• #0 (no title)
  • #0 (no title)
  • About
  • Facebook
  • Twitter
  • RSS
(As ISO 9001:2015 Certified Publications)
    • Quick Search
    • Advanced Search
  • Home
  • Editorial Policy
  • Author Guidelines
  • Submission
  • Copyright Form
  • Career
  • Contact us
  • Subscription

Back to Journal

Home»Articles»Formal Structure and Efficiency of Self-Help Groups: An Economic Analysis

JournalCover

Asian Review of Social Sciences (ARSS)

Editor Dr. Lakshmi Narayanan
Print ISSN : 2249 – 6319
Frequency : Quarterly

Formal Structure and Efficiency of Self-Help Groups: An Economic Analysis

Author : Mudaser Ahad Bhat
Volume 7 No.3 October-December 2018 pp 97-102

Abstract

Self-help groups are generally seen as instruments for goals including empowering women, poverty alleviation, developing leadership qualities among poor and needy people. SHGs bridge the gap between haves and have-nots. These groups have become basic sources of village capital. Self-help group’s (SHGs) have had a record of success, but they are gradually losing their significance as an instrument of micro-finance and financial inclusion. The persistence of poverty and gender inequality on the scale at which they still exist are not acceptable. This reflects that SHGs face the issues of declining efficiency and quality, although their quantity is alright. Further, the natures of formal structure within which SHGs operate and function have a fundamental effect on their functioning and efficiency and on the efficiency of micro-finance and inclusion programmes. If the problems of these groups are addressed efficiently and are provided with sufficient institutional and financial support, the efficiency of these groups will improve and “efficient and viable self-help groups could do wonders”. Due to enhancement in efficiency and sustainability, self-help could improve the social capital base not only of members but also of non-members. It is in this background that this paper attempts to identify the particular parameters/elements that must be present uniquely in the formal structure of all SHGs so that all SGHs may follow a unique logical architecture in their functioning. This study also attempts to analyze the relationship between the formal structure of SHGs and their total savings, their lending capacity, total amount left after disbursements and number of beneficiaries. Finally, this study also attempts to analyze the impact of their formal structure, bank loans received the ability to repay received bank loans, regularity/irregularity towards savings on their frequency of using the bank. From the obtained data and statistical analysis, the study found that the majority of SHGs function independently of their organizational structures. This mars their overall efficiency because the formal structure has its significance in achieving group goals and thereby, increases the level of work quality. Working of SHGS according to a well-established structure positively and significantly impacts their savings, borrowing capacity, lending capacity and a number of beneficiaries. Referred to the data, we can conclude that those SHGs use their operational bank accounts frequently that have a well-established logical structure, received and repaid banks loan since their inception, maintained regularity in group savings and participated in income generation activities than those which lack a formal structure, were unable either to receive or repay bank loans, faced irregularities towards group savings and not participated in income generation activities. So SHGs should pay specific attention towards the formulation of logical structures to work on, maintain regularity in their savings and should participate in income generation activities. Further, banks should provide sufficient loans to these voluntary saving groups and should increase the loan repayment period for them so that these group may become able to maintain their sustainability in the long-run.

Keywords

Self-help Groups, Microfinance, Formal Structure, Savings, Bank Account Usage, Borrowing, and Lending

Full Text:

References

[1] Ahlawat, S. (2016). An Analysis of Process of Self Help Groups in Haryana. International Journal of Research in Finance and Marketing, 6(11), 125-131.

[2] Anand, J.S. (2004). Addressing Poverty through Self-Help Groups: A Case Study. http://www.img.kerala.gov.in/docs/papers/jsa1.pdf.

[3] Bastos, A., Casacab, S .F,. Nunesc, F., and Pereirinhad, J. (2009). Women and Poverty: A Gender-Sensitive Approach. The Journal of Socio-Economics, 764–778.

[4] Findlay, J., and Wright, R. E. (1996). Gender, Poverty and the Intra-household Distribution of Resources. Review of Income & Wealth, Series 42, (3), 335-351.

