This work has revealed clearly that small scale businesses has suffered a lot of set back as a result of lack of amenities, poor funding, economic of scale, improper management, illiteracy and other factors. The source of finance of small businesses are not enough to help them expand as expected. Small scale business has impact on the development of a country through provision of jobs, revenue generation to government and to also a boost to the standard of living. Also it was also realized that government intervention is weak and need to be enforced. The research design and procedure for data analysis and test of hypothesis revealed that this study is based on the following: government programs and policies, economic growth and development, job creation and poverty alleviation. From the finding of this research, the small scale business has impact on economic development because it has been able to create job and alleviate poverty. However, government intervention to small scale business is not encouraging, more policies should be profound and implemented properly.