The growing commercialization of rural economy, increasing dependence of agriculture on external inputs, mobilizations of savings towards construction and the growing education have opened up new vistas for the micro-enterprise development in India. Micro enterprises in the study area, as else where, are undergoing a very remarkable change in terms of their capital composition. While certain traditional industries are carried out with low technology, using low quality raw material and catering to the low-income groups of the customers, many others are facing urgent need to enhance their capital base for productivity improvement, cost reduction and innovate for effective marketing. All these are requiring additional capital investment for which the entrepreneurs need credit. Self-help groups (SHGs) play today a major role in poverty alleviation in rural India. A growing number of poor people in various parts of India are members of SHGs and actively engage in savings and credit as well as in other activities, income generation, natural resources management, literacy, child care and nutrition, etc. The SHG system has proven to be very relevant and effective in offering women the possibility to break gradually away from exploitation and isolation.

Keywords: Self-help groups, Women Empowerment, Microfinance