<p>This article examines how regulation and support instruments shape the early development of Microfinance in Greece, a peripheral EU economy that adopted a formal regulatory framework only recently. Based on semi-structured elite interviews with senior executives from three authorized MFIs, and supported by documentary and regulatory sources, the study applies semantic thematic analysis to analyze how operational and social dimensions of microfinance are shaped in a context where the sector is still in its infancy. Findings indicate that although the institutionalization of microfinance enhanced credibility and access for excluded groups (youth, women, unemployed), the sector remains at an early stage, with limited outreach, fragile financial sustainability, and low public awareness. Critical barriers include the lack of a microfinance culture, insufficient state support, the absence of green products and uneven adoption of digital financial tools. Nevertheless, mentoring and training practices, combined with the EU-supported TEPIX III Fund, strengthen the sector’s visibility and outreach. The article contributes by providing early evidence on the institutionalization process of microfinance in a late-adopter, high-income context and by identifying policy-relevant mechanisms linking regulation and support architecture to MFIs’ outreach–sustainability trade-offs. Policy recommendations emphasize the need for stronger institutional support, broader cooperation between MFIs and banks, and targeted incentives to ensure long-term sustainability. Adopting an interpretivist approach, the research treats executive accounts as situated understandings of an emerging regulatory field. Its contribution is therefore analytic and exploratory, pointing to tensions and mechanisms that need to be explored in multi-actor and longitudinal studies.</p>