Microfinance institutions (MFIs) have been pivotal in supporting women entrepreneurs in Ethiopia’s development landscape. Qualitative research methods were employed, including semi-structured interviews with MFI representatives and community leaders. MFIs have successfully increased access to finance for female entrepreneurs by targeting specific socio-economic groups, particularly those in rural areas. While MFIs contribute significantly to women’s economic empowerment, there is a need to address issues related to financial literacy and market linkages. Policy recommendations include increasing funding for capacity building programmes within MFIs and developing targeted interventions that support women entrepreneurs’ business growth.