Microfinance institutions (MFIs) have been increasingly recognised as a crucial tool for empowering women entrepreneurs in developing countries. The analysis is based on secondary data from government reports, academic studies, and interviews with MFI representatives and beneficiaries. A notable finding was the significant increase (30%) in women's entrepreneurship rates attributed to MFIs' support programmes over a five-year period. MFIs play a pivotal role in enhancing economic opportunities for women entrepreneurs in Ethiopia, but further tailored interventions are needed to fully leverage their potential. Policy makers should consider implementing more targeted and inclusive financial inclusion strategies that specifically cater to the needs of female entrepreneurs.