Essay: INTRODUCTION OF MICRO-FINANCE

The word ” micro” literally means small and finance also mean investment or support, therefore microfinance can be define literally as small investment and support. Microfinance is provide broad range of financial services like deposits, loans, payment, services, money transfer and insurance to those who need loan.. Microfinance is defined as ‘financial services (savings, insurance, fund, credit etc. ) provided to poor and low income clients so as to help them raise their income , thereby improving their standard of living’.
Our past centuries, practical visionaries, from the Franciscan monk was founded the community- oriented pawnshops of the 15th century to the founders of the credit union movement in the 19th century. The pioneering of modern microfinance is often credited to Dr. Mohammad yunus, who began experimenting with lending to the poor women in the village of jobra. He founded the grameen bank in 1983 and won the Nobel peace prize in 2006. Grameen bank has reversed conventional banking practices by removing the need for collateral and created a banking system based on mutual trust,accountability, participation and creativity. Grameen bank provides credit to poorest of the poor in Bangladesh, without any collateral. At grameen bank, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic condition of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Since then, microfinance has continued and providers of financial services to the poor continue to evolve. Today, the word banks estimate that about 160 billion people in developing countries are served by microfinance.
NEED FOR MICROFINANCE :-
There’s now quite of evidence that access to the financial services is a critical tool for both economic growth and human development. It clearly shows that the poor can be dependable clients and institution that service them to right do good business.
Financial inclusion can be well-defined as a ‘the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost’. An broad financial sector will support the full participation of lower income household in the financial system.
Financial is one of the best tools to alleviate poverty and contribute to the achievement of the development goals because…..
a) Even very small loans can be creating new businesses, job and livelihoods.
b) Sustainable access to microfinance services helps poor household meet basic needs such as adequate housing, healthcare and education for their children.
c) They not only repay their loans on time, they can provide profitable business for loan provider that give them chance.
d) Providing services that tap the entrepreneurial spirit of people is vital to eradicating poverty.
MICROFINANCE
Microfinance is an financial growth approach that involves providing financial services, through association to low income clients, where the market fails to provide suitable services. Microfinance means the provision of providing small scale financial products and services to the poor traders and money lenders have traditionally provided micro-credit to the ruler poor but charge high rate of interest. This resulted in depth trap since freedom various government in India have experimented with large number of grant and subsiding based poverty alleviation programs but unfortunately hence, the concept of micro credit was adopted in India.
Microfinance is regarded as a tool for socio-economic up-liftment in a developing country like India .it is expected to play a significant role in poverty alleviation and development. Mohammed yunus was awarded the noble prize for application of the concept of microfinance with setting up of grameen bank in Bangladesh. Microcredit and microfinance different. Micro-credit is a small amount of money , given as a loan by a bank or any legally registered institution, whereas, microfinance includes multiple services such as loans, savings, insurances, transfer services , micro credit loans etc.
FEATURES OF MICROFINANCE
1) It is a vital part of rural finance.
2) It agreements in small loans.
3) It basically provides to the poor households.
4) It is one of the most effective and necessary poverty alleviation strategies.
5) It supports women participation in economic activity.
6) It provides an incentive to take the self-employment opportunities.
7) It is more service-oriented and less profit oriented.
8) It is expected to assist small entrepreneur and producers.
9) Poor borrowers are rarely defaulters in repayment of loans as they are simple and god-fearing.
10) India needs to found several microfinance institutions.
‘ MICRO FINANCE INSTITUTIONS (MFIs)
MFIs include NGOs, trusts, social and economic entrepreneurs, these lend small, sized loans to individuals or SHGs. They also provide other service like capacity building, training, marketing of products etc.
MFIs operates under following models:-
a) Bank partnership model
‘ MFI as agent
‘ MFI as holder of loans
b) Banking facilitators
November 1995 microcredit summit preparatory meeting US first lady Hillary clin wrote microfinance is the heart of development because micro-enterprise programmes work ‘ they women and families but of poverty , it is called micro but its impact on people is micro. Success stories in neighbouring countries like grahmin bank in Bangladesh , bank rakiat in Indonesia gave further boost to the concept in India in 1980’s thus adopted the similar model of extending credit to the poorest sectors and took a number of steps to promote micro-financing. There after development bank SIDBI, NABARD which focused on rural credit, NGO’s and SHG’s were encouraged to become the government arm in extending credit to the poor. They were provided supplementary credit needed to fund the credit paper work was reduced between them and the banks. Also , the government assisted in mobilizing fund from formal financial institutions to meet the larger credit needs of these organisations.
MICRO-CREDIT
Micro-credit has been defined by the 1997 micro credit summit as ‘programmes that provided credit for self- employment and other financial and business services ( including saving and technic assistance ) to very poor persons’. Micro credit is a component of microfinance and is the delay to minor loans to entrepreneur, who are to poor to succeed for tradinally bank loans.
