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151
CHAPTER - IV
THE PERFORMANCE OF THE RESPONDENTS AS
ENTREPRENEURS
The principal objective of this research study is to assess the
performance of women entrepreneurs under the guidance of Self-Help
Groups (SHGs). The data collected in this regard from the sample survey
have been classified and tabulated. The present chapter contains an analysis
of the respondents’ performance as entrepreneurs with reference to the
following indicators.
4.1 ANNUAL SAVINGS
Economic empowerment of women in Self-Help Groups starts with
savings and internal lending (Mahalir Thittam, A Report, 1999-2000). One
of the major criteria to become the member of SHG and to avail credit
facilities from the financial institutions is to accumulate the group savings.
When the group members accumulate certain minimum level of savings they
are eligible for receiving revolving fund, which enables them to venture into
various economic activities. The following Table – 4.1 explains the annual
savings of the respondents as members of Self-Help Groups.
152
TABLE - 4.1
ANNUAL SAVINGS OF THE RESPONDENTS IN FOUR
PANCHAYAT UNIONS
S.No. Panchayat Union Amount of
Savings (Rs.)
No. of
Respondents
Mean
Savings (Rs.)
Coefficient
of Variation
1.
2.
3.
4.
Sivagangai
Devakkottai
Ilayankudi
Manamadurai
49,545.08
1,36,879.80
39,410.21
70,285.13
52
76
49
73
952.79
1,801.05
804.29
962.81
111.71
202.00
83.51
88.58
Total 2,96,120.22 250 1,184.48
Source : Complied from Primary Data
The respondents in all four panchayat unions have been very wel1
motivated to have their own savings through Self-Help Groups. They fulfill
the major criteria of thriftiness, which is evidenced in Table 4.1. The
respondents from the Devakkottai Panchayat Union have recorded the
highest annual average savings of Rs. 1,801.05/- followed by the
respondents from Manamadurai and Sivagangai with annual average
savings of Rs. 962.81/- and Rs. 952.72/- respectively. The respondents of
Ilayankudi Panchayat Union have very low annual average savings Rs.
804.29/-. Majority of the respondents have deposited their savings with the
banks and co-operative societies, which have provided them financia1
assistance.
Details of the respondent’s annual savings, activity-wise. are given in
Table 4.2.
153
TABLE - 4.2
ACTIVITY - WISE SAVINGS OF THE RESPONDENTS
S.
No. Name of the Activity
No. of
Respondents
Amount of
Savings (Rs.)
Mean Value
(Rs.)
Coefficient
of Variation
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Arecanut shaving
Candle making
Card making
Cleaning powder making
Food processing
Gem cutting
Grinder stone polishing
Handloom weaving
Liquid blue making
Mat weaving
Milk products making
Mixy cover making
Phenyl making
Plastic wire bag knitting
Pot making
Poultry farming
Quarrying
Readymade garments
making
Thatch making
Vegetable vending
5
19
10
15
36
37
11
5
5
15
23
5
10
4
5
6
15
10
10
4
2,615.00
26,500.00
10,450.00
7,840.05
25,490.16
1,05,770.05
7,970.05
3,020.00
3,640.00
24,460.05
20,059.91
4,025.00
6,385.00
3,260.00
2,000.00
3,250.00
12,289.95
12,125.00
13,220.00
1,750.00
523.00
1,394.74
1,045.00
522.67
708.06
2,858.65
724.55
604.00
728.00
1,630.67
872.17
805.00
638.50
815.00
400.00
541.67
819.33
1,212.50
1,322.00
437.50
32.29
121.43
94.53
57.43
67.38
172.22
33.22
35.08
30.86
59.03
119.99
11.28
40.08
67.01
0.00
16.93
28.72
168.62
47.10
25.34
Total 250 2,96,120.22 1,184.48
Source : Complied from Primary Data
154
The respondents in the study area are engaged in multifarious
activities. The choice of the activities to a large extent depends upon the
local demand, availability of raw materials and finance. The major activities
undertaken by the respondents which are listed in the Table - 4.2, are
shaving of Arecanut, Candle making, Card making, Preparation of cleaning
powder, Food processing, Gem cutting. Grinder stone polishing, Handloom
weaving, Liquid blue making, Mat weaving, Making of milk products, Mixy
cover, Phenyl and Plastic Wire bag knitting, Pot making. Poultry, Quarrying,
Readymade garments, making materials for thatching and Vegetable
vending.
In the gem cutting activity the average annual savings of a respondent
is Rs. 2,858.65/-. It has been found to be a product easily marketable. Mat
weaving follows this. In this trade, respondents on an average save Rs.
1,630.67/- annually. This industry involves tapping of local raw materials
and has a wide market network consisting of poor people. The third
important activity in the study area is candle making. The women
respondents engaged in this activity save annually Rs, 1,394.74/-.
Respondents specialising in making materials for thatching work follow
them. There is a growing market for thatching materials in the study area.
155
Another significant activity in the study area is making of readymade
garments. The readymade garments made here are affordable to the poor
people and hence they are very popular among rural masses with low
income. Card making is also another significant thriving activity. In this
activity, the respondents use their originality and creativity to carve out
attractive cards, which have good marketing prospects.
4.2 DETAILS OF CREDIT
Finance is the fuel of any venture. To help the women entrepreneurs in
their pursuit, banks and cooperative societies are extending liberal credit
facilities. But the funds given by the financial institutions are not sufficient
to fulfill their credit requirements. Hence the women entrepreneurs in order
to bail out of their problems, resort to borrowing from moneylenders. There
is an urgent need for channelising institutional credit for both agricultural
and non-agricultural purposes in rural area Otherwise rural people especially
the new generation of women entrepreneurs are likely to fall into the
clutches of moneylenders.
Savings made by the Self-Help Groups pave a way for them to avail
credit facilities to start their enterprise. Among 250 respondents 214 (85.6
per cent) of them have borrowed the amount from banks co-operative
society, internal loans from SHGs and moneylenders. The remaining 36
(14.4 per cent) of them stated that they have mobilised their own resources to
stat their business.
156
TABLE - 4.3
CREDIT AVAILED BY THE RESPONDENTS FROM DIFFERENT
SOURCES IN FOUR PANCHAYAT UNIONS
S.
No.
Panchayat Union No. of
Respon-
dents
Bank
(Rs.)
Co-
operative
Society
Internal
Loans from
SHGs
Money
Lenders
Total
1.
2.
3.
4.
Sivagangai
Devakkottai
Ilayankudi
Manamadurai
44
63
41
66
1,25,800
1,60,000
1,82,500
3,12,000
5,000
39,500
3,000
---
18,425
1,000
---
---
13,500
1,07,300
3,000
42,300
1,62,725
3,07,800
1,88,500
3,54,300
Total 214 7,80,300 (77.0)
47,500 (4.7)
19,425 (1.9)
1,66,100 (16.4)
10,13,325 (100.0)
Source : Complied from Primary Data
Figures in ( ) indicate percentage to the total.
From the above Table 4.3, it is clear that the banks are the mayor
sources of borrowing (77.0 per cent) for the respondents as the co-operatives
(4.7 per cent) have failed to make any impression in providing financial
facilities to the budding entrepreneurs. Moneylenders lend money liberally
but at an exorbitant rate of interest. The study has revealed that next to the
banks, moneylenders and co operatives are the main sources from which
rural women entrepreneurs borrow money to run their enterprises. The
respondents feel that co-operatives could play a more dynamic and active
role in providing money at a lower rate of interest.
