1. INTRODUCTION:

Women are an important element of every economy. Speed of country’s progress depends on the speed of the development of woman in that country. Economic development along with women empowerment is important indicators of women’s economic and social freedom. SHG is a group of 10-25 economically backward local women. They are bring together to improve economic and social condition through training in income generating activities.

The Self-Help Group Bank Linkage Programme (SHG-BLP) is an innovative solution for empowering and economically developing women. It has laid a strong foundation to improve the quality of women’s life in India.

It enhances economic and social status of women by inculcating the habit of saving and giving credit through group dynamic. As suggested by (Sundaram, 2012)¹, "The benefit of SHG-BLP is that in addition to meeting women’s financial needs in rural areas, SHG-BLP strengthens these women’s capacity, thus leading to their empowerment."

Self-help Group-Bank Linkage Programme (SHG-BLP):

SHG-BLP is one of the various approaches that have resulted in the growth of the microfinance sector. Carried out by NABARD in early 1990’s with ‘Mysore Resettlement and Development Agency’ (MYRADA) to identify the reasons for inequality in using banking systems. SHG-BLP was started as a pilot project to link 500 SHGs during 1992-93. The NGO sector played an outstanding role in organizing, developing, and enabling SHG-BLP. Non-governmental organisations (NGOs) have served as Self-Help Group Promoting Institutes (SHPI). SHG-BLP is a cost-effective mechanism to provide affordable financial services to the poor and marginalised sections of society. The SHG-BLP follows ‘Panchsutras’ which include: conducting regular group meetings, saving within the group, internal lending, loan repayment on time and maintenance of proper books of accounts.

Economic Development:

Poverty and unemployment are the major problems in India. Financial status of women is worst especially in rural India. Economic development increases women’s access to economic resources, which is important for sustainable development. Women who are economically dependent contribute more to their families and societies. Financial contribution helps in bridging the gender gap.

Economic development is one of the most effective means of achieving women's rights. Discrimination against women in economic activity is common. They don’t have equal opportunities to earn and decisions to spend or save. Women's economic development necessitates economic opportunities such as employment, a favourable business climate for small businesses, and access to financial services. It is the strongest factor in helping women to take decision independently. SHG is a tool to improve the women economically.

Women empowerment:

Women empowerment, also known as female empowerment, is important for the overall development of any nation, business, and community. It is a dynamic process emphasizing education, training, and employment. Women empowerment allows women to take an independent decision and redefine gender roles. Empowerment can be viewed as the means of creating a social environment in which one can make decisions and choices either individually or collectively for social transformation. It strengthens the innate ability by way of acquiring knowledge, power, and experience (Hashemi et.al. 1996)².

2. REVIEW OF LITERATURE:

Alka (2005)³analysed micro-sample of women members of SHGs from Bihar, Chhattisgarh, Madhya Pradesh and Uttar Pradesh. Research established that through micro-finance based entrepreneurship, these women have been able to contribute to house hold finances, which led to some (though limited) decision making role for them in the house hold. It was also found that in SHGs the women get aware about their basic rights which make them more empowered.

Das (2011)⁴ identified social, political, economic, technological and psychological constraints of women empowerment among Karbi tribes of Assam. The lack of knowledge about new technology and information was the main reason behind poor empowerment of tribal women. The study suggested that the women should imparted training in different income generating schemes to get empowered.

Pandey (2014)⁵ has revealed that women’s participation in SHGs has altered the lives and situation of many of them, and these women can be future prospective leader of the locality. The basis of this change is empowerment, self- assurance, political consciousness and assertion of identity. With respect to the control of resources, positive changes are being taken place in their behaviour which finally makes them empowered socially, economically and politically.

Islam and Sarmah (2014)⁶ have found through their study that 57.2 % of sampled women are engaged in animal husbandry through the groups which is followed by weaving and handicraft, food processing, petty shops etc. After being involved as the members of SHGs the women’s income have been risen considerably and making them independent in terms of house hold decision making, business planning etc. The main reasons to join SHG were to earn additional income followed by to develop saving habits. Maximum respondents agreed that joining SHG has improved their saving habits. Maximum change in personal aspect is found in their involvement in deciding children’s education (63.2%) followed by confidence to move outside the home (57.9%).

