This thesis examines the activities of Micro, Small, and Medium Enterprises (MSMEs) in conducting business, the challenges faced by MSMEs in business development, and the forms of collaborative governance implemented in MSMEs in Pananrang Village. This is based on the decline in MSME development and the importance of collaborative governance in MSME development. The main issues in this research are (1) How do MSME actors conduct business? (2) What challenges did MSMEs face in developing their businesses? (3) How was collaborative governance implemented in MSMEs in Pananrang Village?The research method used is qualitative research with a case study approach. The data sources are MSME actors and the Cooperative and Small and Medium Enterprises Agency, as well as the Investment and Integrated One-Stop Service Agency. Data collection tools include interview guidelines, and data collection techniques involve observation, interviews, and documentation. Data validity is tested using triangulation techniques.Research findings: (1) MSME actors in Pananrang Village are classified as micro-businesses with a maximum income of Rp200,000,000 per year. In Pananrang Village, there were 47 businesses, but only 4 types of businesses were based on collaborative governance. (2) The challenges faced by MSME actors in developing their businesses included: (a) Quantity and quality of Human Resources (HR) were insufficient, (b) Limited technology and lack of innovation in products, (c) Marketing management did not meet operational standards and lacked business partners, and (d) Lack of capital for business development. (3) Collaborative governance was carried out by the Cooperative and Small and Medium Enterprises Agency through programs such as (a) Coaching, providing material on how to develop a business, (b) Assistance in finding business partners for MSMEs, (c) Financial assistance, providing capital for business development, and (d) Creating a business climate, providing quick and free business permits for MSMEs. Meanwhile, the Investment and Integrated One-Stop Service Agency had the Close Relations program, which included one-day seminars on business development and financial support for MSMEs in Pinrang Regency. The analysis results showed business development for MSMEs for those who followed collaborative governance procedures. Keywords: Collaborative Governance, Development, Micro, Small, and Medium Enterprises (MSMEs)