[5] Kyaw, D., and Routray, J. K. (2006). Rural Poverty Assessment with Gender Dimension in Myanmar. Asia-Pacific Journal of Rural Development, 16(2), 7-34.

[6] Kyeyune, G., and Goldey, P. (1999). Towards Effective Poverty Reduction: A Study of Heterogeneous Groups of Poor Women in Uganda. Journal of International Development, 11, 565-580.

[7] Kumaran, K. P. (2002). Role of Self Help Groups in Promoting Micro Enterprise through Micro Credit: An Empirical Analysis. Journal of Rural Development, 21(2), 231-250.

[8] Kumar, D.S and Raj, S. V. (2010). An Inquiry into Determinants of Participation in Self-Help Groups (SHGs) Institutions- Evidence from Southern India. Artha- Vikas, Journal of Economic Development, 46 (1), xxx, xxx, 2010.

[9] NABARD. (1989). Studies on Self-Help Groups of the Rural Poor. Published on Behalf of the Indian Member Institutions of APRACA, Bombay, NABARD, 1989-1990: Annual Report 1990-91, NABARD, Mumbai (Chapter on: Credit Needs of the Rural Poor – Role of Self-Help Groups and their Linkages with Formal Credit Institutions).

[10] Nandal, S. (2005). Extent and Causes of Gender and Poverty in India: A Case Study of Rural Haryana. Journal of International Women’s Studies, 7(2), 182-90.

[11] Pangannavar, Y. A. (2015). A Research Study on Rural Empowerment through Women Empowerment: Self-help Groups, A New Experiment in India. International Journal of Law, Education, Social and Sports Studies (IJLESS), 2(1), 51-56.

[12] Purnima K.S., and Narayana Reddy G.V. (2007). Indicators of Effectiveness of Women Self Help Groups in Andhra Pradesh, Research Note, Journal of Research ANGRAU, 35 (2), 93-96.

[13] Quibria, M. G. (1995). Gender and Poverty: Issues and Policies with Special Reference to Asian Development countries. Journal of Economic survey, 9(4), 373-41.

[14] Rana, K., and Ansari. (2017). Self Help Group & Woman Empowerment: A Study on Selected SHGs in Dehardun District. International Journal of Current Science and Technology, 5(12), 2017.

[15] Rathinam, R.U., and Akudugu, A. M. (2014). Self-help Groups as a „Livelihood Development‟ for Rural Women: Experiences from India and Ghana. Journal of Economics and Sustainable Development, 5(15), 194-200.

[16] Ravi, S., and Vikkraman, P. (2012). The Growth of Self Help Groups in India: A Study. Indian Journal of Applied Research, 1(7), 168-170.

[17] Sharma, K.C. (2000). Micro Financing through Self Help Groups. Journal of Agricultural Economics, 56(3), 460-461.

[18] Tiwari, A., and Arora, J. (2015). Why are the Self Help Groups (SHGs) in Decline? A Case Study of SHGs in Gurgaon. Research on Humanities and Social Sciences, 5(1), 77-84.

[19] Tripathy, K.K. (2004). Self Help Groups: A Catalyst of Rural Development. Kurukshetra, 52(8), 40-43.

Asian Review of Social Sciences (ARSS) is a quarterly international peer-reviewed journal of Social Sciences. One of the objectives of this journal is to disseminate knowledge on various research issues connected with the topics include, but are not limited to:

Anthropology
Archaeology
Business Administration
Communication
Criminology
Economics
Education
Government

Linguistics
International Relations
Political Science
Sociology
Geography
History
Law
Psychology

