Social Capital Formation and Growth of Micro Entrepreneurship through Microfinance: A Study of Women in Self Help Groups in Rajasthan

Harbhan Singh¹, Dr. Anoop Kumar Atria²*

¹Lecturer, Department of Business Administration, Samrat Prithviraj Chouhan Government College, Ajmer (Rajasthan)

²Lecturer, Department of Economics, Samrat Prithviraj Chouhan Government College, Ajmer (Rajasthan)

*Corresponding Author E-mail: harbhan@gmail.com; anoopatreyajm@gmail.com

ABSTRACT:

Purpose: This paper is an attempt to explore and analyse the development of micro entrepreneurship at small level through microfinance and social capital building among the women of SHGs of Rajasthan State.

Design/methodology/approach: We have approached more than 500 microfinance clients but somehow only 435 clients of 53 SHGs responded properly in which 214 were women. We have surveyed them and asked about their demographics, financial and social dimensions through questionnaires.

Findings: We have applied various univariate and multivariate statistical techniques and found significant increase in sociability of microfinance clients with special reference to women across Rajasthan state. We also found more than 30% turn-up of women microfinance clients in to entrepreneurs.

Research Limitations: A major limitation of this research is that the tribal areas of Dungarpur, Jhalawar, Banswara and Pratapgarh are not included due to various reasons. Other limitation include multiple lending which is seems to be more crucial and defaulters are not included in the study.

Practical implications: The present study focuses upon the social and financial processes which are participated in the development of entrepreneurship of the microfinance beneficiaries (SHGs). The study is useful for the policymakers to find out the regions where and how microfinance is catering a platform for entrepreneurship.

Originality/value: It is expected that the study will definitely add significant knowledge in the area of social capital and intermediary processes between entrepreneurship and microfinance and it will be helpful for the scholars to find out enhanced and substantial measures of social capital.

KEY WORDS: Social Capital, Micro Entrepreneurship, Microfinance, Self Help Groups (SHGs).

1. INTRODUCTION:

Entrepreneurship is an attribute of a developing country. The quantum of capital formation by entrepreneurs in a developing country is critical due to the participation of capital formation in overall growth. It is an ability to take menace for venture, provides nativity to new commodities via innovation and most importantly an inclination to become own boss from resource allocation to profit earning. The process of becoming an entrepreneur from a common human being includes the following core inter-process activities:

First, an innovative ideology, second, motivation to implement the idea, third, fund acquisition or arrangement of fund, forth, setting up venture and fifth, continuing the venture for perpetual time span.

Aforesaid activities are core component for an entrepreneur. This research explores the various dimensions of self help groups in which the community members, especially women, come together, identify their capabilities, develop ideology, acquire shared resources, arrange funds from their savings and microfinance, build a network (social capital) and create a venture for long term livelihood.

In this paper we are exploring the dynamics of microfinance in two dimensional outputs, firstly, building social capital and secondly, the development of entrepreneurship.

2. RESEARCH OBJECTIVE AND HYPOTHESES:

The objective of this present study is to explore and analyse the development of entrepreneurship through microfinance and social capital building among the women of self help groups of Rajasthan State.

The Hypotheses are as follows:

Ho₁: Microfinance doesn’t have any relationship with Micro Entrepreneurship.

Ha₁: Microfinance has relationship with Micro Entrepreneurship.

Ho₂: Social Capital doesn’t exist among the women entrepreneurs developed through microfinance.

Ha₂: Social Capital exists among the women entrepreneurs developed through microfinance.

3. LITERATURE REVIEW:

James Coleman (1987, 1988), and Pierre Bourdieu (1980, 1986) were the pioneers in defining the social capital among social structure. They indicated that the social relationship among the group members or relationships among the actors of social structure act as the resource for information.

Coleman incorporated two concepts of Loury (1977, 1987) and Granovetter (1985) to make Rational Choice Theory. Loury (1977, 1987) explained social relationships as the resources to an individual that maximize the utility in the form of social capital.

The study of Narayan and Pritchett (1997) to measure social capital in rural Tanzania, based on Tanzania Social Capital and Poverty Survey (SCPS), shows the extent and characteristics of associational activity of individuals and their trust in various institutions. The study finds that the level of social capital in villages increases the level of household incomes.

