(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.

1. The motto of every group members should be "saving first - credit latter"
2. Self Help Group is homogeneous in terms of economic status.
3. The ideal size of a Self Help Group ranges between 10 and 20 members.
4. The groups need not be registered.
5. Groups are non-political, voluntary associations and follow a democratic culture. Each group should have only one member from one single family.
6. A group is to be formed with only men or only with women.
7. Self Help Group holds weekly meetings mostly during non-working hours, and full attendance is made mandatory for better participation.
8. The groups have transparency among themselves and they have collective accountability in respect of financial transactions.
9. Every group provides a platform to its members for exchange of their views and ideas freely.

There are many Banks and Financial institutions which provide financial assistance to Micro Small and Medium Enterprises and start-ups
A. Commercial Banks
1. Public sector .banks (e.g) State Bank of India, Indian Bank, Indian Overseas Bank Canara Bank
2. Private sector banks (e.g) ICICI, Axis Bank, City Union Bank, HDFC, Karurvasya Bank, Tamilnadu Mercantile Bank
B. Regional Rural bank
1. Pandian Rural bank,
2. Pallavan Rural Bank,
3. Vallalar Rural Bank.
C. Co operative Banks
TNSC Bank, District Central Co operative Banks
D. Micro Finance Institutions
(e.g). MUDRA Bank
E. Non Banking Finance Institutions
1. National Small Industries Corporation Ltd (NSIC)
2. Small Industries Development Bank of India (SIDBI)

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.

(i) Employment Potential :
(1) MSME's generate more employment opportunities than large businesses.
(2) They are mostly labor-intensive; thus providing more employment opportunities to a large number of people in our country.
(ii) Low production cost:
(1) MSME's do not require skilled labourers or professionals to run the organization or professionals to run the organization. It employs cheap labor and thus minimizes the overhead.
(2) They are more cost-efficient than large-scale units, thus providing low cost of production.
(iii) Low investment :
(1) MSME's do not require huge capital to start the unit. It can employ locally available resources within the reach of the owner.
(2) They help to perfect and promote traditional family skills and handicrafts. These industries facilitate the growth of local entrepreneurs and self-employed. professionals in small towns and villages.
(iv) 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, the owner himself manages the Enterprises. Hence, decision-making becomes easy and effective.
(v) Supplementary Role:
MSME's play a complementary role to serve as a feeder to large-scale industries. They supply accessories, spare parts, and components to large-scale industries.
(vi) 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 enables and empowers people of small means to take up a gainful industrial activity, and thereby achieving equitable distribution of wealth.
(vii) Balanced Regional Development:
(1) By encouraging MSMEs in industrially backward areas of India, balanced development can be achieved in all regions.
(2) It will also help greatly in preventing the people from migrating to cities and towns.
(viii) Promotion of self-employment and self-reliance spirit:
MSME's help to a great deal in developing a class of entrepreneurs. It promotes self-employment and a spirit of self-reliance in the society, thereby contributing an increase in per capita income or economic development.
(ix) Higher contribution to manufacturing and Export:
(1) MSME's 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.
(x) Contribution to Indian Economy:
(1) The MSME sector contributes about 8% to Gross Domestic Product (GDP) besides 45% to the total manufacturing output and 40% to the exports from the country on the production of more than 6,000 products.
(2) The sector consists of 36 million units and provides employment to over 8 crore people.