Microfinance institutions (MFIs) have emerged as significant actors in promoting economic empowerment among women entrepreneurs in Ethiopia's development context. A mixed-methods approach combining quantitative data from surveys with qualitative insights from semi-structured interviews was employed. MFIs have successfully facilitated loans to approximately 50% of surveyed female entrepreneurs, contributing significantly to their business growth. Despite progress, MFIs face significant barriers in fully addressing the needs and challenges faced by women entrepreneurs in Ethiopia. Policy recommendations include enhancing collaboration between MFIs and government agencies to improve access to services such as legal advice and infrastructure support.