Abstract: This study investigates the socio-economic impact of tourism on small scale entrepreneurs and their enterprises in UNESCO World Heritage City of Dambulla, particularly along the profile of tourism related entrepreneurship; impact of tourism in existing business establishment, impact of tourism on the personal improvement of entrepreneurs; impact of cityhood of Dambulla to tourism and perception extent to which tourism and entrepreneurship have addressed the socio-economic goals of the entrepreneurs. Descriptive method of inquiry was of most appropriate to approach the present research problem and was adopted in the study. A self administered questionnaire survey was employed to collect the needed primary data.