MSMEs are the drivers of growth in developing countries. They are contributing to employment, GDP, and exports. Majority of the industries in India are small and medium enterprises. Karnataka state is one of the industrially developed state in India. Large number of MSMEs are operating in Karnataka. However, Shivamogga District is one the industrially developing district in the Karnataka state. Good number of micro and small industries are located in the district. Few large scale industries are also located in the district. The present paper mainly focus on growth and problems in MSMEs in Shivamogga district. Here major problems of MSMEs in the district are power failure, inefficient manpower, inadequate finance, marketing issues etc. The present paper is based on secondary sources of information collected from books, journals, News Paper’s, and related websites etc.