157
Respondents of Manamadurai and Devakkottai blocks have received
adequate amount of institutional credit of Rs. 3,54.300/- and Rs. 3,07,800/-
respectively. They appear to be really committed and enthusiastic. However
the respondents of Ilayankudi and Sivagangai Unions have complained that
they received comparatively less amount of money as loan, and as such, have
to rely much on the non-institutional credit at exorbitant rate of interest.
The credit needs of the rural enterprises vary according to their
working requirements: in trades like plastic wire bag knitting, vegetable
vending, liquid blue making and phenyl making. Nationalised commercial
banks have been evincing interest in extending credit to all rural enterprises
covered by Self-Help Groups. Table 4.4 gives an idea of the credit a\ailed by
the respondents, activity-wise.
158
TABLE - 4.4 ACTIVITY-WISE CREDIT AVAILED BY THE RESPONDENTS
FROM DIFFERENT SOURCES (Figures in Rs.)
S. No. Name of the Activity
No. of Respon-
dents Banks Co-
operative
Internal Loans from
SHGs
Money Lenders Total
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Arecanut shaving
Candle making
Card making
Cleaning powder making
Food processing
Gem cutting
Grinder stone polishing
Handloom weaving
Liquid blue making
Mat weaving
Milk products making
Mixy cover making
Phenyl making
Plastic wire bag knitting
Pot making
Poultry farming
Quarrying
Readymade garments
making
Thatch making
Vegetable vending
5
13 (6*)
6 (4*)
15
29 (7*)
34 (3*)
11
5
4 (1*)
15
18 (5*0
4 (1*)
10
1(3*)
5
5 (1*)
15
7 (3*)
9 (1*)
3 (1*)
--
56,300
22,000
19,000
1,38,100
76,000
44,000
26,000
11,000
28,400
1,18,500
20,000
11,000
3,000
23,000
28,500
57,000
41,000
56,500
1,000
--
--
--
--
1,000
26,000
--
--
--
--
3,000
--
2,500
--
--
13,000
--
--
--
2,000
--
--
9,000
3,425
--
7,000
--
--
--
--
--
--
--
--
--
--
--
--
--
--
48,00
14,800
1,000
--
6,300
62,000
22,000
--
--
500
1,500
--
--
--
3,000
--
--
2,000
--
5,000
48,00
71,100
32,000
22,425
1,45,400
1,71,000
66,000
26,000
11,000
28,900
1,23,000
20,000
13,500
3,000
26,000
41,500
57,000
43,000
56,500
8,000
Total 214 7,80,300 47,500 19,425 1,66,100 10,13,325
Source : Complied from Primary Data * Not availed the Credit.
159
The respondents approach various resources of finance to undertake
the income-generating economic activities. There are twenty activities listed
(Table – 4.4 for which the credits are availed by the sample rural women
entrepreneurs. The highest and the lowest credits availed by the respondents
have been highlighted.
It is evident from the above table the respondents have availed credits
from the Banks to carry out food processing (Rs. 1,38,100/-) and for
vegetable vending (Rs. 1,000/-). Secondly, the respondents have an easy
access to approach the moneylenders for their credits. In order to undertake
gem cutting (Rs. 62,000/-) and for mat weaving (Rs. 500/-) the respondents
have availed credits from the moneylenders. 1hirdly, the sample respondents
have also borrowed loans from the co-operative societies to perform the
activities such as, gem cutting (Rs. 26,000/-) and for processing food items
(Ps. 1,000/-). Lastly, the rural women entrepreneurs have also received
credits from internal loans offered by SHGs to activate their enterprises of
card making (Rs. 9,000/-) and for making cleaning powder (Rs. 3.425/-).
4.3 TYPE OF ORGANISATION
The guiding principle of the co-operative organisation is the mutual
help of the members. The formation of women co-operatives augurs well for
the development of women entrepreneurship. But co-operation is yet to take
160
strong roots in the Indian soil, as such people prefer sole proprietorship to
other forms of enterprise. Details of the organisational structure of the
enterprises run by the respondents are given in Table 4.5.
TABLE – 4.5
TYPE OF ORGANISATION AND NATURE OF WORK UNDERTAKEN BY THE RESPONDENTS
Type of organisation S.
No. Nature of
Work Sole Proprietorship Partnership
Women co-
operatives
Total respondents
Percentage to the total
1.
2.
Production
Servicing
176
3
--
1
55
15
231
19
92.0
8.0
Total 179 (71.6)
1 (0.4)
70 (28.0)
250 (100.0) 100.0
Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.
In this table it is clear that out of the 250 sample respondents, 71.6 per
cent ire sole proprietors and only 28.0 per cent belong to co-operative
organisations. Although co-operative enterprises have the advantages of
collective wisdom, sharing of the profits and reaping the benefits of division
of labour, it comes only r to sole proprietorship.
4.4 TRAINING
The general training programmes are important to improve the skills
of the respondents. The respondents receive training in the intricacies of
production and u of their specific products. This helps them to perform their
161
work with least cost and produce greater output. The training programmes
assumed added significance due to the fact that most of the respondents are
starting their business on their own without any past experience or family
background. So training programmes are very effective in inculcating the
nuances of production process. They help respondents to acquire knowledge
and expertise in production. They also help them to know the market
potentials of their product.
The purpose of training under the project SHG is to develop a shared
vision and to bring about transformation in perception through exposure. A
strong and cohesive SHG can be formed only by giving systematic training
adopting participatory method. The impact of training can he easily seen in
better communication skills, greater confidence, higher unity and wider
mobility of SHG women.
Training being the backbone of SHGs, the first step is to impart
training for project partners, viz., NGO field workers, NGO trainers, branch
managers, SHG functionaries (Animator and Representatives) and SHG
members. In 1999 - 2000, the major task undertaken was the preparation of
training manuals in Tamil (Regional language of Tamil Nadu) for SHG
members training and Animators and Representatives training (Mahalir
Thittam, Annual Report, 1999-2000) Mahalir Thittam provides sufficient
training to all project agencies on various topics, the different types of
training envisaged for different project participants are given in Annexure–VI.
162
SHG members are trained with 10 modules of 1 day each, Animators
and one Representative from each group are given training with a total of 12
modules covering 24 days. Majority of the respondents (57.2 per cent) in this
study area have not availed the training facilities offered to them. The
reasons they state are as follows : • Motivation given by NGOs are not
sufficient, • Practical exposure is not given, • Trainer is not fully equipped, •
Unorganised programmes, • Lack of personal care and incidental expenses
are not met.
The following Table 4.6 explains the community-wise distribution of
trained entrepreneurs in various activities.
TABLE - 4.6 COMMUNITY-WISE DISTRIBUTION OF TRAINED
RESPONDENTS IN VARIOUS ACTIVITIES Forward
Community Backward
Community Scheduled
Community Scheduled
Tribe Total
respondents S. No. Name of the Activity
E T E T E T E T E T 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
19. 20.
