Financing Challenges Faced by Women Entrepreneurs in Pakistan

This research focuses on the financing challenges faced by women entrepreneurs in Pakistan. It explores the current and future trends of women entrepreneurs, the various financial challenges they face, and provides recommendations to overcome these challenges. The study highlights the importance of government support in promoting women entrepreneurship in Pakistan.

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
Overview of Research.................................................................................................................1
Background of Research.............................................................................................................1
Rationale of Research.................................................................................................................2
Research Aim..............................................................................................................................3
Research Objectives....................................................................................................................3
Research Questions.....................................................................................................................3
LITERATURE REVIEW................................................................................................................4
CHAPTER 3: RESEARCH METHODOLOGY ..........................................................................11
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION ...................................................14
CHAPTER 5: DISCUSSION ........................................................................................................24
Chapter 6: Conclusion and recommendation.................................................................................27
REFERENCES .............................................................................................................................29

TOPIC: “To critically investigate on the financing challenges faced by women entrepreneurs
in Pakistan.”
INTRODUCTION
Overview of Research
In general term, an individual more interested in running small and own business by
considering number of risk and profit rather being working as a labour is known as Entrepreneur
In modern time, business person and entrepreneur with innovative ideas and business operations
are regarded as most economical and popular businessman (Ayesha and Kalim, 2012). Limiting
this study to concentrating on women businessmen is an obvious idea because of the absence of
women who work in Pakistan. It has bee discovered that due to large variation among the SMEs
and bank in Pakistan for women because they are mostly depended on men entrepreneur. In
Pakistan, it has been also discovered that total cost of leasing is also very high which become a
major difficulty for small or newly developed business. Companies’ unauthorized existence has a
negative affect on the exposure to public capital, but simply remains in the informal economy.
However, the usual practice of small companies to escape routine account holding is a real issue.
Women involvement in expanding and growing economy is termed to be most important for a
nation mainly there effective and more interest in different business activities and operations.
Although, in Pakistan women have been also started in developing and growing their self
business which makes them independent and contribute maximum for growth and development
of nation. The proposed research is very important because it will illustrate the problems that
stop women from engaging in their nation's economic growth (Sanjay, 2013). The main aim of
the particular research is to defined the entrepreneurial, technical and social problems which
hinder an individual women to be a part of business and take part in developing the Pakistan
economy. Provide government and appropriate authorities with guidance on how to take action
in this region to encourage women entrepreneurs in Pakistan and help develop women's trust and
confidence to participate
Background of Research
Entrepreneurship is seen as the development of advanced technologies in the organization
or the introduction of new goods by developing new companies. Women's entrepreneurship is
considered an important tool for enhancing overall economic growth and especially women
1

liberation. These include the belief in actualization-worth, the freedom of women to make
decisions, opportunities for education and services, the authority to take decisions about their
private lives in and out of the home (Afza, Hassan and Rashid, 2010) Similarly women
entrepreneur have the right to carry out certain social reforms at domestic and international level.
It have been also determined that there is an immense improvement within women business
person in Pakistan due to development of more and more business related event and activities.
Thus women are considering being valuable part of society and as business women they support
in increasing and improving the overall economy. Financing issues are largely related to the
management and rising of resources, shortage of operating resources, etc. This research is very
helpful to understand the recent trends in Pakistan among women in business. In year 2018 the
GDP of Pakistan is $312,570 million which rises in the recent year and expected to $320,000
million. Access to internet teaching tools and seminar sequence leads to increased opportunities
for women. Networking opportunities and funding incentives support women entrepreneurs
achieve higher market performance. In Pakistan, there have been different jobs for women by
having a variety of digital technology. This also makes it easier to identify the different financial
problems that tend to affect female entrepreneurs in Pakistan. Women were not offered the
opportunity to come to terms in a company's upper management where vital choice is taken
mostly because of certain sexuality. Therefore, the fundamental purpose of such a study is to
illustrate the challenges and issues faced by female entrepreneur in carrying out their operations
and to provide suitable approaches so that potential business women can make the best possible
use of them to increase individual and economy productivity (Ahl, 2006).
Problem of Research
The main reason for selecting the respective topic for research is unequal opportunities
for women in Pakistan. There are not treated equally, not provided with equal freedom rights,
lack in education etc. Women running small business face the difficulty while obtaining loans as
unevenly enforced lender rights have averted banks' risk and increased collateral requirement.
Women entrepreneurs usually face multiple problems, primarily due to money restrictions,
gender bias, low wages rates compared to men, high raw product prices, shortage of
entrepreneurship. In recent time, it is founded that Pakistan has the lowest number of women
business person all over the world. Karachi in Pakistan has one of the lowest degrees of women
entrepreneurs in the world. The financial challenge faced by the women entrepreneur is mainly
2

