EFFECTIVENESS OF MICROFINANCE AND SHGS IN INCREASING STANDARD OF LIVING: A STUDY IN BOUDH DISTRICT

Abstract

A majority of microfinance program target women with the explicit goal of empowering them. There are varying underlying motivations for pursuing women empowerment. The main objective of the present study was to study the effectiveness of Microfinance through Self-Help-Groups (SHGs) for socio-economic development of the rural people particularly in the Boudh district of Odisha. In order to achieve the main objective the present study was also carried out with the following specific objectives-to study the socio-economic background of respondents; examine the Pre-SHG and Post-SHG status of SHG members; study the impact of SHGs on the respondents;The questionnaire and answer were analysed and presented through non-parametric test i.e. Chi square test, ANOVA test. Findings of this study are that there is a positive relation between microfinance institution and overall economic development of poor people in rural area. It plays an important role for income and savings of people in rural area.