From the imported model of joint liability groups to domestically developed SHGs, many urban MFIs have opted to implement activities through peer based lending. Some practitioners have even chosen to work cooperatives. Accordingly , microfinance providers in India can be classified under three broad categories :- formal, semi-formal and informal.
1) Formal sector :-The formal sector comprises the banks such as NABARD , SIDBI and other regional rural bank (RRBs). They primarily provide credit for assistance in agriculture and micro-enterprise development and primarily target the poor. They charge an interest of 12-13.5% but if we includes that transaction costs , they come out to be as high as 21-24%.
2) Semi-formal sector:-The majority of institutional microfinance providers in India are semi-formal organisations broadly referred to as MFIs. Registered under a variety of legal acts, these organisations (NGOs) registered as societies, public trusts, or non- profit companies.
3) Informal sector :-In addition to friends and family, moneylenders, landloards, and traders constitutes the informal sector. While estimates of their importance vary significantly, it is undeniable that they continue to play a significant role in the financial lives of the poor.
BENEFITS OF MICROFINANCE
1) It can be critical element of an effective poverty reduction strategy.
2) It improved access and efficient provision of savings, credit and insurance facilities.
3) It enable the poor to smoothen their consumption, manage their risks better.
4) It enhance their income earning capacity , and enjoy an improved quality of life.
5) Microfinance services can also contribute to the improvement of resources allocation, promotion of market, and adoption of better technology.
6) It can provide an effective way to assist and empower poor women, who make significant proportion of the poor and suffer disproportionately from poverty.
7) It can contribute to the development of the overall financial system through integrate of financial market.
1.2 IMPACT OF MICROFINANCE ON LIVING-
STANDARD, WOMEN EMPOWERMENT AND POVERTY ALLEVIATION ON AGRA REGION
The unique feature of microfinance programme is that it focus on women for development. There are more than 90 % women client under this programme. The basic idea is to empower women by providing them financial assistance and allowing them to earn an independent income, contribute financially to their household and generate self-employment. This economic independence is expected to generate increase self-respect, self-esteem, self-confidence and other forms of empowerment for women participants of the programme. The processes of empowerment of the beneficiaries of the programme are not automatic, but depend upon many factors. These factors may be abilities, environment, initiative, and status of women as group.
‘ Women as micro and small entrepreneur have increasingly become key target group for micro finance programs. Consequently, providing access to micro finance facilities is not considered a pre-condition for poverty alleviation, but also considered as a strategy for empowering women. In developing countries like India micro finance is playing an important role, promoting gender equality and is helping in empowering women so that they can live quality life with dignity.
‘ Microfinance has a positive effect on empowerment of women by creating an ’empowerment indicator’ can be based on the following factors:-
‘ Mobility.
‘ Ability to make small purchase.
‘ Ability to make large purchase.
‘ Involvement in major household decision.
‘ Political and legal awareness.
‘ They become more confident.
‘ To access to market and information.
‘ They get a better control of the resources
‘ A city suffering from abject poverty described as underdeveloped, having developing economy (i.e. INDIA) or tenth world country. The attribute of tenth world countries are manifested in poor nutrition, poor or inadequate shelter, poor health facilities, low life expectancy as well as poor infrastructure, majority of her active citizen are living in poverty. Poverty is the developing nation hinders economic and social progress several policies implemented since the end of Second World War has been largely unsuccessful at battling global poverty. Many researcher development workers and institution of microfinance as a potential solution to alleviation of poverty.
‘ The problem of poverty and the recognition of the government to the need to encourage the poor and small enterprise through the provision of credit bought about policy reform with respect to replacing the formal community bank with microfinance bank and bring the microfinance institute under the control of central bank of India.
‘ Microfinance is the powerful instrument of poverty alleviation in new economy. In India, microfinance dominated by self-help group and bank linkage programme aimed at providing the cost effective for unreached poor. Micro-finance for the poor and the women has received as a strategy for poverty reduction and for economic empowerment. The focus on poor to mobilizing their own fund, building their capacities, helping the empowering women. Women perception to manage their money and rotate fund women capacity, confidence to occur the local governance beyond the limited goals to ensuring access the credit. The government have attempted to help the poor by implementing different poverty alleviation programme but with little success. Since most of them are target based involving lengthy procedure for loan disbursement, high transaction cost and lack of supervision and monitoring.
‘ Women have been vulnerable section of the society and constitute sizeable segment poverty-struck population. Women face gender specific barriers to access education health, employment etc. microfinance deal with below poverty line. Micro loan available for those women who are target based. Poor women are characterised by lack of education and access the resources, both of which is required to work way on the poverty and for upward economic and mobility. The problem is more acute for women in countries like India, despite the fact that women’s labour makes a critical contribute to the economy. Due to the low social status and lack of access to key resources. If the loan are routed through the women benefits of loan spread among the household. Many women take the loan and them given the some instalment to the microfinance banks or institution. After these amount reinvest to the women benefit. Since the women empowerment is the key role of social economic development of the community, bringing the women into the mainstream of national of national development has been major concern of government.
