A Dissertation Submitted in Fulfillment of the Requirements for Award of the Degree of Masters of Business Administration of Mzumbe University.he development of women, especially in developing countries like Tanzania hinges on intervention of a development of small businesses. In recent microfinance has been strongly recommended as an intervention that could assist poor people to improve their standard of life. Their contributions to the development of small businesses has rise to 90% and also there is link between microfinance and small businesses in poverty alleviation. This study aimed to assess the contribution of Microfinance in the development of women’s small businesses in Morogoro Municipal. The research methodology employed was Case study. The study interviewed distributed 100 questionnaire to respondents; simple random sampling procedure was used in the selection of SME’s owners but only participants (82) responds while purposive sampling procedure was use in the selection of 16 key informants. Data were collected using questionnaires, observations and interview for primary data and for secondary data documentary review was used. Descriptive statistics were used in analyzing the data such as frequency and percentage. The findings from respondents revealed that; 14 were male (17%) and 68(83%) were female. 69(84%) were self employed and 13(16%) were employed. Furthermore the results found that although government registered MFI’s and give permission for doing business but they didn’t make follow up to the clients to know if they are benefited with such services which are provided to them. Result shows that the collaboration and intensive participation of the government to the Microfinance Institutions like PRIDE and others will improve efficiency and effectiveness to the small businesses growth development.