International Journal of Management (IJM) Volume 9, Issue 2, March April 218, pp. 31 36, Article ID: IJM_9_2_3 Available online at http://www.iaeme.com/ijm/issues.asp?jtype=ijm&vtype=9&itype=2 Journal Impact Factor (216): 8.192 (Calculated by GISI) www.jifactor.com ISSN Print: 976-62 and ISSN Online: 976-6 IAEME Publication ROLE OF MICROFINANCE IN WOMEN EMPOWERMENT:AN EMPIRICAL STUDY IN ALWAR DISTRICT, RAJASTHAN, INDIA Rejoice Solomon Assistant Professor, LIET, Alwar, Rajasthan, India Research Scholar, Dept. of Management Studies, Poornima University, Jaipur, Rajasthan, India. ABSTRACT Microfinance plays a vital role for gender equality and empowering women. In India, Government has bought a number of development project but most of them have ignored the women. Microfinance plays a vital role for the elevation of poverty and for the empowerment of women. Women are the most decisive component of the society and are playing a vital role in the socio-economic framework of Rajasthan. Microfinance Program like SHG does motivate small amount of saving among the members. The present work is done to study the empowerment of women through Microfinance. The survey was conducted in Alwar district of Rajasthan on around respondents, covering a sample of beneficiaries. Key words: SHGs, Women, Empowerment, Microfinance. Cite this Article: Rejoice Solomon, Role of Microfinance in Women Empowerment: An Empirical Study in Alwar District, Rajasthan, India. International Journal of Management, 9 (2), 218, pp. 31 36. http://www.iaeme.com/ijm/issues.asp?jtype=ijm&vtype=9&itype=2 1. INTRODUCTION Microfinance is the gateway for the poor to improve their standard of living. It helps the needy under social, political and economical aspects. Microfinance empowers the women through self help group. Microfinance provides banking services to the poor and needy. The main objective of Microfinance is to empower women. It works as a powerful tool for women empowerment in the new economy. By empowering women it helps the society to get out of social evils. The two main problems facing by India are poverty and women empowerment. The development of India takes place only when there is an alleviation of poverty and empowerment of women. Empowerment of women focuses on education and employment which are an important element to sustainable development. Self Help Groups (SHGs): A Self-Help Group is a group of people from the same socioeconomic background up to 2 members. These groups are promoted by Government http://www.iaeme.com/ijm/index.asp 31 editor@iaeme.com
Rejoice Solomon agencies or NGOs with the aim of solving the common problems of group members either financial or social through mutual help. Features of Self Help Groups are: i. SHGs are well accepted and established by government or NGOs. They can open accounts in bank in its own name, receive government grants and funds for various expansion activities. ii. They perform various activities as social intermediaries and often involved in numerous social activities. iii. They keep their own books of accounts. iv. It is a structured body including elected, Group President, Secretary and Treasurer. v. They have self-governing body. vi. SHGs activate small saving and rotate it in group 2. REVIEW OF LITERATURE A number of studies have been carried out by various institutions, researchers and the agencies that have emphasized the constructive impact and trends of SHGs on economic and social empowerment of women. Some of accessible related studies are being reviewed here. Ranjula Bali Swain (27) Can Microfinance Empower Women? Self-Help Groups in India concluded many strides have been made in the right direction and women are in the process of empowering themselves and NGOs that provide support in financial services and specialized training, have a greater ability to make a positive impact on women empowerment. SusyCheston, Lisa Kuhn in their article titled Empowering Women through Microfinance concluded Microfinance has the potential to have a powerful impact on women s empowerment. Ranjula Bali Swaina and Fan Yang Wallentin (September 29) in their article Does microfinance empower women? Evidence from self-help groups in India concluded that their study strongly indicate that SHG members are empowered by participating in microfinance program in the sense that they have a greater propensity to resist existing gender norms and culture that restrict their ability to develop and make choices. 3. OBJECTIVES OF THE STUDY 1.Toanalyse the affect of micro-finance on socio-economic women-empowerment. 2.To offer suggestions for the betterment of women s empowerment. 4. RESEARCH METHODOLOGY Sources of data: the study is undertaken in rural areas of Alwar region. Primary data is enumerated from a field survey in the study region. Sample Size: samples have been collected for the research from rural area of Alwar region Statistical tools used: simple percentage analysis, cross tabulation has been used to alalyse and interprets the data. Method of data collection: - a structured interview scheduled was prepared and used for collecting data from the rural SHG members who engaged in micro enterprises through microfinance. http://www.iaeme.com/ijm/index.asp 32 editor@iaeme.com
