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Abstract: rural development programs. SHG is a viable

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Abstract:

Micro finance is
a facility of providing tiny loans to poor individuals to
try to do their own business. India is a developing country and
its major portion is below poverty level. Indian society is
additionally discriminated on the grounds of caste and gender. Women don’t
have equality with men. Their participation in family is negligible. They’re not
given a good treatment. Small finance
facility authorized women to possess their own business
entity and earn for her family. Once women are self-dependent
and move out from four walls of their houses to earn their livelihood, they’re
taken seriously by alternative members of the family. The purpose of this
research paper is to focus on impact of micro finance on women decision making.

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Keywords:

Micro finance, women decision
making etc.

Introduction:

Microfinance
is a thought that’s serving to the poor to avail of and build opportunities for
economic process. In India, microfinance has fuelled the efforts of rural
development, women direction and wealth generation by providing tiny scale
savings, credit, insurance and alternative money services to poor and low
financial gain households. Microfinance therefore is a method to empower the
poor and provides a valuable tool to assist the economic development method.

Micro-Finance
services have heterogeneous over time into areas like small savings, small
insurance and a number of other non-financial services.

Women,
so could be a powerful a part of social and economic setup of the country.
Within the ancient amount, they were treated as builds of the society and that
they ran the family with success. Currently in India, Women’s contribution to
the commercial sector is chop-chop growing in flat basis. Government encourages
the women as freelance and self-sustainable persons within the society.

Women
direction through aid cluster constitutes a rising and quick growing trend
towards social and economic development of the state. Self help groups (SHGs)
square measure one among the innovative and far required schemes to accelerate
the women entrepreneurship.

 

Literature
Review:

Ahmad
M.A. (1999) in his work on “Thrift Groups in Assam” stated, SHGs have been performed doing well in
Northern and Eastern states of India. He also highlighted, women members have
taken necessary steps in the management for achieving their privileges and to
mark their complaints boldly.

Gurumoorthy
(2000) in study ‘Self help groups empower rural women’ maintained that SHG (self help group) is a viable
alternative to achieve the objectives of rural development and to get community
participation in all rural development programs. SHG is a viable organizational
set up to disburse micro credit to the rural women for the purpose of making
them entrepreneur and encouraging them to enter into entrepreneurial
activities. Credit needs of the rural women can be fulfilled wholesomely
through the SHGs. The women led SHGs have successfully demonstrated how to
mobilize and manage thrift, appraise credit needs, maintain linkages with the
banks and enforce financial self discipline. SHG?s enhance the equality of
status of women as participants, decision-makers and beneficiaries in the
democratic, economic and social and cultural spheres of life. They encourage
women to take active part in the socio-economic progress of the society.

Pattanaik (2003) in her
study ‘Empowerment through
SHG: A Case Study of Gajapati District’ reveals that
SHGs are continuously striving for a better future for tribal women as
participants, decision-makers and beneficiaries in the domestic, economic,
social and cultural spheres of life. But due to certain constraints like gender
inequality, exploitation, women torture for which various Self Help Groups are
not organised properly and effectively.

Narasaiah (2004) in her
study ‘Women
and Microcredit, mentioned that the change in women’s contribution to
society is one of the striking phenomena of the late twentieth century.
According to him micro-credit plays an important role in empowering women.
Giving women the opportunity to realise their potential in all spheres of
society is increasingly important.

Cheston & Kuhn (2004) in
their study ‘Empowering Women
through Microfinance’ concluded that micro-finance programmes have been
very successful in reaching women. This gives micro-finance institutions an
extraordinary opportunity to act intentionally to empower poor women and to
minimise the potentially negative impacts some women experiences.

Rationale:

This
analysis paper contributed to the micro-finance and to know the authorization
of ladies. The analysis helps to review the women decision making. The explanation
of the study is to explore the result of small finance and the way it helps in
increase in women decision making ability.

Objectives:

To study the impact of micro finance on women
decision making.

Research
methodology:

The study was
exploratory in nature mainly based on primary data to explore women decision
making power of Madhya Pradesh. Survey method was used to collect the primary
data of this empirical study. The sample of the study constituted women
self-help groups who are doing business by using micro finance.

Random and purposive
sampling techniques were used to select the respondents. Self-designed
Questionnaire was used to collect primary data of the study. 250 self-help
groups were studied.

