Tanzania is a developing country with growing infrastructure, use of simple technologies and industrial sector. Small scale and medium enterprises (SMEs) make up good percentage of businesses, employing a good number of the working population. Every week, newspapers run tenders from government agencies for building roads, supplying IT equipment, vehicles, furniture, and agricultural equipment etc. But out of the numerous tenders on offer, majority are taken up by established, multinational companies, stunting the growth of small-scale establishments and the Tanzanian economy through profit repatriation. Small scale and medium enterprises (SMEs) lack capacity. They lack the procurement knowledge about competitive bidding, and for this reason, many of them do not go past the preliminary evaluation stage. Even the few SMEs, who make it past the preliminary stage, fail to execute the jobs because they lack capacity. I came to realize that many Small scale and medium enterprises are not registered, do not file monthly income tax returns and are, therefore, not tender ready. Where a Small scale and medium enterprises possess the requirements for successful preliminary evaluation, one does not possess staff who can successfully execute the tender. They usually hire next of kin, who lack the required competencies, which greatly cuts down their chances of winning tenders. In most cases, government tenders are too large for one company to solely execute without the assistance of a third party. I think partnering with larger established firms is by far the quickest way for Small scale and medium enterprises to win government tenders. Partnering with other Small scale and medium enterprises (SMEs) at a similar level will not generate any benefits for any of the firms. winning government tenders requires a firm to clearly demonstrate a wealth of experience in handling similar projects, which forms the most vital component of technical compliance before a tender can be awarded. Government tenders require a participating firm to deliver a bank draft as bid security to the issuing public institution. Small scale and medium enterprises most of them dont have banking habits. Many Small scale and medium enterprises have fallen short of winning government tenders due to the insistence by government regulations on using bank drafts as bid security.