The Government of India has launched MUDRA Bank with a capital amount of Rs.20,000 crore, and credit guarantee corpus of Rs.3,000 crore, to help Micro Small and Medium Enterprises (MSMEs) and startups to resolve problems relating to financing.

State Bank of India, Indian Bank, Indian Overseas Bank, Canara Bank.

(i) Self Help Group is a small Informal Voluntary Association.
(ii) It is created for the purpose of enabling members to Reap Economic benefit out of Mutual Help, solidarity, and Joint Responsibility.

Government of Tamil Nadu launched "New Entrepreneur-cum-Enterprise Development Scheme (NEEDS)" with a view to encourage the educated youth to become the first generation entrepreneurs.

Micro Enterprises are engaged in low scale activities such as clay pot making, fruits and vegetable vendors, transports (three wheeler tempos and autos), repair shops, cottage Industries, small Industries, handloom, handicraft works, etc.

(i) The motto of every group members should be "save first" - Credit Later"
(ii) Self help group is homogeneous in terms of Economic Status.
(iii) The ideal size of a self help group ranges between 10 to 20 members.

In Tamil Nadu MSMEs sector produces a wide variety of products in almost all fields. The prominent among them are textiles, Electronic Products, Engineering products, Auto ancillaries, Leather products, Chemicals, Plastics, Garments, Jewellery, etc.

Functions of Self Help Groups:
(i) Developing and enhancing the decision-making capacity of members.
(ii) Increasing general awareness on literacy among members.
(iii) Equipping the poor with basic skills for understanding monetary transactions.
(iv) Maintaining books and registers to ensure Proper Accounts.
(v) Submitting the Accounts for Annual Audit by a Qualified Auditor.
(vi) Providing necessary training in the chosen field.
(vii) Deciding the loan amount to be sanctioned to the group members.

Government of Tamil Nadu launched "New Entrepreneur - cum-Enterprise Development Scheme (NEEDS)" with a view to encouraging the educated youth to become the first generation entrepreneurs. The Scheme envisages providing entrepreneurship development training to educated young entrepreneurs, preparing business plans and helping them to tie up with financial institutions to set up new business ventures, besides linking them with major industrial clients.

a) Employment Potential:
1. MSMEs generate more employment opportunities than large business concerns.
2. They are mostly labour intensive, thus providing more employment opportunities to a large number of people in our country.
b) Low production cost:
(1) MSME's do not require skilled laborers or professionals to run the organization.
(2) These units are more cost efficient than large scale units, thus facilitates production of goods at low cost.
c) Low investment:
(1) MSMEs do not require a huge capital to start the unit. It can employ locally available resources within the reach of the owner.
(2) These industries facilitate the growth of local entrepreneurs and self-employed professionals in small towns and villages.
d) Quick Decision making:
(1) MSME's need not hire professional managers to run the management on a day-to-day basis.
(2) In most cases, owner himself manages the Enterprises.
(3) Hence, decision-making becomes easy and effective.
e) Supplementary Role:
(1) MSME's play a complementary role to serve as a feeder to large-scale industries.
(2) They supply accessories, spare parts and components to large-scale industries.
f) Establishment of Socialistic pattern of Society :
(1) MSME sector contributes towards the establishment of a socialistic pattern of society by reducing the concentration of Income and Wealth.
(2) It helps to achieve equitable distribution of wealth.
g) Balanced Regional Development:
(1) By encouraging MSMEs in industrially backward areas of India, balanced development can be achieved in all regions.
h) These industries facilitate the growth of local entrepreneurs. Promotion of self employment and self Reliance spirit:
1. MSMEs help to a great deal in developing a class of entrepreneurs.
2. It promotes self employment and a spirit of self reliance in the society
3. It contributes an increase in per capita income or economic development.
i) Higher - contribution to manufacturing and Export:
(1) MSMEs contributes 45% to the total manufacturing output and 40% to the exports from the country.
(2) It helps in earning precious foreign exchange in various countries across the world.

Objectives of Self Help Groups:
1. Focusing on empowerment of women.
2. Saving people from the clutches of money lenders
3. Building capacity of women and to enable them to participate in generating activities.
4. Creating the habit of saving in the minds of the people who are economically backward.
5. Promoting entrepreneurship skills among women.
6. Creating awareness about the importance of credit circle or revolving credit and the payment of the circle.
7. Elevating the economic standard of the member's families.
8. Developing skills and facilitating credit linkages for eventual economic empowerment.
9. Promoting awareness among the members about finding solutions for their economic problems.
10. Identifying the common interest of the group members and carrying out their operations in the most efficient and economic way.
11. Enabling the members to overcome all social and economic barriers.
12. Promising and ensuring human rights to women at all stages of their life cycle.