature of family. Hindus constitute majority in both individual and group units.
It is 57.90 percent in individual units and 72.04 percent in group units. Chi square test rejects
the null hypothesis as there is no significant difference in individual and group units with
respect to religion. In the case of individual units, the highest percent of respondents belongs
to OBC category (57.90%). While in group units’, general category respondents are highest.
8.5. Performance evaluation
11. To evaluate the performance of Kudumbashree microenterprises on sector wise

(Agricultural, Industrial, and Service) in terms of profitability, productivity and loan
repayment rate.
The implications of business profile of respondents on financial performance, exerts a

decisive role in determining the empowerment status of any individual especially women.
Hence, the business profile of the respondents was analysed. The performance of
Kudumbashree micro enterprises are measured in three angles, such as, Profitability,
productivity and loan repayment rate.
8.5.1. Business Profile
Business profile provides details regarding the Zone, nature of business, location, year of
establishment, origin of business, nature of ownership, place of business, earnings,
management and details regarding the number of working days per month. It also covers the
reasons for joining to Kudumbashree micro enterprises and the type of work engaged in by
the respondents before joining to these units.
The number of respondents were selected equally from three regions, such as, north, central
and south. From each zone 65 number of respondents from individual units and group units
were selected. Thus, total of 195 units from individual and 195 from group units. The total
number of members in group unit consists of 1023.
About 49.23 percent respondents were engaged in industrial sector and it is the highest
percentage in the case of individual units whereas, it is 46.67 percent in group units. In both
cases the highest percent of units are in industrial sector. Based on the Chi square test, the
null hypothesis is fails to be rejected, as there is no significant difference between the
individual and group units with respect to nature of business. Based on the result, the
calculated value is (2.12) is less than the table value (5.991).
As regards the type of work engaged before joining the unit, 63.59 percent of respondents are
house wives, in case of individual unit and in group units, it is 85.64 percent. From the Chi
square test, it is seen that, the calculated value of chi square is (3.6) is less than the table
value (9.488). Thus, the null hypothesis is fails to be rejected. There is no significant
difference between individual unit and group units with respect to previous occupation of the
respondents is accepted
Majority of the respondents in individual and group units expressed the first reason for
joining the units is less education. About 53.85 percent of the individual micro units are
situated in urban area, but in group units, 49.23 percent were in rural areas. It was identified
that 70.26 percent of individual units are established after the year 2010, whereas it was 65.13
percent in the case of group units. About 94.87 percent micro units are newly started, in
individual units and in group units, 97.44 percent units are newly started.
For finding out the purpose of starting the micro unit, 1st rank is given for family commitment
and 5th rank was given for social status in the case of individual units. While this is not the
case with group units. They rank 1st for social status and 5th rank for getting loans. The
highest mean score opinion of individual unit is 4.22 and group is 3.42.
The spread of average working hours is in between 6.93 and 4.71 hours in individual units,
whereas it is 6.91 and 5.29 hours in group units, on an average works for 5-7 hours per day.
ANOVA test, reject the null hypothesis, as the calculated value is 11.68 against the critical
value of 4.54. There is significant difference between the mean of the activity hours of
individual and group units.
About 57.95 percent of individual units have owned building for their business. Same is the
case with group units, that is, the highest percent of 51.95 percent were in owned building.
Based on the ᵪ2 test, the null hypothesis is that, Ho: there is no significant difference between
individual and group enterprises with respect to the nature of ownership of building. The
calculated value is 1.5 which is less than the critical value of 3.841. The null hypothesis is
failed to be rejected.
About 53.66 percent individual units are paying rent below Rs.1000. In case of group units
40.43 is the highest percent of units paying rent below Rs.1000. Chi square result shows
that, against the calculated value of 0.85, the critical value is 5.991. Thus, the null hypothesis
is fails to be rejected as there is no significant difference between individual and group unit
with respect to the amount of rent.
About 52.82 percent respondents in individual units are in the income group of 4000-6000,
While in group un it’s the highest percent of respondents were under income group of 6000-
8000 (38.46). Chi square test is conducted for finding out the significance of income
between individual and group units. The null hypothesis fixed is that Ho: there is no
significant difference between individual and group units with respect to monthly income. As
the calculated value is less than3.6 the critical value of 9.488. The null hypothesis is failed to
be rejected.
About 90.30 percent individual business units were managed by the respondents themselves
in individual units. Whereas, in group units, all units are jointly managed by the members.
About 40.50 percent individual units were doing their activities for 21 to 25 days, and in
group ,48.72 percent units were average working days in a month between 21 to 25. As per
the ANOVA test, the null hypothesis is that, Ho: There is no significant difference in the
mean value of two types of units, with respect to the average working days in a month. The
null hypothesis is failed to be rejected that the calculated value is zero which is less than the
table value of 5.99.
Mean drop out is higher in the case of group units having members above 10, which was
2.70. Drop out is less in case of units having members up to 5.
In case of group units, the mean of total asset is 192022.61 and the SD is 508504.20. As
compared with individual units, it is higher in group units. The mean of total liability is
33057.33 and SD is 80830.00.
Pearson's correlation is calculated for finding out the correlation between assets and labilities
of both individual and group units. In the case of individual units, the value of correlation is
0.332 (0.000), which means the variables have a moderate positive correlation, and the
correlation is significant as the significance level of correlation is below 0.05.
In group units, the value of correlation is 0.464(0.000), which indicates that there is strong
positive relationship is there between the variables and the relationship is also significant as
the significance level is below 0.05.
The result of testing relationship between assets of both units , the null hypothesis fixed as,
H0; There is no significant relationship between the asset structure of individual and group
units. The result shows that except in the case of cash and bank balance there is significant
relationship between assets of both units. . Thus, null hypothesis is rejected.
As regards liabilities, the null hypothesis is fixed as, H0: There is no significant relationship
between individual and group units with respect to liabilities. The result, fails to reject the
null hypothesis, as the significance level is above 0.05.
8.5.2. Data of Financial Statements
Highest percent of (36.90 percent) individual units were under the net profit bracket below
Rs. 20,000. About 74 units, (37.95) which is highest among the total were earned net profit
between 40,000 and 1,00,000 in group units. In group unit’s, 4.62 percent units were at loss,
only 2.60 percent units were running on loss in individual units. As per the result of ᵪ 2 test,
the null hypothesis fixed is that Ho: There is no significant difference between individual and
group units with respect to net profit or loss. The calculated value is less than (3.34) the
critical value of 9.488. so, the null hypothesis is failed to be rejected.
In individual units, the mean and SD of net profit or loss was 44532.56 and 78465.93
correspondingly. The minimum and maximum of net profit falls as net loss of Rs.25000 and
Rs. 886700. The spread of total income of group units is in between 4,19,804.57 and
19,784.70. So, it may be stated that the units on an average income of 2,19,794.63, which is
substantially a moderate income for the unit.
The spread of project cost of individual unit is in between 2,14,712.49 and 9,894.69. Thus,
the average project cost is 2,24,607.18. The spread of project cost in the case of group unit
is in between 3,94,676.35 and 42,254.46. Hence, the average cost is 2,18,465.38. The mean
project cost is higher in group as compared to individual units as compared to group units.
The result of ᵪ2 test shows, the null hypothesis is fails to be rejected that, there is no
significant difference between individual and group units with respect to the project cost, as
the calculated value is 2.21 as against the critical value of 7.815.
The mean amount of initial investment is higher in group units with Rs.217541.03, whereas it
is 111803.59 in individual units. Individual units are made additional investment more than
group units.
About 39 percent of the units were the sales between 50,000 and Rs.1,00,000 in previous
year, in individual units. During the current year 45.60 percent of the sample units were the
sales between the range of Rs.50, 000 and Rs.1, 00,000. The current year sales were higher
than the sales of previous year. This was shown as a sign of increase in the performance of
the micro units.
About 59 (30.29 percent) units were earned sales above 200000, which is more or less the
same as that of mean sale in the previous year of group units. In the current year 79 units,
that is, 40.51 percent units earned sales up to mean sales. The position is better in current
year with increased mean sales.
8.5.3. Profitability Profile
For the purpose of finding out the profitability, three types of profitability ratios, such as
Return on asset, Return on Investment and profitability margin ratio are used. Following
equations are used for finding out the ratios. Profits taken for all these purposes are,
including notional wages of the owners.
Profit
ROA=
TotalAsset
Profit
ROI=
TotalInvestment
Profit
PMR=
Total Sales
8.5.4. Sector wise variation of profitability variables
Individual units
Mean score of Return on Asset is highest in Agricultural sector in individual units with 1.479.
While Return on Investment is highest in industrial sector. The mean score of Return on
Investment is more or less same in agriculture and industrial units, which is, 0.426 and 0.489
respectively. The mean score of Profit Margin Ratio is highest in agriculture sector with
0.362. Mean score on all profitability variables except Return on Investment is highest in
agriculture sector. So, it is concluded that overall profitability is higher in agriculture sector
among these three sectors.
Group units
The mean score of Return on Asset is highest in case of group units is in service sector with
2.570. While the mean score of Profit Margin Ratio and Return on Investment is highest in
industrial sector with 0.530 and 0.4000 respectively. On an overall assessment of profitability
variables, agriculture sector is with least mean score on all variables.
8.5.5. Profitability ratios of different sectors of Kudumbashree individual Micro

enterprises (Testing Hypothesis)
Return on Asset is not varying on sector wise as the significance level is higher than 0.05.
The same is the result with Profit Margin Ratio as the significance level is 0.092, which is
higher than 0.05. In the case of profitability measurement with Return on Investment, there is
sector wise variation as significance is 0.042 and profitability is very less (0.289) in service
sector as compared to agriculture and industrial sector. One of the profitability ratio vary
significantly with respect to sector. Hence, the result rejects null hypothesis that there is no
significant difference in the profitability on sector wise.
8.5.6. profitability ratios of different sectors of Kudumbashree group Micro enterprises

(Testing of Hypothesis)
All profitability ratios are not varying on sector wise as the significance level is higher than
0.05. The result indicates that all profitability has no significance with respect to sector.
Hence, the result fails to reject null hypothesis that there is no significant difference in the
profitability on sector wise.
8.6. Determinants of Profitability variables
Productivity is the efficiency with which firms convert inputs (labor, capital, raw material)
into output. Productivity grows when output grows faster than inputs, which makes the
existing inputs more productively efficient. Productivity does not reflect how much we value
the output – it only measures how efficiently use our resources to produce them. The
generation and application of technological and organizational knowledge (innovation) are
the main drivers of firm level productivity growth
8.6.1 Determinants of ROA

