Financing challenges faced by women entrepreneurs in Pakistan

This study investigates the financing challenges faced by women entrepreneurs in Pakistan, including financial constraints, gender discrimination, and lack of operational funding. It explores the current and future trends of women entrepreneurs, the various financial challenges they face, and provides effective recommendations to overcome these challenges. The research aims to contribute to a better understanding of the role of women entrepreneurs in Pakistan's economy.

Financing challenges faced by
women entrepreneurs in
Pakistan

TABLE OF CONTENTS
TOPIC: “To critically investigate on the financing challenges faced by women entrepreneurs in
Pakistan.”.........................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Background.................................................................................................................................1
Aim and Objectives.....................................................................................................................1
Aim..................................................................................................................................................1
LITERATURE REVIEW................................................................................................................2
RESEARCH METHODOLOGY.....................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

TOPIC: “To critically investigate on the financing challenges faced by women
entrepreneurs in Pakistan.”
INTRODUCTION
Background
Women entrepreneurs tend to face various problems which is mainly associated with
financial constraints, gender discrimination, low pay scale as compare to men, high price
associated with raw material, lack of entrepreneurial initiative (Yunis,Hashim and Anderson,
2019). There seems to be an increasing trend among women entrepreneur is Pakistan because of
the raising awareness. Contribution of women to the society helps in economic development.
Financing challenges are mainly associated with managing and borrowing funds, lack of
operational funding, etc. This study is very useful in understanding the current trends of women
entrepreneurs in Pakistan. The population of Pakistan in the year 2019 is estimated to be
216,565,318 according to the UN report. Pakistan has the lowest rate of female entrepreneurship
as compared to 21% share by men (Govt urged to promote women entrepreneurship, 2019). The
GDP of Pakistan in the year 2018 is $312,570 million and the expected GDP in the year 2019 is
expected to be $320,000 million. There are various range of opportunities for women in
Pakistan by offering various range of digital technology. Access to online learning tools and
series of workshops results in greater opportunity for the women. Networking opportunity and
financing opportunity helps women entrepreneur to perform better in market. Furthermore, it
also helps in determining the various financial challenges which tend to influence women
entrepreneurs in Pakistan.
Aim and Objectives
Aim
“To critically investigate on the financing challenges faced by women entrepreneurs in
Pakistan.”
Research Objectives
 To understand the current and future trends of women entrepreneurs in Pakistan.
 To determine the various financial challenges which influence women entrepreneurs in
Pakistan.
1

 To determine the problems through which women go due to financial challenges faced by
them.
 To provide effective recommendation to overcome financing challenges faced by women
entrepreneurs in Pakistan.
Research Questions
 What do you understand by the current and future trends of women entrepreneurs in
Pakistan?
 What are the various financial challenges which influence women entrepreneurs in
Pakistan?
 What are the problems through which women go due to financial challenges faced by
them?
 What are effective recommendation to overcome financing challenges faced by women
entrepreneurs in Pakistan?
Rationale
The researcher of the study has carried out the particular research study because of the
academic interest of the researcher. The researcher has carried out the study because financing
challenges faced by women entrepreneurs in Pakistan is considered to be the current issue. It
helps in gaining broader knowledge associated with the particular area of study. The researcher
of the study will highlight on this topic with the help of thematic analysis.
LITERATURE REVIEW
To understand the current and future trends of women entrepreneurs in Pakistan.
Saini and Jain, (2018) sought to determine the fact that, There seems to be expeditious
development of women entrepreneurship in Pakistan. This in turn results in changes in relation
with socio and economic environment. These changes are mainly associated with the inflation,
employment levels, technology, global and media exposure, gender discrimination, unequal pay
gap and financial incapabilities, etc. are considered to be one of the major issue which in turn
largely affects the operations of the business. Entrepreneurship is referred to as an effective
business setting where the individual tend to open their own business. They tend to risk their
money in order to start a particular business venture. Women entrepreneurs are one of the
important source which helps in solving business problems. The rate of opening new business
venture is significant in USA which is very crucial for the growth and GDP of the economy. This
2