Varghese (2016)⁷ has tried to explore the perception of women regarding their empowerment in various key domains. Tremendous improvement has been found in capacity building of individuals, decision making and social empowerment after the women joined the group. It is found that SHG utilises savings as a basis to extend credit to the needy and poor women who have no access to credit. Micro- finance and SHG intervention have brought a considerable change in their lives at the grassroots level. Women’s decision and status in house hold and other minor family affairs have been reported positive.

Alemu et.al. (2018)⁸ studied the impact of SHGs in apple production on women empowerment. Research was conducted among SHG members and non-members. Positive impact of SHG on the women empowerment at community level was empirically established. However, the data pointed negative impact from group participation at the household level. Backlash effect was evident in the research results.

Arora and Singh (2018)⁹ concluded in their research that SHG Bank Linkage Programme helped in enhancing the decision-making power of the women participants. Improvement in the empowerment status of women economically, personally, socially as well as politically was statistically proved. Comparison of participants of the microfinance programme and non-participants revealed that participants are more empowered as compare to non-participants.

Chakraborty et. al ( 2019)¹⁰ studied the contribution of SHGs in the upliftment of the status of women. The study revealed that if the SHGs members are trained properly about the modern marketing, branding, packaging and distribution techniques it brings financial stability and upliftment of social status of women.

3. OBJECTIVE OF THE STUDY:

· To analyse the effect of joining SHG on economic development of women

· To analyse the effect of joining SHG on women empowerment

4. METHODOLOGY:

The present study is based on primary and secondary data. The primary data is collected from questionnaire from SHG linked with bank from Yamuna Nagar, Haryana. The secondary data was collected from various journal, articles and newspapers. A Convenient sampling technique is adopted for the study

Dimensions of Economic Development in the present study:

Women's economic development can be defined as their ability and power to make financial decisions. The following are the dimensions of economic development used in the present study:

· Income-related indicators: The majority of the world’s poor are women. One of the primary benefits of joining SHG is the opportunity to earn extra income by participating in income- generating activities.

· Expenditure-related indicators: Contribution to household expenses improves the self confidence and status of women in house.

· Savings-related indicators: Participation in SHG gives an opportunity to save regularly and access to a regular banking system.

· Credit-related indicators: Taking credit is the lifeline of poor people. Poor people need access to various financial services to avoid moneylenders who take advantage of them.

Dimensions of Women Empowerment in the present study:

· Social indicators: Women's empowerment leads to self confidence and valuing yourself. It shows ways not to tolerate domestic violence..

· Family indicators: India ranks 135th out of 143 nations in gender equality. Women empowerment helps reduce gender inequalities. A healthy male-female relationship improves the overall quality of life for women.

· Political indicators: Women’s empowerment leads to their participation in the political process. Participation in social activities sharpens leadership skills and confident public speaking.

· Psychological indicators: Participation in various activities boosts self-confidence and positive changes in mindset and personality.

· Educational indicators: Education has the power to transform lives. Knowledge of personal rights makes a positive difference in the lives of women at home and in society.

5. HYPOTHESIS:

H_a1: There is no significant effect of SHG on economic development before and after joining SHG

H_a1a: There is a significant difference between means of income related indicators before and after joining SHG.

H_a1b: There is a significant difference between means of expenditure related indicators before and after joining SHG

H_a1c: There is a significant difference between means of saving related indicators before and after joining SHG

H_a1d: There is a significant difference between means of credit related indicators before and after joining SHG

H_a2: There is a significant difference between means of women empowerment before and after joining SHG

H_a2a: There is a significant difference between means of social indicators before and after joining SHG.

H_a2b: There is a significant difference between means of family indicators before and after joining SHG.

