A thesis submitted to the Mzumbe university-Dar es salaam Campus College in partial fulfillment for the requirement of the award of a Masters of Business Administration in Corporate Management (MBA-CM) of Mzumbe UniversityThe aim of the study was to investigate on the support of Microfinance Institutions to the growth of Small and Micro Enterprises as a competitive advantage. The specific objectives were to identify types of financial support Microfinance Institution provide to Small and Micro Enterprises, to determine issues which influence Small and Micro Enterprises when accessing funds from Microfinance Enterprises and to assess the extent financial supports from Microfinance Institutions have been facilitating the growth of Small and Micro Enterprises . The study used a case study design to shape its findings and data was analyzed using Microsoft excel spread sheet to find association between variables. A conceptual model hypothesizing relationships amongst MFIs support in one hand and SMEs contributing factors to the growth in another. Simultaneously, the model shows how government policy, political stability, corruption, competition and social-economic factors can have an influencing factor to this aspect of SMEs growth. From the developing countries’ context, findings demonstrate that among small and micro enterprises, conservatively they rely heavily on loan provided to them for their growth. The finding suggested that Tanzanian case has to highlight the importance of sufficient legal reform for both the banking sector and their customers also the finding suggest that there should be mechanism to lower the interest rate, possibility of increasing the grace period and reducing the frequency of repayment so as to provide clients with long term loan turns to business. The banking Industry in Tanzania has tremendously changed its dynamics for the last one decade. Many banks have joined the industry both local and foreign. Notably, the no- banks financial institutions have been mushrooming by an alarming speed.