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.
Rationale of Research
The thesis researcher performed the specific research analysis due to the participant's
general interest. The investigator conducted the analysis although the current problem is
perceived to be funding problems addressed by women businessmen in Pakistan (Ahmad, 2011).
This allows acquiring wider awareness applicable to the specific field of research which help to
gain the better understanding. In order to more elaborate the selected topic researcher uses
thematic evaluation which supports to make better and meaningful decisions.
Research 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.
 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?
3

LITERATURE REVIEW
The analysis of literature is an in-depth study of the prior inquiry. This is a description
and analysis of a particular area of study that helps anyone to interpret paper effectively and
continue the investigation (Amutha, 2011). It builds on the reasons for selecting particular
questions related to science. A successful analysis of literature should be the neglect of the
tendency to stress the importance of particular research program. In order to gain the more
derailed and elaborated information about the research topic by analysing different secondary
sources like articles, Journals, books and online sources.
To understand the current and future trends of women entrepreneurs in Pakistan.
According to Dodge and Robbins 2012, various marketing issues and capital acquisitions
are some of the most common problems which are faced by women at the starting stage of their
businesses (Xavier Gine, 2014). Similarly, administrating different resources and managing
various business components are consider to be the most negative issues which reduces the
working capability of entrepreneur and reduces the overall profitability of business in specific
time period. Bank account tends to remain at lower levels among women which in turn largely
influence the operations of the business. Only 13% women have access to finance as compared
to 87% men. This in turn largely reflects the gender biases 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. 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. The
businessmen who approved were presumably in the scope of the projects, while the disagreeable
did not know the Government. 30.8% of literate businessmen disagreed with it, but the main
reason behind this reaction lies in the reality that literate businessmen go into larger industries,
for which they already are well-known, most likely having trained or worked in them. Designers
who open shops naturally perfected their talents by taking a course in graphic design. By
contrast, this can be inferred that the two woman entrepreneurs have a challenge from launching
and maintaining their business going effectively and efficiently. Nevertheless, women
entrepreneurs with know-how can take advantage of the illiterate entrepreneurs owing to their
expertise and their knowledge. We also feel the society embraces we and offers you a morale
boost. Access to the job, economic opportunities and terming job creation are considered to be
4

the major challenge associated with Pakistan. They also ascertained the facts that there is an
promoting the growth and development of women business person in Pakistan. Such
developments are primarily correlated with unemployment, employment levels, innovation,
international and media visibility, sex discrimination, gender inequality disparity and financial
incapacity, etc. are regarded as one of the key issues that, in turn, have a major impact on the
business activities. He also says that each woman wants to start a company, however in the
economy but they don't survive for longer period because of different reasons. Yet the most
important men readily accept business opportunities more than a women because of the dynamic
environment. Female entrepreneurs are among the primary factors to help solve business issues.
In the United States, the frequency of launching business venture is high, which was very
necessary for both the world economy development as well as increasing GDP (Hafizullah and
et.al., 2012).
It is important that business women must be given higher chance and must be encouraged
in Pakistan in order to grow and develop the south Asian region in recent time. It is also started
that women entrepreneur are supportive for economy and aid to lower the poverty and other
discrimination by themselves getting better job role or making new and innovative businesses.
Women entrepreneurs in this area are considerably low, and the reasons he mentions are the
shortage of schooling, resources and social pressures. This is another path out of discrimination
and significantly reduces the wage gap between men and women. It continues to contribute to
society as well as provides further job opportunities that cause economic growth. Religion rules
and regulation could even influence it in a certain cases. A study found that lack of
professionalism, lack of foresight and inadequate financial resources could result in increased
problems for business women when they choose for self-employment. It has been also
represented by author that for low success and survive of women entrepreneur within a country
like Pakistan is due to performing of dual duties such as caring for families and running business
at a single time. But in today's age, running a company is more valuable than working in an
institution and dealing with other limitations. Women are not motivated and appreciated for their
all efforts and attempts due to which their confidence level reduces and they are not able to
perform business activity in profitable and desired manner. As a result of creating awareness, it
seems there is a growing trend between women entrepreneurs is Pakistan. Woman's business is a
5

