Small modular reactors are a new generation of low-energy-output, low-hazard, compact and modular nuclear reactors, with an output of <300 MWe per unit. With the integration of inherent and passive safety measures, off-site construction and higher fuel burn-up rates, they promise a safer, lower-waste and reduced-risk venture, with earlier investment returns for investors compared with large-scale nuclear power plants. Moreover, non-proliferation is enhanced through the use of small quantities of non-weapons-grade nuclear fuel or the introduction of alternative potential fuels, such as thorium or fuel waste and actinides. This paper reviews the state of the art and discusses the economic feasibility of small modular reactors, with a focus on levelised cost of electricity, economy of scale and limitations for a country wishing to embark on nuclear energy through their deployment. Concerns regarding the integration of small modular reactors into the existing electrical grids of countries with various or no levels of nuclear-power production capability are also discussed. Suggestions on alternatively calculating the cost of small modular reactors and the legislation route are also provided, along with the pros and cons of the economics and safety of small modular reactor deployment in a country new to nuclear power.