Possession of relevant skills opens new opportunities for informal microbusiness to improve their productivity hence become competitive. However, the available means of skills development are not user friendly to micro enterprises. The objective of this research is to investigate strategies of skills development relevant to informal micro businesses in Tanzania. Based on desktop research the study identifies challenges of skills development to include; ignorance, perceived cost, lack of resources, employees poaching and lack of contextualized skills development programs. The study proposed a set of alternative approaches to skills development in informal micro business which include; e-learning, public funded or low-cost skills development schemes, usage of psychological contracts, contextualizing the skills development programs, and ubiquitous learning.