A Thesis Submitted to School of Business in Partial Fulfilment of the requirements of the Award of Master of Business Administration (Corporate Management) degree of Mzumbe UniversityFor many years, poverty has been a problem in Tanzania. Unemployment in Tanzania has madepoverty rate to decline in a very small level. Knowing that, the government through its organisation known as Small Industries Development Organisation (SIDO) made efforts toencourage and promote entrepreneurship especially through establishment of micro and smallindustries so as to reduce poverty. The government also made some policies such as the SME policy with the same intension as elaborated above. The aim of this study is to assess thecontribution of micro and small food processing industries in poverty reduction in Tanzania andthe study was conducted at SIDO Mwanza regional office. The study’s objectives were as follows, to identify operations of micro and small food processing industries operating in the economy of Tanzania, to assess the contribution of micro and smallfood processing industries in poverty alleviation in Tanzania and to identify the strategies forimproving the contribution of micro and small food processing industries in poverty reduction in Tanzania. The population of the study involved 4 staffs from SIDO (who are concerned in entrepreneurial aspects such as the Manager, Credit Officer, Business Development Officer and Technical Officer). The study also involved 60 micro and small food processors who receive services from SIDO in one way or another. Sampling techniques involved in the study are purposive, randomand convenient sampling. The techniques for data collection included questionnaires, interviewsand observation. Qualitative data were analysed using content analysis and elements coded accordingly for analysis and presented. The data collected were all analysed using basic mathematical calculations that were presented in tabular, pie chart and bar chart forms. Study findings reveal that, income generation, improve living standard, employment creation and source of government revenue are the contributions of micro and small food processing industries to food processors, the government and the society at large. The contributions are as aresult of availability of resources such as water, electricity, raw materials, employees and otherresources in these industries. Also the contributions are resulted by proper utilisation of theservices offered to entrepreneurs by SIDO. These are such as trainings, advisory and consultancy