Mobile phone is one of a few technologies in the world that have created immediate and widespread of an impact mobile phones. The impact of the mobile technology for development has been seen from many different perspectives, but few empirical studies have investigates the technology in relation to human development perspectives and in particular Capability Approach. The present study fills this important gap in the literature. Focusing on micro-entrepreneurs in Indonesia including women and disabled micro-entrepreneurs, this paper investigates how the mobile phones create new and expand existing capabilities of micro-entrepreneurs in running business and improving their livelihoods.