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Women entrepreneurs may be defined as the women or a group of women who commence and operate a business venture. In today’s world, women entrepreneurs are playing a vital role and have become an integral part of the global business environment for the sustained economic development and social progress. In India, though women are playing a key role in the society, their entrepreneurial ability has not yet been properly tapped due to the number of challenges faced by them. In Tamil Nadu majority of the textile and garment workforce involves women and these women workers in Textile mills are about 65% of unskilled workers. If women are developed into entrepreneurs they could contribute a lot for the development of textile industry. In Tamil Nadu, the textile industry is female dominated. There are certain unskilled and semi-skilled job categories which are specifically ear marked for women. It was found that if there is a temporary shortage of women workers, available male workers with similar background will demand a higher wage. The predominance of small firms, low qualification of the workforce and limited trade union presence, contribute to the fact that exploitation and discrimination particularly in terms of gender continues to exist in the textile and garment industry. Among the Southern States, Tamil Nadu is an important cotton textile producer. Although Tamil Nadu produces only about 6 per cent of the mill cloth of India, the State excels all other States in the production of yarn and accounts for over 44% of the total yarn production of the country. If women micro entrepreneurs are engaged in the production of readymade garments in large quantities, there is much scope for more percentage of mill cloth production in Tamil Nadu. Woman micro entrepreneurs through Self Help Groups are engaged in the production of readymade garments. These women entrepreneurs face lot of challenges in running the garment business. In this paper an attempt has been made to analyze the challenges faced by women micro entrepreneurs in the Textile industry of Tiruppur District.