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The IUP Journal of Law Review :
Legal Requirements for Linking Self-Help Groups to Micro, Small and Medium Enterprises
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The objective of this paper is to study the legal requirements for linking Self-Help Groups (SHGs) to Micro, Small and Medium Enterprises (MSMEs) in the Union Territory of Puducherry region. The research variables were identified from the literature review relating to legal requirements of SHGs, and the primary data of a random sample of 127 MSMEs was collected through survey method using a well-structured questionnaire. The results reveal that 81% of the respondents considered valid registration of the organization as a must and 75% considered valid bank account as a must for outsourcing to that organization.

 
 
 

Microenterprise activities can be defined as income-generating activities in the areas of processing, manufacturing, provision of services, and trading being undertaken by an individual or groups with an element of risk involved (Cull et al., 2009). Microenterprises are characterized by limited capital, single ownership, fewer employees, home-based production, providing supplemental income and producing products with limited knowhow and technology. Microenterprises help in the creation of work, along with income and assets, with the use of limited amount of resources available with the individuals. Microenterprises enable people with low income to start and run small businesses which enable the poorer segments to move out of poverty and bring about economic stability, sustainability and welfare (Sooryamoorthy, 2007).

 
 
 

Law Review Journal,Small and Medium Enterprises (MSMEs), Self-Help Groups (SHGs) to Micro.