This study analyses survey data gathered from small and large-scale poultry producers in the rural areas of KwaZulu-Natal, and highlights factors constraining the impact of commercial poultry production on the local economy. It was found that small-scale poultry production has the ability to initiate economic growth by "exporting" its products and can draw under-utilised resources such as labour into production. The impact of the subsequent multiplier effect is generally strongest in the non-tradable, non-agricultural sector. Alleviating constraints for a large number of small enterprises is expected to impact more positively on the rural economy than if a few larger enterprises were encouraged to grow bigger. The descriptive results suggest that small producers face higher transaction costs. Government policies should focus on absorbing some of these transaction costs by improving education, physical infrastructure and technology transfer. Other important interventions include the provision of mentoring and training services for new managers including institution, legal and financial management instruction.