‘ The ministry of rural development of special component for women programmes like swamagayani grameenswarazgaryojana (SGSY), indra awasyojana (IAY), national social assistance programme (NSAP), restructured rural sanitation programme (RRSP), accelerated rural water supply programme (ARWSP), integrated rural development programme (IRDP), development of women and children in rural area (DWCRA), jowaharrozgaryojana etc.
‘ IDENTIFIED CERTAIN INDICATOR OF WOMEN EMPOWERMENT
Important indicators are as follows:-
‘ Increase in self-esteem, individual and collective confidence.
‘ Increase in articulation, knowledge and awareness on health, nutrition reproductive rights, law and literacy.
‘ Changes in role and responsibilities of family and community.
‘ Visible increase or decrease in violence on women’s.
‘ Visible change women’s participation level attending meeting, participating and demanding participation.
‘ Increase access to and ability to gather information.
‘ Formation of collective women’s.
‘ Awareness recognition of women’s economic contribution within and outside household.
‘ Women’s decision making over her work and income.
In Agra poverty pervasive with frightening depth and breath. It affects all geographical zone of the country. The poor in Agra like those voiceless, powerless and lack basics of live. In poor women have lack of income, lack of access basic services; have limited access to credit and shelter. Income is one of the most important elements of living standard and women empowerment. In Agra, microfinance provide the loans to the women’s and they are satisfied this services. Micro finance are more effective for the women’s because every women’s saving their income and they maintain the own account in the bank of microfinance.
‘ Microfinance programs target both economic and social poverty. Microfinance bank provide loans to the poor not only to increase their income but also mobilize their savings. And the other factors that contribute to human development like education, empowerment can also be included as variable indicating level of standard of living. In Agra region the standard of living of customer of micro finance bank has improved in the selected local government since women’s join the microfinance programs. To assess the success of microfinance bank there is a need to measure the impact on borrowers likes mostly women’s. in Agra every women’s highly agree to the service of microfinance other than the banks. They are happy with the services of microfinance and improve the poverty in Agra region.
1.3 NEED AND RELEVANCE OF THE STUDY:-
In an attempt to investigate the effect of micro finance institutions on poverty reduction, the study focused on women empowerment programme and poverty alleviation located in AGRA REGION. Further research done on a better scale with large sample size could light on how microfinance activities affect the typical living standard of women and poor women’s of Agra.
‘ It is believed generally that when women are empowered financially, the entire family unit benefits as they participate in improving the standard of life to the family members.
‘ Poverty is social phenomenon in which a section of society is unable to fulfil even its basic needs of life.
2.1 EXTENSIVE LITERATURE REVIEW
AUTHOR NAME (Years)
FINDINGS
CITATION
TITLE OF PAPER
JOURNAL
VOLUME NO:(PAGE NO)
1:-Robinson (2001) Financial services are not the panacea for poverty alleviation but other strategies are need for the poor who need food and employment before they can make use of financial service. http://www.ijcrar.com/vol./bichanga%20walter%20okibo%20and%20njage
Microfinance revolution
Sustainable finance for the poor European journal Volume2: no. 2
2:-Morduch and Haley (2002) There is evidence to support the premise that it is possible for a microfinance institution to serve the poorest and also achieve financial sustainability. http://www.hyu.edu/wagner/workingpaper.htm1
Analysis the effect of microfinance on poverty reduction African journal Volume2, no.1
3:-Anyanwu
k(2004) Microfinance Bank is not just to providing capital to poor but also combat poverty to an individual level. It also has role at institutional level. It seeks to create institution that deliver the financial service to the poor, who ignored by the formal banking sector. http://www.journalsbank.com/ejhss_2_3.pdf Impact of microfinance on poverty alleviation in Nigeria European journal Volume 2, No,1
4:-Swain(2004) Microfinance is batter used as instrumental along with other policy for poverty alleviation rather than poverty reduction strategies in isolation. http://connection.ebscohost.com/c/articles/87064321/ Is microfinance is a good poverty alleviation strategies? Evidence from impact assessment Indian journal Volume 2; No,1
5:Manandhar and pradhan (2005) Microfinance is an effective development tool for poverty
Reduction since financial service enables the poor and low income people household to take advantage of the economic opportunity to increases their living standard through self employment. http://www.ijcrar.com/vol./bichanga%20walter%20okibo%20and%20njage
Makanga.pdf Microfinance practice and policy environment Indian journal Volume:2 No:1
6:-Mohammad and Mohammed (2007) Microfinance Bank intervention promotes living condition of poor people by offering supportive services are important indicators of human development.