Self-help groups are generally seen as instruments for goals including empowering women, poverty alleviation, developing leadership qualities among poor and needy people. SHGs bridge the gap between haves and have-nots. These groups have become basic sources of village capital. Self-help group’s (SHGs) have had a record of success, but they are gradually losing their significance as an instrument of micro-finance and financial inclusion. The persistence of poverty and gender inequality on the scale at which they still exist are not acceptable. This reflects that SHGs face the issues of declining efficiency and quality, although their quantity is alright. Further, the natures of formal structure within which SHGs operate and function have a fundamental effect on their functioning and efficiency and on the efficiency of micro-finance and inclusion programmes. If the problems of these groups are addressed efficiently and are provided with sufficient institutional and financial support, the efficiency of these groups will improve and “efficient and viable self-help groups could do wonders”. Due to enhancement in efficiency and sustainability, self-help could improve the social capital base not only of members but also of non-members. It is in this background that this paper attempts to identify the particular parameters/elements that must be present uniquely in the formal structure of all SHGs so that all SGHs may follow a unique logical architecture in their functioning. This study also attempts to analyze the relationship between the formal structure of SHGs and their total savings, their lending capacity, total amount left after disbursements and number of beneficiaries. Finally, this study also attempts to analyze the impact of their formal structure, bank loans received the ability to repay received bank loans, regularity/irregularity towards savings on their frequency of using the bank. From the obtained data and statistical analysis, the study found that the majority of SHGs function independently of their organizational structures. This mars their overall efficiency because the formal structure has its significance in achieving group goals and thereby, increases the level of work quality. Working of SHGS according to a well-established structure positively and significantly impacts their savings, borrowing capacity, lending capacity and a number of beneficiaries. Referred to the data, we can conclude that those SHGs use their operational bank accounts frequently that have a well-established logical structure, received and repaid banks loan since their inception, maintained regularity in group savings and participated in income generation activities than those which lack a formal structure, were unable either to receive or repay bank loans, faced irregularities towards group savings and not participated in income generation activities. So SHGs should pay specific attention towards the formulation of logical structures to work on, maintain regularity in their savings and should participate in income generation activities. Further, banks should provide sufficient loans to these voluntary saving groups and should increase the loan repayment period for them so that these group may become able to maintain their sustainability in the long-run.

Editor-in-Chief
Dr. Lakshmi Narayanan
Department of Social Sciences, College of Arts and Applied Sciences, Dhofar University, Oman
[email protected]
Editorial Advisory Board
Dr. Mashitah Binti Hamidi
Department of Social Administration and Justice, University of Malaya, Malaysia
[email protected]
Dr. Jillian Ooi Lean Sim
Department of Geography, University of Malaya, Malaysia
[email protected]
Dr. Haris Bin Abd Wahab
Department of Social Administration and Justice, University of Malaya, Malaysia
[email protected]
Dr. Mohana Dass Ramasamy
Department of Indian Studies, University of Malaya, Malaysia
[email protected]
Dr. Ma Tin Cho Mar @ Noorjahan Bi Bi
Department of South East Asian Studies, University of Malaya, Malaysia
[email protected]
Dr. Asbah Binti Razali
Department of Anthropology and Sociology, University of Malaya, Malaysia
[email protected]
Dr. Azharudin Bin Mohamed Dali
Department of History, University of Malaya, Malaysia
[email protected]
Dr. Hasmah Binti Zanuddin
Department of Media Studies, University of Malaya, Malaysia
[email protected]

2016

2015

2014

  • Results
  • Asian Review of Mechanical Engineering (ARME)
  • career

2013

  • Home
  • Shop
  • My Account
  • Logout
  • Contact us
  • The Asian Review of Civil Engineering (TARCE)

2012

  • Asian Journal of Electrical Sciences(AJES)
  • Asian Journal of Computer Science and Technology (AJCST)
  • Asian Journal of Information Science and Technology (AJIST)
  • Asian Journal of Engineering and Applied Technology (AJEAT)
  • Asian Journal of Science and Applied Technology (AJSAT)
  • Asian Journal of Managerial Science (AJMS)
  • Asian Review of Social Sciences (ARSS)

