The aim of this paper is to expose literature on economic recession and performance of Small and Medium Scale Enterprise in order to discuss the relationship between both variables and to identify the gap for further recommendation. Data was sourced through searches for peer-reviewed journal articles on the internet using the search term ?economic recession. The review was based on empirical and selected journal; this is to make the review as comprehensive as possible. The review revealed that economic recession affects small and medium scale enterprise. However, a number of strategies are available to help them navigate the condition. Most of these strategies involve the use of resources which SMSE generally lack. The paper proposed that the adoption of economic recession will determine the direction and strength of the relationship between economic recession and performance SMEs. This paper has practical implication for owners/managers of SMEs in Nigeria in view of the current state of the economy. Keywords:Economic recession, Performance, and SMEs.