Role of Banking Institutions in Promotion and Development of Microenterprises of SHGs

Abstract

Institutions are mechanism to perform certain functions of society. Individuals, groups and communities interact and experience various institutions in their day to day life. As life develops and society transforms, old institutions may wear out and new institutions may come up with new functions and role or they may need to be modified. Institutions have specific roles, functions and expectations to perform. They influence human life as well as impact on quality of life. For this reason their performance matters. Here the researcher through the data collection work for doctoral research has made efforts to know the various roles and functions performed by the institutions of stakeholders in respect of SHGs' microenterprises development. The research inquiries are about challenges faced and to know the necessary changes for efficient and proactive performances. The performance has been analyzed on the basis of functional performance indicators like policies and programmes, governance, professionalism, timely follow-ups, infrastructural facilities, networking, sustainability in providing support etc. The study was conducted in two blocks of Sindhudurg district of Maharashtra state in India. The methodology includes mixed methods with research design of the case studies- of SHGs and of their microenterprises by using Focused Group Discussions (FGDs), Focused Group Interviews (FGIs), interviews and observation tools. For this paper the researcher is focusing on the role of banks in microenterprises development of SHGs. Banks include Nationalized, District Cooperative and Regional Rural banks.