It is difficult to formulate a single definition for "small scale enterprise." Most countries have their own definition, reflecting more or less the stages achieved by each in economic development. However, there are certain basic characteristics of small enterprises in most countries: (1) the capital outlay is relatively small; (2) the operations are relatively less mechanized than those of large scale enterprises; and (3) they are geographically dispersed. Recent concerns for the problem of employment creation and income distribution in less developed countries has sparked an interest in the role of small scale enterprises in the process of economic development. The industrialization policies pursued by most developing countries has led to the use of capital intensive technology by the large scale enterprise sector. This sector has failed to generate significantly high levels of employment in most developing countries. The result has been increasing levels of unemployment especially in urban areas.