Arecanut shaving Candle making Card making Cleaning powder making Food processing Gem cutting Grinder stone polishing Handloom weaving Liquid blue making Mat weaving Milk products making Mixy cover making Phenyl making Plastic wire bag knitting Pot making Poultry farming Quarrying Readymade garments making Thatch making Vegetable vending
-- -- -- -- -- -- -- -- -- -- 6 -- 1 -- -- -- -- --
-- --
-- 4 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
-- --
-- 7 5 --
17 2
10 3 -- 4 7 2 5 -- 3 1
11 --
-- --
-- 7 3 9
16 30 1 -- 3
10 -- -- 3 4 -- -- -- 9
-- --
5 -- -- 3 3 4 -- 2 -- 1 4 2 1 -- 2 5 3 1
5 1
-- 1 1 3 -- -- -- -- 2 -- -- -- -- -- -- -- -- --
-- --
-- -- -- -- -- 1 -- -- -- -- 6 1 -- -- -- -- 1 --
-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
-- --
5 7 5 3
20 7
10 5 -- 5
23 5 7 -- 5 6
15 1
10 4
-- 12 5
12 16 30 1 -- 5
10 -- -- 3 4 -- -- -- 9
-- --
Total 7 (58.3)
5 (41.7)
85 (47.3)
95 (52.7)
42 (85.7)
7 (14.3)
9 (100.0) -- 143
(57.2) 107
(42.8) Source : Complied from Primary Data E – Experienced; T – Trained; Figures in ( ) indicate percentage to the total.
163
Table - 4.6 shows clearly that out of the 250 respondents engaged in
various activities 180 belong to the backward community. Among these 180
respondents 47.3 per cent (85) have entered into these activities with their
own experience and initiative. They have not received any formal and skill-
based training in their line of activities. The remaining (95) 52.7 per cent of
women entrepreneurs of this community have received formal training and
have acquired practical exposure with the help of non-governmental
organisations and Tamil Nadu Corporation for Development of Women,
Sivagangai District. They have specialised in gem-cutting, food-processing,
mat weaving, cleaning powder making and readymade garments making.
The next large group of 49 respondents, ho have taken tip entrepreneurial
activities, are from the scheduled community. Among them 14.3 per cent (7)
have received formal training in their respective fields while the remaining
85.7 per cent (42) women entrepreneurs are without any formal training.
They are engaged in the production of shaving of arecanut, preparation of
material for thatching the houses and preparation of’ cleaning powder
making. Of the 12 respondents from the forward community 41.7 per cent
(5) have received formal training and the remaining 58.3 per cent (7) are
without any formal training and are involved in making cards and candles.
Respondents belonging to scheduled tribe are 6.2 per cent (9) and they are
not exposed to any training. They are primarily engaged in rearing of live
stocks and making milk products such as butter, buttermilk and curd. In the
study area certain activities are pre-dominantly done by certain community,
since they are more in number in that particular area.
164
4.5 ANNUAL REVENUE, EXPENDITURE AND PROFIT
The viability of an enterprise depends on the profit it yields. In rural
enterprises the profit which is the difference between total revenue and total
cost constitutes the income of the entrepreneur. Revenue from sales denotes
the price received by the entrepreneur by selling their products, to the
ultimate consumers or the middleman. Expenditure includes all the cost
incurred for the production of commodity and other for the sale of the
products. In the case of women entrepreneur even if this income is not
substantial and significant it goes to supplement the family income. The
profit earned by the respondents belonging to different activities is shown in
Table- 4.7.
165
TABLE 4.7 ACTIVITY-WISE ANNUAL REVENUE, EXPENDITURE AND
PROFIT OF THE RESPONDENTS
(Figures in Rs.)
S.
No. Name of the Activity
No. of
Respon-
dents
Revenue
from
sales
Expen-
diture
Ave.
expen-
diture
Profit Ave.
profit
Ave.
Profit +
Ave.
Exp
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Arecanut shaving
Candle making
Card making
Cleaning powder making
Food processing
Gem cutting
Grinder stone polishing
Handloom weaving
Liquid blue making
Mat weaving
Milk products making
Mixy cover making
Phenyl making
Plastic wire bag knitting
Pot making
Poultry farming
Quarrying
Readymade garments
making
Thatch making
Vegetable vending
5
19
10
15
36
37
11
5
5
15
23
5
10
4
5
6
15
10
10
4
60,000
2,74,200
1,09,800
1,80,000
4,88,340
4,19,350
1,27,100
1,00,400
54,900
2,20,000
4,79,500
76,700
1,21,500
45,700
85,500
56,200
2,26,000
1,38,700
90,600
21,500
29,000
1,01,800
13,800
56,600
1,58,500
70,800
48,500
46,000
19,000
65,000
1,89,500
18,500
32,500
21,000
14,000
18,000
58,000
31,000
45,500
8,500
5,800
5,358
1,380
3,773
4,403
1,914
4,409
9,200
3,800
4,333
8,239
3,700
3,250
5,250
2,800
3,000
3,867
3,100
4,500
2,125
31,000
1,72,400
96,000
1,23,400
3,29,840
3,48,550
78,600
54,400
35,900
1,55,000
2,90,000
58,200
89,000
24,700
71,500
38,200
1,68,000
1,07,700
45,100
13,000
6,200
9,074
9,600
8,227
9,162
9,420
7,146
10,880
7,120
10,333
12,609
11,640
8,900
6,175
14,300
6,367
11,200
10,770
4,510
3,250
1.07
1.69
6.96
2.18
2.08
4.92
1.62
1.18
1.87
2.38
1.53
3.15
2.74
1.18
5.11
2.12
2.90
3.47
0.99
1.53
Total 214 33,75,990 10,45,500 84,201 23,30,490 1,76,83
0
Source : Complied from Primary Data
The table shows trade-wise the annual revenue and expenditure of the
respondents. It can be seen that except in the case of trades like vegetable
vending, thatch making, plastic wire bag knitting, poultry farming and
arecanut shaving where the respondents are earning less than Rs. 6,500/- on
an average per year, the average profit in other trades are satisfactory.
166
Figure 4.1 ACTIVITY-WISE ANNUAL REVENUE, EXPENDITURE AND PROFIT OF
THE RESPONDENTS
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Name of the Activity
Pro
fit (i
n R
s.)
Arecanut shaving
Candle making
Card making
Cleaning powder making
Food processing
Gem cutting
Grinder stone polishing
Handloom weaving
Liquid blue making
Mat weaving
Milk products making
Mixy cover making
Phenyl making
Plastic wire bag knitting
Pot making
Poultry farming
Quarrying
Readymade garments making
Thatch making
Vegetable vending
167
The last column shows the ratio of average profit to tile average
expenditure. From the table it is clear that the activity of the card making
fetches more profit i.e., 6.96, than tile other activities.
4.6 REPAYMENT
One of the complaints often made by tile banks and the co-operatives
operating in rural areas is that the debtors are not quite prompt in paying
interest and repaying the principal. The delay in repayment has caused
certain constraints to the banks in extending further credit. Women are found
to be more prompt in repaying loans. Particulars of amount borrowed, loans
repaid and amount outstanding in tile case of respondents are given in
Table - 4.8.
TABLE - 4.8
AMOUNT BORROWED, REPAID AND OUTSTANDING OF THE RESPONDENTS IN FOUR PANCHAYAT UNIONS
(Figures in Rs.)
S. No. Panchayat Union
Amount Borrowed
Mean Borrowing
Amount Repaid
Mean Repayment
Amount Out-
standing
Mean Out-
standing 1.
2.
3.
4.
