Policies, institutions and regulations that provide an enabling environment for small enterprises can make a substantial contribution to employment creation. This report is the outcome of a research project assessing the policy environment for small enterprises in Tanzania, based on a careful mapping of existing laws and regulations. Despite small enterprises dominating the enterprise landscape in the United Republic of Tanzania, this sector can be characterized as survivalist and providing poor quality employment. This situation is aggravated by the policy and legal framework in which MSEs operate.