path from suffering to wealth, reliance on justice. This has resulted in increased trust between
women that in turn encourages females becoming professional life-oriented (Jones, 2004).
To determine the various financial challenges which influence women entrepreneurs in
Pakistan.
According to Ayesha 2012 this in effect primarily represents Pakistan's structure of
sexual biasses. Compared to females, the scale of the loan isolated from men is relatively much
larger. Men's staff generally earns more than women, that in turn affects females businessmen in
Pakistan to a great extent. 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 (Neergaard and Thrance, 2011). In addition to all these problems,
women experience male power problems, reliance on male colleagues for business transactions
and constraints socially imposed on women only. A study showed several variables as obstacles
for women businessmen, including family power, encouragement, level of skill and experience,
economic status, access to credit and help provided. Some of the main factors are listed
underneath:
Finance
These mainly explain the inclusion of the anti-availability of collateral and negative
mentality of financial firms regarding women businessmen due to this lack of finance for
women. Due to lack of financial resources in order to develop new venture cause them to desire
credit scheme from the different financial institution in Pakistan. It is the responsibilities of state
and country government to provide financing services and valuable assets to women those are
willing to set their own business. Types of financing mode for women are:
Formal
This mainly includes debts transaction in which women used to borrow funds from a
specific lender that is needed to be paid again including a certain interest amount in particular
time period.
Informal
This type of financing includes exchange of money for a certain portion of business as a
ownership to a investor. Women can also make uses of their own funds to meet the business
requirement as per situation.
6

Family Commitment
Women have to give proper time and care for their family so that in return family
member can support them in managing business (Palaniappan, Ramanigopal and Mani, 2012).
Thus many time woman business persons are not able to handle the situation and lead to
mismanagement within business situations. Somehow girls from business background are able
to get fully support and confidence from their family member as their parent believe that she
might be good while developing and running new business.
Workload
Another problem that research indicates is the workload or lengthy hours of work.
Operating time needed by another role of females differs for her other positions within the same
time frame. Long hours of work and semi-flexible patterns of employment result in higher
disputes of family and work responsibilities. Another thing that needs to be looked at is that it
contributes to stress that can trigger anxiety, pressure and irritation that exacerbates work and
family disputes between women entrepreneurs.
Social Constrains for Women in Pakistan
In Pakistan, business females are facing some economic and social limitations due to
which they are not able to succeed in business growth and economy development. The reasons
such as increasing population are reducing job growth opportunities due to which there is a huge
working age gap among women entrepreneur (Pareek, 2012). Several other social restrictions are
improper facilities for education for girl child from early school days due to which they are not
able to understand the exact marketing situation. The main need of any business to be
competitive and productive in the present market is the presence of enough resources which will
support women to run their business activity in more desired manner. Thus, specific constraints
in Pakistan are due to absence of sufficient information due to lack of proper management school
and program for women and girls. On the other side the rapid changing structure of population
are also causing diminishing job opportunities for young girls and women.
The rate of opening new business venture is significant in USA which is very crucial for
the growth and GDP of the economy. This is one of the ways out for unemployment and helps in
reducing gender pay gap. This helps in contributing to the economy and also creates higher job
opportunities which lead 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.
7