Sivagangai
Devakkottai
Ilayankudi
Manamadurai
1,62,725
3,07,800
1,88,500
3,54,300
3,616.11
5,216.95
4,712.50
5,061.43
48,250
1,27,350
82,600
2,17,450
1,206.25
2,234.21
2,065.00
3,106.43
1,14,475
1,80,450
1,05,900
1,36,850
2,441.67
3,119.49
2,838.46
2,073,49
Total 10,13,325
(100.0)
4,75,650
(46.9)
5,37,675
(53.1)
Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.
168
0
50000
100000
150000
200000
250000
300000
350000
400000
Am
ou
nt
(in
Rs.
)
Sivagangai Devakkottai Ilayankudi Manamadurai
Figure - 4.2 AMOUNT BORROWED, REPAID AND OUTSTANDING OF THE
RESPONDENTS IN FOUR PANCHAYAT UNIONS
Amount Borrowed
Amount Repaid
169
The analysis of repayment by the respondents have shown that they
are prompt in repaying the money they have borrowed from banks. The
lending agencies are also very happy at the prompt repayment of loans by
the respondents. The above Table 5.8 shows that the loan outstanding in the
Devakkottai block (Rs. 1,80,450/-) is quite high and the average borrowing
(Rs. 5,126.95/-) is also quite considerable. This is not a negative sign, as the
respondents have been regularity clearing the debts. It is evident from the
above table that out of the amount (Rs. 10.13,325-), borrowed Rs. 4,75,650/-
(46.9 per cent) has already been repaid, within the specified period of time.
According to the banks, the amount of repayment in the case of the women
respondents is found to be better.
The following Table - 4.9 shows the amount borrowed and repaid by
the respondents who have undertaken various activities in the study area. Out
of the 250 respondents only 214 (85.6 per cent) have availed loans from
banks, c0-operatives, internal loans from SHGs and moneylenders. The rest
36 (14.4 per cent) have submitted that they have mobilized their own
resources to start business.
170
TABLE – 4.9
ACTIVITY - WISE AMOUNT BORROWED AND REPAID BY THE
RESPONDENTS
(Figures in Rs.)
Amount Borrowed Amount Repaid
S.
No. Name of the Activity
No. of
respon
-dents
Amount Mean
No. of
respon
-dents
Amount Mean
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Arecanut shaving
Candle making
Card making
Cleaning powder making
Food processing
Gem cutting
Grinder stone polishing
Handloom weaving
Liquid blue making
Mat weaving
Milk products making
Mixy cover making
Phenyl making
Plastic wire bag knitting
Pot making
Poultry farming
Quarrying
Readymade garments
making
Thatch making
Vegetable vending
5
13
6
15
29
34
11
5
4
15
18
4
10
1
5
5
15
7
9
3
48,000
71,100
32,000
22,425
1,45,400
1,71,000
66,000
26,000
11,000
28,900
1,23,000
20,000
13,500
3,000
26,000
41,500
57,000
43,000
56,500
8,000
9,600
5,469.23
5,333.33
1,495.00
5,013.79
5,029.41
6,000.00
5,200.00
2,750.00
1,926.66
7,111.11
5,000.00
1,350.00
3,000.00
5,200.00
8,300.00
3,800.00
6,142.86
6,277.78
2,666.67
5
13
4
15
28
32
11
5
4
15
18
4
8
1
5
5
15
7
9
3
13,300
34,400
4,000
14,050
58,200
77,150
38,800
19,500
8,500
10,500
76,000
9,700
4,350
2,000
11,100
14,650
32,600
16,500
26,650
3,700
2,660.00
2,646.15
1,000.00
936,66
2,078.57
2,410.94
3,527.28
3,900.00
2,121.00
700.00
4,222.00
2,425.00
543.75
2000.00
2220.00
2930.00
2173.33
2357.14
2961.11
1233.33
Total 214 10,13,325 207 4,75,650
Source : Complied from Primary Data
From the Table - 4.9 it is clear that 37 respondents are involved in
gem cutting only 34 of them have borrowed Rs. 1,71,000/-. The average loan
is Rs.5,029.41/-. The amount borrowed is high when compared to the other
activities because more women entrepreneurs are involved in this work. Next
171
to gem cutting, food processing seems to be a popular trade among the
respondents. Of the 36 respondents, 29 have borrowed Rs.1,45,400/- and the
average credit availed is Rs.5,013.79/-. The next important activity of the
respondents is making of milk products. 18 respondents are engaged in this
trade have borrowed on an average Rs. 7,111.11/-. The highest amount
borrowed by the respondents is in the case of production of shaving of
arecanut. The average borrowing stands at Rs. 9,600/-. This is because it is
an enterprise, which requires more capital than others.
This is followed by poultry farming with average borrowing of Rs.
8,300/- and making of milk products with average borrowing of Rs. 7,111/-.
Respondents engaged in all the activities have been found to repay their dues
regularly. The respondents engaged in making of milk products have the
highest mean amount repaid Rs. 4,222.22/- followed by the respondents
engaged in handloom weaving, with the mean amount repaid at Rs. 3,900/-
and grinder stone polishing with mean amount repaid at Rs. 3,527.28/-.
Among 214 respondents who have borrowed credits from the various
agencies, only (207) ie. 96.7 per cent have paid. The remaining (7) 3.3 per
cent of the respondents are yet to repay the loan.
An attempt has been made in the present study to assess the
performance of the respondents in terms the amount saved, the amount
borrowed, the amount repaid and the amount of income, details of which are
furnished in Table - 4.10.
172
TABLE – 4.10
AGE-WISE PEFORMANCE OF THE RESPONDENTS IN TERMS OF FOUR PARAMETERS-SAVINGS, BORROWINGS,
REPAYMENT AND INCOME
S.No. Age Group (in years)
No. of respondents
Amount of savings
Amount borrowed
Amount repaid
Amount of income
1.
2.
3.
4.
Below 20
20 – 24
25 – 29
30 and above
9
(3.6)
29
(11.6)
71
(28.4
141
(56.4))
11,660.32
31,689.60
82,758.61
1,70,011.69
37,479.70
1,16,545.70
2,86,784.30
5,72,515.30
15,123.40
50,175.40
1,38,084.60
2,72,266.60
73,897.64
1,80.336.84
5,61,859.16
15,14,396.36
Total 250 (100.0)
2,96,120.22 10,13,325.00 4,75,650.00 23,30,490.00
Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.
As has been pointed out in Chapter - III, Table - 3.1, majority of the
respondents are from the age group of above 25 years i.e. 84.8 per cent.
Table - 4.10 shows that the respondents in these age groups have done
satisfactorily in terms of savings made, repayment of loans and income
earned.
The amount of income earned by the rural women entrepreneurs are
Rs.23,30,490/-, the amount repaid goes upto Rs. 4,75,650/- which is around
46.9 per cent of the total amount of Rs. 10,13,325/- borrowed.
173
4.7 CO-OPERATION FROM THE FAMILY MEMBERS
The co-operation of the family members is one of the ingredients for
the women entrepreneurs to run the business effectively. Apart from the
physical labour which they provide, the involvement of the family members,
the financial as well as the moral support given by them are of great help for
the women entrepreneurs to run the enterprise successfully.
TABLE - 4.11
PERCENTAGE OF CO-OPERATION FROM THE FAMILY MEMBERS IN FOUR PANCHAYAT UNIONS
Co-operation from the Family
S.No. Panchayat Union Sufficient Insufficient
Total
1. 2. 3. 4.