The most influencing determinants of Return on Asset are location of the unit, its year of
establishment, level of income, expenditure and liability. To find out the effect of location,
year of inception, income, expenditure and liability on Return on Asset, a multiple regression
model is fitted separately for three sectors, such as, Agriculture sector, Industrial sector and
Service sector.
Individual units
Return on Asset is not significantly related to any selected predictor variables in agriculture
sector as the significance level is greater than 0.05. In industrial sector, the most important
determinant of Return on Asset is income followed by expenditure, year of establishment and
their level of liability, as the significance level is less than 0.05. Only one predictor variable,
that is liability have significant effect on the Return on Asset of the service sector. The R
square of the regression equation of industrial sector is 0.301, which indicates that 30.1
percent variation in the Return on Asset is determined by the selected predictor variables.
Return on Asset of industrial sector is not varying significantly with respect to location of
Kudumbashree micro units. The other variables significantly influence ROA within the
limited explanatory power controlled by extraneous variables.
Return on Asset is significantly higher among recently established Kudumbashree industrial

units and also the units which are having comparatively higher income.
Among the four significant predictors of Return on Asset, the impact of income and
expenditure are crucial on Return on Asset of industrial units as absolute value of the
regression coefficient are highest compared to other two variables.
The regression coefficient of the variable liability is negative, which indicates that, with the
increase in the amount of liability, the Return on Asset of the service sector decreases.
Group units
The Return on Asset is significantly related to the selected predictor variables in all sectors as
the significance level is less than 0.05, in group units. Predictor variables such as income and
expenditure have significant effect on Return on Asset as the significance levels related to
their regression coefficients are less than 0.05 in agriculture sector, while in industrial sector,
in addition to income and expenditure, liability have significant effect. The same is the
position in service sector. Return on Asset is significantly higher in all sectors which are
having comparatively higher income. At the same time the regression coefficient of it
expenditure is negative in all sectors, indicates that as the expenditure of the unit increase, the
Return on Asset significantly decreases. The most important determinant of Return on Asset
in Kudumbashree unit is income.
The variable, liability is having significant effect on Return on Asset, as its significance level
is less than 0.05 in industrial and service sector. So, it is concluded that, only two predictor
variables, that is income and expenditure have effect on the Return on Asset of all sectors.
8.6.2. Determinants of Return on Investment (ROI)
Individual units
Return on Investment is not significantly related to the selected predictor variables in

agriculture sector as the significance level is greater than 0.05. In industrial and service
sectors Return on Investment was significantly related to the predictor variables as the
significance level is less than 0.05. Return on Investment of industrial sector is not varying
significantly with respect to liability of Kudumbashree individual micro units.
Among the four significant predictor variables of Return on Investment, the impact of
expenditure is vital on Return on Investment of industrial units as absolute value of the
regression coefficient are highest compared to other three variables.
All predictor variables except liability have significant effect on Return on Investment as the
significance levels related to their regression coefficients are less than 0.05 in service sector
and industrial sector.
Group units
Return on Investment is not significantly related to the selected predictor variables in

industrial sector as the significance level is greater than 0.05. In Agricultural and service
sectors, Return on Investment was significantly related to the predictor variables as the
significance level is less than 0.05. Return on Investment of Agriculture sector is varying
significantly with respect to these variables in Kudumbashree group micro units.
Return on Investment is significantly higher among Kudumbashree Agricultural group units

which are having comparatively higher income. The most important determinant of Return on
Investment in Kudumbashree Agricultural unit is income. In industrial sector, only
determinant of Return on Investment is income, as its significance level is less than 0.05.Year
of establishment, income and expenditure have significant effect on Return on Investment of
service sector as the significant level is below 0.05
8.6.3. Determinants of Profit Margins
Individual units
Profit Margin Ratio is significantly related to the selected predictor variables in all sectors as
the significance level is less than 0.05. The predictor variables, income and expenditure have
significant effect on Profit Margin Ratio in all sectors as their significance level less than
0.05. Income and expenditure has more or less same effect on profit in all three sectors.
Group units
Profit Margin Ratio is significantly related to the selected predictor variables in all sectors as
the significance level is less than 0.05. The predictor variables, income and expenditure have
significant effect on Profit Margin Ratio in all sectors as their regression coefficients are less
than 0.05. In agriculture sector, liability also have significant effect.
8.7. Productivity
Material and labour productivity is considered for studying productivity of micro units.
Material productivity is measured by comparing total sales with material consumed for such
production. Labour productivity is measured by comparing total sales with wages.
8.7.1. Material productivity
In the case of individual units 58 units are with material productivity of above the mean
productivity of 3.27 and in group units, it is 61 units, which is higher than individual units.
The calculated value of chi square is 5.83, which is lower than the critical value of 9.488.
Hence, the null hypothesis is fails to be rejected as there is no significant difference between
individual and group units with respect to the material productivity.
The mean of material productivity is higher in group units than individual units.
8.7.2. Labour Productivity
The labour productivity was calculated based on the ratio of output to wages and salaries.
Individual units the mean productivity is 14.37, which is less than group units. Whereas in
group the mean of labour productivity is 15.12.
For testing the association between individual and group units with respect to the labour
productivity, chi square test was conducted. The calculated value is 14.19 against the critical
value of 9.488, the null hypothesis is rejected as there is no difference between individual and
group units with respect to labour productivity.
8.8. Determinants of Productivity
Two separate regression models were fitted, one for material productivity and the other for
labour productivity. Productivity was taken as dependent variable and age of respondent,
education, location of the unit, working hours in a day, working days in a month and year of
establishment were taken as independent variables. In order to extract the significant
determinant of material and labour productivity, multiple regression with backward selection
method is adopted.
8.8.1. Determinants of Material Productivity
Individual units
The significance level related to the regression model is less than 0.05, which indicate that
the final regression model can be used to explain the variation in the material productivity of
the units by age, education and working hours per day. The backward selection eliminated
all other insignificant independent variables.
Material productivity of the units run by individual micro entrepreneurs of age between 40
and 49 have significantly higher compared by units run by other age groups. The material
productivity is significantly lower among units run by less educated entrepreneurs. The
material productivity of the unit is directly related to the educational level of the
entrepreneurs. The working hours per day is also found to be positively related to material
productivity of the units. Age, education and working hours are the significant determinants
of these micro enterprises. In nutshell, the material productivity is high among the units run
by well-educated entrepreneurs in the middle-aged group.
Group units
Material productivity is significantly high in Industrial units. The nature of business is the
only determinant of material productivity in case of group Kudumbashree micro enterprises.
8.8.2. Determinants of Labour Productivity
Individual units
Level of education of the entrepreneurs and nature of business (sector) are the significant
determinants of labour productivity of individual micro enterprises. The location of the unit,
its year of establishment and age has no significant effect on the level of labour productivity
of the Kudumbahree individual micro enterprises
Group units
The location of the unit and age has no significant effect on the level of labour productivity of
the Kudumbahree group micro enterprises. Year of establishment and nature of business are
the significant determinants of group micro enterprises. The backward selection method
selected, Y2(Year of establishment between 2006 and 2010) and S1 (Agriculture sector) for
the final regression model in spite of significance level greater than 0.05, because of its
importance in determining labour productivity.
8.8.3. Mean material and labour productivity by sector in individual units
There is no significant difference in the material productivity of the units in three sectors, as
its significance level is higher than 0.05. As in the case of labour productivity, there is very
much variation between three sectors. There is significant difference in the labour
productivity between three sectors, as its significance level is less than 0.05. There is
significant difference in the overall productivity of three sectors of Kudumbashree individual
micro units. So, the null hypothesis is rejected.
8.8.4. Mean material and labour productivity by sector in group units
There is significant difference in the material productivity of the units in three sectors, as its
significance level is less than 0.05. It is higher in industrial sector with value 5.37. There is
also significant difference in the labour productivity between three sectors, as its significance
level is less than 0.05. So, the null hypothesis is rejected.
8.9. Loan repayment
There is much relationship between financial performance and loan repayment capacity. So
the examines the extent by which they are capable of making repayment of the loan taken and
also explain the loan repayment status. About 84.10 percent units were taken loans for their
income generating activities in individual units and 80 percent in group units. Most of the
units availed their loans both in individual and group units from banks. 71.30 percent units in
individual and 93.60 percent in group units were availed their loan directly from bank.
For testing any association between individual and group units with respect to the type of
loan taken, Chi-square test was used. Based on the calculated value (7.48) against critical
value (5.991), the null hypothesis is rejected. There is no significant difference between both
units with respect to the type of loan taken.
Only 19 members were availed loan before starting the unit for income generation purpose in
the case of individual units. Among them 12 were availed only for one time and they
represent 63.16 percent of the total. The mean amount of total loan and last loan were the
same as Rs.6000. The percentage of repayment status of last outstanding loan were, that,
36.84 percent of the members such as 7 members repaid more than 90 percent of the loan
amount and 6 members, were repaid 70 percent to 90 percent and less than 70 percent of their
loans by the remaining 6 respondents.
About 156 respondents were availed loans after starting their units for income generation
purpose in the case of individual units. Among them 113 respondents, such as 72.44 percent,
were availed loan for only one time. 41 percent units that is 10 units were repaid more than
90 percent of their last outstanding loan. 47 units repaid their outstanding loan amount in
between 70 percent and 90 percent. 63.46 percent units were repaid their loan below 70
percent. 99 units were under this category.
In case of income generation loan taken by the group units after establishing the units, 156
units availed, and 109 units were repaid below 70 percent of their loans and 7 units repaid
more than 90 percent of their loans taken.
Total 5 units availed consumption loan before starting the unit by the individual units.
Among the 5, 4 were availed loan only for one time and the remaining one unit taken 3 times.
The mean amount of total and last loan availed for the 4 units were the same as Rs. 1250.
Only one unit was taken consumption loan after starting the unit.
The other purpose loan was availed by only one respondent before starting the unit once.
Two respondents were availed loans after starting their units. The repayment status for one
unit was in between 70 percent and 90 percent and for the other, it was less than 70 percent.
As regards group units, only 12 units availed loans for consumption purpose after starting
units, and 4 units are with repayment status of below 70 percent. 7 units repaid up to 90%.
A total of 25 respondents were taken loan before starting the unit and 159 were taken loan
after starting the unit from various sources. 20 respondents availed loans directly from
bank ,12 percent of the respondents which constitute 3 respondents taken loan from
NGO/CDS loans. In the case of loans after starting the unit, 85.50 percent respondents, that
is 136 numbers, availed loans directly from bank. 119 units got subsidy.
For finding out the difference in the source of loan taken by individual and group units before
and after starting the unit chi square test was conducted, based on the result the null
hypothesis is failed to be rejected, as the calculated value is 0.633 and the critical value is
5.991 which is higher. There is no significant difference in the source of loan taken by
individual units before and after starting the unit.
Out of 146 units taken loan from banks, 117 units got subsidy for their loans in the case of
group units.
Among 162 total individual respondents taken loan ,146 do not defaulted forming 94.40
percent. Only 16 respondents that is 9.88 percent were made default, while in the case of
group units, out of 156 units availed loans, 21 were made default for repayment.
As regards the status of default on sector wise in individual units, the default rate is the
highest in the agricultural sector. As chi-square statistics falls below the significance level of
5 percent, the null hypotheses of existence of similarity among units is rejected. There is
significant difference with respect to default existed among the three sectors.
For the purpose of finding out the effect of independent variables on defaulters, three such
variables as, year of establishment, nature of business and amount of loan are taken.
Possibility of default is higher in agriculture sector as the regression coefficient of dummy
variable representing agricultural sector is positive value of 2.188 and the significance level is
0.028 which is less than 0.05.
In the case of group units, the sector wise default rate is the highest in service sector. As chi-
square statistics falls above the significance level of 5 percent, the null hypotheses of
existence of similarity among units is accepted. There is no significant difference with
respect to default existed among the three sectors. Backward selection method eliminated all
the independent variable from the regression analysis because of the fact that the significance
level of regression coefficients is greater than 0.05. It can be inferred that year of
establishment, sector and amount of loan are not significantly affect the status of default of
loan, in the case of group units.
8.10. Comparison of performance of Individual and Group enterprises
111. To compare the performance of individual and group Kudumbashree micro

