International Science Community Association Research Journal of Management Sciences 2319-1171 7 3 2018 03 6 An analysis of performance and impact of MUDRA Yojna under PMMY in the year 2016 1 5 EN Mahajan Ashish 1 Acropolis College, Indore MP, India > Review Paper 2017 4 30 2018 03 6 In India many things revolve around mere perceptions, while getting into detail it often paint a different picture. It is a common misperception people have that large industries create more employment, though the truth is that “in India only 1.25 crore people find employment in large industries, whereas small enterprises employ 12 crore people”. In India, small businesses play an important role by providing employment to a large number of people. It is the second largest sector engaging uneducated and unskilled people after agriculture. Further, millions of low income earning group person aspire to set up small businesses but are unable to start, mostly due to credit limitations. Since banks do not find them eligible for credit loan. After identifying the importance of self-employment people and small business units, government of India launched MUDRA Yojana to address the financial and other constraints. This paper is an attempt to know about the MUDRA Yojana and its key objectives. The paper highlights the role and importance of MUDRA bank towards the small business units. Copyright@ International Science Community Association