Sivagangai Devakkottai Ilayankudi Manamadurai
47 (90.4)
65 (85.5)
49 (100.0)
70 (97.2)
5 (9.6) 11
(14.5) --- 3
(2.8)
52 (100.0)
76 (100.0)
49 (100.0)
73 (100.0)
Total 231 19 250 (100.0)
Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.
To know the extent of co-operation received by the respondents in the
study area horn their family members, chi-square test has been made.
TABLE – 4.12 RESULTS OF CHI-SQUARE TEST
Value df Asymp. Significance (2-sided)
Person Chi-Square 12,335 3 0.006
174
0
10
20
30
40
50
60
70
80
Per
cen
tag
e
Sivagangai Devakkottai Ilayankudi Manamadurai
Figure - 4.3PERCENTAGE OF CO-OPERATION FROM THE FAMILY
MEMBERS IN FOUR PANCHAYAT UNIONS
175
The encouraging aspect of the findings from the chi-square test is that
the respondents of all the Panchayat Unions have received support and co-
operation from their family members. The family members of the
respondents are the cementing force for the successful entrepreneurship. The
study also points out that in all the Panchayat Unions the co-operation
received by the respondents from their family members is overwhelming and
tin form.
4.8 TYPE OF ORGANISATION OF BUSINESS AND LEVEL OF CO-
OPERATION FROM THE FAMILY MEMBERS:
Logistic regression is used to determine the factors that influence the
women entrepreneurs as a major contributor of the family income. The
variable, women’s income from the activity is recorded as I if she
contributes more than 50 per cent of the family income, 0 if her contribution
is less than 50 per cent. Here the dependent variable takes the value 1 or 0.
The independent variables considered are : • women’s education level
• type of activity • number of adult females employed in the family • nature
of labour • total number of hours worked in a month • co-operation level
from the family • type of difficulties in marketing type of marketing
channels, and • amount - borrowed.
176
In order to filter only significant variables in the above said 9
independent variables, FORWARD LIKELIHOOD RATIO METHOD of
selection of variables in the logistic regression is employed. The result of the
logistic regression analysis furnished below.
TABLE - 4.13
RESULTS OF LOGISTIC REGRESSION ANALYSIS
Variable B S.E. Wald df Significance R Exp(B)
Type of Organisation
Partnership
Co-operative society
Co-operation
received from the
family (insignificant)
constant
-2.6216
1.4093
-1.8039
-1.9743
22.2440
0.5571
0.8852
0.6640
6.4244
0.0139
8.4007
5.9132
8.8395
2
1
1
1
1
0.0403
0.9062
0.0114
0.0150
0.0029
0.1462
0.0000
0.1969
0.1833
---
0.0727
4.0932
0.2011
---
- 2log likelihood = 113.48376
Chi – square df significance
Model 12.075 3 0.0071
The logistic regression model chosen is a good fit, since significance
value of γ2 is 0.0071 and this is confirmed by the large value of -2 log
likelihood which is 113.48376.
177
The independent variables, viz., type of organisation of business and
level of co-operation from the family member of the women entrepreneurs,
turn out to be significant factors. Compared to the sole proprietorship firms,
the partnership firms significantly reduce the chance of the respondents
becoming a major contributor of the family income while the women co-
operative society type of firms increase her odds as the major contributor of
the family income four folds (odds ratio 4.0932). When there is insufficient
co-operation from the family members, her chance as a major contributor
decreases by a factor of 0.2011 (odds ratio). Thus, from the logistic
regression analysis, the respondents who have tie up pith co-operative
societies are found to reap the maximum benefits.
4.9 MARKETING CHANNELS
The success of the women entrepreneurs lie not only in production but
also the efficient marketing. There are at present only limited channels of
marketing open to the women entrepreneurs to market their products. They
are : •Marketing directly to the consumer, • Marketing through co-
operatives, • Marketing through linking agency, ‘Poomalai’ and • Marketing
through middlemen.
As far as the present respondents are concerned, there are only three
channels, which are shown in Table - 4.14.
178
TABLE – 4.14
MARKETING CHANNELS OF THE RESPONDENTS IN FOUR PANCHAYAT UNIONS
Marketing Channels
S.No. Panchayat Union To the ultimate
consumers
To the co-operatives
To the middlemen
Total No. of Respondents
1.
2.
3.
4.
Sivagangai
Devakkottai
Ilayankudi
Manamadurai
21
37
10
21
--
--
--
10
31
39
39
42
52
76
49
73
Total 89 10 151 250
Percentage to the Total 35.6 4.0 60.4 100.0
Source : Complied from Primary Data
If the respondents can sell their products directly in the organised
markets their profit vi1l he more. At the moment they are not in a position to
sell their products directly to the ultimate consumer to reap the such profit.
They also do not prefer to sell their products through Poomalai (a centre
setup to sell the produce of SHGs) as there is delay in payment. So they are
forced to sell their products, at throw away prices to the middlemen.
From the Table - 4.14. it is clear that 60.0 per cent of die respondents
are selling their products primarily to the middlemen while only 35.6 per
cent sell directly to the consumers Only 4 per cent of the respondents of
Manamadurai Panchayat Union are selling their products through co-
operatives.
179
The study has revealed that the respondents are very particular that
they get the payment for their products at once, because they cannot afford to
wait as their resources are very limited.
It is a well-known fact that the agriculturists and rural craftsmen in
India depend on middlemen for selling their products. This often leads to
exploitation. But even then they prefer this marketing channel because they
get payment for their products without delay. Data relating to the income
earned by the respondents through different marketing channels are given in
Table - 4.15.
TABLE - 4.15 INCOME EARNED BY THE RESPONDENTS THROUGH
DIFFERENT MARKETING CHANNELS
S. No.
Marketing Channels No. of respondents
Amount Mean Income
Coefficient of
Variation 1.
2.
3.
To the ultimate consumer
To the co-operatives
To the middle men
89
10
151
8,49,540
97,000
13,83,950
9,545.393
9,700.000
9,165.232
5380
24.32
57.62
Total 250 23,30,490 9,321.960
Source : Complied from Primary Data
The table shows that the income earned by the respondents by selling
their products to the co-operatives is less than that earned by them by selling
directly to the consumers or to the middlemen. Out of the 250 respondents
180
151 (57.6 per cent) a stated that they are getting their average income of Rs.
9,165.23/- from middlemen. The concept of co-operative marketing does not
have much appeal to the respondents. The majority of the respondents
considers that co-operative marketing societies lack initiative and enterprise.
Industrial development in general depends on the development of
infrastructural facilities. This is true not only of major enterprises but also of
rural enterprises. Facilities like water, electricity, link road and market are
essential for rural development. Even today there are many villages in India,
which lack these essential facilities. The respondents opinion about the
adequacy of infrastructure facilities is shown in Table - 4.16.
181
TABLE – 4.16
RESPONDENTS’ OPINION ABOUT THE AVAILABILITY OF INFR ASTRUCTURAL FACILITIES
S. No. Panchayat Union Water Electricity Link
Roads Toilet Sanitary Street Light
Post Office
Communi-cation / STD
Marketing facilities
School / Primary
Health Centre
A 50
(96.1) 50
(96.1) 50
(96.1) 13
(25.0) 18
(34.6) 43
(82.7) 20
(38.5) 15
(28.8) 13
(25.0) 5
(9.6) 1.