2011

2010

    Table of Contents

    Editorial Note

    Editorial Dr. Lakshmi Narayanan

    Editor-in-Chief
    Dr. Lakshmi Narayanan
    Department of Social Sciences, College of Arts and Applied Sciences, Dhofar University, Oman
    [email protected]
    Editorial Advisory Board
    Dr. Mashitah Binti Hamidi
    Department of Social Administration and Justice, University of Malaya, Malaysia
    [email protected]
    Dr. Jillian Ooi Lean Sim
    Department of Geography, University of Malaya, Malaysia
    [email protected]
    Dr. Haris Bin Abd Wahab
    Department of Social Administration and Justice, University of Malaya, Malaysia
    [email protected]
    Dr. Mohana Dass Ramasamy
    Department of Indian Studies, University of Malaya, Malaysia
    [email protected]
    Dr. Ma Tin Cho Mar @ Noorjahan Bi Bi
    Department of South East Asian Studies, University of Malaya, Malaysia
    [email protected]
    Dr. Asbah Binti Razali
    Department of Anthropology and Sociology, University of Malaya, Malaysia
    [email protected]
    Dr. Azharudin Bin Mohamed Dali
    Department of History, University of Malaya, Malaysia
    [email protected]
    Dr. Hasmah Binti Zanuddin
    Department of Media Studies, University of Malaya, Malaysia
    [email protected]

    Articles

Advanced Search

You can submit your research paper to the journal in just a few clicks. Please follow the steps outlined below: 1. Register your details and select to be an Author 2. Log in with your user name and password 3. ‘Start a new submission’ and follow these 5 steps:

[gravityform id="1" name="Registration" title="false" description="false"]

Privacy Statement

The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.

Privacy Statement

The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.

Lorem1 ipsum dolor sit amet, consectetur adipiscing elit. Nulla convallis ultricies scelerisque. Fusce dolor augue, sollicitudin eget lacus vitae, rutrum commodo lacus. Praesent ullamcorper facilisis dui. Sed suscipit id lorem ut dapibus. Integer dictum cursus nisl, quis ullamcorper augue. Sed non rutrum mauris. Maecenas in dolor est. Donec eget sagittis mi. Sed non leo eu odio mollis pulvinar vitae et leo. Integer eu feugiat tortor. Duis massa purus, eleifend id erat eget, hendrerit semper risus. Suspendisse cursus varius dapibus

Lorem1 ipsum dolor sit amet, consectetur adipiscing elit. Nulla convallis ultricies scelerisque. Fusce dolor augue, sollicitudin eget lacus vitae, rutrum commodo lacus. Praesent ullamcorper facilisis dui. Sed suscipit id lorem ut dapibus. Integer dictum cursus nisl, quis ullamcorper augue.

Subscription

Subscription (for 12 issues):
Rs. 5000; Overseas - USD 500;
Cheque drawn in favour of "Informatics Publishing Limited"
Click here to download online subscription form

Download

DD Mailing Address

Lorem1 ipsum dolor sit amet,
Lorem1 ipsum dolor sit amet,
Lorem1 ipsum dolor sit amet.

BACK TO TOP

Outstanding Scholars

The Journals honor Outstanding Scholars in various fields. Scholar of the Month should have contributed to their field and to the larger community. Recipients will be nominated by the Advisory Board and approved by the Editor-in-Chief of the allied journals published by The Research Publication. Scholar of the Month will be displayed in the web portal of the concerned journal.

Please send your brief write up to [email protected]

Editors and Reviewers

The Research Publication is seeking qualified researchers to join its editorial team as Associate Editor, Editorial Advisory Board Member, and Reviewers.
Kindly send your details to [email protected]

Call For Papers

Authors are requested to submit their papers electronically to [email protected] with mentioning the journal title.

Mailing Address

The Research Publication 1/611, Maruthi Nagar, Rakkipalayam Post, Coimbatore – 641 031, Tamil Nadu, India Phone No.: 0422 2461001

  • About
  • Editorial Policy
  • Author Guidelines
  • Contact us
  • Copyright
  • Facebook
  • Twitter
  • RSS

© 2015 The Research Publication. All rights reserved.

The Research Publication
  • Home
  • Editorial Policy
  • Author Guidelines
  • Submission
  • Copyright Form
  • Career
  • Contact us
  • Subscription