enterprises on sector wise in relation to profitability, productivity and loan repayment
rate.
Logistic regression was computed for comparing the performance of individual and group
units. Dummy variable representing, Type of unit, was taken as dependent variable, and
Return on asset, Return on Investment, Profit Margin Ratio, Labour Productivity, Material
Productivity and status of default of loan were taken as independent variables.
Conditional backward selection method was adopted for computation. The backward
selection method eliminated 4 insignificant independent variables from the final regression
equation. The eliminated variables are Return on investment, Labour productivity, Material
productivity, Status of default of loan repayment.
Only, Return on asset and Profit Margin Ratio are significant independent variable. Return
on Asset is significantly higher among group units compared to individual units. The Return
on Asset in group unit is 0.233 units. Similarly, the co-efficient of Profit Margin Ratio is
negative and is equal to 1.409, which indicates that Profit Margin is significantly lower
among group units, as compared to individual units. The performance of group and
individual units are significantly different. Return on Asset is significantly higher among
group units and Profit Margin Ratio is significantly higher among individual units. Hence,
the result rejects the null hypotheses that, there is no significant difference in the performance
of individual and group units and, accept the alternate hypotheses that there is significant
difference in the performance of Kudumbashree individual and group micro enterprises.
8.11. Constraints in raising capital, marketing of products and services

Raising of capital
The mean opinion score for raising initial capital for both type of units is 3.01 and 3.02
respectively. Difficulty level for raising initial capital is more or less same in individual and
group units. The mean score opinion about raising of working capital is 2.92 in individual
units and 2.93 in group units. It is inferred that the level of difficulty in raising working
capital is moderate in both type of units.
Marketing of products and services
The mean score opinion about marketing difficulty is 3.05 and 3.01 correspondingly in
individual and group units. It is seen that, there is no difference in the difficulty level of
marketing in both individual and group units as the significance level is above 0.05
Mode of marketing the product
Based on the ranking method relating to the mode of marketing of products in individual and
group units, in both cases, first and second rank is given for the same responses by the
entrepreneurs. The first rank is given for the response, “Waiting for the customers to come to
unit and buy product” and the second rank for the response, “Having of marketing tie-up with
a better-established business/ co-operative”.
Mean satisfaction level of performance in individual units is 4.04 and 4.17 in group units
respectively. There is significant difference in the satisfaction level of individual and group
units, as the significance level is less than 0.05. The level of satisfaction is higher among
group units.
8.13. Economic empowerment of Micro entrepreneurs
Micro Enterprises play an important role in economic empowerment of women. Micro

enterprise is an effective instrument of social and economic development. It helps to generate
employment for a number of people within their own social system. This is
more beneficial for women in rural areas as it enables them to add to the family income while
taking care of their own home. The micro enterprises 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.
Microcredit is promoting the small-scale business enterprises and its major aim is to alleviate
poverty by income generating activities among women and poor. Therefore, they could
achieve self-sufficiency.
The variables used to measure the extent of economic empowerment are income, savings,
nature and ownership of dwelling house and amenities
8.13.1Measurement of economic empowerment
IV. To study the extent of economic empowerment of micro entrepreneurs through

Kudumbashree.
H0: There is no significant difference in the economic empowerment of Kudumbashree micro

entrepreneurs before and after establishing the units.
8.13.1.1. Income
Analysis is done in two parts with respect to income, such as shift in income level and change
in income based on opinion or response.
The shift in the income level is obtained for the two transitionary periods, viz, before and
after joining the units. The result of the test with respect to change in income is tested with
the null hypothesis stated below,
Ho; There is no significant difference in income before and after starting the units.
The value of the t test is near zero and therefore, the result is shown in favour of the alternate
hypothesis, that there is significant difference in the mean values before and after joining the
units
There is significant increase in the mean income after starting the unit as the significance
level is below 0.05. The mean increase in the income was 1465.41. While, it is higher in
group unit members. There is the mean increase in income of 1649.40 in group members.
The respondents were expressed the level of satisfaction in connection with the change in
income level after starting the units. The responses were framed in five-point scale, such as,
highly decreased, decreased, neutral, increased and highly increased.
Majority of the respondents, i.e.,57.44 percent expressed their attitude as to increase in
income as the income level is increased. The mean score opinion for the level of change in
income was 3.95, which indicate a clear increase in income as in the case of individual units.
In the case of group units, the members mean opinion score was high as compared with
individual entrepreneurs. It is 4.50, which is high as compared with individual unit members.
About 73.60 percent members opined that their level of income highly increased.
The t test performed for the unpaired groups also substantiated a significant difference in
means as the significance level is below 0.05. It shows that the perception towards increase
in income is more positive in case of group units rather than the individual units.
8.13.1.2. Savings
The analysis with respect to savings is being done both in direct and indirect manner. The
savings of individual and group were directly obtained from the respondents and evaluated
using statistical parameters. The indirect way used for analyzing the impact of savings is the
analysis of information using the status of bank accounts.
8.13.1.2.1Analysis of nature of savings
There is significant improvement in the mean savings of the respondents after starting the
units with 1571.13 in individual units. In group units also, there is increase in savings with
1332.73. In both cases, there is significant difference in savings towards the positive side as
per t test as the p value is below 0.05.
8.13.1.2.2. Change in the status of bank account
Out of 54 units (27.70%) having bank account before starting the units, 13 units (24.07%)
were started their account before the year 2000 and 16 units opened their account after 2010.
Still 2 units have not opened bank account in individual units. only 175 members are opened
bank account before starting the unit. It is increased to 1009 after starting the unit by the
group unit members. There is tremendous increase in the number of members having bank
accounts after starting the units.
8.13.1.2.3. Modes of investment of savings after starting the unit

About 104 units come under individual units (53.33%) were invested in chitti.. Only 13 of
them (6.67%) were saved their cash in post office. In case of group members, 66.47percent
members deposit their savings in banks.
Chi square test is applied for testing the significant difference with respect to the mode of
investment between individual and group units.
The null hypothesis is framed as;
Ho: There is no significant difference between individual and group units with respect to
mode of savings after starting the unit.
The calculated value of t test is 77.471, which is higher than the table value of 5.991. Hence,
reject the null hypothesis and accept the alternative hypothesis that, there is significant
difference between individual and group units with respect to mode of savings after starting
the unit.
8.13.1.3. Loan and borrowings
The individual members depend on the sources like, friends, relatives, money lenders and
from other sources before starting the units. Major source is from relatives, and, this source
forms 69.27 percent of total borrowings. Number of borrowers from money lenders and
other sources is very low (7.29%), but its mean and SD are high. Number of respondents
approaching money lenders are less but the influence with respect to amount of borrowing is
high.
Only 13 units were taken loans from informal sources after starting the units. The mean
amount borrowed was Rs. 20000. There is considerable reduction in availing loan from
informal sources after establishing the units by individual unit members. T test was
conducted for finding the significant difference with respect to the amount of loans taken
from informal sources before and after starting the unit. The null hypothesis is:
Ho: There is no significant difference in the amount of loan taken from informal sources
before and after starting the unit.
The calculated value of t test is -1.148 and the table value is -1.960. The calculated value is
less than the table value, the null hypothesis is failed to be rejected that, there is no significant
difference between the loan amount taken from informal source before and after starting the
unit by individual units.
8.13.1.3.1. Loans from money lenders
About 7 respondents of individual were availed loans from money lenders even after starting
their units. There is a substantial reduction in availing loans from informal sources. It is
seen that only 13 members were taken loan from informal sources
The members of group are not availed loan from informal source after joining the unit. But
they depend on formal source for their monetary requirement. Their mean loan amount
increased after joining to the unit is an evidence to this phenomenon.
Based on t test analysis, it is seen that, there is significant difference in the amount of loan
taken by the group members before and after starting the units from formal source, as the
level of significance is below 0.05. Hence the null hypothesis is rejected, as there is no
significant difference in the amount of loan taken from formal source before and after starting
the units.
8.13.1.4. Nature and ownership of dwelling house
The nature and ownership of dwelling house is considered as an important variable and the
same was investigated and presented.
Individual members.
For finding out the economic empowerment, an analysis is made for finding out, the
significant difference in ownership of dwelling house before and after starting the unit. Also
made an investigation about the type of dwelling house, whether it is tiled one, thatched, tin
sheet or a concrete one.
About 80 percent of the respondents (156 numbers) were in owned house and remaining 39
were in rented house before starting the unit. The number of owned house increased to 171
after starting the unit.
is 4.33 and the table value is 3.841. So, the null hypothesis is rejected. As regards the nature
of dwelling house also, the chi square test failed to be rejected the null hypothesis. There is
significant difference in the nature of dwelling house before and after starting the unit. The
calculated value is 15.76 against the table value of 7.815. The null hypothesis is rejected.
Group members
About 650 members are in rented house before joining the unit, which was reduced to 281
members after joining the unit. As in the case of nature of dwelling house, which is also
tremendously increased from 42 to 231 members having concrete houses after joining to the
unit. It is a positive symptom of economic empowerment of members after joining to the
unit.
is 268.47 and the table value is 3.841. So, reject the null hypothesis. As regards the nature of
dwelling house also, the chi square test rejects the null hypothesis. The calculated value is
270.32 against the table value of 7.815.
8.13.1.4. Amenities
Possession of various amenities considered as an increased level of living of the respondents.