To determine the problems through which women go due to financial challenges faced by
them.
As per Dunn and Lian, 2006, determine that there are different factors which are regarded
as the hindrance in the context of women entrepreneur performance like lack of technological
knowledge, corruption, no support for family etc. Minimal support from family leads to a major
difficulty for the women to carry out its operations (Rao and SuriGanesh, 2011). 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
(Roomi and Parrot, 2008). From the study the author noticed that there are several major
differences between male and female company owners, they found a strong possibility that in
Pakistan women have considerable hidden potential for the future growth. Some of the most
common problems faced by women in Pakistan due to financial challenges are discussed
underneath:
Late payment of bills: This is one of the biggest problems that most of the women
entrepreneurs face in Pakistan as they do not have enough funds or resources to pay off their
important bills. Women are not harsh and aggressive like men thus they are not able to collect
the outstanding amount for customer which gives the problem of shortage of funds. Many time
women do not have a proper financial support from family or other financial institution due to
late repayment of instalment or actual amount of bills.
Lack of Budgeting which lead to negative results: For running a successful and
profitable business in country like Pakistan women are needed to be good analyser. This help in
8

proper allocation of funds to most favourable activity which generate most suitable income for
company in future (Singh and et.al., 2011). Due to lack of financial services in Pakistan Women
are not able to do proper budgeting and miss the important activities of business due to which
negative results are faced by company.
Limited funding: This is also one big issue faced by women in Pakistan because as bank
denied loan facilities due to gender and cultural biases. This lead to the problem of miss payment
of credit cards, increasing of debts etc. Business women have to use sufficient amount within
their activity which even frustrate them to close the business or hand over to other family
member.
Spending less money on necessities: In order to gain a successful business business
owner are required to make a proper spending on necessities such as marketing, promotion etc.
Women do not sufficient money so they are not able to spend more on these business necessities
which lead to problem of lower sales and at the end of year they do not have enough money to
cover the required spending (Tambunan, 2009).
To provide effective recommendation to overcome financing challenges faced by women
entrepreneurs in Pakistan.
According to Jean chatzky, there is a specific need to determine the challenges
encountered by business women and make appropriate solution for each specific issue in order to
increase the working ability of women's (Afza, Talat and Mohammad Osman, 2010). There are
various broad programmes which are needed to be considered while framing future strategies
that could support in reshaping the whole communicative for women business owner. The author
believes that making equal and better opportunities for women in present business world will
help in bringing economic growth and development. There have been certain recommendations
that aid in resolving the challenges faced by business women in Pakistan are as follows:
 Access to finance: Safeguarding financing is among the biggest challenges that small
and medium-sized companies face. In order to develop the businesses need for women
government can develop smaller banks which will provide committed funds. This help
female entrepreneur to obtain the required resources that is needed to expand and prosper
the running business.
 Business seminars for Women: It is noted that proper workshops and seminars must be
put on regular interval so that women investors cam come with each other to share the
9

business knowledge and resources. Women can encounter bank groups and member
institutions through workshops to learn about how the offering that is supportive to run
any business. The advisors would also assist them in recognizing the problems faced by
company and proper support that can grow business in future (Amber, 2011). This also
create a chance to get to know other businesses in nearby area or country which help to
exchange thoughts and experiences and develop community of professionals. It also help
to encounter professionals and members that support females entrepreneur such as
multiple business organizations, trade associations, women's chambers etc.
 Business Advice: Large number of project and programs can be arrange which aid
company to determine the how to manage and transform the business task and activity in
order to gain the most profitable results. It mainly includes number of useful topics such
as upgrading the technical knowledge and understanding such as developing a QMS to
meet the standard of ISO. Similarly upgrade the energy efficiency of company top level
which gives higher results and most importantly enhance the skill of HR department to
hire most valuable person for business.
 Business Coaching: It's a great beginning to creating a business strategy and sometimes
it is not that much to get the higher results (Kalim, 2012). We provide a specifically
trained small business mentor whenever they trust in the success of company. Across the
course business women will encounter a trainer face-to-face on a regular basis so that
they can be assisting to enforce and carry out strategic plan and grow business. In
addition if there is anything trending within industry of a respective business coaches are
responsible to deliver the best possible framework to women entrepreneur helping them
to reach actual objective business.
 Industry expertise: Generally these programs include a restructuring plan of every part
of your business, from marketing and sales to exporting, procurement and economic and
strategic management. For example, Whether it's advanced understanding of the correct
moisture levels for weaving yarn, testing requirements for pharmaceutical processing or
choosing the most productive machinery to enhance production, our foreign market
experts recognize how these things apply to your company and your requirements.
 Mentoring: Governance can link business women with an accomplished leader from
worldwide network through collaborating with foreign mentoring programs (Dhaliwal,
10

