Microfinance institutions (MFIs) have been pivotal in promoting financial inclusion among women entrepreneurs in developing countries, including Ethiopia. The study employed a qualitative approach to analyse case studies from selected MFI branches across different regions of Ethiopia. MFIs provided significant access to microfinance services, particularly to female entrepreneurs who were previously underserved by traditional banking systems. While MFIs have contributed positively by facilitating financial inclusion and entrepreneurship among women, challenges such as high interest rates and lack of formal collateral remain prevalent. MFIs should continue to innovate in offering more flexible lending terms and enhancing access to insurance and credit enhancement services for their female clients.
Mekdes Woldehayat (Mon,) studied this question.