A survey was conducted in Akure Local Government Area of Ondo State to give preliminary information on the magnitude, characteristics and contribution to rural employment of small-scale, wood-based processing enterprises through structured questionnaire. Small scale, wood based enterprise accounts for about 44% of the total rural labour force. The enterprises are characterized by very small size, heavy reliance on entrepreneur and family labour, technological simplicity of operations and rural location bias. Furniture, logging and carpentry were found to be the commonest among the small scale, wood-based enterprises. A range of problems facing small scale, wood-based enterprises was identified and a number of solutions were suggested. It was recommended that there should be removal of various discrimination through policies which might go a long way to ensuring a healthier small-scale, enterprise growth, reduction or removal of subsidies and other privileges currently offered the large enterprises rather than extending these support and incentives to small ones, a number of specific policy changes to increase access to market, reduce raw material and financial problems should be effected, and small-scale enterprise should be organized into groupings so as to benefit from policy changes.