2004). It is observed that with trainer's experience and knowledge will help in building
long term business and overcome the different financial obstacles. The tutoring programs
also build the characteristics of leadership and management in women which are essential
to financial success.
11

CHAPTER 3: RESEARCH METHODOLOGY
The effective and useful method that is being implemented by the investigator in order to
gather, summarise the actual and appropriate date relevant to a particular topic is known as
Research Methodology (Erum Fatima and Syed Shahzaib ul hassan, 2012). In order to fulfil the
research requirement framework-based of research onion is introduced that is an essential model
to draw meaningful conclusion. This Aid an investigator to establish strategies of reinventing
appropriate evidence against positive and negative impact of financing challenges faced by
women entrepreneurs in Pakistan. To collect the required information related to the research
topic Qualitative method is used in which 30 respondent are selected to present their opinion.
Researcher uses authentic Questionnaire in which different question are asked to selected
candidate so that they can present their opinion on respective topic.
Research methods: This approach helps to fill holes and acquire greater knowledge on
subjects. This is known as a quantitative and qualitative approach. The investigator of the
specific study will choose Qualitative method as it is primarily focused on an interpretative and
objective viewpoint. This will allow researchers to systematically examine the financing
problems facing women businessmen in Pakistan. Women businessmen are among the main and
important sources that help in solve business issues. Qualitative method has been primarily used
within this topic which helps to draw most effective results.
Research philosophy: There are primarily two forms of philosophy of science that is
positivism and interpretivism. To analyse evidence on the about the impact of financing
challenges faced by women entrepreneurs in Pakistan, interpretivisim is perhaps the most
appropriate methodology as it will allow a researcher to arrive at an acceptable decision
Research approach: The main important approach of study is Inductive and deductive
that is mainly used to collect the data relevant to research topic. In the respective research work
Inductive approach is implemented which is consider to be more reliable as it will more faithful
and effective results (Muhammad Azam Roomi and Guy Parrott. 2008). This is because it help to
give better understanding of variable to the research topic and the decision making for the
researcher also improved with this approach.
Research design: It is an effective technique that aims to tackle research challenges
quickly and also tends to create a structure for data collection, assessment and study. The
12

