Small business play an important role not only in contributing to the nation’s GDP, but also providing employment to large number of people. Pradhan Mantri MUDRA (Micro Unit Development and Refinance Agency) Yojana is a flagship scheme launched by Government of India in 2015 in order to provide financial assistance to the micro and small scale entrepreneurs. The main objective of this paper is to know the products offered under this scheme, to analyze the performance of Mudra yojana and to evaluate the role of MUDRA yojana in entrepreneurship development in India. The study is based on secondary data which has been collected from the annual reports of MUDRA yojana, journals, and research articles.