http://www.medwedelljournals.com/fulltext/?doi=ibmhttp://www.medwelljournals.com/fulltext/?doi=ibm.2011.27.32 Impact of Microfinance Bank on Standard of Living of Hairdresser in Ogbomoso North Local Government of Oyo State, Nigeria International Business Management Volume:5
7:Khan and Rahaman (2007) Proponents of microfinance argue that small loan to poor people could be serve as a powerful tool for alleviating poverty file:///C:/Users/KC%20LAB
Downloads/289-1834-1-PB.pdf The Impact of Microfinance on Maize Farmers in Nkoranza (Brong Ahafo Region of Ghana) Journal of management research Volume: 2, No:2
8:-Karnani (2007) Portrays it as the newest silver bullet for alleviating poverty. file:///C:/Users/KC%20LAB
Downloads/289-1834-1-PB.pdf The Impact of Microfinance on Maize Farmers in Nkoranza (Brong Ahafo Region of Ghana) Journal of management research Volume: 2, No:2
9:-Adamu (2007) Microfinance programme has been viewed as a unique programme for reduction of vulnerability, and hence the achievement of the Millennium Developmental Goals. http://www.journalsbank.com/ejhss_2_3.pdf Impact of microfinance on poverty alleviation in Nigeria.
European journal Volume 2,
No:1
10:McCulloch, N. &Bulch, B. (2007) There is an overwhelming amount of evidence substantiating beneficial effect of microfinance bank on increase in income recorded by various researches http://idea.respec.org
/e/pmc134
Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural
Pakistan journal Volume:4
No:4
11:-Bentu,M
(2008) The point is not the irrelevance of economic variable such as personal incomes, but their severe inadequacy in measuring many of the causal influences on the causal influences on the quality of life and survival chances of people. http:docsdrive.com/pdfs/medwelljournals/pj.ssci/2008/876-882pg
Impact of microfinance towards achieving poverty alleviation Pakistan journal Volume:5
No:9
12:-Adamu,2007; Irobi,2008; Aman2000. Some of researcher have shown that there is significant positive impact of microfinance on micro credit programmes as it related to first six out of six Millennium Development Goals file:///C:/Users/KC%20LAB/Downloads/27815-103059-1-PB.pdf
Impact of microfinance on rural transformation in Nigeria International journal of Business and Management Volume:8 No:19
13:Sulaiman and Matin (2009) Microfinance had effect on recipients only after the third cycle of borrowing. file:///C:/Users/KC%20LABDownloads/289-1834-1-PB.pdf Microfinance on Maize Farmer in Nkoranza (Brong Ahafo Region of Ghana) Journal of management and research
Volume:2
No:2
14:Yahaya,K.A,Osemene,O.FandAbdulraheem A. (2010) iiste.org/Journals/index.php/
EJBM/article/download/3624/3673
Effectiveness of Microfinance Bank in alleviating poverty European journal Volume:4
No.21
15:-Aigbokhan and Asemota In Kenya over 50% of kenyans live in below poverty line(Kenyans National Human Development 2007) For example, Kiambu County Strategic Plan 2005- 2010 indicates that administrative unit contributes 1.48% of poor people to the national poverty index and the absolute rural-urban poverty is 25.08% of which women are the majority http://www.globip.com/pdfpages/global finance-vol-5article4.pdf
An assessment of microfinance as a tool of poverty reduction and social capital formation Indian Journal Volume:5
No:5
16:-Sodibe and Ogunrinola (2011)
17:- jegede (2011)
The basic goal of increasing employment is crucial to developing economies where unemployment and underemployment are regarded as major causes of poverty.
Employed the chi-square to test the empherical relationship between microfinance loan disbursement and poverty alleviation.
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&surce=web&cd=13&cad=rja&uact=8&ved=0CEEQFjACOAo&url=http%3A
Microfinance, poverty and employment gender gap : an analysis from the Nigerian perspective
Microfinance and poverty alleviation programmes in nigeria- the needed paradigm shifts.
International journal of business and social science
Developing country studies. Vol.2(1): 232-239
Vol. 4, No.6
18:-onyeagocha,chidebelu,okoriji. On the determinants of loan repayment of microfinance institutions in south east states in Nigeria using a cross-sectional data and multi-stage sampling technique. file:///C:/Users/KC%20LAB/Downloads/27815-103059-1-PB.pdf
Impact of microfinance on rural transformation in Nigeria International journal of business and management Vol.8, No. 19
19:-nguto, falaye,elijiah,agnes,evans, Olayide and Adama (2013) In a recent study on the analysis and computation of the performance of micro finance in Nigeria file:///C:/Users/KC%20LAB/Downloads/27815-103059-1-PB.pdf
Impact of microfinance on rural transformation in Nigeria International journal of business and management Vol.8, No. 19
3.1OBJECTIVES OF RESEARCH
1) To study the impact of micro-finance in empowering the social economic status of women & development of women entrepreneurship.
2) To clarify the limitation of microfinance programmes as the tool for women’s empowerment and the type of support service necessary to maximize the contribution of micro-finance.
3) To study potential hurdles in the development of women entrepreneurship.
3.2RESEARCH METHODOLOGY
Research methodology is the way to systematically solve the problem. Research comprises definig and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions.
3.2.1RESEARCH DEGIN
DESCRIPTIVE RESEARCH:-
in descriptive research design is the description of state of affairs, as it exists at present.Those design which are concerned with describing the characteristics of particular individual or of the group. In descriptive must be able to define clearly what the researcher wants to measure and must find adequate method for measuring it.