Results
and Discussion:

Table 1: Descriptive Statistics on Micro finance facility &
decision making

 

Mean

Std.
Deviation

N

decision
making

15.0160

2.97374

250

Micro finance
facility

7.1000

2.06180

250

 

Table 2: Correlations on Micro
finance facility & decision making

 

decision
making

Micro finance
facility

Pearson
Correlation

decision
making

1.000

.383

Micro finance
facility

.383

1.000

Sig.
(1-tailed)

decision
making

.

.000

Micro finance
facility

.000

.

N

decision
making

250

250

Micro finance
facility

250

250

Above
table shows the correlations and it is evident from this table that Pearson’s
correlation coefficient between Micro finance facility and decision making is
0.383 which is significant since the significant value (p- value) 0.000 is less
than 0.05. Therefore, we may conclude that there is significant association
between Micro finance facility and decision making. Furthermore, since the
value of correlation coefficient r suggests a moderate positive correlation, we
can use a regression analysis to Model the relationship between the variables.

Table 3: Model Summary on Micro finance facility &
decision making

Model

R

R
Square

Adjusted
R Square

Std.
Error of the Estimate

Change
Statistics

R
Square Change

F
Change

df1

df2

Sig.
F Change

1

.383a

.147

.143

2.75261

.147

42.612

1

248

.000

a.
Predictors: (Constant), Micro finance facility

b.
Dependent Variable: decision making

Over all model summary shows the value of multiple correlation
coefficient  R=0.383, it is the linear
correlation coefficient between observed and model predicted values of the
dependent variable, Its large value indicates a strong relationship. R2,
the coefficient of determination is the squared value of the multiple
correlation coefficients. Adjusted R2=0.147, R2 change is
also 0.143 and these values are significant which shows that overall strength
of association is noteworthy. The coefficient of determination R2 is
0.147; therefore, 14.7% of the variation in decision making of women is explained by Micro
finance facility.

Table 4: ANOVA on Micro
finance facility & decision making

 

Model

Sum
of Squares

df

Mean
Square

F

Sig.

 

1

Regression

322.869

1

322.869

42.612

.000b

 

Residual

1879.067

248

7.577

 

 

 

Total

2201.936

249

 

 

 

 

a.
Dependent Variable: decision making

 

b.
Predictors: (Constant), Micro finance facility

 

Table 5: Coefficients on Micro finance facility & decision
making

 

Model

Unstandardized
Coefficients

Standardized
Coefficients

t

Sig.

95.0%
Confidence Interval for B

B

Std.
Error

Beta

Lower
Bound

Upper
Bound

1

(Constant)

11.095

.625

 

17.740

.000

9.863

12.327

Micro finance
facility

.552

.085

.383

6.528

.000

.386

.719

a.
Dependent Variable: decision making

Figure 1:  Histogram
on Micro finance
facility & decision making

 

ANOVA is used to exhibit model’s ability to explain any variation in the
dependent variable. ANOVA table exhibits that the hypothesis that all model
coefficients are 0 is rejected at 1% as well as 5% level of significance which
means that the model coefficients differ significantly from zero. In other
words we can say that there exists enough evidence to conclude that slope of
population regression line is not zero and hence, Micro
finance facility is useful as predictor
of decision making.

From the table of coefficients, the regression equation can be obtained
as

Decision Making=
(Y) 11.095
+ .552 (X1)*Micro
Finance

The normal probability plot is obtained to test the assumption about the
normality of residuals and it appears that the residuals are approximately
normally distributed. Thus the assumptions for regression analysis appear to be
met.

The above finding on
the above hypothesis reveals that Micro finance facility has significant
positive association with decision making at .000 so null hypothesis is not
supported.

Findings:

The above results
conclude that micro finance has a positive impact on women decision making. The
results show that null hypothesis is rejected because p-value is 0.000 which is
less than 0.05. The correlation between micro finance and women participation
is 0.383 which is significant at 5% level of significance. The graph also
represents normal distribution data. Therefore, the assumptions are also met.

Conclusion:

The study concludes
that micro finance facility had contributed positively in women decision
making. When women do not work, they are less considered and doubted in their
decisions because they are not exposed to society. When they work and move out
from their houses, they develop a sense of understanding and can better judge
the scenarios hence, improving decision making.

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