Abstract: This paper investigated the impact of small and medium scale enterprises as tools for income and employment generation in Kano state Nigeria. The objective of this paper is to ascertain the impact of small and medium scale enterprises on income and employment generation in Kano state. The study is based on two sources of data, which are primary and secondary sources. The primary source of data is drawn from administered questionnaires to randomly selected SMEs in Kano metropolis. Sixty (60) questionnaires were administered to SMEs in the study area. The empirical results are in favour of a statistically significant impact of small and medium scale enterprises on employment and income generation in Kano state. Generations were shown using descriptive analysis, which involves a detailed exposition of the subject matter. Descriptive tools such as tables and percentages were used. A chi-square (𝑥2) test is employed at 5% level to test the validity of the hypotheses and proffer meaningful inference (based on the results obtained).on the basis of analysis it was revealed that small and medium scale enterprises impacted positively at 30% to income and employment generation in Kano state. One impressive result of this paper is that small and medium scale enterprises are panacea for income and employment generation in Kano state, Nigeria. The study therefore recommends that the financial institutions should try and comply with the CBN stipulation in not only reserving 10% of their income for SMEs financing but should ensure that this fund is actually disbursed appropriately to entrepreneurs in SMEs. They should also devise a means of evaluating and monitoring these entrepreneurs to ensure the funds are not diverted to some other personal activities instead of using it for their business growth and expansion1.