The purpose of this paper is to focus on the role and contribution played by microfinance institutions (MFIs) in the development and improvement of women’s micro and small-scale businesses in the Republic of Yemen and the extent to which it responds to the needs of its clients. The research is principally based on data from the survey of 117 women entrepreneurs, owners of micro- and small-scale enterprises, who had at least received one support from MFIs programs. To evaluate the effectiveness and significance of the MFIs programs as perceived by these women entrepreneurs, the second phase, in-depth semi-structured interviews were held with 27 respondents. The findings show that microfinance institutions not only aim to reduce poverty but also providing credit to women for starting their business. However, it concludes that women entrepreneurs who obtain microfinance face a number of various problems. The study exposes the overall environment constraining women entrepreneurs on financial fronts and suggests some measures of relief to ameliorate the situation. Women’s entrepreneurship, properly harnessed, has great potential as a tool for transforming Yemen economies.