A Dissertation submitted to Mzumbe University, Dar es salaam Campus College in the partial Fulfillment of the Requirements for the Degree of Master of Business Administration (MBA) of Mzumbe University.The purpose of this study is to investigate the barriers that hinder Tanzania SMEs from entering foreign markets. An analysis of these factors may identify why there are so few SMEs in Tanzania engaging in exporting activity. This involves examining the owner/ manager’s level of education, method of selling product/ service’s and the barriers to entering foreign markets. This study is unique as it is first of its kind to investigate the topic of SME internationalisation in Ilala Municipality and the country as a whole. The primary data for this research was ascertained using a survey based method administered to 244 SMEs, with a response rate of 37%. The survey method enabled the researcher to establish information as regards industry sector, levels of owner/manager education, understanding exporting, methods of selling products/services and barriers to entering foreign markets. Finally, this research has also identified that perceived barriers of non-exporting SMEs to entering foreign markets are the same obstacles that SMEs in other East African countries are facing. The current research will therefore, add to the expanding body of literature on SME internationalisation, but more importantly it contributes to the developing field that is focused on SMEs and exporting.