Sivagangai
INA 2
(3.8) 2
(3.8) 2
(3.8) 39
(75.0) 34
(65.4) 9
(17.3) 32
(61.5) 37
(71.2) 39
(75.0) 47
(90.4)
A 76
(100.0) 76
(100.0) 76
(100.0) 36
(47.3) 28
(36.8) 72
(94.7) 63
(82.9) 55
(72.4) 34
(44.7) 4
(5.3) 2.
Devakkottai
INA -- -- -- 40
(52.6) 48
(63.2) 4
(5.3) 13
(17.1) 21
(27.6) 42
(55.3) 72
(94.7)
A 49
(100.0) 49
(100.0) 49
(100.0) 5
(10.2) 6
(12.2) 49
48 (97.6)
48 (97.6)
27 (55.1)
-- 3.
Ilayankudi
INA -- -- -- 44
(89.1) 43
(87.7) --
1 (2.1)
1 (2.1)
22 (44.9)
49 (100.0)
A 65
(89.1) 65
(89.1) 65
(89.1) -- --
65 (89.1)
65 (89.1)
65 (89.1)
62 (84.9)
-- 4. Manamadurai
INA 8
(10.9) 8
(10.9) 8
(10.9) 73
(100.0) 73
(100.0) 8
(10.9) 8
(10.9) 8
(10.9) 11
(15.1) 73
(100.0) Source : Complied from Primary Data
N – Number of Respondents ; A – Adequate ; INA - Inadequate
Figures in ( ) indicate percentage to the total
182
As far as essential facilities such as water, electricity and link roads
are concerned absolute majority of the respondents hold that they are
adequate in their area. Around 12.2 per cent of the respondents who feel that
they are inadequate in Manamadurai than in the other three panchayats.
There is a general complaint that toilet and sanitary facilities are inadequate.
Post office (61.5 per cent) and communication facilities (7i .2 per cent) are
found to he inadequate in Sivagangai. Majority of the respondents in
Sivagangai, Devakkottai and Ilayankudi have complained that school and
primary health centres are inadequate (90.4 per cent, 91.7 per cent and 100.0
per cent respectively).
4.10 MARKETING DIFFICULTIES
The following Table - 4.17 identifies the faced by the women
entrepreneurs, while marketing their products.
TABLE - 4.17 MARKETING DIFFICULTIES FACED BY THE RESPONDENTS
PERCENTAGE-WISE
Difficulties in Marketing S.
No. Panchayat Union Price competition
Very long time to recover
money
Known brands
Linking agency
Total
1.
2.
3.
4.
Sivagangai Devakkottai Ilayankudi Manamadurai
8 (15.4)
19 (25.0)
12 (24.5)
6 (8.2)
8 (15.4)
21 (27.6)
17 (34.7)
29 (39.7)
13 (25.0)
6 (7.9) 10
(20.4) 10
(13.7)
23 (44.2)
30 (39.5)
10 (20.4)
28 (38.4)
52 (100.0)
76 (100.0)
49 (100.0)
73 (100.0)
Total 45 (18.0)
75 (30.0)
39 (15.6)
91 (36.4)
250 (100.0)
Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.
183
The above Table - 4.17 shows clearly the marketing difficulties that
are encountered by the respondents n the study area. The respondents have to
surmount four difficulties in marketing their products. They are price
competition. Very long time to recover money, known brands and
inadequate linking agencies. I he difficulties and the bottlenecks faced by the
respondents are not uniform. The gravity of the problems differs
significantly in different Panchayat Union in the study area. To study the
intensity of the problems union-wise Chi-square test has been made.
TABLE - 4.18
RESULTS OF CHI-SQUARE TEST
Value df Asymp. Significance
(2-sided)
Person Chi-square 25.125 9 0.003
In the above Chi-square test, as the significant value is 0.003, it is
clear that all the difficulties are of not uniform intensity in all four Panchayat
Unions.
4.10(a) STORAGE OF FINISHED PRODUCTS
Effective storage of finished products is also an important factor for
the respondents to market their products. The following Table - 4.19 gives a
view of various type of facilities for storage of finished products.
184
TABLE - 4.19
PERCENTAGE-WISE ANALYSIS OF STORAGE OF FINISHED PRODUCTS IN FOUR PANCHAYAT UNIONS
Storage of Finished Products
S.No. Panchayat Union In the Unit only
Outside the Unit
Production according to
the order
Total
1.
2.
3.
4.
Sivagangai Devakkottai Ilayankudi Manamadurai
24 (46.2)
45 (59.2)
20 ()40.8)
46 (63.0)
14 (27.2)
08 (10.5)
14 (28.6)
36 (14.4)
14 (26.6)
23 (30.3)
15 (30.6)
27 (37.0)
52 (100.0)
76 (100.0)
49 (100.0)
73 (100.0)
Total 135 (54.0)
16 (6.4)
79 (31.6)
250 (100.0)
Source : Complied from Primary Data Figures in ( ) indicate percentage to the total.
The Table - 4.19 shows the storage facilities available to the
respondents for maintaining the stocks of their products. 54 per cent of the
respondents store the products only in the work spot. It means that they do
not have separate godown or other storing facilities. Another interesting
aspect of their production is they produce their products on order and dispose
them oft alter the production is over. In this case there is no need for storing.
31.6 per cent of the production is carried out only by this method. 14.4 per
cent of the respondents store their finished products outside.
185
TABLE - 4.20
RESULTS OF CHI-SQUARE TEST
Value df Asymp. Significance
(2-sided)
Person Chi-square 55.562 18 0.000
From the Chi-square test, it is seen that there exists significant
difference in the storage facilities.
4.11 MACHINES AND EQUIPMENTS
Many of the rural enterprises do not require the help of machinery to
turn out their products. They require only simple machines and equipments,
which are not expensive. Table - 5.21 gives an idea about the value of the
machines and equipments used by the respondents.
186
TABLE - 4.21 VALUE OF MACHINES AND EQUIPMENTS OWNED BY THE
RESPONDENTS (in Rs.)
Present Value S. No. Panchayat Union
No. of Respondents Machines Equipment
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Arecanut shaving
Candle making
Card making
Cleaning powder making
Food processing
Gem cutting
Grinder stone polishing
Handloom weaving
Liquid blue making
Mat weaving
Milk products making
Mixy cover making
Phenyl making
Plastic wire bag knitting
Pot making
Poultry farming
Quarrying
Readymade garments
making
Thatch making
Vegetable vending
5
19
10
15
36
37
11
5
5
15
23
5
10
4
5
6
15
10
10
4
--
18,300
--
--
8,550
1,59,100
--
13,200
--
36,500
--
--
--
--
22,000
--
--
58,000
--
--
5,000
21,850
1,000
5,100
11,140
19,950
6,850
5,700
2,500
7,260
1,85,800
5,000
3,850
800
38,500
26,500
7,800
3,600
850
550
Total 250 3,15,650 3,59,600
Source : Complied from Primary Data
The value of machines used in gem cutting is high at (Rs. 1,59,100/-)
while that of machinery used in food processing is low at ( Rs. 8,550/-). The
value of equipments used in making milk products is high (Rs. 1,85,800/-)
while the value of equipments used in vegetable vending is the least
(Rs. 550/-).
187
TABLE 4.22
MAJOR PROBLEMS ENCOUNTERED BY THE RESPONDENTS
S.No. Problems No. of
Respondents
Percentage to the
total
1.
2.
3.
4.
5.
6.
7.