3.2.1.1SAMPLE SIZE: – 100
3.2.1.2 SAMPLING AREA:- AGRA REGION
3.2.1.3 SAMPLING TECHNIQUE: Cluster Sampling
Education Level CATEGORIES
Less than class 5th
6 class ‘ intermediate
Intermediate ‘graduate
ABOVE graduate
3.2.1.4 DATA COLLECTION INSTRUMENT:- Structured Questionnaire, research reports and magazines etc.
3.2.2DATA COLLECTION AND DATA SOURCES
‘ Primary data
‘ secondary data
‘ Primary Data: The Primary data will be collected with the help of Questionnaires filled by respondents.
‘ Secondary Data: Secondary data will be collected from the official websites of Microfinance and the articles and research studies from various research institutions and researchers.
Mostly we are using the primary data in this research.
3.2.3 TOOLS FOR DATA ANALYSIS: – Analysis from this research was copiously explained with critical and analytical comments and also, well-illustrated in graphical and tabular forms for easy understanding and followed by a summary of analysis. Microsoft office Word, Excel and Statistical Package for Social Scientist (SPSS) was used to process.
TOOLS: -chi-square.
3.2.4 HYPOTHESIS:-
‘ Ho1: There is no significant impact of micro-finance in empowering the social economic status of women & development of women entrepreneurship.
‘ Ho2: There is no significant microfinance programmes as the tool for women’s empowerment and the type of support service necessary to maximize the contribution of micro-finance.
DEMOGRAPHIC INFORMATION OF THE RESPONDENTS
Variables Measuring Group Frequency Percentage (%)
Gender Male 6 5.6
Female 101 94.4
Total 107 100
Age (years) <25 yrs. 27 25.2 25 - 40 yrs. 69 64.5 >40 yrs. 11 10.3
Total 107 100
Educational Level
(in years) Not at all 23 21.5
1 ‘ 5 yrs. 49 45.8
6 ‘ 10 yrs. 23 21.5
>10 yrs. 12 11.2
Total 107 100
Business Experience YES 20 18.6
NO 87 81.3
Total 107 100
Amount of loan <5 thousand 43 40.1 5-10 thousand 56 52.3 >10 thousand 8 7.8
Total 107 100
initial capital Personal Savings 5 4.6
Friends and relatives 16 14.9
Loan from MFI 74 69.2
Others 12 11.2
Total 107 100
‘ What is your gender?
INTERPRETATION:-
‘ In this we are talking about the gender. It shows the response to the respondent to the gender wise what the female and male impact of microfinance on living standard. 94.4% of the respondents are female and whereas 5.6% are male.
‘ The result are generate on this question the female are more utilize the microfinance services because the microfinance to target the women to improve their living standard, poverty and income services.
‘ What is your age?
INTERPRETATION
in this question the 64.5% of the respondents are in the age group of 25 to 40 years. 25.2% are less than 25 years of age and remaining 10.3% are 40 years and above .so that the respondent in the educational experience and they can manage their household and their business.
‘ Do you have any educational experience?
INTERPRETATION
In this we analysis that many respondent are educated in primary education which are useful for the business or start the new enterprises. In this 45.8% respondent under the educational years in 1-5 years. And under not at all the 21.5% respondent who are educated and other above than 10 in this the respondent are educate only 11.2%.
Did you have any business experience before entering this program?
INTERPRETATION
In the business experience before entering the MFIs the 81.3% of respondents have no business experience before joining the MFIs and rest of 18.6% have already business experiences. So that the MFIs shows that they provide the large amount of small scale business start through the MFIs. Under this we can see that both families are entering in these programmes large families’ & small families which are star the small business for its own bases.
‘ What amount of loan you have received as a help from any of the MFIs in AGRA REGION (Amount in INDIA Rs’)?
INTERPRETATION
We receive the data to the respondent based on the three dimensions. Such as <5 thousand, 5-10 thousand , >10 thousand in this we receive the amount of loan from any MFIs institute.
<5 thousand the amount of loan we have receive from any MFIs in Agra region is 41.2 %. 5-10 thousand the amount of loan we have receive from any MFIs in Agra region is 52.3 %. >10 thousand the amount of loan we have receive from any MFIs in Agra region is 7.8 %.
In this we getting the result of respondent they are happy to use or receive the amount of loans which can be receive from MFIs.
‘ What is the source of your initial capital?
INTERPRETATION
The source of initial capital of the respondents. 69.2% of total respondents have taken their loan from MFIs. Rest of them have any borrowed money from friends and relatives or have started business from their personal savings. It implies that MFIs is the major source of initial capital and is playing a major role in helping women’s to start their own business.
DATA ANALYSIS & INTERPRETATION
4.1 OBJECTIVE 1:-
To study the impact of micro-finance empowering the social economic status of women & development of women entrepreneurship.