is one of the way out for unemployment and helps in reducing gender pay gap. This helps in
contributing to the economy and also creates higher job opportunities which leads to economic
development. In US, economy was influenced by $3 trillion, due to women owned business
which in turn tends to create 23 million jobs.
There seems to be an increasing trend among women entrepreneur is Pakistan because of the
raising awareness. This has led to higher women confidence which in turn encourage women to
become career oriented. Ul-Hameed, Mohammad, and Shahar, (2018) evaluated that, Pakistan
tend to have the lowest rate of women entrepreneur which mainly comprises of only 1% of
female entrepreneurs when compared with 21% of male entrepreneurs. It has been evaluated
that, there are several factors which in turn largely affects the women entrepreneurs are not
enough access to economic opportunities, unemployment, gender discrimination, etc.
Networking opportunity and financing opportunity helps women entrepreneur to perform better
in market.
To determine the various financial challenges which influence women entrepreneurs in
Pakistan.
Muhammad, Warren and Binte-Saleem, (2017) investigated that, access to finance is
considered to be one of the major challenge for the women entrepreneurs in Pakistan. Bank
account tends to remain at lower levels among women which in turn largely influences the
operations of the business. Only 13% women has access to finance as compared to 87% men.
This in turn largely reflects the gender biasses system in Pakistan. The size of loan which is
detached to men is comparatively much higher when compared to women. Men workers tend to
earn higher when compared with the women which in turn largely influences women
entrepreneurs in Pakistan. The financial challenge faced by the women entrepreneur is mainly
associated with the lack of personal capital which in turn is considered to be one of the major
source in order to carry out the operations of the business in a systematic and efficient manner.
Education bureaucracy and lack of training and education is considered to be as the major
challenge which in turn affects the operations of the business. Karachi in Pakistan has one of the
lowest degree of women entrepreneurs in the world. Access to the job, economic opportunities
and terming job creation are considered to be the major challenge associated with Pakistan.
Raghuvanshi, Agrawal and Ghosh, (2017) argued that, discrimination based on gender is
considered to be the major financial challenge because women entrepreneurs in Pakistan are not
3

given enough access to the funds. Fear of being in debt is also one of the major financial
challenge which is faced by the women entrepreneurs in Pakistan. Lack of networking and poor
credit history in turn are considered to be one of the major financial challenge which in turn
largely influences the women entrepreneurs in Pakistan.
To determine the problems through which women go due to financial challenges faced by
them.
Yunis,Hashim and Anderson, (2019) determined that, minimal support and limited
funding leads to higher difficulty for the women entrepreneurs in Pakistan to carry out the
various operations of the business effectively. Minimal support from family leads to a major
difficulty for the women to carry out its operations. Due to various financial challenges tend to
result in higher difficulty for carrying out the business and attain goals and objectives of the
company. Managing the cash flow of the business is considered to be the major financial
challenge for the business which in turn results in higher difficulty in paying the bills which
eventually leads to higher debts. Ul-Hameed, Mohammad, and Shahar, (2018) argued that, not
having sufficient capital for the business is considered to be the major financial challenge for the
women entrepreneurs. Women in Pakistan are discriminated and are not sanctioned loan which
in turn limits their access to the financial capabilities of the business. Strapped budget is also a
major financial challenge which in turn affects women entrepreneurs to market the business to
full potential. Micro finance sector is considered to be an effective source to provide finance to
the women in Pakistan. NGO credit programs, SME banking, banks, loans, venture funding,
letter of credit, personal savings, angel investors, debt financing, friends and family are
considered to be an effective source to access funds to carry out business in Pakistan.
RESEARCH METHODOLOGY
This is considered to be as effective approach as it helps in gaining the matter on the
subject matter by effectively evaluating the overall relatability, truthfulness and validity of the
study.
Research methods: This method helps in filling gaps and gaining broader knowkledge on
subject matter (Kumar, 2019). This is distinguished as quantitative and qualitative mehod. The
researcher of the particular study will opt for Qualitative method because it is mainly grounded
with interpretivist and subjective perspective which will help researcher in critically evaluating
4