specific study's investigator should aim for concise nature as it allows assessing the appropriate
and timely issues associated with addressing specific research work.
Research strategy: There are various types of research strategy which are implemented to
determine more beneficial results. Such as descriptive, analytical applied etc. in this specific
research descriptive strategy is used to which help to interpret the understanding of respondent.
Time Horizon: In order to determine the actual time to complete the entire research work
form starting to end point Gantt chart is consider being the most valuable tool. This includes
systematic arrangements of activities that are stated below:
Techniques and procedures and research instruments: Questionnaire is regarded as one
of main study's significant and successful methods and reference source (Luo and et. al., 2013).
Using this device, a researcher may obtain credible and relevant information about the original
study.
Data sources: There are essentially two forms in data sources that are primary and
secondary to capture precise data regarding the current subject (Nawaser and Khaled, 2010). As
a primary source, analysts can use the questionnaires to collect credible information regarding
the current analysis. For secondary sources, publications, textbooks, journals, publishing work,
literature reviews would be used to gather in-depth research knowledge.
Data collection: This is an efficient process of gathering legitimate sources of accurate
and accurate data. It can be listed as the primary and secondary information gathering method.
Main data is first-hand information, whereas secondary data is being used information previously
gathered. The specific study author will aim for both secondary and tertiary data gathering
method to support the current patterns of female entrepreneurs in Pakistan as well as recognise
the various economic problems that impact female entrepreneurs in respective country. Personal
savings in the micro-finance market, investors in various investment approval, equity
investments, banks, bonds, investment financing, etc. are deemed an efficient outlet for raising
funds to operate in Pakistan.
Research sampling: It is generally divided into two sections, e.g. probability and
sampling of non-probability (Nelson, 2011). The key reason for choosing this approach is that it
does not take full organizational time, manpower and costs. At other side, probability sampling is
also not appropriate with respect to respective project study since it require more timing and
skills of researchers. To complete the research 30 responded are selected as a free sample size.
13

As per the research, the method of non-probability sampling employed to pick the sample group
from the entire population. So it is clearly stated that Non-probability sampling method is used
by the researched within company so that 30 employees from the company be selected for
research.
Research ethics: It is valuable aspect of any research that has been utilized primarily to
ensure accuracy and robustness of the study results are included. there are several major research
ethical standards that have been enforced, including confidentiality and security of explicit
consent. All these are valuable to researchers to include this and systematically complete through
research operation.
Research limitation: Researchers are met with various limitations when gathering
precise information from different participants (Pat, Rhona and Gerry, 2014). Study aims and
priorities creation, data gathering process implementation, sampling, lack of earlier studies,
context of discourse, etc. All of such are major limitations that have a major impact on the
researcher when conducting increasing research operation accurately. While collecting relevant
information issues such as wrong and expired website make hard to extract suitable information.
It is observed that there can be various problems which arise to the person conducting research
when gathering the suitable information from the respondents. These provide the researcher to
perform each and every activity in proper manner in order to generate more reliable results.
Research reliability and validity: Research's consistency and credibility depends
primarily on a questionnaire that is component of research method. It's more productive and
necessary to help a researcher to collect accurate and actual data.
Research ethics: It is valuable part of the research that has been used primarily to ensure
accuracy and robustness of the test results is included (Roomi and Muhammad Azam, 2011).
There are some main research ethics standards that have been applied including secrecy and
security with informed consent. This provides the researcher to perform each and every activity
in proper manner in order to generate more reliable results.
14

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
The data analysis is conducted using the conceptual approach in the best possible way. In
this scenario, some themes or trends are designed to help a researcher successfully conduct
research (Sanjay, 2013). The themes for each query will be developed to help the scholar to
analyse the answer of selected individuals. There are 30 participants, so they will examine
correctly how women entrepreneurs in Pakistan face financial challenges.
Questionnaire
Questionnaire
Q1) Are you have idea about the challenges faced by Women entrepreneurs in Pakistan?
a) Yes
b) No
Q2) According to you, what types of challenges or issues faced by Women entrepreneurs in
Pakistan?
a) Lack of adequate resources and freedom
b) Tough competition against male entrepreneur
c) Dealing with limited access to funding
Q3) Does lack of capital is major issue faced by women entrepreneur while successfully
running their business in Pakistan?
a) Yes
b) No
Q4) What is the core reason of financial challenge faced by women entrepreneur in Pakistan?
a) Lack of personal capital
b) Cash Flow management
c) Poor Accounting Practices
Q5) Does lack of personal capital is major challenge that impact on you while running business
in Pakistan?
a) Yes
b) No
Q6) Are you aware about the current and future trends of women entrepreneurs in Pakistan?
a) Yes
15

b) No
Q7) What are the effective ways must be used by women entrepreneur to overcome financial
challenges present in Pakistan?
a) Raise capital and track financial activities
b) Application of international financial standards
c) Use of Standard internal management accounting method
Q8) Provide any recommendation to overcome financing challenges faced by women
entrepreneurs in Pakistan.
Q1) Are you have idea about the challenges faced by Women entrepreneurs in
Pakistan? Frequency
a) Yes 25
b) No 5
Q2) According to you, what types of challenges or issues faced by Women
entrepreneurs in Pakistan? Frequency
a) Lack of adequate resources and freedom 15
b) Tough competition against male entrepreneur 10
c) Dealing with limited access to funding 5
Q3) Does lack of capital is main issue faced by women entrepreneur while
successfully running their business in Pakistan? Frequency
a) Yes 20
b) No 10
16