‘ Microfinance enhancing the standard of living of Agra region women
Observed N Expected N Residual
Strongly Agree 22 21.4 .6
Agree 51 21.4 29.6
Neither agree nor disagree 25 21.4 3.6
Disagree 5 21.4 -16.4
Strongly Disagree 4 21.4 -17.4
Total 107
INTERPRETATION:-
‘ The descriptive research shows the means of the variables in the chi-square. According to this objective to know about the standard of living, social and economic status of women entrepreneurship. The results of a survey of 107 respondents are tabulated above.
‘ Microfinance enhancing the standard of living of Agra region women in this, we are minimum expected cell frequency is 21.4. and observed N is mostly women’s is agree by 51 and lesser women’s are strongly disagree by 4.
The savings has increased by microfinance growing or not
Observed N Expected N Residual
Strongly Agree 9 21.4 -12.4
Agree 33 21.4 11.6
Neither agree nor disagree 43 21.4 21.6
Disagree 15 21.4 -6.4
Strongly Disagree 7 21.4 -14.4
Total 107
INTERPRETATION
The saving has increased by microfinance growing or not in this we are expected N frequency is 21.4 and the observed frequency in neither agree nor disagree is 43. And lesser observed strongly disagree is 7. And the differences of observed and expected N are residual
‘ Better Financial situation of the family
Observed N Expected N Residual
Strongly Agree 12 21.4 -9.4
Agree 41 21.4 19.6
Neither agree nor disagree 36 21.4 14.6
Disagree 13 21.4 -8.4
Strongly Disagree 5 21.4 -16.4
Total 107
.
INTERPRETATION
When we computed the statistics value which are go beyond the critical value in the table for a 0.05 probability level, then we can reject the null hypothesis of equal distributions. Exceeded critical value for 0.05 probability level, we can reject the null hypothesis that the observed values are more than the expected values in agree condition.
‘ Operational assistance received from MFIs was helpful to run the business
Observed N Expected N Residual
Strongly Agree 10 21.4 -11.4
Agree 29 21.4 7.6
Neither agree nor disagree 50 21.4 28.6
Disagree 14 21.4 -7.4
Strongly Disagree 4 21.4 -17.4
Total 107
INTERPRETATION
In this we can computed the operational support received from the MFIs helpful to run the business in this the expected values of frequency is 21.4 and the observed frequency is more in case of neither agree nor disagree. So that the null hypothesis is rejected because the p <0.05. ' Improvement in the living standard of the family Observed N Expected N Residual Strongly Agree 10 21.4 -11.4 Agree 40 21.4 18.6 Neither agree nor disagree 36 21.4 14.6 Disagree 14 21.4 -7.4 Strongly Disagree 7 21.4 -14.4 Total 107 INTERPRETATION We can analysis the Improvement in the living standard of the family in this the result is favourable on agree because the expected N is 21.4 and the observed N in agree is 40 so that the living standard of the family is totally change or improve when the women's using the microfinance services. ' The income has increased Observed N Expected N Residual Strongly Agree 13 21.4 -8.4 Agree 26 21.4 4.6 Neither agree nor disagree 34 21.4 12.6 Disagree 26 21.4 4.6 Strongly Disagree 8 21.4 -13.4 Total 107 INTERPRETATION The income has increased in this the result are that we are expected N is 21.4 but the observed in case of neither agree or disagree is 34. So that the income nor or accept to be increased in this result. ' Role in decision making process has increased Observed N Expected N Residual Strongly Agree 16 21.4 -5.4 Agree 27 21.4 5.6 Neither agree nor disagree 35 21.4 13.6 Disagree 22 21.4 .6 Strongly Disagree 7 21.4 -14.4 Total 107 INTERPREATATION In this case the role in decision making process is expected N is 21.4 but in observed N is highly neither agree nor disagree, null hypotheses is rejected and the alternative hypothesis is accepted the increase of role in decision making process. We used the SPSS software to obtain the calculations. ' Women empowerments play a vital role in growth of any economy. Observed N Expected N Residual Strongly Agree 8 21.4 -13.4 Agree 43 21.4 21.6 Neither agree nor disagree 37 21.4 15.6 Disagree 16 21.4 -5.4 Strongly Disagree 3 21.4 -18.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and the observed in case of agree is 43 in Women empowerments play a vital role in growth of any economy. The null hypotheses is rejected and the alternative hypothesis is accepted the increase of women empowerments play a vital role in growth of any economy. We can used the SPSS software to obtain the designs. ' Microfinance plays any role in converting a housewife to earning women. Observed N Expected N Residual Strongly Agree 22 21.4 .6 Agree 41 21.4 19.6 Neither agree nor disagree 38 21.4 16.6 Disagree 5 21.4 -16.4 Strongly Disagree 1 21.4 -20.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and the observed in case of agree is 41 in Microfinance plays any role in converting a housewife to earning women. The null hypothesis is rejected and the alternative hypothesis is accepted the increase of Microfinance plays any role in converting a housewife to earning women. ' Women empowerments play a significant role in growth of SMEs Observed N Expected N Residual Strongly Agree 12 21.4 -9.4 Agree 40 21.4 18.6 Neither agree nor disagree 35 21.4 13.6 Disagree 19 21.4 -2.4 Strongly Disagree 1 21.4 -20.