1. Introduction
‘To awaken people, it is the women who must be awakened. Once she is on the move, the family moves, the village moves, the nation moves’.
—Pandit Jawaharlal Nehru [
1]
Most of the women in rural areas of India live in an isolated environment with very limited access to even the most basic services [
2]. But, they have a vital contribution in rural and agricultural domains of development, namely, crops, food security, horticulture, livestock, nutrition, fisheries, energy, and family. Though they contribute economically, they have partial access to markets, economic services, education, and healthcare [
3]. In addition, they are also responsible for household chores, such as cleaning, cooking, child-care, fetching water, and so on, as these are considered traditional duties of a rural woman [
4]. According to the Oxfam report, more than 40% of the 400 million women who live in rural India are involved in agriculture and associated activities. However, as women are not recognized as farmers and do not own land, they have limited access to government schemes and credit, which, in turn, restricts their agricultural productivity’ [
5]. Therefore, women need to obtain the power to raise their voice, to exercise informed choice, and accomplish their potential as equal to that of men in the society. Accordingly, empowerment of women has become a subject of great concern in India [
6]. ‘Empowerment means moving from a position of enforced powerlessness to one of power. Women empowerment promotes women’s inherent strength and positive image’ [
7]. Empowerment of women is a crucial prerequisite for the alleviation of poverty, defense of human rights, and capacity building as a base for social change [
8]. However, in a country like India, it is often difficult to involve poor women in economic and social activities. The lack of finance, education, enterprise, and the inability to take risks, are important constraints in this context. In such cases, policymakers often rely on self-help groups (hereinafter-SHGs) and micro credit programs to mobilize and empower women and use their collective enterprise to involve them in economic and social activities [
9]. Micro credit is a well-suited choice for rural women as it provides them the required economic and social skills to face challenging environments. Micro credit for women, as a popular support, consists most typically of the provision of small loans, either to individuals or groups [
10], and transform idle women into a productive workforce with their proven creditworthiness [
11]. It is a well-planned system of providing small loans to poor communities for income-generating activities and to help them gain partial economic stability without encouraging debt [
4]. Thus, micro credit can play a key role in boosting economic growth in any developing country. Consequently, access to micro credit is one of the most important elements of empowering poor women.
There has been an increasing trend to study the impact of SHGs on women empowerment because micro-credit programmes play a major role in supporting the Millennium Development Goals. However, literature review reveals that very few studies have, so far, concentrated on micro credit’s impact on women’s empowerment through SHGs in the state of Punjab, India. Keeping these views in mind, the present article, is an attempt to explore answer to the question—‘Does micro credit loans and resources empower women through SHGs or not?’.
3. Methodology
This study is a survey research, and therefore, a quantitative approach has been adopted. Specifically, this study used the cross–sectional survey technique. As the study did not intend to collect multiple data from the respondents over a period of time, the data was gathered once. A systematic, structured questionnaire is used as an instrument of data collection. This approach enabled the researchers to perform statistical analysis to explore the answer to the question—Does micro-credit programs empower women through SHGs or not? The target population of the study was women SHGs in rural and urban areas from selected cities of Punjab state, India. This population was chosen because most of these SHGs engage in micro credit programmes. Due to the large number of women SHGs in Punjab state (38673 SHGs
2) and the lack of a sample frame, the study employed a convenience sampling technique. The reason for adopting this sampling technique was inaccessibility (unsafe for travel for foreigners in rural area of India, patriarchal family structure, and unwillingness to talk about financial issues), issues in interaction and connectivity (gender, education, and language barriers; and, distrust towards foreigners), and budget and time limitations. The sample size of the study was 200, where respondents belonged to selected cities of Punjab. These cities were: Chandigarh, Patiala, and Mohali. The rural and urban areas in the vicinity of the selected cities consist of a large proportion of migrant population from other parts of the state. Out of the 200 questionnaires distributed, 114 were used in the final analysis because those were correctly filled. The questionnaires that were not fully filled or were incomplete were excluded from the final analysis.
The questions were all closed ended questions and divided into four constructs (sections):
- (1)
socio-demographic characteristics of the respondents;
- (2)
income, expenditure, savings, and borrowing pattern before and after joining SHGs/using micro credit;
- (3)
financial freedom through micro credit programmes before and after joining SHGs; and,
- (4)
capacity building and awareness levels before and after joining SHGs/using micro credit.
