Vol. 11, Special Issue 11 (2022)

Author(s):
Battu Preethi, Dipti Rekha Pujari and Amitava Biswas

Abstract:
Microfinance has become an important tool to curb poverty in case of rural women. Micro-credit is given to SHG members. With the help of the credit women start their micro-enterprise and generate income, in some cases women invest the money to gain income. After joining SHGs the income level of the SHG members is increased due to constant income from micro-enterprises. In our present study we identified the relationship among and between some exogenous variables and change in income of SHG members after joining SHGs. The study was conducted in Pandurangapuram village, under Nandyal Mandal and Gopavaram village, under Mahanandi mandal of Kurnool district of Andhra Pradesh. The number of respondents was 80 and they were selected randomly. The data were collected through pilot survey and structured interview. The statistical tools used for data analysis are Correlation coefficient, Stepwise regression analysis, Canonical covariate analysis, Factor analysis and Cluster analysis. In correlation coefficient analysis, variables such as Age(x₁), Marital status(x₂), Experience in SHG (x₆) are negatively significant correlation whearas Education (x₃), Extension contacts(x₇), No. of trainings attended (x₈), Mass media exposure (x₉) Market facilities (x₁₀) have recorded positive significant correlation with the dependent variable. Regression results found that 11 casual variables together have contributed 30.7 percent of variance in consequent variable i.e. change in income (y₁). The variables which were retained after step down regression are Education(x₃), Distance from market (x₁₀) which means these are the most vital causal variables that affects the consequent variable. The result of path analysis envies that the variable marital status (x₂) has got both highest direct and indirect effect on Change in income of SHG group members (y₁).