Financial Inclusion is an important agenda that is gaining significant attention of bankers to tackle inequality in growth. Nearly 35% of Indian population is outside the fold of banking system. This includes both rural and urban poor, small traders, farmers, unemployed persons etc. It is the fact that formal institutional credit has not reached millions of uncovered poor people who are living below poverty line. SHG has emerged as a powerful alternative mechanism to meet the demand of women engaged in micro business. Research studies confirm that SHG concept serves twin purpose such as savings and credit for their socio-economic betterment. The Self Help Groups not only help micro business women in getting credit but also inculcate entrepreneurial spirit among the group members who are mostly casual labors, in unorganized sectors. If the SHGs system is further strengthened, it will emerge as entrepreneurial hub in promoting an entrepreneurial society.

In this context, a study was conducted by the authors, with SHGs to ascertain the extent to which the group members influence the women in other groups to become entrepreneurs, especially, in the unorganized sector. This paper, part of the research study, presents the role of SHGs in creating and developing entrepreneurship among the women members of SHGs, especially, in the unorganized sector, and suggests the ways in which they can become micro entrepreneurs.

Key Words: Self Help Groups, Unorganized sector, Inequality, Unemployment