These constructs were developed by the researchers based on the existing literature [
6,
23,
33,
34,
35], views and recommendations of experts, and professors in the related field of research. These experts and professors have been selected based on their scientific publications, specific experience and knowledge of the different domains of women empowerment, micro credit, and SHGs in India. A pilot study has been done to pre-test the research instrument to ensure validity and reliability of constructs. The constructs were measured on a five-point Likert scale for both before and after joining SHGs/using micro credit. The Cronbach’s alpha reliability coefficient of the instrument was 0.824, which indicates an acceptable level of internal consistency [
36]. The questionnaire was self-administered. This was to ensure data quality and integrity. The data was collected from concerned women respondents after they participated in SHGs. This was done to compare the situation before and after participation in the SHGs/use of micro credit. The opinion of the local bank agents has been used to ensure the accuracy of recall data. The validity and reliability of recall data have been tested by using the profile of each member of SHGs in the local bank (village branch). This profile consists of information about their socio-economic situation at the time of joining. Data was analyzed by using descriptive statistics, and t-test in particular [
33,
37].
4. Data Analysis and Discussion
Table 3 presents the characteristics of the respondents who participated in the research. All of the members of SHGs were women and a majority of them (63.2%) were 25–44 years old. 73.7% of the respondents were married while 6.1% were single. More than half of the respondents (58.8%) were Sikh and 38.6% were Hindu. Further, 88.6% of the participants belonged to the general caste where the common family size was 5–6 members (58.8%). A large percentage of participants (71.1%) could read and write and had a primary level education. A majority of SHG members (68.4%) seem to be better off with higher landless rates. 58.8% of the participants were engaged in non-agricultural wage labour. 76.3% of the respondents reported that their income from SHG activities fell in the range of 391 US
$ to 547 US
$ per annum. 85.1% of the respondents had less than five years of experience in SHGs, and only 14.9% had more than five years of working experience in SHGs. All of the participants belonged to labour class families and selling handmade crafts (42.2%) and food processing (28.9%) were their complementary occupations. The areas of operations were—local 40.4%, in other nearby towns—36.8%, and local and outside villages—22.8%, respectively.
The mean ratings, standard deviations and
t-values of the participants’ income, expenditure, savings and borrowing amounts before and after joining SHGs have been shown in
Table 4.
A significant change in income, expenditure, savings, and borrowing amounts was observed among SHGs’ participants before and after joining SHGs. SHGs work as a powerful tool for generating local income and employment in the rural areas. This is reflected by the increase in the mean value of response from 33 US$ before joining SHGs to 43 US$ after joining the same. The savings balance of the participants showed an ascending trend, which primarily helped them to fulfil the minimum eligibility criteria to access credit through external sources. This was exhibited by the increase in the mean value of the participants’ responses from 7 US$ to 16 US$ before and after joining SHGs. The participants further endorsed that because of SHGs, their creditworthiness increased and loans through formal banking system became more accessible. This finding is reflected by the increase in the mean value of their responses from 12 US$ to 27 US$ before and after joining SHGs. The increase in the mean value of responses from 31 US$ to 40 US$ before and after joining SHGs, respectively, demonstrates the impact of the generation of local income on participants’ expenditure pattern. It not only enhanced the savings and creditworthiness of the SHGs members, but it also promoted the expenditure/consumption patterns in the family.
The mean ratings, standard deviations, and
t-values of the participants’ ‘financial freedom through micro credit programmes’ before and after joining SHGs have been shown in
Table 5.
The financial freedom is measured on 19 statements that collectively measure the changes in the level of financial independence, financial knowledge, and investment skills of the SHGs participants. The t-value (2.13–5.56) analysis indicates a significant change in financial freedom among respondents before and after joining SHGs. The results demonstrate very clearly that most of the participants have joined SHGs to acquire economic freedom to be able to save and/or invest for future financial needs (reserve fund for old age, healthcare requirements, children’s education, marriage, etc.). They have also joined SHGs to increase their creditworthiness, get access to credit through formal banking system, to enhance their standard of living and for other welfare activities of the family. Another significant reason of joining SHGs is to increase financial and non-financial assets and manage unexpected financial challenges in the most cost-effective way. There is an increase in the mean value of response from all the statements. It infers that, by joining SHGs and getting access to micro credit, women in Punjab have become more self-reliant and self-contained.
The mean ratings, standard deviations, and
t-values of the participants’ capacity building and awareness levels before and after joining SHGs have been shown in
Table 6.
As shown in
Table 4, the statements that measured capacity building and the awareness level of respondents were divided into five dimensions, namely: (i) social issues; (ii) education issues; (iii) health issues (iv) economic issues; and, (v) political issues. The details of
t-value analysis (both overall and division wise) clearly illustrate a significant improvement in the capacity building and awareness levels of participants after joining SHGs.
