Attributes Required for Entrepreneurs of Self-Help Groups (SHGS) Involved in the Development of Microenterprises

Under the pathetic and uneasy conditions the rural poor face, microfinance activity acts as the saviour to redeem them from the clutches of poverty and unemployment. The present study was conducted to examine the influence of entrepreneurial attributes of members of SHGs in the effectiveness of microfinance services for agro-enterprise development by the Self-Help Groups (SHGs) in Kerala. The study was conducted in ex-post facto design, in the three purposively selected districts of the three zones of Kerala, namely, Thiruvananthapuram, Thrissur and Malappuram. The effectiveness of microfinance services was calculated individually from the scores obtained for each respondent and the average score of members in a group constituted the effectiveness score of the group. The independent samples t-test was employed to find out the significant difference in entrepreneurial characteristics score with the effectiveness of microfinance services. Also, a correlation analysis was performed between entrepreneurial characteristics and the effectiveness of microfinance services. The correlation analysis of the entrepreneurial characteristics of the SHG members and the effectiveness of microfinance services revealed that ‘achievement motivation’, ‘innovativeness’, ‘thrift tendency’, ‘strategic visioning’ and ‘internal locus of control’ were positively and significantly correlated with the effectiveness of microfinance services at one per cent level of significance, whereas ‘economic opportunism’ was positively and significantly correlated with the effectiveness of microfinance services at five per cent level of significance. The independent samples t-test revealed that the entrepreneurial abilities of the members of SHG largely influenced the effectiveness of microfinance services for agro-enterprise development rather than other factors like the nature of agro-enterprises which was usually selected through micro screening techniques. The study necessitates a severe need of the establishment of business schools for youth to develop their entrepreneurial traits as well as better governance, especially in the agro sector.