Bowling Alone (2000) is the documentation of Putnam’s study, in which he discussed about the declining social capital among Americans due to less participation in politics, professional organizations, religious groups, civic groups and trade unions in 1990s. Putnam measured social capital through networks of civil engagement and created a S ocial Capital Index (Putnam 2000). Putnam projected social capital as the network of civic engagement, trust and reciprocity which are related to macro social outcomes. He assumed that the social capital has positive influence upon political performance and economic development.

Ronchi (2004) states that social capital and micro finance are strengthen each other. He stated that any sustainable development initiative requires the combination of human capital, finance and physical resources. He made his studies in Ecuador and found significant evidences in the favour of the dynamics between social capital and microfinance. The higher degree of social capital improves the loan repayment frequency and patterns.

Mosley, Olejarva and Alexeeva (2004) find that the impact of social capital created with informal associations is not uniform across all economies. Social capital is valued more where issue of corruption is a serious impediment to the access to credit. In some societies it helps in inducing greater trust in government officials and developing complementary services such as insurance where development of trust is essential.

4. RESEARCH METHODOLOGY:

The research carries both descriptive and exploratory research design. The present research is characterized by the prior formulation of specific research questions and hypotheses. Thus, the information needed is clearly defined. As a result, this research is pre-planned and structured. It is typically based on predetermined representative samples and specifies the methods for selecting the sources of information and for collecting data from those sources. Books, Magazines, Journals etc. remain as the secondary source of data. Primary data has been collected through validated questionnaire where Five Point Likert Scale has been applied to determine various significant variables which have significant impact upon the development of micro entrepreneurship and social capital. A sample size of 214 Microfinance Beneficiaries (women of community based organizations) has been taken using convenience sampling. Data is analyzed through descriptive statistics, factor analysis, ANOVA using SPSS 20.

5. DATA ANALYSIS AND INTERPRETATION:

Table 5.1: Summary Statistics

Variables	N	Mean		Standard Deviation	Variance
	Statistic	Statistic	Std. Error
Microfinance For Long Term Livelihood	214	4.47	0.055	0.809	0.654
Improved Economic Conditions Of Members After MF	214	4.01	0.067	0.979	0.958
Improved Quality of Life After MF	214	4.41	0.068	0.997	0.994
After MF-More Income And More Savings	214	4.1	0.069	1.009	1.018
Trust Within The Group	214	3.53	0.09	1.32	1.743
Micro Entrepreneur Via Help of MF	214	4.64	0.049	0.722	0.521
Products And Services With Local Preferences	214	4.64	0.058	0.843	0.71
Harmonious Relationship	214	4.15	0.07	1.028	1.057
Regular Repayment of Loan And Interest	214	4.5	0.051	0.743	0.552
Adequate Communication	214	3.2	0.089	1.296	1.68
Cooperation	214	4.04	0.069	1.008	1.017
Behaviour of Group Members Toward Women	214	4.68	0.05	0.733	0.537
Motivation By Group Leader	214	4.27	0.059	0.861	0.741
Problem Solving	214	3.65	0.086	1.261	1.59
Understanding of Organizational Values	214	3.88	0.065	0.945	0.892
Responsibility Sense of Women	214	4.04	0.074	1.085	1.177
Social Activities By Women	214	4.5	0.055	0.798	0.636
Decision Making Ability Of Women Group Leader	214	4.28	0.063	0.922	0.851
Lending Criteria of MFIs And Women	214	4.76	0.045	0.662	0.438
Attitude of Head of Family To Woman	214	3.04	0.095	1.39	1.933
Completion of Assigned Task	214	4.09	0.068	0.989	0.977
After MF-Greater Access To Credit	214	4.44	0.059	0.858	0.736
Comparative Trust	214	4.16	0.072	1.055	1.114
Consultation With External Agents	214	4.36	0.065	0.958	0.917
Independency	214	2.79	0.1	1.457	2.123
Meeting Frequency	214	4.02	0.079	1.156	1.337
Active Participation	214	2.82	0.087	1.274	1.624
Reference For Work Group	214	3.77	0.08	1.17	1.37
Respectable Position	214	3.86	0.087	1.275	1.627
Prior Information	214	4.62	0.052	0.758	0.574
Prior To MF-Poor Or Balanced	214	1.36	0.048	0.704	0.496
Overall Trust Among The Members	214	4.1	0.068	0.988	0.975
Responsibility In The Absence	214	3.32	0.078	1.148	1.318
Motivation From Family	214	3.43	0.104	1.518	2.303
Harmonious Relationship Among Group Members	214	4.44	0.063	0.916	0.839
Active Role In Planning	214	3.01	0.091	1.327	1.76
Guidance In Revenues And Expenditures	214	3.15	0.093	1.356	1.84
Participation In Organizing Social Programs	214	2.89	0.094	1.369	1.875
QWL of Women Members	214	3.45	0.077	1.124	1.263
Mobility In Markets, Public Places Etc.	214	3.11	0.092	1.351	1.824
Ability To Find Quick Solution	214	3.06	0.095	1.388	1.926
Team Work Flexibility	214	2.84	0.092	1.348	1.818
Application of Training In Livelihood Earning	214	3.14	0.088	1.285	1.652
Compatibility With MF Products	214	3	0.094	1.369	1.873
Behaviour Modification	214	2.6	0.08	1.174	1.378