Role of Microfinance in Women Empowerment: An Empirical Study in Alwar District, Rajasthan, India Educational qualifications of respondents 16 14 12 8 6 4 2 illeterate literate primary secondary higher secondary UG 4% of the women were illiterate, 22% were literate, % were studied up to primary level, 16% were studied up to secondary, 8% were studied up to higher secondary and only 4% of the women were graduate. Reduction in poverty level 4 3 3 2 2 1 to great extent to some extent to low extent 7% of the women stated that microfinance has reduced their poverty level to a greater extent.. LIMITATIONS OF THE STUDY The study is confined with the rural areas of Alwar; hence the result may not be applicable to urban area SHG members. The data was collected only from those who engaged in income generating activities. http://www.iaeme.com/ijm/index.asp 33 editor@iaeme.com
Rejoice Solomon 6. DATA ANALYSIS AND INTERPRETATION Maintenance level of the family by women. 4 4 3 3 2 2 1 to greater extent to some extent to lower extent 41respondents out of said that they can able to maintain their family to greater extent followed by the 7 respondents who accepted to some extent they can able to maintain their family after joining in SHG Purpose of getting microfinance by respondents. 2 2 1 household purpose to start business to promote exixting business educational purpose low rate of interest 2 respondents got microfinance to start new income generating business followed by their household purpose. Marital status 3 2 2 1 married unmarried widoes divorced http://www.iaeme.com/ijm/index.asp 34 editor@iaeme.com
Role of Microfinance in Women Empowerment: An Empirical Study in Alwar District, Rajasthan, India Employment status 2 2 1 housewife self employed labour professional Employment status of the respondents shows that 44% of the respondents were housewives, while 4% were self employed, % were labour and lowest 6% were of professional. 7. FINDINGS Women are economically and socially empowered after joining SHG and getting micro finance as 7 percent reported that poverty level reduced by participating micro finance program. Women are given full freedom to express their opinions It is found that microfinance improved the literacy level of rural women improved awareness on children education to high level of respondents. There is a definite improvement in psychological well being and social empowerment among rural women as a result of participating in micro finance through SHG program. Most of the women were employed and the take loan to start their business. 8. CONCLUSIONS The SHG s of rural area doing their job very well. This study concluded that microfinance helped the rural women to empower them under social & economical. Empowerment is manifestly important for set-up socio-economic condition of the women. The SHG s enabled women regarding their rights and duties for the sustainable development. While interacting with the respondents, it was found there is a need to organise training programme for income generating activities. The SHGs enabled women to aware about their rights, entitlements, taking part in various development programmes and economic activities for their substantial development. REFERENCES [1] Dr.Anoop Kumar (214) - Statistics for economics, First Edition, Genius Publication Pvt. Ltd., Jaipur. [2] C.R Kothari (27) - Research Methodology Methods & Techniques, Second Edition, New age International publishers, New Delhi. [3] R. Panneerselvam (216) research Methodology, Second Edition, PHI Learning Pvt. Ltd., Delhi. http://www.iaeme.com/ijm/index.asp 3 editor@iaeme.com
Rejoice Solomon [4] K. Rajendran and R.P. Raya (2) Impact of Micro Finance - An empirical Study on the Attitude of SHG Leaders in Vellore District (Tamil Nadu, India). Global Journal of Finance and Management - ISSN 97-6477 Volume 2, Number 1, pp. 9-68, http://www.ripublication.com/gjfm/gjfmv2n1_.pdf. [] Rahul Vyas and NidhiNalwaya (213) MFI A Study of Socio-Economic Indicators of Women SHG s in South Rajasthan with Perspective of Financial Stability. International Monthly Referred Journal In Management & Technology ISSN 232-73 Volume 2. [6] S.Srumathi and Dr. K. Mohan (211) Role of Microfinance In Women s Empowerment. Journal Of Management And Science - ISSN- 2249-126 volume 1. [7] Dr. V. Antony Joe Raja and V. Vijayakumar, A Study on Stress Management in Various Sectors in India. International Journal of Management, 8(1), 217, pp. 61. [8] R. Pramila and Dr. Lalitha Aswath, Stress: Coping up Strategies among Woman in Corporate and Academic Libraries in Bangalore City. International Journal of Library & Information Science, 6 ( 6 ), 217, pp. 1 9. http://www.iaeme.com/ijm/index.asp 36 editor@iaeme.com