Irregularity / bribery in the agencies providing loans / subsidies / long procedure to avail the bank loan Improper functioning of marketing, linking agency Poomalai Lack of Technical / Skill based training Intervention of middlemen. Low level of family background with regard to education occupation / income of the family members Low self – esteem Scarcity of raw materials
113
52
34
25
16 6 4
45.2
20.8
13.6
10.0
6.4
2.4
1.6 Total 250 100.0
Source : Complied from Primary Data
The inference from the Table - 4.22 is that the most important problem
experienced by the respondents is bribery. There are many irregularities in
the agencies that provide loan and the procedure to avail the bank loan is
long and cumbersome, 45.2 per cent of the respondents hold these as a major
problem. The second important problem is marketing, as expressed by 52
respondents (20.8 per cent). 34 respondents (13.6 per cent) of this study feel
strongly that the technical and skill-based training given is insufficient 10.0
188
per cent of them state that middlemen play a permanent role in marketing
their products. Hence the respondents in turn are not able to sense the pulse
of the ultimate consumers and major portion of the profit goes to middlemen.
Low level of the family background is also considered as a problem for their
progress. Only 1.6 per cent have expressed that the scarcity of raw-material
in their locality, is a problem in their trade.
The evaluation of the performance of the rural women entrepreneurs is
quite encouraging. At the same tine it must be said that there is still room for
development. A detailed attempt at evaluating the performance of the
respondents panchayat-wise and family background-wise and activity-wise
has been made in the next chapter using statistical tools of analysis.
4.12 ANALYSIS AND DISCUSSION
(a) SAVINGS OF THE RESPONDENTS
Women entrepreneurs in all four Panchayat Unions are motivated to
save, since their savings have direct bearing on their capacity to borrow for
their activities.
The following Table – 4.23 explains the amount saved by the
respondents of four Panchayat Unions.
189
TABLE – 4.23
AMOUNT OF SAVING IN FOUR PANCHAYAT UNIONS
Variable Panchayat Union
No. of Respondents
Total amount of
Savings (Rs.)
Mean savings (Rs.)
Coefficient of
variation Sivagangai
Devakkottai
Ilayankudi
Manamadurai
52
76
49
73
49,545.08
1,36,879.80
39,410.21
70,285.13
952.79
1,801.05
804.29
962.81
111.71
202.00
83.51
88.58
Amount
of savings
Total 250 2,96,120.22 1,184.48
From the above table it is clear that there is a vast difference in the
saving habits of the respondents. The respondents in the Devakkottai
Panchayat Union save as high as Rs.1,801.05/- per year as against
Rs.804.29/- of respondents in Ilayankudi. Eventhough respondents of
Devakkottai save more than those of other Panchayat Unions, their savings
a prone to larger fluctuations. This is shown by the higher coefficient of
variation of their savings (202 per cent).
TABLE – 4.24 ANOVA FOR AMOUNT OF SAVINGS
Variable Source of variation Sum of squares
df Mean Sum of Square
F Significance
Among Panchayat Unions Within Panchayat Unions
4.2E+07
1.1E+09
3
246
1.4E+07
4571169
3.088 0.028 Amount
of savings
Total 1.2E + 09 249
190
The above ANOVA (Analysis of Variance) tab which has been
formed to find out the differences in the savings pattern of the respondents of
the four Panchayat Unions shows that there is significant differences in their
savings. This is confirmed by the sign value of P 0.028. The variation can be
attributed to the differences in theft income pattern of’ the respondents
belonging to the Panchayat Unions.
(b) BORROWINGS OF THE RESPONDENTS
It has been already stated that the respondents have availed credit from
nationalised banks, indigenous banks and moneylenders. The extent of
borrowings in Panchayat Union-wise and the association between savings
and borrowings of the respondents me analysed here under :
TABLE- 4.25
AMOUNT BORROWED IN FOUR PANCHAYAT UNIONS
Variable Panchayat Union
No. of Respondents
Total amount of Borrowing
(Rs.)
Mean Borrowing
(Rs.)
Coefficient of
variation
Sivagangai
Devakkottai
Ilayankudi
Manamadurai
45
59
40
70
1,62,725
3,07,800
1,88,500
3,54,300
3,616.11
5,216.95
4,712.50
6,061.43
103.77
117.06
93.02
98.51
Amount
of
savings
Total 250 10,13,325 4,735.16
191
The above table shows that the respondents of Devakkottai have
borrowed on an average of Rs. 5,216.95/-, followed by the respondents of
Manamadurai Rs. 5,061 .43. - The respondents of Ilayankudi have borrowed
Rs.4,712.50/- while those of Sivagangai Rs.3,616.11/- on an average. The
highest borrowings by the respondents of Devakkottai is a singular index of
their savings. I should be remembered that the respondents of Devakkottai
have recorded the highest level of savings also as referred in Table – 4.23
An ANOVA test has been used to know the differences in the extent
of borrowings of the respondents of four Panchayat Unions.
TABLE – 4.26
ANOVA FOR AMOUNT OF BORROWED
Variable Source of variation Sum of squares
df Mean Sum of Square
F Significance
Among Panchayat Unions Within Panchayat Unions
7.8E+07
5.2E+09
3
210
2.6E+07
2.5E+07
1.034 0.378 Amount
of savings
Total 5.3E + 09 213
The above ANOVA clearly shows that there is no significant
difference among the respondents of the four Panchayat Unions. The
differences in the borrowings of the respondents of the four Panchayat
Unions stems (ton the fact that there are differences in their savings.
192
The savings of the respondents is taken into consideration, while
sanctioning of loans are given by the four agencies. So the researcher is
interested to know if there exists a correlation between savings and
borrowings the respondents. The correlation is given below :
TABLE – 4.27
CORRELATION BETWEEN THE AMOUNT SAVED AND
BORROWED
No. of Respondents Amount
Borrowed
Savings
Person
Correlation
Amount borrowed
savings
1.000
0.293**
2.093**
1.000
Sig (2-tailed) Amount borrowed
savings
0.000
0.000
N Amount borrowed
savings
214
214
214
250
Karl person’s correlation coefficient ® has been used to estimate the
relationship between amount borrowed and the amount saved by the
respondents in the study area. The correlation coefficient between the above
mentioned two variables is 0.293. The t-test, which has been made to find
out the significance of correlation coefficient, shows the relationship
between amount borrowed and saved is highly significant.
193
(c) REPAYMENT OF LOANS BY THE RESPONDENTS
In the previous Chapter, it has been pointed out that the repayment of
loans by the respondents is on the whole satisfactory. Difference in
repayment, Panchayat Union-wise and community-wise are presented below.
TABLE – 4.28
REPAYMENT OF LOANS BY THE RESPONDENTS IN FOUR
PANCHAYAT UNIONS
Variable Panchayat Union
No. of Respondents
Total amount of Borrowing
(Rs.)
Mean Borrowing
(Rs.)
Coefficient of
variation
Sivagangai
Devakkottai
Ilayankudi
Manamadurai
40
57
40
70
48,250
1,27,350
82,600
2,17,450
1,206.25
2,234.21
2,065.00
3,106.43
90.05
115.88
81.69
84.00
Amount
of
savings
Total 207 4,75,650 2,297.83
The respondents in the study area in general are very prompt in
remitting their dues to their lending institutions. The above table shows the
encouraging repayment pattern of the respondents in the study area. With a
view to find out whether there are significant variations between the
respondents union-wise or community-wise in repayment of loans the
following ANOVA tests have been conducted.