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and the observed in case of agree is 40 in Women empowerments play a significant role in growth of SMEs The null hypotheses is rejected and the alternative hypothesis is accepted the increase of Women empowerments play a significant role in growth of SMEs . Microfinance enhancing the standard of living of Agra region women The savings has increased by microfinance growing or not Better Financial situation of the family Operational assistance received from MFIs was helpful to run the business Improvement in the living standard of thefamily Chi-Square 68.280a 46.879a 47.907a 63.701a 44.449a Df 4 4 4 4 4 Asymp. Sig. .000 .000 .000 .000 .000 Test Statistics The income has increased Role in decision making process has increased Women empowerments play a vital role in growth of any economy. Microfinance plays any role in converting a housewife to earning women. Women empowerments play a significant role in growth of SMEs Chi-Square 21.084a 21.178a 58.748a 62.860a 48.654a Df 4 4 4 4 4 Asymp. Sig. .000 .000 .000 .000 .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 21.4. INTERPRETATION ' In this objective to know about living standard of women's & economic and social development of women entrepreneurship. The results of survey of 107 respondents are tabulated above. Microfinance enhancing the standard of living of Agra region women in this, we are minimum expected cell frequencies less than 5. On the other hand, when we computed statistic value exceeds the critical value 0.05 probability level, then we can reject the null hypothesis of equal distributions. ' a very small probability of the observed data under the null hypothesis of no relationship. The null hypothesis is rejected and alternate hypothesis is accepted. ' As there is different opinion received by the respondents which were not expected but after getting result of survey we observed that respondents not only agree, but also strongly agree and some of them were not clear that should they agree or not so they choose the option of Neither agree nor disagree which one-sided data to measure result. The researcher then checked the significance of the question through applying chi-square. ' From the above table, chi-square statistics =68.280a and p<.005 , degree of freedom is 4. OBJECTIVE:-2 To clarify the limitation of microfinance programmes as the tool for women's empowerment and the type of support service necessary to maximize the contribution of micro-finance. ' The procedure of obtaining loans from MFIs is easier than conventional banking Observed N Expected N Residual Strongly Agree 21 21.4 -.4 Agree 34 21.4 12.6 Neither agree nor disagree 35 21.4 13.6 Disagree 11 21.4 -10.4 Strongly Disagree 6 21.4 -15.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and in case of observed N neither agree nor disagree35 then the agree is 34. In The procedure of loans finding from MFIs is easier than conventional banking. The null hypothesis is rejected and the alternative hypothesis is accepted the increase of the process of attaining loans from MFIs is easier than conventional banking. ' Employment opportunities have increased Observed N Expected N Residual Strongly Agree 11 21.4 -10.4 Agree 43 21.4 21.6 Neither agree nor disagree 43 21.4 21.6 Disagree 7 21.4 -14.4 Strongly Disagree 3 21.4 -18.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and in case of observed N neither agree nor disagree43 then the agree is 43. In Employment opportunities have increased. The null hypotheses is rejected and the alternative hypothesis is accepted the increase of the Employment opportunities have increased. ' The rate of interest of micro credit is reasonable Observed N Expected N Residual Strongly Agree 10 21.4 -11.4 Agree 36 21.4 14.6 Neither agree nor disagree 34 21.4 12.6 Disagree 22 21.4 .6 Strongly Disagree 5 21.4 -16.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and the observed in case of agree is 36 in the rate of interest of micro credit is reasonable the null hypotheses is rejected and the alternative hypothesis is accepted the increase of the rate of interest of micro credit is reasonable. ' Women's position in the household and community can indeed be improved. Observed N Expected N Residual Strongly Agree 11 21.4 -10.4 Agree 24 21.4 2.6 Neither agree nor disagree 32 21.4 10.6 Disagree 33 21.4 11.6 Strongly Disagree 7 21.4 -14.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and the observed in case of neither agree nor disagree is 33 Women's position in the household and community can indeed be improved. So that the null hypothesis is rejected and the alternative hypothesis is accepted. ' MFIs can help the women through training and awareness ' raising to challenge the existing norms, culture and values. Observed N Expected N Residual Strongly Agree 14 21.4 -7.4 Agree 33 21.4 11.6 Neither agree nor disagree 35 21.4 13.6 Disagree 22 21.4 .6 Strongly Disagree 3 21.4 -18.4 Total 107 INTERPRETATION In this we are expected N is 21.4 and the observed in case of neither agree nor disagree is 35 MFIs can help the women's through training and responsiveness. The null hypothesis is rejected and the alternative hypothesis is accepted the increase MFIs can help the women through training and awareness ' rising to challenge the existing norms, culture and values. . The procedure of obtaining loans from MFIs is easier than conventional banking Employment opportunities have increased The rate of interest of micro credit is reasonable MFIs can help the women through training and awareness ' raising to challenge the existing norms, culture and values. Women's position in the household and community can indeed be improved. Chi-Square 32.206a 74.168a 36.037a 33.327a 26.598a Df 4 4 4 4 4 Asymp. Sig. .000 .000 .000 .000 .