The study was carried out at Nguvumali ward in Tanga city council to assess factors associated with women engagement in small scale businesses. This study used both qualitative and quantitative data from primary and secondary sources. Primary data were collected from women engaging and not engaging in small scale businesses. The study used descriptive statistics and Chi-Square test. The results revealed that factors associated with women engagement in small scale businesses are peer groups, occupation of women, education level and partner’s education level. Also, this study found that the challenges facing women to engage in small scale businesses are shortage of customers and shortage of capital. The study recommended that the Local Government Authority should encourage women to participate in trainings which related to business. Local government and financial institutions should provide women financial support like loans and education on how to run the businesses so that they can help to get a profit.