Abstract: The study examined the profitability and resource-use efficiency of small-scale business in Ondo-State. Multi-stage sampling technique was used to select 120 small-scale business operators in bakery, tailoring and block making services from Akoko North East, Akoko South West and Akoko North West of Ondo State. The data collected were analysed with the aid of descriptive statistics, gross margin and production function analyses. Results showed that the sampled businesses were profitable in the study area with estimated gross margin of N46, 068.8, N3, 588.8 and N39, 900.5 with estimated net returns of N33,172.00, N2,889.8 and N30,368.0 for bakery, tailoring and block making services, respectively. The result of the production function analysis showed that the inputs involved were efficiently allocated under bakery services while they were inefficiently allocated under tailoring and block making services. Bakery service was in stage 2 while tailoring and block making were in stages 1 and 3 of the production cycle, with estimated RTS of 0.613, 1.384 and-0.235, respectively.