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The industrialization of every nation emanates from the ability of private individuals and government in business to make optimum allocation of available resources in order to achieve future objectives. Business in the third world countries is characterized by ineffective and ineffectual utilization of available resources which has limited the scope of business to small scale.

This calls for the application of some theories in the field of management accounting to enhance the productivity of existing small scale businesses in the third world countries.

Small scale enterprises encounter problems which often times result into pre – mature death of such industries or/production below capacity. Some of these problems lie largely outside the control of the entrepreneur. These are the problems to be solved, by the government in the interest of industrial development of Nation while other problems arise from the enterprenuer’s limitation in his decision making process.

This study, has been limited to Imo state by the project writer after a thorough research.

An analysis of factors that contributed to this development would be highlighted and useful recommendation towards resolving these problems would be made. The researcher is optimistic in view of the fact that if these recommendation are adhered to, they will go a long way in achieving the objectives of this research work.

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