5.1 Demographic Variables

Table 5.1.1: Demographic Variables

Demographic Variables		Number of Respondents	Percentage
Gender	Male	221	50.8
	Female	214	49.2
	Total	435	100.0
Literacy Level	Primary	70	16.1
	Middle	99	22.8
	Secondary	83	19.1
	Sr. Secondary	90	20.7
	Graduation and above	93	21.4
	Total	435	100.0
Age	18-20 Years	84	19.3
	20-25 Years	92	21.1
	25-30 Years	85	19.5
	30-35 Years	86	19.8
	35 and Above	88	20.2
	Total	435	100.0
Occupation	On farm	108	24.8
	Non-farm	94	21.6
	SMEs	117	26.9
	Others	116	26.7
	Total	435	100.0
Gender-wise Classification of SMEs	Men	80	68.37
	Women	37	31.62
	Total	117	100.0
Monthly Income	Less than Rs.1000	79	18.2
	Rs. 1000-5000	100	23.0
	Rs. 5000-Rs. 10000	84	19.3
	Rs. 10000-Rs. 15000	91	20.9
	More than Rs. 15000	81	18.6
	Total	435	100.0
Language	Hindi	148	34.0
	Rajasthani	133	30.6
	Others	154	35.4
	Total	435	100.0
Type of Area	Urban	100	23.0
	Semi-urban	101	23.2
	Rural	124	28.5
	Remote Area	110	25.3
	Total	435	100.0
Type of House	Own	205	47.1
	Rented	230	52.9
	Total	435	100.0
Marital Status	Married	221	50.8
	Unmarried	194	44.6
	Widow	10	2.3
	Divorce	6	1.4
	Separated	4	.9
	Total	435	100.0
Head of Family	Husband	156	35.9
	Wife	41	9.4
	Father	230	52.9
	Mother	4	0.9
	In-laws	4	0.9
	Total	435	100.0
Electricity	Yes	431	99.1
	No	4	0.9
	Total	435	100.0
Drinking Water	Piped Water	133	30.6
	Hand Pump	92	21.1
	Combined Facility	113	26.0
	Others	97	22.3
	Total	435	100.0
Government Health Services	Yes	220	50.6
	No	215	49.4
	Total	435	100.0

5.2 Formation of Social Capital during the development of Micro Entrepreneurship through Microfinance

An instrument was developed in the questionnaire consisting of 45 statements to measure the social capital building through microfinance. The respondents were asked to rate their agreement with these statements on a five point Likert type rating scale. Their responses have been used to compute a quantitative measure named as Social Capital Building Scores (SCBS) for the purpose of analysis in the forth coming sections.

The above 5 point rating scale was given a numerical value ranging from 1to 5. The scores of all the statements have been added to calculate aggregate Social Capital Building Score for each respondent. These scores have been used to analyze the impact of demographic factors on these scores. The scores of individual statements have been used to identify the factors using multivariate technique of factor analysis.

5.2.1 Reliability of the Instrument

To measure the internal consistency and reliability of the instrument developed for measuring Social Capital Building, Cronbach's Alpha Coefficient was calculated by using SPSS. The value of Cronbach’s Alpha is summarized below in table:

Table 5.2.1: Case Processing Summary
		N		%
Cases	Valid	214		100.0
	Excluded^a	0		.0
	Total	214		100.0
a. Listwise deletion based on all variables in the procedure.
Table 5.2.2: Reliability Statistics
Cronbach's Alpha			N of Items
.851			45

As it can be observed that the instrument for social capital has attained a Cronbach Alpha value as 0.851. For the purpose of basic research the Cronbach alpha values should be higher than 0.7 to 0.8. The Cronbach Alpha is 0.851 hence it can be proved that there is consistency in responses.