So due care is given for amenities before and after starting the units both by individual and
group units. Amenities increased after starting the units. From the analysis, with chi square,
it is seen that, there is significant increase in the amenities after starting the units as the
significance level is below 0.05. It is concluded that the level of empowerment increased
with regard to the amenities after starting the unit of individuals.
All amenities except cooking gas and other household articles, there is an increase in group
unit members. Based on the chi square test result, it is seen that, there is significant increase
in the amenities of members after joining the unit, as the level of significance is below 0.05.
It is concluded that there is economic empowerment with regard to amenities.
8.14. Economic empowerment attributes
Economic empowerment attributes are measured on five major levels, such as, employment
attributes, technical skills, living condition, economic status and social security. Ranks are
assigned for various level of empowerment. Level of empowerment is classified as Very
low, Low, Moderate, High and Very high and rank 1 for very high and 5 for very low.
Individual Entrepreneurs
The level of economic empowerment in terms of the above said five attributes, the mean
score of employment attribute is 3.6. It is 3.53 for technical skill, 3.52 for living condition,
3.50 for economic status and 3.56 for social security. In all the attributes, the mean score is
above moderate level (above 3). The highest mean score opinion is for employment attribute.
On an overall, all attributes have positive influence on economic empowerment of individual
units.
empowerment attribute. Based on the result, the highest rank got for employment attribute
(47.2) followed by social security (46.27), living condition (45.73), economic status (45.53)
and technical skill (40.6).
Group unit members
The mean score is above 3 in all attributes and the level of significance is below 0.05., there
is significant difference in the level of economic empowerment.
The highest mean score for group units is for living condition (3.56), followed by, social
security (3.46), economic status (3.45), employment attributes (3.41) and technical skill
(3.37) On an overall, all attributes have positive influence on economic empowerment of
group units.
empowerment attribute. Based on the result, the highest rank got for living condition (243.1),
followed by social status (236), economic status (235), employment attribute (232.6) and
Technical skill (230.2).
Correlation is tested for finding out, whether there is any relationship between various
economic empowerment attributes. Economic empowerment attributes of both individual
and group units are significantly correlated except in the case of group units, between
employment attributes and technical skill.

empowerment variables in individual and group units are the same.
8.15. SUGGESTIONS AND RECOMMENDATIONS
 The Government, administrative and other supplementing authorities like banks may
extend more zeal and enthusiasm in the promotion and improvement of Kudumbashree
activities as these could lead to the empowerment of marginalised segments of people,
especially those belong to rural areas.
 Steps ought to be taken to make the NHG meeting more dynamic and fascinating with
live exchanges of ideas of the individuals. This is possible only if such gatherings are
streamlined rationally in adequate intervals to enable every one of the members to attend
without failure.
 An earnest exertion ought to be made by the Kudumbashree mission and local

governments to expand ability in recognizing Micro Enterprises reasonable to the nearby
conditions and to allot more assets for such activities. Mentors in this regard are highly
appealing.
 A separate organization ought to be formed at the State level/District level for giving
preparing, orientation and other capacity building programs, particularly for the micro
entrepreneurs.
 Ward members in the local self-government establishments ought to effectively

connect with and bolster the exercises of Kudumbashree in their individual wards.
 The ADS and CDS authorities should screen the working of the Micro Enterprises at
the base level for fortifying them.
 It is proposed that the Kudumbashree mission and the neighborhood bodies ought to
nearly screen and audit the working of the individual and group Micro Enterprises. This will
help them for taking restorative measures at the suitable time and for enhancing their
execution.
 In light of the accomplishment of the current Micro enterprises started under

Kudumbashree mission it is recommended that the mission ought to support an ever-
increasing number of potential micro enterprises for creating more business and employment
openings and income for the overall economic prosperity and the beneficiaries should be
exhorted accordingly.
 The Government should give more incentives to the Micro Entrepreneurs through
lease land cultivating activities of the Kudumbashree. The scope for vegetable cultivating in
the state is substantial as the lion's share of the vegetables marketed in the state are imported
from the neighbouring state of Kerala.
 Currently the milk production in the state is insufficient. In this manner, it is

proposed that the Kudumbashree mission can embrace a super dairy venture as a co-operative
venture at the district level where dairy cattle raising is appropriate. It can create adequate
income as well as can give business opportunities to a significant number of youths. This
idea may be extended to the areas wherever necessary.
 The women entrepreneurs under the Kudumbashree need training before and also,
after starting the units. Due to their family and other different issues they can't go to training
at far away spots. Consequently, it is proposed that special endeavors ought to be attempted
to give training by the Kudumbashree specialists at the decentralized level, which will be
more advantageous for the rural women entrepreneurs.
 The Micro Entrepreneurs confronting with the serious issue of poor marketing
strategies and absence of marketing methodologies and that makes numerous units battling
for survival. Henceforth it is proposed that Kudumbashree mission can present unique
projects for advancing proficient advertising methodologies for the achievement of the micro
enterprises and they can procure more market share thereby penetrating into new markets.
 There is an urgent requirement for enhancing nature of the items, its packaging,
advancement of trade mark and brand name, setting up of advertising focuses solely for
Kudumbashree items in various parts of the state. The government and the State
Kudumbashree mission should make basic steps for enhancing the quality, advancement of
trade mark, and for opening retail outlets all through the state.
 The business people ought to have fundamental learning in the book keeping and
financial management techniques. This will help them to enhance their proficiency and to
help them in better administration. So, it is proposed that the Kudumbashree experts ought to
give extraordinary preparing to the business visionaries in such manner.
 Special endeavours ought to be attempted to elevate the units to take an interest in the
fairs by giving them exceptional help and different motivating forces amid the festival
seasons and on a periodical basis at the nearby places for their successful involvement in the
local market.
 It is proposed that a concentrated buying component ought to be turn at the region

level to make the purchases more cost effective.
 It is recommended that the government should give more motivating forces to the
entrepreneurs and the products produced by them.
 It is proposed that co-operation and support of relatives for managing the business
should ensure better functioning of the unit. There ought to be an adjustment in the state of
mind of the family and this could be possible only through continuous awareness programs.
Kudumbasree ought to arrange family social gatherings and such get-togethers for including
the relatives in such manner.
 While choosing the individuals to form group units, it ought to be guaranteed that
they are with same energy to take up such ventures. Something else, a portion of the
individuals will leave the unit and the manageability of the unit will be in question.
Essentially the leadership characteristics of the individuals ought to be recognized and
promoted for the survival of the units.
 The units ought to guarantee that the individuals are compensated to the least level in
the slack season; generally, some of the individuals may leave the units looking for better
employment opportunities.
 Banks and different offices should find a way to make their services friendlier to the
rural poor. More rural bank counters ought to be opened, if possible only for Kudumbashree
Micro entrepreneurs.
 More awareness campaigns ought to be directed to make financial literacy among the
group members for linking their money related requirements with the formal agencies.
 Financial, social and welfare audit are expected to improve the functioning of units
and spreading the benefits of the same to the society.
 The areas of gaps in products and services to be identified and make use of it for the
benefit of members and society.
8.16. Conclusion
It is needless to specify here that the implementation of Kudumbashree has considerably

profited poor people and the marginalized in the backward areas of Kerala state. The first and
important noticeable effect of the development of the plan is that the unity and solidarity of
the beneficiaries have been considerably improved. Their general awareness was also
enhanced considerably. It was delighting to see that the NHG activities gave priority for
women empowerment and accordingly participation, knowledge, awareness and leadership
characteristics of the rural women in the region were found to have considerably improved.
The participation in the Kudumbashree activities helped the rural women to come to the
limelight and many of them were chosen as candidates in the local body decisions by
different political parties.
However generous inertia is detectable with respect to the authorities in keeping close tabs on
the effective usage of the scheme, particularly that of the Micro Enterprises (IGAs) set out
upon by the beneficiaries and the periodic training programs they are required to carry out for
the Kudumbashree mission beneficiaries. The best issue is that those recipients who have
started Micro Enterprises cann't obtain a considerable market share for their products. It was
discovered that the greater part of the products produced by them cann't compete with the
products advertised by the established business firms. Thus, an appropriate professional
strategy for selling the products of Kudumbashree micro enterprises are necessary.
The heightened improvement of the members in the savings shows that the Kudumbashree is
a boon as far as promoting the saving habits of the beneficiaries are concerned. The NHG
activities helped the beneficiaries to avoid the grip of money lenders thereby linking them
with the formal monetary foundations for their urgent financial needs. However, the savings
habits of the beneficiaries in the study area have flown considerably, but such savings are not
judiciously harnessed for economic prosperity and for employment generation of the
beneficiaries.
The researcher could see impressive improvement occurring in the rural areas of Kerala and
can endorse the genuine reality that Kudumbashree mission, particularly the arrangement for
the Micro credit and Micro Enterprise Development would encourage rural advancement.
One of the most fascinating and noteworthy dimensions of the programme as noted by the
researcher is that, a considerable number of women associated with the NHG activities are
participating in it with willingness.
Kudumbashree with lakhs of women do make improvements in the financial and political
existence of their own as well as their families, neighbours, community and in the general
public. Kudumbashree, both in rural and urban zones of Kerala give adequate space to the
empowerment of women, through rural NHGs are relatively in better position in matters like
group quality, bank linkage scheme and Micro Enterprises development. The wise
exploitation and usage of the opportunities given by the Kudumbashree, empowered its
individuals to become empowered women to a great extent.
8.17. Scope for further research
 A Cost Benefit analysis of the different Micro enterprises started under

Kudumbashree is a potential territory for undertaking further research.
 Studies identifying with building up an appropriate promotion methodology for the

Micro Enterprises started under the Kudumbashree Mission.
 Role of NHGs in budgetary incorporation and in creating financial literacy related

proficiency among the rural women could likewise be taken for further research.
 A study on the financial sustainability of the NHGs under Kudumbashree is also

another important subject for another research additionally explore.
8.18. Articles published

1.“Women empowerment through Kudumbashree in Doldrums: An appraisal” SOTHERN
ECONOMIST, ISSN 0038-4046, VOL, 56 AUGUST 1, 2017, NO.7
2.“Some empirical deductions on the ethos of Kudumbashree” SOTHERN ECONOMIST,

