The importance of Micro, Small and Medium Enterprise (MSME) sector in terms of its contribution to the national economy is a well researched area. Its contribution, particularly in terms of bringing equitable growth in a rural economy, is also important. In cognizance, Government took governance measures in terms of enacting MSME Act of 2006. Policies were laid for simplification of systems and procedures, introduction of fiscal incentives, availability of common and better infrastructure etc; for this sector to ensure growth and competitiveness. Subsequently, Government of Odisha brought out "Industrial Policy Resolution 2007" and "MSME Development policy - 2009" to supplement the measures of Govt. of India. However, Govt. of Odisha, policy document recognized that "Despite the initiative taken in the successive industrial policies, the growth of MSMEs in Orissa is not at par with the national and international standards." Thus it has tried to address governance measures for MSME growth through policies, but the dilemma is well spelt-out. Extant literature indicates that entrepreneurship is a complex interplay of social, cultural, behavioral, economic, political, geographic and demographic factors. This article tries to assess the impact of acts, and various incentives enacted on MSME; on its formation and growth in Odisha. This article takes the secondary data available from the period 2006 on wards and analyzes the composition and nature of growth, comparison across different states of India. Also it takes broad socio economic factors into account and studies their association with the MSME formation and growth. It tries to compare and identify peculiarities of growth of MSME in Odisha.