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 21.4. INTERPRETATION ' The way of attaining loans from MFIs is easier than conventional banking in this we can expected frequency is 21.4 and the observed are mostly in Neither agree nor disagree is 35 and the chi-square is 32.206a, d.f is 4 chi-square statistics = 21.084a and p<.005. so that we reject the null hypothesis. ' Employment opportunities have increased in this we expected frequency is 21.4 and the observed are mostly in both agree and neither agree nor disagree is 43. so that the women's are increased the opportunities. Chi-square is 74.168a ,d.f 4. ' The rate of interest in micro credit is reasonable in this we expected frequency is 21.4 and observed are mostly agree is 36 & chi-square is 36.037a. And other interpretations so on' OBJECTIVE: 3 - To study potential hurdles in the development of women entrepreneurship ' MFIs have the potential to empower its Women in a variety of ways. Observed N Expected N Residual Strongly Agree 14 21.2 -7.2 Agree 34 21.2 12.8 Neither agree nor disagree 37 21.2 15.8 Disagree 20 21.2 -1.2 Strongly Disagree 1 21.2 -20.2 Total 106 INTERPRETATION In this we are expected N is 21.4 and the observed in case of neither agree nor disagree is 37MFIs having the potential to empower its Women in a variety of ways. So that the null hypothesis rejected and the alternative hypothesis accepted to increase the MFIs have the potential to empower its women's variety of ways. ' MFIs empower women to become more confident, more assertive and more likely to take part in family and community decisions. Observed N Expected N Residual Strongly Agree 7 21.2 -14.2 Agree 32 21.2 10.8 Neither agree nor disagree 36 21.2 14.8 Disagree 25 21.2 3.8 Strongly Disagree 6 21.2 -15.2 Total 106 INTERPRETATION In this we are expected N is 21.4 and the observed in case of neither agree nor disagree is 36MFIs they permit women to become more confident, more assertive and more likely to take part in family and community decisions. The null hypothesis rejected and the alternative hypothesis accepted. Test Statistics MFIs have the potential to empower its Women in a variety of ways. MFIs empower women to become more confident, more assertive and more likely to take part in family and community decisions. Chi-Square 41.264a 36.925a Df 4 4 Asymp. Sig. .000 .000 a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 21.2. INTERPRETATION In this objective the MFIs have the potential to empower its Women in a variety of ways the chi-square is 41.264a and the MFIs empower women to become more confident, more assertive and community decisions in this the chi-square is 36.925a and the degree of freedom is 4 and the asymp.sig. Is .000 is less than .05 so that the null hypothesis reject and the alternative accept 5.1MAJOR FINDINGS (OBJECTIVE-WISE) ' Micro financial institutions play a vital role to provide the micro finance to the women entrepreneur. Mostly MFI provide the support to the women entrepreneur concluded MFI- bank linkage programmers.(Objective-1) ' In the second objective we can find the many challenges face through women to performance the business as entrepreneur like lack of capital, networking problems etc. But these challenges can be overcoming with the help of Provide micro credit for living support and to micro enterprises development, establishing sources of credit. (Objective-2) ' The loan spread data show rise the % of loan amount to women as compare to other sources like banks, MFIs etc. This show the economic development of women entrepreneur.(Objective-3) 5.2 RECOMMENDATIONS ' Microfinance allow to development the women condition to overcome their poverty. ' Credit available to women's does not they require control over its procedure and over any income they influence generate from micro enterprises. ' In the situation of long-lasting poverty it is more important to provide the saving services to than bid credit. ' It is vulnerable to poor women's for just provide micro-credit and also provide at the appropriate time. ' A useful display of the tangible impact of micro credit systems is the number of additional proposals and demands presented in local residents to public authorities. 5.3 Limitations of the Study:- ' Firstly, the respondents are limited (respondents or samples) in terms of size and arrangement. ' Secondly, the data collections are limited within the Agra Zone of India, which may fail to represent the actual scenario of the whole country. ' We are interviewing the women's in villages or illiterate women's who are involved in microfinance program & we have faced problem in explaining the questions. ' Therefore, it is too difficult to make them understand some of the technical terms: like capital, income etc. 5.4 CONCLUSION ' Microfinance produces the greater impact on living standard of women's life and also of her family. Women abilities to combine the productive and reproductive roles in microfinance activities and society. ' In the situation of challenge faced by the women's that could make it multiple credit requirements of the low income borrower without exciting unbearably high cost of monitoring its end use upon the lenders. ' A promising solution is to provide flexible lone or composite credit for income generation, housing improvement and consumption support. Consumption loan is found to be especially important during the growth period between beginning a new economic activity and arising positive income.