A separate instrument containing 45 statements was inserted apart from demographics in questionnaire to measure social capital formation. To eliminate the problems in analyzing large number of variables i.e. 45, closely related variables have been clubbed using factor analysis. The technique factor analysis provides an easy and proper way to reducing number of variables in a research problem to a concise or manageable number by combining selected ones in to factors (Nargundkar, 2005). A six factor solution was sought from factor analysis using Statistical Package for Social Sciences (SPSS). The principle component analysis method of extraction and varimax method of rotation has been used.

5.2.2 KMO and Bartlett's Test

Table 5.2.2.1: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.		.791
Bartlett's Test of Sphericity	Approx. Chi-Square	7507.921
	df	990
	Sig.	.000

Before using factor techniques, the appropriateness of data set for factor model was tested using Kaiser Meyer Olkin (KMO). The value of KMO statistic 0.791 was found which is greater than the desirable value 0.5. Thus the correlation between the pairs of variables is explained by other variables and hence factor analysis was found to be an appropriate analysis technique.

Bartelt's-test of sphericity was used to test the null hypothesis that variables are uncorrelated, thus the correlation matrix is identity matrix. As it can be seen from the below table that this null hypothesis is rejected as the appropriate chi-square statistic is significant at 0.05 level. The appropriateness of factor analysis is thus automatically proved.

Table 5.2.2.2: Total Variance Explained
Component	Initial Eigenvalues			Extraction Sums of Squared Loadings			Rotation Sums of Squared Loadings
	Total	% of Var.	Cum.%	Total	% of Var.	Cum. %	Total	% of Var.	Cum. %
Microfinance for long term Livelihood	10.985	24.411	24.411	10.985	24.411	24.411	8.405	18.677	18.677
Improved economic conditions of members after MF	6.217	13.816	38.227	6.217	13.816	38.227	6.664	14.809	33.486
Improved quality of life after MF	3.122	6.938	45.165	3.122	6.938	45.165	4.509	10.021	43.506
After MF-more income and more savings	2.674	5.941	51.106	2.674	5.941	51.106	3.191	7.091	50.597
Trust within the group	1.531	3.402	54.509	1.531	3.402	54.509	1.394	3.098	53.695
micro entrepreneur via help of MF	1.454	3.231	57.740	1.454	3.231	57.740	1.349	2.998	56.693
Products and services with local preferences	1.290	2.866	60.606	1.290	2.866	60.606	1.346	2.991	59.685
Harmonious relationship	1.267	2.815	63.421	1.267	2.815	63.421	1.344	2.987	62.671
Regular repayment of Loan and Interest	1.223	2.719	66.140	1.223	2.719	66.140	1.284	2.852	65.524
Adequate Communication	1.090	2.421	68.561	1.090	2.421	68.561	1.234	2.743	68.266
Cooperation	1.044	2.321	70.882	1.044	2.321	70.882	1.177	2.616	70.882
Behaviour of group members to women	.986	2.192	73.074
Motivation by group leader	.952	2.117	75.190
Problem solving	.896	1.991	77.182
Understanding of Organizational Values	.844	1.876	79.058
Responsibility sense of women	.795	1.766	80.824
Social activities by women	.755	1.678	82.502
Decision making ability of women group leader	.746	1.658	84.161
Lending criteria of MFIs and women	.675	1.501	85.661
Attitude of head of family to woman	.659	1.465	87.126
Completion of assigned task	.563	1.252	88.378
After MF-greater access to credit	.516	1.147	89.525
Comparative trust	.505	1.122	90.646
Consultation with external agents	.443	.984	91.631
Independency	.406	.902	92.533
Meeting frequency	.350	.778	93.311
Active participation	.329	.732	94.043
Reference for work group	.292	.648	94.691
Respectable position	.279	.621	95.312
Prior information	.260	.577	95.889
Prior to MF-Poor or Balanced	.253	.561	96.451
Overall trust among the members	.228	.506	96.957
Responsibility in the absence	.214	.476	97.432
Motivation from family	.178	.395	97.827
Harmonious relationship among group members	.164	.364	98.191
Active role in planning	.151	.336	98.526
Guidance in revenues and expenditures	.130	.289	98.815
Participation in organizing social programs	.111	.247	99.062
QWL of women members	.102	.226	99.288
Mobility in markets, public places etc.	.081	.180	99.468
Ability to find quick solution	.071	.157	99.625
Team work flexibility	.060	.133	99.758
Application of training in Livelihood earning	.045	.100	99.858
Compatibility with MF products	.043	.095	99.953
Behaviour modification	.021	.047	100.00
Extraction Method: Principal Component Analysis.

