A Research Report Submitted to Mzumbe University in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM).Small and Medium Enterprises were ignored in Tanzania due to socialism policies which led to nationalism, but due to the increase of globalization and liberalization in the late 1980’s; private sector became crucial hence the immergence of SMEs. SMEs haves been seen as a center for generating employment and income for the majority of Tanzanian although the sector are not doing well. This study intends to find out factors affecting SMEs at Ilemela Municipal by using fish traders as a case study. The study is explorative, descriptive and qualitative in nature whereby qualitative approach and the case study design ware applied in the study while semi structured interviews, focus group and observation ware instruments used to collect information required from the Respondents. Results indicated that, the most common factors affecting fish traders as Small and Media Enterprises (SMEs) at Ilemela Municipal in Mwanza City were lack of business skills, Lack of Capital, Poor Government support, lack of creative and innovative to fish traders, existing of traditional believes to fisher man in fishing activities, Disorganization, Excessive taxation, Bureaucratic in obtaining Government documents in some Government Authorities, the use of outdated technology in fishing activities, the use of poison in fishing activities, Globalization and Poor infrastructure. The study recommends that, Government should improve the effectiveness of its support mechanisms and that attending business training, Making join venture, Partnership, record keeping, cash flow management and ignoring tradition believes are critical issue that should be done by Fish Trader to insure their Survival in the world of SMEs. These recommendations, if applied properly, will ensure Fishing businesses’ success at Ilemela in Mwanza City and the rest of Tanzania.