H_a2c: There is a significant difference between means of political indicators before and after joining SHG

H_a2d: There is a significant difference between means of psychological indicators before and after joining SHG

H_a2e: There is a significant difference between means of educational indicators before and after joining SHG

6. ANALYSIS AND INTERPRETATION:

Effect of SHG on Economic development of women:

For income related indicators, t-value is -39.571 with p-value .000, for expenditure related indicators, t-value is -37.047 with p-value .000, for saving related indicators, t-value is -33.034 with p-value .000 and for credit related indicators, t-value is -45.258 with p-value .000 (Presented in Table 3). Therefore, hypothesis H_a1a, H_a1b, H_a1c and H_a1d are accepted and it is concluded that there is a significant difference between means of income, expenditure, saving, and credit related indicators before and after joining SHG. All four hypotheses are accepted. Therefore, it is concluded that there is a significant effect of joining SHG on economic development of women. Research results are consistent with the results of Alka, 2005¹, Islam and Sarmah, 2014⁶ and Arora and Singh, 2018⁹. Table 1, represents the results of effect of SHG on economic development of women.

Table 1: Effect of SHG on Economic development of women

H_a1a	There is a significant difference between means of income related indicators before and after joining SHG.	Accepted
H_a1b	There is a significant difference between means of expenditure related indicators before and after joining SHG	Accepted
H_a1c	There is a significant difference between means of saving related indicators before and after joining SHG	Accepted
H_a1d	There is a significant difference between means of credit related indicators before and after joining SHG	Accepted
H_a1	There is a significant effect of SHG on economic development before and after joining SHG	Accepted

Source: Primary Data

Effect of SHG on Women Empowerment:

For social indicators, t-value is -39.571 with p-value .000, for family indicators, t-value is -37.047 with p-value .000, for political indicators, t-value is -39.631 with p-value .000, for psychological indicators, t-value is -32.976 with p-value .000 and for educational indicators, t-value is -54.026 with p-value .000 (Presented in Table 3). Therefore, hypothesis H_a2a, H_a2b, H_a2c, H_a2d and H_a2e are accepted and it is concluded that there is a significant difference between means of social, family, political, psychological and educational indicators before and after joining SHG. All five hypotheses are accepted. Therefore, it is concluded that there is a significant effect of joining SHG on women empowerment. Research results are consistent with the results of Das, 2011⁴; Pandey, 2014⁵; Islam and Sarmah, 2014⁶; Varghese, 2016⁷, Alemu et. al., 2018⁸; Arora and Singh, 2018⁹; Chakraborty et al., 2019¹⁰. Table 1, represents the result of effect of SHG on women empowerment.

Table 2: Effect of SHG on Women Empowerment

H_a2a	There is a significant difference between means of social indicators before and after joining SHG.	Accepted
H_a2b	There is a significant difference between means of family indicators before and after joining SHG.	Accepted
H_a2c	There is a significant difference between means of political indicators before and after joining SHG	Accepted
H_a2d	There is a significant difference between means of psychological indicators before and after joining SHG	Accepted
H_a2e	There is a significant difference between means of educational indicators before and after joining SHG	Accepted
H_a2	There is a significant effect of SHG on women empowerment before and after joining SHG	Accepted