Table 5.2.2.3: Rotated Component Matrix^a
Component	Component
	1	2	3	4	5	6	7	8	9	10	11
Microfinance for long term Livelihood	.830
Improved economic conditions of members after MF			.876
Improved quality of life after MF	.770
After MF-more income and more savings		.890
Trust within the group			.728
micro entrepreneur via help of MF	.836
Products and services with local preferences	.781
Harmonious relationship		.874
Regular repayment of Loan and Interest	.772
Adequate Communication				.886
Cooperation			.865
Behaviour of group members to women	.840
Motivation by group leader		.830
Problem solving		.531	.524
Understanding of Organizational Values			.547
Responsibility sense of women		.884
Social activities by women	.818
Decision making ability of women group leader	.749
Lending criteria of MFIs and women	.731
Attitude of head of family to woman				.702
Completion of assigned task	.586
After MF-greater access to credit	.718
Comparative trust		.663
Consultation with external agents		.571
Independency				.744
Meeting frequency		.826
Active participation				.675
Reference for work group			.844
Respectable position		.804
Prior information	.837
Prior to MF-Poor or Balanced	.506
Overall trust among the members		.764
Responsibility in the absence				.850
Motivation from family			.813
Harmonious relationship among group members	.748
Active role in planning									.744
Guidance in revenues and expenditures							.543
Participation in organizing social programs								.696
QWL of women members							.562
Mobility in markets, public places etc.								.564
Ability to find quick solution					.517
Team work flexibility							.766
Application of training in Livelihood earning										.807
Compatibility with MF products						.741
Behaviour modification											.587
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 12 iterations.

5.3 Extracted Factors

I. Microfinance for Long Term Livelihood

Self help groups support solidarity lending mechanism by which community members can get micro loans for the purpose of earning livelihood. Microfinance allows community members to take small loan and put the fund in worthy application may be individually or collectively. Community members help each other in sharing and acquiring the resources. Moreover, the each member of community works in a community network in which the social ties play very important role. These social ties direct the members to strive for the employment and at the end of intermediary processes of microfinance and social capital, the livelihood earning status is surely far better than the previous with the emerged seed of entrepreneurship.

II. Improved Economic Conditions of Members after getting Services of Microfinance

Microfinance in community based organization provide two types of platforms to the members, firstly, funds for the new enterprise/work/livelihood, secondly, trust-cooperation-resource sharing-information-collective action via social capital. The social relation among a society or network contributes in improved economic conditions of the participants (Putnam 2000).

III. Improved Quality of Life

Long term livelihood and improved economic conditions leads the member toward improved quality of life.

IV. More Income and More Savings, after using Microfinance Services

It was observed during the study that at initial stage the community members have very minimal fund to carry their daily life but after completing three or more micro-loan and repayment cycles, they tend to have comparatively more income and more savings subjected to the utilization of fund in fruitful activities.

V. Trust within the Group

This is the first and foremost element of social capital within the community and its members. The element of trust among the members provides bases for cooperation, resource sharing, solidarity and reciprocity.

VI. Beneficiaries become Micro entrepreneur through Microfinance Services

As stated earlier, microfinance caters enough funds to make micro enterprise to the community members by which they become able to earn long term livelihood with the cooperation and help of other members.

VII. Products and services with Local Preferences

We have observed the tendency to use local preferences in products and services by the micro enterprises. They find it easy and consumer oriented so that they easily liquidise the assets.

VIII. Harmonious Relationship

It is the second element of social capital, which integrates the efforts made by the community members toward their goals or any problem.

IX. Regular Repayment of Loan and Interest

This is the critical step in using microfinance services. Regular repayment of loan and interest assure the next smooth cycle of micro loan. Here, the role of other members is critical due to solidarity and peer pressure which thrust the members to make timely and accurate repayment.

X. Adequate Communication

Adequate communication and homogenous flow of information allow the community members to make them efficient about the particular issue.