194
TABLE – 4.29
ANOVA FOR THE REPAYMENT OF LOANS
Variable Source of variation Sum of squares
df Mean Sum of Square
F Significance
Among Panchayat Unions Within Panchayat Unions
9.6E+07
1.0E+09
3
203
3.2E+07
4937204
6.470 0.000 Amount
of savings
Total 1.1E + 09 206
The ANOVA table shows that there is a significant difference in the
amount repaid by the respondents of the four Panchayat Unions. The
difference in the repayment pattern is due to the differences in the savings of
respondents and the profitability of their trade. The respondents of
Devakkottai and Manamadurai have been found to have better access to
banks and other lending agencies. This has certainly a positive bearing on
their repayment capacity. This advantage is not available to the respondents
of Sivagangai and Ilayankudi.
195
TABLE – 4.30
RESULTS OF MULTIPLE REGRESSION
Unstandardized Coefficients
Standardized Coefficients Variable
ββββ Std. Error Beta t Significance
Constant Amount Repaid Amount Saved
668.663 1.663 0.257
309.553 0.096 0.094
0.759 0.119
2.160 17.409 2.729
0.032 0.000 0.007
From the Beta coefficient of this table, the amount repaid is the
primary factor and the amount saved is the secondary factor in determining
the variable Y, the amount borrowed.
The regression equation is Y = 668.663 + 1.663X1 + 0.257X2.
Where,
Y - amount borrowed
X1 - amount repaid
X2 - amount saved
From this regression line, it is clear that for every one rupee repaid, the
respondents get Rs. 1.66 as loan, whereas for everyone rupee saved, they get
26 paise as credit.
196
The women in the Self-Help Groups are motivated to repay the
amount borrowed. Their repayment behaviour has a direct bearing on the
amount they can borrow. The banks recycle the amount they receive from
the respondents for extending further loans. In a way the respondents are
motivated to save and invest.
The overall summary figure shows that the amount repaid by the
respondents determines the quantum of borrowings. The Panchayat union-
wise splitting of borrowing pattern shows that there are also other factors
influencing the amount borrowed. A few respondents in the study area are
highly motivated and spirited. They are highly enthusiastic to channelise
their own resources for starting their enterprises. The existence of well-knit
non-governmental organizations is a boon for the budding women
entrepreneurs to get financial and non-financial support.
(d) BORROWINGS PATTERN IN FOUR PANCHAYAT UNIONS
Respondents in this study are not financially sound enough to mobilize
the resources for starting their enterprises. Nationalised banks by their
outreach programmes are able to extend loans to the needy respondents. The
amount borrowed from the Banks is determined by the amount they are
repaying. The women entrepreneurs in these Panchayat unions avil loans not
only from the banks but also from the other institutional agencies and non-
governmental organizations. The model summary of amount repaid in the
four Panchayat unions are shown clearly in the following Table. 4.31.
197
TABLE – 4.31 REGRESSION MODEL SUMMARY
Panchayat
Union Model R R-Square
Adjusted R Square
Standard Error of the Estimate
Devakkottai
Manamadurai
Ilayankudi
Sivagangai
1
2
3
4
0.919
0.869
0.556
0.419
0845
0756
0.309
0.176
0.842
0.752
0.291
0.154
2464.674
2482.445
3690.689
3586.520
The goodness of fit the R-Square (0.845) indicates that the amount
repaid is the single most important variable influencing the dependent
variable. The amount borrowed. All the other variable do not have much
influence on the borrowed amount in Devakkottai Panchayat Union.
The amount borrowed is closely related to the amount repaid. This is
evidenced by high goodness of fit R-Square (0.756). This shows clearly that
the amount repaid is a vital factor influencing the amount borrowed by the
women entrepreneurs in Manamadurai Panchayat Union.
In Ilayankudi Panchayat Union, the amount repaid is evidenced by the
low goodness of fit R-Square (0.309) implies that 31 per cent of the
variations in the amount borrowed is influenced by the amount repaid. Rest
of the 69 per cent of the variation unexplained in the borrowed amount may
be due to the factor, like availability of own funds and financial assistance
from other institutions.
198
Lastly, the respondents in Sivagangai Panchayat Union are exuberant
compared to those of other Panchayat Unions. The amount repaid is not the
only crucial factor in determining the amount borrowed, it is one of the
factors which determine the amount borrowed. It is evident from the low
goodness of fit R-Square (0.176) that the amount repaid is although an
important factor, it is not a decisive factor. It is obviously shown that only 18
per cent of variation in the borrowed amount is caused by the variation in the
repaid amount. The remaining 82 per cent of the variations unexplained in
the borrowed amount may be due o the factors, like own funds and existence
of other agencies.
TABLE – 4.32
RESULTS OF REGRESSION ANALYSIS
Unstandar-dized
coefficients
standardized coefficients
standardized coefficients S.
No. Panchayat Union Model ββββ Standard
Error Beta
t Significance
1.
2.
3.
4.
Devakkottai Manamadurai Ilayankudi Sivagangai
Constant
Amount Repaid
Constant
Amount Repaid
Constant
Amount Repaid
Constant
Amount Repaid
359.146
2.201
-98.553
1.661
1727.74
1.445
200.3.859
1.504
432.848
0.127
463.233
0.115
929.486
0.350
853.439
0.529
0.919
0.869
0.556
0.419
0.830
17.303
-0.213
14.505
1.859
4.126
2.348
2.845
0.410
0.000
0.832
0.000
0.071
0.000
0.24
0.007
199
The regression equation is fitted to show the impact of amount repaid
on the borrowings.
Where,
Y - amount borrowed
X - amount repaid.
The regression equation for Devakkottai Panchayat Union,
Y = 359.146 + 2.201 X, shows that every repaid amount of one rupee,
the respondents are likely to get Rs. 2.20 as borrowing amount.
The regression equation for Manamadurai Panchayat Unions is,
Y = -98.553 + 1.661 X reveals that for every one rupee repaid, they
are likely to get Rs. 1.66 as borrowing amount.
The regression line states that in Ilayankudi Panchayat Union,
Y = 1727.74 + 1.445 X, states that for every one rupee repaid, the
respondents are likely to receive Rs. 1.45 as borrowing amount.
The regression equation for Sivagangai Panchayat Union,
Y = 2003.859 + 1.504 X, indicates that for every one rupee repaid, the
respondents are likely receive Rs. 1.50 as borrowing amount.
200
Thus, the Regression Coefficients of amount repaid, is highly
significant. This obviously shows that the amount borrowed is related to the
amount repaid.
It is evident from the foregoing different statistical analysis carried out
in this chapter, that the savings made by the respondents, the amount of
credit availed by them, the different aspects of the respondents’ income and
the repayment performance of them is quite encouraging. Thus the fourth
hypothesis “the over all performance of the rural women entrepreneurs in
terms of savings, borrowings, of incomes and repayment, which constitute
the parameters in the present study for evaluating the performance is quite
disappointing”, is invalid and hence should be rejected.
The foregoing analysis and discussion has tried to highlight the
performance of the respondents within the given constraints and to analyse
the differentials if any in such performance union-wise, activity-wise,
literacy level-wise and community-wise. The findings of the study and
suggestions for the effective functioning of women entrepreneurs in the
Self–Help Groups are given in the next chapter.