Source: Primary Data

Table 3: Paired Samples Test of Before and After joining SHG

		Paired Differences					T	Df	Sig. (2-tailed)
		Mean	Std. Deviation	Std. Error Mean	95% Confidence Interval of the Difference
		Mean	Std. Deviation	Std. Error Mean	Lower	Upper
Pair 1	EDBincome - EDAincome	-1.94018	.88528	.04903	-2.03664	-1.84373	-39.571	325	0.000
Pair 2	EDBexpenditure - EDAexpenditure	-2.11810	1.03229	.05717	-2.23057	-2.00562	-37.047	325	0.000
Pair 3	EDBsaving – EDAsaving	-1.95703	1.06966	.05924	-2.07358	-1.84049	-33.034	325	0.000
Pair 4	EDBcredit – EDAcredit	-2.60636	1.03978	.05759	-2.71965	-2.49307	-45.258	325	0.000
Pair 5	WEBsocial – WEAsocial	-2.56212	1.15566	.06401	-2.68804	-2.43620	-40.029	325	0.000
Pair 6	WEBfamily – WEAfamily	-2.41718	1.17492	.06507	-2.54519	-2.28916	-37.146	325	0.000
Pair 7	WEBpolitical – WEApolitical	-2.49463	1.13653	.06295	-2.61847	-2.37080	-39.631	325	0.000
Pair 8	WEBpsychological - WEApsychological	-2.30982	1.26471	.07005	-2.44762	-2.17202	-32.976	325	0.000
Pair 9	WEBeducational – WEAeducational	-2.74233	.91648	.05076	-2.84219	-2.64247	-54.026	325	0.000

Source: Primary Data *EDB: Economic development before joining SHG, EDA: Economic development after joining SHG

*WEB: Women Empowerment before joining Self Help Group, WEA: Women Empowerment after joining Self Help Group

7. CONCLUSION:

Even in the 21^st century status of women is unequal. Joining SHG has improved the lives of women socially and economically. SHG has enhanced the financial independence by becoming a platform to earn income, improve saving and raise credit. Present research empirically established that after joining SHG there is an improvement in the economic condition of members. Joining SHG makes them feel psychologically more empowered. Research also established the improvement in status of women in society and family. Furthermore after joining SHG they start understanding the importance of education and also actively participate in political activities. Overall it is proved that joining SHG leads to women empowerment. It is suggested to encourage women to join SHG for overall development of women, family and nation. NGO’s and government should make efforts to popularize the concept of SHG. In addition, incentives should be given to open more and more SHG specially linked with bank linkage programs.

8. REFERENCES:

1. Sundaram, D. Impact of self-help group in socio-economic development of India. IOSR Journal of Humanities and Social Science. 2012; 5(1): 20-27.

2. Hashemi, S. M., Schuler, S. R., Riley, A. P. Rural credit programs and women's empowerment in Bangladesh. World Development. 1996; 24 (4): 635-653.

3. Alka, S. Women’s Self Help Group: Findings from a study in four Indian States. Council for Social Development. 2005; 35(2): 156-164.

4. Das, S. K. Women Empowerment and Self Help Group: An Analytical study of Constraints in Karbi Anglong District Assam. Journal of North East India Studies. 2011; 1(1): 1-22.

5. Pandey, J. K. Women Empowerment Through Self Help Group: A theoretical Perspective. Journal of Culture, Society and Development. 2014; 4: 91-94.

6. Islam, M., Sarmah, J. K. Impact of Self Help Groups in Empowering Women:A Study of Rural Assam. Social Change and Developmen. 2014; XI (2): 90-98.

7. Varghese, O. Empowerment of Women through Self-help Groups and Credit Linkage: A Case Study of Six Self-help Groups under Ramsai Hills, Assam. The Journal of North East Indian Cultures. 2016; 3(1): 78-109.

8. Alemu, S. H., Kempen, L. V., Ruben, R. Women Empowerment Through Self-Help Groups: The Bittersweet Fruits of Collective Apple Cultivation in Highland Ethiopia. Journal of Human Development and Capabilities. 2018; 19(3): 308-330.

9. Arora, M., Singh, S. Impact Assessment of Self-Help Group Bank Linkage Programme on Women Empowerment in the State of Himachal Pradesh, India. Amity Journal of Management Research. 2018; 3(1): 66-80.

10. Chakraborty, A., Sharma, P., Chaturvedi, C. Increasing Impact of Self-Help Groups on Women Empowerment and Poverty Alleviation: A Study of Reliability. SSRN Electronic Journal. 2019.

Received on 14.05.2023 Modified on 11.08.2023

Asian Journal of Management. 2024;15(1):24-28.

DOI: 10.52711/2321-5763.2024.00004