The study shows that more than one-half of sample mushroom growers had 6 to 7 years of experience and remaining upto 5 years and mostly belonged to middle aged class of 40-60 years with matriculation and graduation level formal education. The business principles like knowledge, training prior adoption of activity, market survey, etc. were given due consideration and one-half of them started enterprise with small scale of 50 or even less number of spawned compost bags each weighing 20 kg with average unit investment of Rs 45,428. Majority (80%) of them could grow a single crop with average yield of 3.62 kg per spawned compost bag which increased with the size from 3.52 kg on small to 3.64 kg per bag on large units showing low cost of production on large units due to scale economies. The financial test ratios revealed greater economic feasibility and profitability of mushroom cultivation on large units on account of higher investment and better marketing linkages with suppliers by ensuring adequate and assured supply of produce. Inadequate supply of spawned compost bags, quality spawned compost material, lack of remunerative prices and incidence of diseases were reported the major constraints requiring immediate attention of policy makers. For improving productivity, the study recommended the adequate supply of quality spawned compost bags at the doorsteps of growers at appropriate time and reasonable prices in addition to encouraging them to grow at least two crops in a year. Sale of mushroom under co-operative ambit especially by small growers may help them in fetching better price.