the financing challenges faced by women entrepreneurs in Pakistan. Women entrepreneurs are
one of the important source which helps in solving business problems.
Research philosophy: This method is a set of belief and phenomenon according to which
data should be gathered and analysed. This can be classified as positivism, pragmatism and
interpretivism philosophy. The researcher of the particular study will opt for interpretivism
philosophy because it tends to integrate human interest into the study which is useful in gaining
insight on various key elements and variables of the study.
Research approach: This is a framework which is very useful in setting broad
assumptions to collect, analyse and interpret the data (Types of research approaches, 2019). This
can be classified as inductive and deductive approach. The researcher of the particular study will
opt for inductive approach because it helps in generation of new theories and concepts from the
data.
Research design: This is an effective strategy which helps in effectively addressing the
research problems and also helps in setting a blueprint to collect, measure and analyse the data.
This is distinguished as exploratory, experiment and descriptive design. The researcher of the
particular study will opt for descriptive design because it helps in determining the problem which
is associated with answering research questions in relevant and timely manner.
Data collection: This is an effective process of collecting relevant and reliable data from
valid sources. This can be classified as primary and secondary source of collecting data. Primary
data is first hand information, while secondary data is already collected used information
(Mackey, and Gass, 2015). The researcher of the particular study will opt for both primary and
secondary source of data collection to understand the current trends of women entrepreneurs in
Pakistan and also determine the various financial challenges which influence women
entrepreneurs in Pakistan. Micro finance sector personal savings, angel investors, debt financing,
banks, loans, venture funding, etc. are considered to be an effective source to access funds to
carry out business in Pakistan.
Sampling: This method helps in predetermining various number of observations in large
population (Bresler and Stake, 2017). This can be classified as probabilistic and non-
probabilistic sampling method. The researcher of the particular study will opt for random
probability method because it gives equal opportunity to each individual which in turn helps in
randomly selecting 20 women entrepreneur in Pakistan.
5

Data analysis: This method is useful in critically analysing the subject matter in order to
attain valid conclusion (Mackey, and Gass, 2015). This is distinguished as SPSS tool and
thematic analysis. The researcher of the particular study will opt for thematic analysis as it helps
in interpreting various themes and variable to determine the financing challenges faced by
women entrepreneurs in Pakistan. Karachi in Pakistan has one of the lowest degree of women
entrepreneurs in the world.
CONCLUSION
From above research study it has been summarized that, Men workers having high access
to funds, women have lack of financial capabilities, minimal support from family, managing the
cash flow, strapped budget, not having sufficient capital for the business is considered to be the
major financial challenge for the women entrepreneurs in Pakistan.
6

REFERENCES
Books and Journals
Bresler, L. and Stake, R.E., 2017. Qualitative research methodology in music education.
In Critical Essays in Music Education (pp. 113-128). Routledge.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Muhammad, N., Warren, L. and Binte-Saleem, S., 2017. Anything can happen, anytime: the
impact of conflict on women’s entrepreneurship in Pakistan. Journal of Developmental
Entrepreneurship, 22(04), p.1750025.
Raghuvanshi, J., Agrawal, R. and Ghosh, P.K., 2017. Analysis of barriers to women
entrepreneurship: The DEMATEL approach. The Journal of Entrepreneurship, 26(2),
pp.220-238.
Saini, K. and Jain, S., 2018. Women Entrepreneurship The Emerging Workforce in 21st
Century: Turning Challenges into Opportunities. International Journal of Research in
Management & Social Science, p.101.
Ul-Hameed, W., Mohammad, H. and Shahar, H., 2018. Microfinance institute’s non-financial
services and women-empowerment: The role of vulnerability. Management Science
Letters, 8(10), pp.1103-1116.
Yunis, M., Hashim, H. and Anderson, A., 2019. Enablers and Constraints of Female
Entrepreneurship in Khyber Pukhtunkhawa, Pakistan: Institutional and Feminist
Perspectives. Sustainability, 11(1), p.27.
Online
Types of research approaches. 2019. [ONLINE]. Available
through:<https://uwaterloo.ca/planning/current-undergraduate-students/undergraduate-
program-manual-index/special-courses/types-research-approaches>
Govt urged to promote women entrepreneurship. 2019. [ONLINE]. Available
through:<https://tribune.com.pk/story/1938734/1-govt-urged-promote-women-
7

entrepreneurship/?__cf_chl_jschl_tk__=ec1f07d74f11970e8c778e8f945731e5b73ae0f0-
1576212563-0-
Afwo8qRedDCvCipdWXOO8jS67Xrss_bQyI_NGMeWtLk48d2PDPNDayfnGOsag3S6c2OPnv
WLHORx9QM9oHVGsiimxrRfhLuaGdf057HgFSH8UjSsQ3zd-KGrAjggdAkI0b3gCrqX-
gbKYti9MBiy8yZXJTK0T1fpY1M05ALxSms7rguMG-
8D740E2eLeUxe4QEV_oHgM93xI3wcZ0ut0qUmUHoZiFgr_PSjo1u1P6SQwhDOJkXa46rpTV
Fdw6pRP6-
uVfWUY14WSmWMW_ql6JqeemWIcRtA2fd2ZQlLfD4wkwDaEWpMBlUi6v2P2HlKZcDPX
gvHl_30AqGB6EE_LFic>
8