XI. Cooperation

Cooperation among the community members is critical in their resourcefulness, microfinance intermediary processes, developing and maintaining their micro enterprise.

6. Relationship between Micro Entrepreneurship and Microfinance

Microfinance intermediary processes induce the community members in two dimensions, firstly, these provide funds and assistance in livelihood earning, and secondly, it enhances the tendency between community members to integrate their efforts to escape from poverty. Here, we have Micro Entrepreneurship Score and Social Capital scores which are based on responses of community members.

Table 6.1: Tests of Normality
	Kolmogorov-Smirnov^a			Shapiro-Wilk
	Statistic	df	Sig.	Statistic	df	Sig.
MES	.113	214	.000	.980	214	.004
a. Lilliefors Significance Correction

Here, the sample size is 214, which is lower than the sample size of 2000 (n=214<2000), then we have to take Shapiro-Wilk statistics to analyse assumption of Normality. We have obtained Shapiro-Wilk significance value of 0.004 which is lower than p-value of 0.05, hence the data is not normally distributed and the result is significant.

Table 6.2: Test of Homogeneity of Variances MES
Levene Statistic	df1	df2	Sig.
2.520	19	191	.782

Table 6.3: ANOVA MES
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	6.203	22	.282	1.087	.004
Within Groups	49.562	191	.259
Total	55.765	213

Means Plot

The homogeneity of variance option tells the Levene’s test for homogeneity of variances, which tests whether the variance in scores is the same for each group. In this case, it is 0.782 which is more than .05 hence variances for the Microfinance Score and Micro Entrepreneurship are equal and therefore we have not violated the assumption of homogeneity of variance. The ANOVA table gives both between-groups and within-groups sums of squares, degrees of freedom etc. The p value is less than or equal to .05, there is a significant difference somewhere among the mean scores upon the dependent variable for the both groups. In the above table, the p value is 0.004 which is less than .05, hence there is a significant difference, so null hypothesis that Microfinance doesn’t have any relationship with Micro Entrepreneurship is rejected and the alternate hypothesis is accepted.

7. Social Capital among Women Micro Entrepreneurs

Microfinance intermediary process enhances the probability of making social ties between the community members.

Table 7.1: Test of Homogeneity of Variances MES
Levene Statistic	df1	df2	Sig.
2.520	19	191	.829

Table 7.2: ANOVA MES
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	16.054	56	.287	1.142	.030
Within Groups	39.414	157	.251
Total	55.468	213

The homogeneity of variance option tells the Levene’s test for homogeneity of variances, which tests whether the variance in scores is the same for each group. In this case, it is 0.829 which is more than .05 hence variances for the Social Capital Score and Micro Entrepreneurship are equal and therefore we have not violated the assumption of homogeneity of variance. The ANOVA table gives both between-groups and within-groups sums of squares, degrees of freedom etc. The p value is less than or equal to .05, there is a significant difference somewhere among the mean scores upon the dependent variable for the both groups. In the above table, the p value is 0.030 which is less than .05, hence there is a significant difference, so null hypothesis that Social Capital doesn’t exist among the women entrepreneurs developed through microfinance is rejected and the alternate hypothesis is accepted.

8. CONCLUSION:

The present study shows the development of micro entrepreneurship at small level through microfinance and social capital building among the women of SHGs of Rajasthan State. The various univariate and multivariate statistical techniques which are applied in this study found significant increase in sociability of microfinance clients with special reference to women across Rajasthan state.

The above analysis clearly shows that the microfinance has impact upon the development of micro entrepreneurship and social capital generation. Microfiance can be a source for long term livelihood and provide several opportunities to the community members. When, in a group, an activity starts, may be for livelihood, the community members tend to communicate each other which lead to resource sharing, cooperation, development of trust, reciprocity and solidarity. The women are spoke wheel of family and they have tendency to participate in both economic and social decisions for the family. Microfinance caters a base for social interaction, and due to resource and information sharing tendencies of groups lead to make women self-sufficient and self-reliant.

Moreover, the research shows that the women of self help groups are successful in becoming entrepreneur with micro level ventures and we have observed developed and increased social capital among them.

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Received on 31.01.2015 Modified on 28.03.2015

Accepted on 05.04.2015 © A&V Publication all right reserved

Asian J. Management; 6(2): April-June, 2015 page 91-100

DOI: 10.5958/2321-5763.2015.00014.1