ISSN 0038-4046, VOL, 56 DECEMBER 15, 2017, NO.16
INTERVIEW SCHEDULE TO THE GROUP UNIT
PERSONAL PROFILE OF GROUP MEMBERS
1. Demographic Characteristics of the group
Mar/
No. Age Edu. No. M/F Ma/Um Age Edu.
Um
1 11
2 12
3 13
4 14
5 15
6 16
7 17
8 18
9 19
10 20
Notes: M-Male, F- Female, Mar-Married, Um- Unmarried and EDU.-Education IV. Income
details:
2. Members having steady family income generated from other means or have family members
having regular income (Parents/husband/ children employed);
Av family
Av family monthly
No monthly Income Av family monthly Income
Income from main No. No.
. from main from main breadwinner
breadwinner
breadwinner
1 8 15
2 9 16
3 10 17
4 11 18
5 12 19
6 13 20
7 14
3. Income for each member prior and after starting enterprise & Hours Spent (>6hrs; <6 hrs)
Steady Steady Hours Steady Steady

monthly monthly Spent in monthly monthly Hours Spent in
No. No.
Income From ME Income From ME activity
before enterprise activity before enterprise
1 11
2 12
3 13
4 14
5 15
6 16
7 17
8 18
9 19
10 20
4. Fill the details:

No. of
Place of Head of Nature of
No religion community members in
residence household family
the family
10
11
12
13
14
15
16
17
18
19
20
BUSINESS PROFILE
1. Serial No :
2. Zone
North Central South
3. Name of District :
4. Name of the concern :
5. Nature of Business
6. Type of work done before joining to Kudumbasree unit
Sales House Self Made Care taker Any other

Girl wife employment servant (Specify)
7. Reason for joining into Kudumbasree Unit
Expectation Less education Job of permanent Any other

of getting income (specify)
more
remuneration
8. Location of Present business unit
Urban Semi Urban Rural
9. Year of Establishment……………………………
10. Number of members in Unit (in case of group unit)
All the beginning All the time of enquiry

11. Details of workers
Members at
Drop outs Outside employees of which
beginning
No of part-time No of full time
12. Origin of business
Inherited Purchased Newly started
13. Whether the business is in owned building or rented one …………..
14. If it is in rental building specify the amount of rent in Rs………
15. Average monthly earning of the business (In Rs……)
Below 2000-4000 4000-6000 6000-8000 Above 8000

2000
16. Total project cost in rupees? ………………………………………..
17. Who manages the business?
Self Husband Both Permanent All jointly Others

Employees
18. Why do you start this business (Rank in the order of preference)
Trainin Asst Other

Marke Lucrativ Influenc Asst.
Availabilit g and . s if
t e price e of from Inherite
y of raw skill in fro any,
deman of local financi d
material the m specif
d product industry al inst.
field govt y
19. Average working days in a month?..............
20. Average working days before joining to the unit……………
21. Have you taken any loan from / through Kudumbashree yes No
22. If yes, specify the type of loan
Direct bank NHG / CDS From thrift Any other (specify)

loans transferring of
loans
23. Give the details of loans and their repayment statement
Repayment
status in
No of times Last loan %.more than
Total amount
loan taken (2 amount in 90%(1),
Sl. in rupees
Purpose of years before) rupees 70%-90%-2,
No
Loan less than
.
70% (3)
Befor Afte Befor Afte Befor Afte Befor Afte

e r e r e r e r
Income
1.
Generation
Consumptio
2.
n
3. Others
Consumption: Food – 1 Clothing – 2 Education -3 Marriage - 4
Festival – 5 Any other – 6
Income Generation: Agriculture -1 Animal Husbandry - 2
Petty business - 3 Cottage Industry – 4Any other specify – 5
Others: Purchase of land – 1 Construction of well – 2
Construction / Maintenance of House – 3
24. Any subsidy for loans available Yes No
25. If yes, specify the amount of subsidy Rs……………….

26. Are you a defaulter of loans repayment Yes No
27. If yes, what are the main reasons for default in repayment of loans ?
No income from the Unfavourable family Any other (specify)

unit situation
28. What action is taken if some one made default in repayment
Extent the Extent the Any other (specify) Not applicable

period period with fine
without fine
29. Profit statement of the last year sales (2016-17)
Cash sales --------------------------------------
Credit sales --------------------------------------
Total sales -------------------------------
Other income, if any -------------------------------
Total income -------------------------------
Less Expenses
Materials consumed --------------------------------------
Wages and Salaries --------------------------------------
Electricity expenses --------------------------------------
Interest paid
(for long term loan) --------------------------------------
Rent paid --------------------------------------
Depreciation --------------------------------------
Selling & Distribution
Expenses --------------------------------------
Income Tax --------------------------------------
Other expenses --------------------------------------
Total expenses --------------------------------------
Net Profit or Net loss - -------------------------------------
30. If there is no profit, what is the reason?
High cost of Poor response Unfavourable market Any other (specify)

production from workers
31.What is your asset structure:
Cash and Bank Balance inRs…...
Debtors…………..
Stock…………..
Furniture………….
Machinery……….
Land and Buildings……..
32 What is the amount of total asset in Rs……
33. What is your annual sales in Rs…. Previous year……. (2015-16) Current Year…….
(2016-17).
34.What is your estimated total liability of the unit in Rs…………
35. What is your major cost of input constitute in %......
Material….. labour…… overheads……... any other (specify)……….
36. The business activity is a full-time job (if a member is engaging in the micro enterprise
activity for at least 6-8 hours every day)_________Yes/No
37. Did any member have any previous experience in similar entrepreneurial activity prior to setting up
the business?Yes □ NoIf so, how many________________________________
38. What is the level of segregation of work or operations among members (i.e. some are assigned for
production, some for marketing etc)?
□ Very low□ Low□ Moderate □ High □ Very High

39. Extent of Difficulty with marketing the goods produced / for attracting customers?
□ Very low□ Low□ Moderate □ High □Very High
Specify________________________________________________________________
40 .Difficulty with arranging for capital/ Finance for the business (Initial Capital)
□ Very low □ Low □ Moderate □ High □ Very High
41. Difficulty with arranging for capital/ Finance for the business afterwards (Working Capital)
□ Very low □ Low □ Moderate □ High □Very High
42.. Market the produce/ service by
□ Taking the goods/service to the customers’ door-step with a regular clientele
□ We have a marketing tie-up with a better-established business/ co-operative
□ We wait for the customers to come to our unit and buy our product
□ We use multiple means (monthly bazaars; selling directly; previous orders)
43. What is your present investment in the business at the time of survey (any additional investment)
inRs……
44.Satisfaction towards the performance of the unit
Highly Satisfied Dissatisfied Highly dissatisfied

satisfied
1V. ECONOMIC EMPOWERMENT
1.Details of bank a/c, monthly savings, mode of savings, amount of loan taken
Monthly
Mode of
Bank a/c savings Amount of
savings(chitti,bank,postoffice,any
No (yes/no) (specify in loan taken
other)
. Rs...)
before after before after before after before after

1
10
2. Details of nature of ownership of house, type of house
Nature of ownership Type of house (tiled, tinsheet,

(owned/rented) concrete)
No.
before after Before after
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
3. details of amenities in the house before and after joining the unit
No. T.V Fridge Washing Cooking gas phone Home Any

machine theatre other
befor after b after before after before afte before after before after
e r
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
4. state in the income pattern after starting the unit
No. increased Highly neutral decreased Highly decreased

increased
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
5. state your opinion in the following level of economic empowerment as,( very high, high,
moderate, low, very low)
No Economic empowerment attributes

.
Employment Technical Entrepreneuria Living Economic status
attributes skill l skill condition
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
INTERVIEW SCHEDULE TO THE INDIVIDUAL UNIT
I. PERSONAL PROFILE
1. Name of Respondent :
2. Age
Less than 20 20-30 30-40 40-50 50-60 Above 60
3. Religion
Hindu Muslim Christian
4. Community
General OBC SC/ST
5. Place of residence
Urban Semi urban Rural
6. Martial status
Married Single Divorced / Separated Widow
7. Head of Household
Respondent Husband Others (specify)
8. Nature of Family
Joint Family Nuclear Family
9. Number of members in the family
Less than 3 3-5 6 and above
10. Educational Qualification
Illiterate Below SSLC SSLC Plus Two Degree and

above
BUSINESS PROFILE
1. Serial No :
2. Zone
North Central South
3. Name of District :
4. Name of the concern :
5. Nature of Business

6. Type of work done before joining to Kudumbashree unit
Sales House Self Made Care taker Any other

Girl wife employment servant (Specify)
7. Reason for joining into Kudumbashree Unit
Expectation Less education Job of permanent Any other

of getting income (specify)
more
remuneration
8. Location of Present business unit
Urban Semi Urban Rural

9. Year of Establishment……………………………
10. Origin of business
Inherited Purchased Newly started

11. Whether the business is in owned building or rented one …………..
12. If it is in rental building specify the amount of rent in Rs………
13. Average monthly earning of the business (In Rs……)
Below 2000-4000 4000-6000 6000-8000 Above 8000

2000
14. Total project cost in rupees? ………………………………………..

