Microfinance institutions (MFIs) have gained prominence in Ethiopia as a means to enhance economic opportunities for women entrepreneurs, particularly in regions with limited formal access to credit and financial services. Theoretical development will be guided by qualitative content analysis, drawing on existing literature and expert interviews to synthesize insights into the role of MFIs in empowering women entrepreneurs. This theoretical framework underscores the crucial role of MFIs in fostering economic empowerment among women entrepreneurs in Ethiopia. Further research is needed to validate these findings through empirical studies and to explore potential policy interventions. Policy makers should consider implementing targeted support programmes for female entrepreneurs, such as tailored financial products and capacity-building initiatives, to maximise the impact of MFIs on the empowerment landscape.