The paper reviews the literature on the importance of MSMEs to economic development and poverty alleviation. Two divergent views of MSMEs, the pro-MSMEs and the anti-MSMEs, have been identified in the literature. Whereas the pro-MSMEs believe in the significant role played by small business in the economic prosperity of a country, the anti-MSMEs are of the view that larger organisations played relatively significant role than MSMEs. However, from the reviewed literature small businesses play key role in the creating job (especially female employment), contribute to tax, export and import revenues, facilitate the distribution of goods, contribute to human resource development and are the cradle of innovations and entrepreneurship. MSMEs in Ghana are found in the fields of farming, fishing, small scale mining, restaurants, food processing and other services. It was recommended to government and policymakers to institute viable credit support and non-financial business support services to help MSMEs grow.