15. Who manages the business?
Self Husband Both Permanent All jointly Others

Employees
16. Average working days in a month?..............
17. Have you taken any loan from / through Kudumbashree Yes No
18. If yes, specify the type of loan
Direct bank NGO / CDS From thrift Any other (specify)

loans loans
19. Give the details of loans and their repayment statement
Sl. Purpose of No of times Total amount Last loan Repayment

No Loan loan taken (2 in rupees amount in status in
. years before) rupees %.more than
90%(1),
70%-90%-2,
less than
70% (3)
Befor Afte Befor Afte Befor Afte Befor Afte
e r e r e r e r
1. Income
Generation
2. Consumptio
n
3. Others
Consumption: Food – 1 Clothing – 2 Education -3 Marriage - 4
Festival – 5 Any other – 6
Income Generation: Agriculture -1 Animal Husbandry - 2
Petty business - 3 Cottage Industry – 4 services – 5
Others: Purchase of land – 1 Construction of well – 2
Construction / Maintenance of House – 3

20. Any subsidy for loans available Yes No
21. If yes, specify the amount of subsidy Rs……………….
22. Are you a defaulter of loans repayment Yes No
23. If yes, what are the main reasons for default in repayment of loans?
No income from the Unfavorable family situation Any other (specify)

unit
24. What action is taken if someone made default in repayment
Extent the Extent the Any other (specify) Not applicable

period period with fine
without fine
25. Profit statement of the last year sales (2016-2017)
Cash sales --------------------------------------
Credit sales --------------------------------------
Total sales -------------------------------
Other income, if any -------------------------------
Total income -------------------------------
Less Expenses
Materials consumed --------------------------------------
Wages and Salaries --------------------------------------
Electricity expenses --------------------------------------
Interest paid
(for long term loan) --------------------------------------
Rent paid --------------------------------------
Depreciation --------------------------------------
Selling & Distribution
Expenses --------------------------------------
Income Tax --------------------------------------
Other expenses --------------------------------------
Total expenses --------------------------------------
Net Profit or Net loss --------------------------------------

26. If there is no profit, what is the reason?
High cost of Poor response Unfavorable market Any other (specify)

production from workers
27. Satisfaction towards the performance of the unit
Highly Satisfied Dissatisfied Highly dissatisfied

satisfied
28. Purpose of starting the unit, rank in the order of preference
1. For getting loans

2. For accumulate savings
3. For family commitment
4. Settlement of old debts
5. For social status
29. What is your asset structure:
Cash and Bank Balance in Rs…...
Debtors…………..
Stock…………..
Furniture………….
Machinery……….
Land and Buildings……..
30.What is the amount of total asset in Rs……
31. What is your annual sales in Rs…. Previous year(2015-16)……. Current Year…….
(2016-17)
32.What is your estimated total liability of the unit in Rs…………
33. What is your major cost of input constitute in %......
Material…... labour…… overheads……... any other (specify)……….

34. The business activity is a full-time job (if a member is engaging in the micro enterprise
activity for at least 6-8 hours every day)_________Yes/No
35.Extent of Difficulty with marketing the goods produced / for attracting customers?
Very low □ Low □ Moderate □ High □Very High

Specify_________________________________________________________
36.Difficulty with arranging for capital/ Finance for the business (Initial Capital)
Very low □ Low □ Moderate □ High □ Very High
37.Difficulty with arranging for capital/ Finance for the business afterwards (Working Capital)
Very low □ Low □ Moderate □ High □Very High
38. Market the produce/ service by
□ Taking the goods/service to the customers’ door-step with a regular clientele

□ We have a marketing tie-up with a better-established business/ co-operative
□ We wait for the customers to come to our unit and buy our product
□ We use multiple means (monthly bazaars; selling directly; previous orders)
39. What is your present investment in the business at the time of survey (any additional
investment) in Rs…….
111.ECONOMIC EMPOWERMENT
1. Did you have a savings bank a/c before starting the unit Yes…...No….
2. If yes, from which period you started the a/c (specify the year……..)
3. What is the amount of savings? Rs ………………
4. What is your monthly income before starting the unit in Rs…….
5. What is the monthly income after starting the unit?
Up to 500 501-1000 1001-1500 Above 1500

6. Did you open savings account after starting the unit? Yes…No……
7. If yes, please specify your monthly savings in rupees after starting the unit………...
8. What is the mode of income savings?
Banks Chitties Post Office Others

9. What was the source of finance in case contingency before starting the unit?
Friends Relatives Money / Orders Others, in any

10. What is the amount of borrowing in Rs…………….?
11. Have you taken loans from the above sources after starting the unit Yes…...No…….
12. If yes, what is the amount of loan account in Rs……….
13. Are you still availing loans from money lenders even after starting the unit Yes……
No…
14. If yes, what are the reasons that you still depend on money lenders?
Don’t get Haven’t repaid Delay in Any other NA

sufficient the loans from getting the
Kudumbasree loans from 4
15. What is the nature of ownership of dwelling house Owned…...Rented……
16. If owned, what is the nature of ownership?
Self Husband Jointly Parents

17. What is the nature of dwelling house before joining the unit
Tiled Thatched Tin sheet Concrete

18. What is the nature of dwelling house after joining the unit?
Tiled Thatched Tin sheet Concrete

19. What use the amenities before and after joining the unit
Radio TV Fridge Phone Cooking Sewing Other

gas machine house hold
articles
Befo Aft Befo Aft Befo Aft Befo Aft Befo Aft Befo Aft Befo Aft
re er re er re er re er re er re er re er
20. Change in the income pattern after starting the unit
Increased Highly Neutral Decreased Highly

increased decreased
21. State your opinion th the following level of economic empowerment attributes:”
Level of economic
empowerment
Economic empowerment attributes
Very Very
high moderate low
high low
Employment attribute
Technical skill
Living condition
Economic status
Social security
BIBILIOGRAPHY
Ahmed, B., & Basha, S. N. (2014). Role of self-help groups in women

empowerment. International Journal of Research in Management & Social Science, 2(3), 40.
Ajith.D, Sunil.R, Ravi Raman.K.(2000). Study of kudumbashree micro enterprise

programme in Kerala-2000.
Amma, S. and Pillai, S. (2000). A Study on Women Entrepreneurs in Garment Making

Industries in Kerala - a Profile. Management Researcher VI, VII, pp.45, Oct 2000-March
2001.
Anila, A. (2012). A. Women Entrepreneurship through Self-Help Groups: A Case Study of

Tirunelveli District, Tamilnadu. International journal of research in commerce, Economics
& Management, 2.
Anjugam, M., & Ramasamy, C. (2007). Determinants of Women's Participation in Self-Help
Group (SHG)-Led Microfinance Programme in Tamil Nadu. Agricultural Economics
Research Review, 20(2).
Arul Paramanandam, D., &Packirisamy, P. (2015). An empirical study on the impact of

micro enterprises on women empowerment. Journal of Enterprising Communities: People
and Places in the Global Economy, 9(4), 298-314.
Arun, S., Arun, T., & Devi, U. (2011). Transforming livelihoods and assets through
participatory approaches: the Kudumbashree in Kerala, India. International Journal of Public
Administration, 34(3), 171-179.
Bali Swain, R. (2006). Microfinance and Women's empowerment: evidence from the self-
help group bank linkage programme in India.
Barbara, Mahantha. (2001). Micro credit through, SHG and its impact -A case study of
RahtriyaVikas Nidhi credit and savings programmes in Assam, Indian journal of agriculture
and economics,pp 27-29.
Baruah, P. B. (2009). Self Help Group and Asset Creation: A Case Study of Deharkuchi
Gaon Panchayat of Nalbari District, Assam. The microfinance, 183.
Basargekar, P. (2010). Measuring Effectiveness of Social Capital in Microfinance: A Case

Study of Urban Microfinance Programme in India. International Journal of Social
Inquiry, 3(2).
Beena, C., & Sushma, B. (2003). Women entrepreneurs managing petty business: A study
from motivational perspective. Southern Economist, 42(2).
Bhagyalekshmi, J. (2004).Women's Empowerment - miles to Go, Yojana48, No.8, pp 38-41
Bhatia, M., Rubio, P., & Saadat, S. (2002). Credit Provision and Gender: Targeting Women
and Fostering Empowerment through Micro- finance. John F. Kennedy School of
Government, Harvard University.
Bhatia, N. (2007). Revisiting bank-linked Self Help Groups (SHGs)-A study of Rajasthan
State‖. Reserve Bank of India Occasional Papers, 28(2).
Carr, M., Chen, M. A., &Jhabvala, R. (Eds.). (1996). Speaking out: Women's economic
empowerment in South Asia. Intermediate Technology.
Chandra,Tulika.(2008).Institutional support for women empowerment in India - Special

Reference to Mahila Co-operative Bank, Indian Cooperative Review, Vol.45, No.3, , pp. 247-
257.
Chavan, P., &Ramakumar, R. (2002). Micro-credit and rural poverty: An analysis of

empirical evidence. Economic and Political weekly, 955-965.
Chidambaranathan, M., &Premchander, S. (2013). Community-based microfinance: the

potential and challenges of self-reliant, self-help group cooperatives. Enterprise Development
and Microfinance, 24(2), 118-134.
Chowdhary, Jahangir Alam. (2009). Gaps, trends and current research in gender dimensions
of agriculture and rural employment; differentiated pathways out of poverty, FAQ-IFAD,
31st March -2nd April.
Christabell, P. J. (2013). Social innovation for women empowerment: Kudumbashree in

Kerala. Innovation and Development.
Christabell, P.J. (2005), Women’s Empowerment through capacity Building: The role of
Micro Finance (Ph. D unpublished), University of Kerala, Thiruvananthapuram.
D’Cruz, N. K. (2003). Constraints on Women Entrepreneurship Development in Kerala: An

analysis of familial, social, and psychological dimensions. Thiruvananthapuram: Centre for
Development Studies.
Dalal, K. (2011). Does economic empowerment protect women from intimate partner
violence? Journal of injury and violence research, 3(1), 35.
Deepika, M. G., &Sigi, M. D. (2014). Financial inclusion and poverty alleviation: an

alternative state-led microfinance model of Kudumbashree in Kerala, India. Enterprise
Development and Microfinance, 25(4), 327-340.
Deininger, K., & Liu, Y. (2009). Economic and social impacts of self-help groups in India
Dev, S. Ghosh, J. (2013). Microfinance and the challenge of financial inclusion for
development. Cambridge journal of economics, 37(6), 1203-1219.
Devi Lekshmi. K.R. (2005). Micro credit programmes, poverty alleviation and empowerment
of women -some empirical evidence from Kerala, pp 319-324.
Devi. Ambika. R., (2010), A study on women empowerment with special reference to
Kudumbashree, (Ph. D unpublished), University of Kerala, Thiruvananthapuram.
Devika, J., &Thampi, B. V. (2007). Between ‘Empowerment’and ‘Liberation’ The

Kudumbashree Initiative in Kerala. Indian Journal of Gender Studies, 14(1), 33-60.
Dhanuja, S.K. (2002). Women Entrepreneurs Opportunities, Performance, Problems, Deep

and Deep Publication Pvt. Ltd., F-159, Rajouri Garden, New Delhi – 110 027.
Dhungana, B. M., & Kusakabe, K. (2011). The role of SHG in empowering disabled women:
A case study in Kathmandu Valley, Nepal. Development in Practice, 20(7), 855-865.
Dube M. P, (2006). Need to empower women to end Discrimination, in U.B. Singh (ed.),
Empowerment of women in urban administration, New Delhi: serials publications, pp.39-45.
Chapter -2 48
Duflo, E. (2012). Women empowerment and economic development. Journal of Economic

Literature, 50(4), 1051-1079.
Duncombe, R., &Heeks, R. (2005). Information & Communication Technologies (ICTs),

