Microfinance institutions (MFIs) have emerged as a significant player in facilitating financial access for small-scale entrepreneurs, particularly women, across various developing countries. A qualitative approach was employed, involving semi-structured interviews with a sample of female entrepreneurs who have accessed MFI services in Ethiopia over the past five years. The analysis revealed that MFIs contribute positively to women's entrepreneurial activities by providing financial support and access to business networks. However, challenges related to loan repayment and service quality were identified as key barriers impacting their success. MFIs play a crucial role in enhancing the economic empowerment of women entrepreneurs in Ethiopia, though improvements are necessary to address existing issues. Policy recommendations include strengthening MFI governance structures, improving client education programmes, and ensuring more transparent service delivery mechanisms.
Gebreab et al. (Mon,) studied this question.