The growing attention, in literature on economic development,
towards the role of Small-scale Industries (SSls) within the economy of
the less developed countries (LDCs), is strongly associated with the
recognised current economic and social problems of continuing imbalance
in the labour market leading to high unemployment rates, the persistence
of large intra- and inter-regional socio-economic inequalities; and the
consolidation of extremely concentrated patterns of urbanisation, facing
these countries. On the other hand, there is the notion stating that the
importance of SSls decreases with the course of economic development.
The available empirical evidence on this issue diverges significantly
from the afore-mentioned notion. In the background of this contradictory
evidence, the paper aimed to discuss this issue and arrive at some
general conclusions which would help in deriving a pattern from the
available studies and evidence on the issue under reference. The
conclusion of the paper suggests that no matter how far a country has
developed, but as long as domestic problems of high rates of
unemployment, mass poverty or unequal distribution of income exist, SSls
will continue to play an important role as a 'last resort' for the poor
of the country.