A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Degree of Master of Science in Entrepreneurship of Mzumbe UniversityThe theme of this research was based on the assessment on the role of the government in promoting the development of Micro, Small, and Medium enterprises sector, with focus on the ministry of industry and trade in Dodoma as a case study. The study is based on objectives such as; to find out the efforts put forward by the government in promoting the development of MSME sectors, to determine challenges which face the development of MSME sector, and to analyze the challenges government faces in promoting the development of MSME sector. Chapter two presents theoretical literature review, empirical review and conceptual framework on key elements, concepts and variables of the study so as to gain general knowledge and articulate the research gap. Chapter three is presented with research methodology. The methods used in the data collection were questionnaires, interviews and documentation. Whereas the data collected were presented, discussed and analyzed into both qualitative and quantitative methods. The findings of the study shows that; Despite the fact that government has made various efforts to develop the sector yet, the sector still faces a lot of challenges explained to originate from the government units and individual entrepreneurs implicating setbacks to the development of MSMEs. The study recommended that; The Government should simplify business registration procedures, reform property rights system, reform tax system, reform government agencies, and reform labour laws, provide essential business information, improve access to credit facilities, capacity building, infrastructure support and lastly learning from other countries.