Poverty Reduction and Micro, Small & Medium-scale Enterpr Raghavan, V. P. (2009).
Micro-Credit and Empowerment: A Study of Kudumbashree Projects in Kerala. Journal of
Rural Development, 28(4), 469-484.ises (MSMEs). A framework for understanding ICT
applications for MSMEs in developing countries.
Durgarani, M., &Gokilavani, R. (2015). Economic empowerment of women through self-

help groups: a study in Coimbatore district. International Journal of Economic
Research, 12(2).
Endeley, J. B. (2002). Credit Options, Human Resource Development and the Sustainability
of Women's Projects: Case Study of the Association of Creative Teaching-Women in
Development Projects in the South-West Province, Cameroon. Women and Credit,
Researching the Past, Refiguring the Future.
Gadenne, L., & Vasudevan, V. (2007). How Do Women in Mature SHGs Save and Invest
Their Money? ‘Evidence from Self-Help Groups in India. IFMR Centre for Micro Finance
Working Paper Series, 18, 1-46.
Gaidzanwa, R. (1995). Land and the economic empowerment of women: A gendered

analysis. Southern African Feminist Review, 1(1), 1.
Gangopadhyay, K., & Singh, K. (2012). Extent of poverty in India: a different dimension
George, B. (2008). Empowering rural women through microfinancing: A comparative study

of the contributions of governmental and non-governmental organizations in Central Kerala.
Goodman, L. A., & Epstein, D. (2008). Listening to battered women: A survivor-centered

approach to advocacy, mental health, and justice. American Psychological Association.
Guerin, I. (2002). Microfinance et autonomie feminine, Social Finance Working Paper No.
32, Programme Finance et Solidarit, Geneva.
Harider Rizvi S.M, (2006). Empowering women through Reservation in Urban Local Bodies
–Difference between Theory and practise, in U.B.Singh, (ed.),------- New Delhi: serials
publications, pp. 194-210.
Hashemi, S. M., Schuler, S. R., & Riley, A. P. (1996). Rural credit programs and women's
empowerment in Bangladesh. World development, 24(4), 635-653.
Hashimudeen.A, and Subuuraman.R.(2014). Changing Facets of Women Micro Enterprises

in Kerala Volume-3, Issue-12, ISSN No 2277 – 8160
Hishigsuren, G. (2004). Scaling up and mission drift: Can microfinance institutions maintain

a poverty alleviation mission while scaling up?(Doctoral dissertation, Southern New
Hampshire University).
Indira.M.(2005). Social Externalities of Women's Empowerment Through Microfinance: a

comparative study of two interventions, pp 303-310.
Jeromi, P. D. (2007). Regulation of informal financial institutions: a study of money lenders
in Kerala. RBI Occasional Papers.
John Gladys Mary. (2008). Empowerment through SHGs” Southern Economist, Vol.46,
No.21, pp. 28-30.
John, J. (2009). A Study on Kudumbashree Project: A Poverty Eradication Programme in

Kerala–Performance, Impact and Lessons for Other States. Planning Commission of India.
Jose, T. K. (2003). Micro enterprise initiative in water sector and poverty reduction. Water
science and technology, 47(6), 119-128.
Joseph, Kochurani, (2005). Women Empowerment A Conceptual Analysis, Kanjirappally:

Vimala Books and Publications, p.90
Kabeer, N. (1999). Resources, agency, achievements: Reflections on the measurement of

women's empowerment. Development and change, 30(3), 435-464.
Kadiyala, S. (2004). Scaling up Kudumbashree: Collective action for poverty alleviation and
women’s empowerment.
Kala, Sasi and Uma H.R. (2011). Women Empowerment through SHGs – A study, Southern
Economist, Vol.49, No.19, pp. 51-54.
Kalpana, K. (2008). The vulnerability of'self-help': women and microfinance in South India.
Kalyani, K., &Seena, P. C. (2012). Socio-economic changes of women through

Kudumbasree: A study from Puthenvelikkara (Gp) of Kerala state, India. International
Research Journal of Social Sciences, 1(2), 1-7.
Kamath, R. (2007). Financial inclusion vis-à-vis social banking. Economic and Political

Weekly, 1334-1335.
Karmakar, K. G., & Mohapatra, N. P. (2009). Emerging Issues in Rural Credit. The

Microfinance Review, 1(1), 1-17.
Kerala Women's Commission, Status of Women in Kerala, Kerala Women's Commission,

Thiruvananthapuram, 30th May, 2002.
Khandker, Shahidur.R and Pitt.Mark.M.(2007). Individual and Group Default Incentives in
Microfinance: The role of groups in Grameen Bank, World Bank Institute, Washington DC.
Khari D.S. (2009). Women Empowerment through Entrepreneurship Development, New

Delhi: ALP Books, pp.132-145.
Krishna, Sneha Gopee. (2008). Micro Finance – Equations changing, Kerala calling, Vol.28,
No.10, pp. 22-23.
Krishnan, D. C. (2011). Microfinance for Financial Inclusion and Women

Empowerment. International Journal of Business Economics and Management
Research, 2(9), 135-150.
Krishnaveni, Motha. (2004). Women Entrepreneurship in Rural Areas of India. SEDME,

Vol.No.31, No.37, pp.8-32.
Kumar, A. (2016). Does microfinance redefine identity, income and insecurity among rural
women? A model of women’s empowerment. Enterprise Development and
Microfinance, 27(3), 192-203.
Kumar, Anil. (2004). Enterprise Location: Choice of Women Entrepreneurs. SEDME, Vol.
31, No.3, pp.18-21.
Kumar, D. S. (2009). Participation in self-help group activities and its impacts: Evidence
from South India. The Bangladesh Development Studies, 1-18.
Kumar, S. S. (2011). SHG linked Micro-enterprises-The Kerala experience. Journal of Rural

Development, 30(3), 331-339.
Kurian, Paily(2005), Role of SGHs in the empowerment of poor women. (Ph.D unpublished),
University of Kerala, Thiruvananthapuram.
Lathika, K. K. (2008). A study on women empowerment in Kerala with special reference to

Kudumbasree project.
Lewis, D. (1996). Understanding rural entrepreneurship in a Bangladesh village—

individuals, roles or structures? Small Enterprise Development, 7(4), 22-31.
Mahesha, V., & Akash, S. B. (2011). Micro finance and self-help groups-An exploratory
study in Shivamoga District. International Journal of Research in Commerce, Economics &
Management, 1(3), 87-91.
Malhotra, A., & Schuler, S. R. (2005). Women’s empowerment as a variable in international

development. Measuring empowerment: Cross-disciplinary perspectives, 71-88.
Malhotra, M. (2004). Empowerment of Women: Women in rural development (Vol. 3). Gyan

Publishing House.
Mathew, Emil, (2005). Microfinance and Collective Action: A study of Self Help Groups in
Kerala, Unpublished Doctoral Thesis in Economics submitted to the University of Mysore.
Mathialagan R. (20002). Women entrepreneurs in Tamil Nadu – A Socioeconomic Study of

selected Women Entrepreneurs at Chennai City. (Ph.D. Thesis, Madras University, Madras)
Mithaug, D. E. (1996). Fairness, liberty and empowerment evaluation. Fetterman David M.,

KaftarianShakeh J., Wandersman Abraham (1996) (Editors): Empowerment Evaluation.
Knowledge and Tools for Self-Assessment and Accountability. Thousand Oaks/London/New
Delhi: Sage Publications, 234-255.
Mohankumar.S. and George Suja.S.(2005). Microenterprises of Self-Help Groups and State

Policies Under a Neo-Liberal Regime: Evidences from a village in Kerala, pp 97-111.
Mohindra, K. S., Haddad, S., & Narayana, D. (2008). Can microcredit help improve the
health of poor women? Some findings from a cross-sectional study in Kerala,
India. International Journal for Equity in Health, 7(1), 2.
Muraleedharan, S. (2003). Gender and Decentralisation: Opportunities and

Challenges. Kerala Calling.
Negash, A. (2010). Economic empowerment of women.
Nidheesh, K. B. (2009). Study on the changing process of Kerala women through

Kudumbashree in Kerala. International NGO Journal, 4(8), 352-361.
Nird, (2001). Micro credit for micro Enterprises, National Institute of rural development,
Hyderabad, pp 90-92.
Nithyanandhan, S. H., &Mansor, N. (2017). Self Help Groups and Women’s
Empowerment. Institutions and Economies, 143-164.
Ntseane, P. (2004). Being a female entrepreneur in Botswana: cultures, values, strategies for
success. Gender & Development, 12(2), 37-43.
Oommen, T. K. (2008). Reconciliation in post-Godhra Gujarat: The role of civil society.

Pearson Education India.
Padrakali, Kannan.S.(2004). An informal women enterprise in rural India -rural

entrepreneurship, Discovery publications.
Palani E, Selvaraj V.M. (2008). Socio-economic Empowerment of women through self-Help

groups, Indian Co-operative Review, Vol.45, No.3, pp. 210-217.
Panackal, N., Singh, A., &Hamsa, S. (2017). Kudumbashree and women empowerment in
Kerala-an overview and theoretical framework. Indian Journal of Commerce and
Management Studies, 8(1), 16.
Pandian, Punithavathy, Eswaran. (2004). Micro enterprise and rural entrepreneurship,

Discovery publishing House.
Parmeswaran, M. P. (2005). Empowering people: insights from a local experiment in

participatory planning. Empowering people: insights from a local experiment in participatory
planning.
Patel, V. (2009). Women’s Leadership in Micro-finance: Issues and Challenges. refresher

course on emerging trends in economics in post liberalized era by Department of Economics,
University of Mumbai, 11.
Paterson, R. (2008). Women's empowerment in challenging environments: a case study from

Balochistan. Development in Practice, 18(3), 333-344.
Pickering, Helan, Kalura Ellen , Katongole George, Whitworth James,(1990). Women group
and individual entrepreneurs, A Uganda case study, vol.4 No.3.
Planning Commission of India, (2001). Linking micro finance with micro credit institutions,
pp 70-72.
Priya. K.V. (2006), Micro level planning: A strategy approach in Kerala Society's
Development, (Ph. D unpublished) University of Kerala, Thiruvananthapuram.
Punitha, M., Sangeeta, S., &Padmavathi, K. (1999). Women entrepreneurs: Their problems
and constraints. The Indian Journal of Labor Economics, 42(4), 707-716.
Ramesh, J. (2007). Self-help Groups Revolution: What Next? Economic and Political weekly,
3621-3624.
Rao, K. S. (2007). Financial inclusion: An introspection. Economic and Political Weekly,