Social Issues. A significant change about social evils, especially in rural areas, was observed through the statement: awareness about child labour practices. This change is reflected by the increase in the mean value of response from 2.83 before joining to 4.08 after joining SHGs. The change in the mean value from 2.76 before joining to 4.00 after joining SHGs demonstrated the raised awareness of participants about child marriage practices. However, due to their social circumstances they compulsorily resort to the practice of child marriage and send their children to work and earn wages. The participants, especially from lower income groups, low education levels and weaker sections of the society, validated that there was an increased level of awareness towards domestic violence and social inequality after becoming a part of SHGs. The increase in the mean value of responses for awareness towards domestic violence and social inequality from 2.44; 3.20 to 4.07; 4.28, respectively, before and after joining SHGs is a clear demonstration of the same. The participants also revealed that group meetings and activities promoted their status in the local society and improved their decision-making ability. This is statistically reflected, respectively, by the increase in the mean value of responses from 2.14; 2.34 to 3.20; 4.10 before and after joining SHGs. Since the majority of the family members are also members of SHGs, they feel there is a sense of togetherness in the group and it also increases the scope of learning new things. They also believe that SHGs have augmented their capability to take effective decisions.
Education Issues. An old African proverb says, “If you educate a man you educate an individual, but if you educate a woman you educate a family—and a whole nation”. Education is a process that essentially increases knowledge, and, in turn, changes attitudes and helps to develop skills [
33]. Participants showed an enhancement in literacy skills or education, as was demonstrated by the increase in the mean value of their responses from 1.56 to 4.01 before and after joining SHGs. The mean value of responses towards the parameter of women education ascended to 4.12, after they joined SHGs. However, results reveal that the education levels of women did not improve significantly because of work pressure and other unavoidable obligations in the family. For the statement, awareness about children’s education, the mean value of responses changed from 3.02 to 4.25. A significant increase in the mean values (from pre to post phase of joining SHGs) was reported towards the response for the statement: awareness about girl child’s education. Although the response was significantly higher, most of the girls do not attend schools, often because of family responsibilities, religious reasons, cultural pressures and inadequate facilities.
Health Issues. The Indian government must expand access to affordable and appropriate health services if it wishes to fulfil its commitment to provide Universal Health Coverage (UHC) to everyone. Micro credit based SHGs not only provide financial means to poor women and their families, but they also facilitate access to basic healthcare facilities. A significant change about sanitation was observed by the increase in the mean value of response from 2.81 before joining to 4.35 after joining SHGs. The pre-joining mean with respect to the statement,
awareness about personal hygiene, was 3.04, which significantly ascended to 4.30 after joining SHGs. The mean value of responses was 4.02 with respect to the statement,
awareness about AIDS and other related diseases after joining SHGs. There is a healthcare scheme ‘Aarogyashri’ in Punjab that leads all other healthcare schemes in the state. Its objective is to provide quality healthcare to the poor ([
38]. Post joining SHGs, the mean response to the statement about awareness of Aarogyashri Health Care Trust significantly increased. The mean values shifted from 2.88 (before joining SHGs) to 4.08 (after joining SHGs) for the statement:
adoption of small family norms. It is evident from this shift that SHGs’ participants adopted the norms and values of a small family.
Economic Issues. SHGs are small groups of rural women where they share similar demographic characteristics and a sense of identity with each other. Because of this social uniformity, they feel more connected to the group. It is an effective tool to remove poverty and uplift the economic condition of women in India. The change in the mean value from 2.36 before joining to 3.72 after joining SHGs reflected the improved ability of the participants to control resources. The participants further endorsed that SHG was the main way to increase their creditworthiness and access to the loans through the formal banking system. The change in pre- and post-joining SHGs was also significant in the case of the statement, freedom from money lenders. Further, the participants affirmed that group activities and provision for micro credits improved their self-employment potential. It was supported by the fact that the mean value of their responses increased from 3.36 to 4.12 before and after joining SHGs, respectively. Finally, the participants validated that joining SHGs have not only facilitated the access to tangible assets and improved living condition of women, but it is also a powerful instrument for nurturing entrepreneurial and communication skills, as indicated, respectively, by the increase in the mean value of their responses from 2.08; 2.12 to 3.88; 3.82 before and after joining SHGs.
Political Issues. Micro credit based SHGs enhance the levels of self-esteem and self-worth among women, and, in turn, make them aware of social and political issues. This makes women more confident to move outside their homes and shun away traditional isolation in which they have been living since ages. The change in the mean value from 1.88 before joining SHGs to 4.02 after joining SHGs reflected the affirmation of the participants that their access to information about government programmes has increased ever since they joined SHGs. The participants responded that SHG was a collective effort for increasing their awareness on women’s rights and equal property rights for women, as was revealed, respectively, by the increase in the mean value of their responses from 2.05; 2.28 to 4.10; 3.80 before and after joining SHGs. Their participation in development programmes significantly increased. This is evident from the increase in the mean value of responses from 2.12 to 3.96 before and after joining SHGs. Finally, participants’ ability to meet and converse with government officials improved significantly after interacting with the group members.