This study is aimed at examining the appraisal of performance of small scale enterprises in community development, using selected SMEs¿ in Udi Local Government Area of Enugu State Nigeria as focused study. The other specific objectives include: to ascertain the extent to which different small scale business development programmes have been able to lessen the unemployment problem in the community, to ascertain the extent small scale business has improved standard of living in the community and to identify factors militating against SMEs in community development. The research design utilized for this study was the quantitative research design while the population includes all the 220 registered small business in Udi Local Government Area of Enugu State (According to SMEDAN). A total of 110 copies of questionnaire were administered to the target sample. Both the stratified and the simple random sampling techniques were utilized during the course of the study. The hypotheses analyses were done through chi-square technique.