355-360.
Rao, P. R. M. (2004). Problems of women micro entrepreneurs in Chennai with special

reference to assess to credit (Doctoral dissertation, Ph. D thesis Madras University Madras).
Rath, N. (2011). Measurement of Poverty: In Retrospect and Prospect. Economic and

Political Weekly, 40-43.
Reddy, A. R., &Narasimahulu, K. (2009). SHG in India: A tool for urban poverty
eradication. Southern Economist, 48(1), 39-40.
Rollins, J. (1991). Black feminist thought: Knowledge, consciousness, and the politics of
empowerment. The American Journal of Sociology, 97(3), 897-899.
Sahu and Tripathy, (2005). Self-Help groups and women Empowerment, New Delhi: Anmol
publications pvt.Ltd.
SankarRenu, and Lal, Suman (2006). Women empowerment in urban administration Role of
NGOs, in U.B. Singh(ed.), ____ New Delhi: serials publications,pp. 256-261.
Saraswathy Amma, K. P., Panicker, K. S. M., & Sumi, M. (2008). Micro Credit and Women
Empowerment: a study in India. International Journal of Global Business, 1(1), 184-213.
Sashi, C. M. (2011). The make-buy decision in marketing financial services for poverty
alleviation. Journal of financial services marketing, 15(4), 296-308. Henriques, E. J.,
&Gaonkar, R. R. (2011). Micro-Credit: A Study of Micro-Credit Usage by Self Help Group
Members in Goa. International Journal of Research in Commerce, Economics &
Management, 1(3), 56-60.
Sasikumar. K., and Devi, Ambika. R. (2006), poverty Eradication through Kudumbashree
projects in Kerala, Management research, octo-Dece,vol.XIII,No. 2,pp 40-55.
Sasikumar.K. and Devi. Ambika. R. (2008), Globalization -A threat to Micro Enterprises? A

study of Kudumbashree projects in Kerala ', paper presented at the International Seminar on,
' Globalization, Emerging Issues ', Department of Management Studies, School of Commerce
and Management Studies, Kannur University Kerala, March 9 and 10.
Sathiabama, K. (2010). Rural women empowerment and entrepreneurship development (No.

id: 2475).
Shetty, N. K. (2008). The Microfinance Promise in Financial Inclusion and Welfare of the

Poor: Evidence from Karnataka, India (pp. 1-34). Institute for Social and Economic Change.
Singh, U. B. (2006). Empowerment of women in urban administration: experiences and

strategies. Serials Publications.
Siva Prakash, C. S., &Chandrasekar, K. S. (2012). SHGs and socio-economic empowerment:

A descriptive analysis based on Kudumbashree project in Kerala. International Journal of
Business and Management Tomorrow, 2(2), 1-10.
Siwal, B. R. (2009). Gender framework analysis of empowerment of women: a case study of

Kudumbashree programme.
Srinivasan, N. (2007). Policy issues and role of banking system in financial

inclusion. Economic and Political Weekly, 3091-3095.
Srivasthava.R.M.(1998). Emerging profile of small women enterprises cum manager in

India- A case study in KT Sogra women management.
Suadnya, I. W., Chamala, S., Muctasam, A., &Rosiady, S. (2005). Empowerment and Micro
Finance: Analysis of Theoretical Concepts and Practice Reflections From A Micro Finance
Project in Indonesia. Micro Finance Challenges: Empowerment or Disempowerment of the
Poor. Frence Institute of Pondichery, India.
Subalakshmi A.V. V, (2008). Micro – finance and Empowerment of rural women, The
Economic Challenger, Issue No.41 (11), pp. 75-76.
Suja, S. (2012). Women empowerment through self-help group-an evaluative study. Global
Management Review, 6(3).
Sujathamalini, J. (2008). Economic Empowerment of Women. Discovery Publishing House.
Sunil.R.(2005). Micro finance Informal finance and empowerment of the Poor: Lessons from
a case study of the SHG Bank Linkage Programme in Backward District in India, pp 173-
182.
Swain, R. B., &Wallentin, F. Y. (2008). Economic or non-economic factors: What empowers

women? (No. 2008: 11). Working Paper, Department of Economics, Uppsala University.
Swaminathan, M. (2007). The microcredit alternative? Economic and Political Weekly, 1171-

1175.
The status of KudumbashreeAyalkoottams: Their links with LSGs' in Kerala. (2004).

Newsletter by Sahayi, vol.6, No.2,
Tilekar, S. N., Naikade, N. J., Deshmukh, B. J., &Patil, A. A. (2001). Women self-help
groups affiliated to'Chaitanya': A case study in Pune district. Indian Journal of Agricultural
Economics, 56(3), 458.
Tripathi, A. K. (2014). Spread of the Self-Help Group–Bank Linkage Programme in India:

Potential Vis-à-vis Achievements. Journal of Asian and African Studies, 49(2), 215-233.
Unni, J. (2013). Economic Empowerment of Women. Indian Journal of Human

Development, 7(2), 364-366.
Usha, P. (2010). Empowerment of women and Self-Help Groups. Sonali Publications.
Vadde, V., & Ratnam, N. V. (2014). The Impact of Self-Help Groups on Women
Entrepreneurship: A Study. IUP Journal of Entrepreneurship Development, 11(3), 38.
Vijayanand, S. M., Jithendran, V. N., & Director, I. M. (2008). Implementation of NREGA-

Experience of Kerala. In International Seminar on National Rural Employment Guarantee
Scheme in India, September (pp. 16-17).
Vinze, M. D. (1987). Women Entrepreneurs in India: A Socio-Economic Study of Delhi,

1975-85. Mittal publications.
Viswanath, Vanitha (2001). Women’s micro enterprise for food security in India.v:44:
Y:2001: i :4: p:90-92.
Williams, G., Thampi, B. V., Narayana, D., Nandigama, S., & Bhattacharyya, D. (2011).
Performing participatory citizenship–politics and power in Kerala's Kudumbashree
programme. Journal of Development Studies, 47(8), 1261-1280.
Women in India International Journal of Interdisciplinary Social Sciences, 5(9) ,405-420
Wrenn, E. (2007). Perceptions of the impact of microfinance on livelihood security. Research

and Perspectives on Development Practice.

Performance Evaluation of Micro Enterprises Initiated Under Kudumbashree in Kerala

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Performance Evaluation of Micro Enterprises Initiated Under Kudumbashree in Kerala

Uploaded by

Copyright:

Available Formats

PERFORMANCE EVALUATION OF MICRO ENTERPRISES INITIATED

UNDER KUDUMBASHREE IN KERALA

Thesis submitted to THE UNIVERSITY OF KERALA

for the Award of Degree of Doctor of Philosophy in

Under the Supervision of

Dr. JOSEPH JAMES. V

PG Department and Research Centre of Commerce

I, Catherine E Pereira, hereby declare that the PhD thesis entitled

Place: Kollam CATHERINE. E. PEREIRA

Place: Kollam Dr. Joseph James. V

I wish to express my sincere thanks to Dr. Joseph James V, my research supervisor

I wish to place in record my profound reverence and gratitude to my former

I am also grateful to Dr. Resia Beegam, HOD, Department of Commerce, University

I place on record, my sincere thanks to Dr. G. Raju, Professor and Dean of

It is my pleasure to thank Dr. Raju.G, Associate Professor, School of Business

Finally, I must express my very profound gratitude to my parents whose selfless

Table 5. 1 Distribution of individual and groups micro entrepreneurs by their age

Table 5. 2 Distribution of individual and groups micro entrepreneurs by their marital

Table 5. 3 Distribution of individual and group micro entrepreneurs by their

Table 5. 4 Distribution of individual and group micro entrepreneurs by their place of

Table 5. 5 Distribution of individual and group micro entrepreneurs by their head of

Table 5. 6 Distribution of individual and group micro entrepreneurs by nature of

Table 5. 7 Distribution of individual and group micro entrepreneurs by size of family

Table 5. 8 Distribution of individual and group micro entrepreneurs by their religion

Table 6.2 Distribution of individual and group micro entrepreneurs by Nature of

Table 6.3 Distribution of individual and group micro entrepreneurs by previous

Table 6.7 Distribution of individual and group micro entrepreneurs by year of

Table6.9 Distribution of individual and group micro entrepreneurs by origin of

Table 6.10 Distribution of individual and group micro entrepreneurs by purpose of

Table 6.11 Distribution of individual and group micro entrepreneurs by purpose of

Table6.12 Distribution of full time individual and group micro entrepreneurs by

Table 6.13 Distribution of individual and group micro entrepreneurs by type of

Table 6.14 Distribution of individual and group micro entrepreneurs by amount of

Table 6.16 Distribution of individual and group micro entrepreneurs by person

Table 6.17 Distribution of individual and group micro entrepreneurs by average

Table 6. 18 Distribution of group units by number of members at beginning and at the

Table6.19 Financial statement of Individual Micro entrepreneurs

Table 6.20 Financial statement of group Micro entrepreneurs

Table6.23 Details of cost of investment of Individual and group Micro units

Table 6.26 Asset structure of individual and group micro units

Table 6.28 Descriptive statistics of profitability ratios of different sectors of

Table 6.30 Descriptive statistics of profitability ratios of different sectors of

Table 6.31 Descriptive statistics of profitability ratios of different sectors of

Table 6.32 Profitability ratios of different sectors of Kudumbashree individual Micro

Table 6.33 Profitability ratios of different sectors of Kudumbashree group Micro

Table 6.34 Coefficients of regression model representing effect of location, year of

Table 6.35 Coefficients of regression model representing effect of location, year of

Table 6.36 Coefficients of regression model representing effect of location, year of

Table 6.37 Coefficients of regression model representing effect of location, year of

Table6.38 Coefficients of regression model representing effect of location, year of

Table6.39 Coefficients of regression model representing effect of location, year of

Table 6. 45 Coefficients of regression model for Material Productivity by its

Table 6. 46 Coefficients of regression model for Material Productivity by its

Table 6. 47 Coefficients of regression model for Labour Productivity by its significant

Table 6. 48 Coefficients of regression model for Labour Productivity by its significant

determinants of group units

Table 6.51 Distribution of entrepreneurs of individual micro units by number of loan

Table 6. 52 Distribution of individual entrepreneurs of micro units by number of loan

Table 6.54 Distribution of entrepreneurs of individual micro units by number of loan

Table 6.56 Distribution of entrepreneurs of individual micro units by source of loans

Table 6.58 Distribution of individual Entrepreneurs by status of default and action

Table 6.60 Distribution of individual Entrepreneurs by status of default and sector

Table 6.61 Coefficient of logistic regression of defaulters in individual micro units