Small scale industries have formed the bedrock of the economy of many nations especially, Africa. The tremendous multiplier effect generated is a panacea for economic expansion, boosting, advancement, sustenance and economic regeneration. The paper therefore, underscores the regional economic performance of small scale enterprises, using Akure, Ondo State as a case study. The first step in the collection of primary data involves the reconnaissance survey, where ten wards were identified. The second stage involves the administration of questionnaire based on total sampling. On the whole, one hundred and forty-five questionnaires were retrieved. The questions sought in the questionnaire were largely centered on the economic performance of the small scale industries. The Chi-square test was conducted in testing the impact of the small scale industries on economic development. The research found out a positive relationship between the small scale industries and employment generation, transportation, technological innovation, standard of living, poverty alleviation, commercial activities as well as on the other sector of the economy. The hypothesis tested on the impact of small scale industries and the economic development was significant at 0.5% level. The paper however recommends a direct inverse relationship between small scale industries and infrastructural facilities. Due to the amazing economic transformation and rejuvenation which small scale enterprises is capable to infuse into regional economy, this paper therefore, recommend more Government active participation in the small scale sector. This could be achieved through granting or giving loan to interested investors on an affordable interest rate. The location factors such as power supply, water and other government policies etc. should be made liberal. Also, tax holiday policy should be implemented, so as to encourage investors who are able to benefit from it. Entrepreneurs should have close associations with themselves by forming co-operative and thrift societies; this will substantially help in the area of finance, and also provide an avenue through which various regulations and laws that would govern the small scale firms positively will be provided.