Q4) What is the core reason of financial challenge faced by women entrepreneur
in Pakistan? Frequency
a) Lack of personal capital 10
b) Cash Flow management 10
c) Poor Accounting Practices 10
Q5) Does lack of personal capital is major challenge that impact on you while
running business in Pakistan? Frequency
a) Yes 25
b) No 5
Q6) Are you aware about the current and future trends of women entrepreneurs in
Pakistan? Frequency
a) Yes 17
b) No 13
Q7) What are the effective ways must be used by women entrepreneur to
overcome financial challenges present in Pakistan? Frequency
a) Raise capital and track financial activities 15
b) Application of international financial standards 10
c) Use of Standard internal management accounting method 5
Theme 1: Fundamental knowledge of the issues of women entrepreneurs
Q1) Are you have idea about the challenges faced by Women Frequency
17

entrepreneurs in Pakistan?
a) Yes 25
b) No 5
Interpretation: In Pakistan, status of women rights and freedom is not so much favourable. Also
being an Islamic country rules and regulations for women are very strict and unfavourable for
women freedom. From above table and chart it has been analysed that majority of respondents
have basic idea about the issues that women entrepreneurs are facing in Pakistan. 25 respondents
out of 30 respondents have answered yes to the question on having idea regarding different
challenges faced by women entrepreneur, while 5 respondents have answered in no. Those who
are said, have not adequate and specific knowledge about issues women entrepreneurs are facing
in Pakistan.
Theme 2: Major issues women entrepreneurs are facing:
Q2) According to you, what types of challenges or issues faced by
Women entrepreneurs in Pakistan?
Frequency
a) Lack of adequate resources and freedom 15
b) Tough competition against male entrepreneur 10
c) Dealing with limited access to funding 5
18

Interpretation: Women in Pakistan are struggling with different issues which are summarised in
three major aspects in question form under this questionnaire. These issues directly and
indirectly act as obstacles for women entrepreneurs in business and corporate world in Pakistan.
As per above presented data it has been analysed that major issue faced by women entrepreneurs
is lack of adequate resources and freedom in business and corporate field. Here out of 30
respondents, majority of respondents i.e. 15 respondents have been agreed upon issue of lack of
adequate resources as well as freedom of doing. The 10 respondents have been agreed upon
challenges of tough competition against male/man entrepreneurs. Only 5 respondents accepted
issue of limited access of funding. So from above reactions of respondents it has been observed
that major primary issue for women entrepreneurs are lack of availability of sufficient resources
and freedom.
Theme 3:
Q3) Does lack of capital is major issue faced by women entrepreneur
while successfully running their business in Pakistan?
Frequency
a) Yes 20
b) No 10
19

Interpretation: Capital is core need of any business, without adequate capital it is hard for any
entrepreneur to achieve success in business. Pakistan's current economic position is not so much
favourable for business enterprises. For women entrepreneurs in Pakistan, this another major
issue or challenge in doing business. Out of aggregate 30 respondents, 20 respondents have been
agreed and said yes to the question that lack of capital is major issue in running business in
Pakistan for women entrepreneurs, while 10 respondents said no. Financial aspect of any
business purely depends upon the capital requirements, so this is a considerable issue. Without
freedom and adequate rights in country like Pakistan it is very hard to raise capital in business.
Theme 4: Advantages of offshoring
Q4) What is the core reason of financial challenge faced by women
entrepreneur in Pakistan?
Frequency
a) Lack of person capital 10
b) Cash Flow management 10
c) Poor Accounting Practices 10
20

