Collective action through self-help among small tea growers (STGs) is considered as a sustainable alternative of producer collectives in tea plantations in India. Using the case study method, this article discusses that self-help groups (SHGs) among STGs are used as innovative functioning systems to access markets, obtain fair price and gain knowledge and information. Mutual ownership of the manufacturing units along with establishing close relations with capital and individual landholding not only empower the growers but also help them in moving upward in the value chain and provide them with the identity as rural entrepreneurs. While demo- cratic organisational structure, transparency, social cohesion, lea- dership and associational power in accessing various input and financial services are the main factors of success of such self- management model and collective actions, these could face threats owing to power asymmetry and overly pro-capital business strategies.