Interpretation: Financial challenges in business is primary barrier for entrepreneur in Pakistan.
Financial issues may be in different-different forms and avoidance of these problems can put
question mark on the survival of business. Specially women in Pakistan, are facing difficulties
like Lack of capital, poor cash flow management and poor accounting practices etc. Out of total
30 respondents 10 respondents have been agreed on lack of capital, 10 respondents agreed on
poor cash flow management and 10 respondents agreed on poor accounting practices.
21

Theme 5:
Q5) Does lack of personal capital is major challenge that impact on
you while running business in Pakistan ?
Frequency
a) Yes 25
b) No 5
Interpretation: Most of the times Women entrepreneurs in Pakistan' facing Lack or insufficiency
of personal capital. The main reason of it is lack of support from family members, as in country,
social and financial status of women is not so much good. Personal capital in business lead to
less risk as compare to other source of capital. 25 respondents out of total 30 respondents,
answered yes to the question of whether personal capital is crucial challenge which affects
business frequently.
Theme 6:
Q6) Are you aware about the current and future trends of women
entrepreneurs in Pakistan?
Frequency
a) Yes 17
b) No 13
22

Interpretation: Future trends of status of women entrepreneurs can be easily determined
based on current trends. Currently status of women entrepreneurs is not so much good in
Pakistan. Government's efforts in this area is not so much appreciable as a large population in
Pakistan is not in support of women's freedom. 17 respondents from total thirty respondents said
yes which means they are fully aware about current as well as future trends in the field of women
entrepreneurship. While 13 respondents have said no as they are not aware about future and
present trends in women entrepreneurship.
Theme 7:
Q7) What are the effective ways must be used by women
entrepreneur to overcome financial challenges present in Pakistan?
Frequency
a) Raise capital and track financial activities 15
b) Application of international financial standards 10
c) Use of Standard internal management accounting method 5
23

Interpretation: Women entrepreneur herself should take steps towards the resolving key
challenges in doing business in Pakistan. Out of thirty respondents, 15 respondents are agreed at
the solution of raising capital and track or monitor financial activities. 10 respondents have been
agreed on application of international financial standards while 5 respondents have been agreed
on application of standard internal management accounting accounting methods.
24

CHAPTER 5: DISCUSSION
Community plays a key role in our individual operations, since both gender are greatly
influenced by culture in Pakistan, but societal pressure is particularly on females for
businesswomen (Sumaira Rehman and Muhammad Azam Roomi, 2012). Research data showed
significant results, data found that women throughout Pakistan have a social acceptability as an
obstacle when beginning their own company. A survey conducted by the FSB (Small Business
Federation, 2016) showed that "except for men, women feel that the lacks the skills for opening a
business and are much more scared of failure. The recent study indicated that the support of the
family is really important to women entrepreneurship. It may have a beneficial effect on both the
corporate development and personal growth if the family is good and supportive. On the other
side if the family is not supportive, it'll have a negative impact on the female owner. Thus in
countries like Pakistan women are not given such an extra care and support from family member
and they are mostly busy with there assignment related to household. In Pakistan, women's
entrepreneurship doesn't have the importance and potential in comparison to their alternate
gender due to the large impact of community and cultural norms and values that are deeply
defined. Women need to have access to expenditure, land resources, technical knowledge and
other essential assets' that under-use their capacity. As a men's-centered society, Pakistan has
inherent strong belief that women are second-rate as regard to males and they thinks that they are
most suitable for a women is to handle household activity. For entrepreneurs such mental state
brings enormous problems and complications that lead to negative results. In developed
countries this topic has been explored and a large amount of work is ongoing, but there is a lack
of insight in developing countries such as Pakistan, and that is why the problem has been
selected for study in Pakistan (Tambunan and Tulus, 2009).
They also pretend that during configuration of resources for their businesses most female
visionaries faced the major issue. Economic institutions, including banks, partners and family
members, are either dithering or refusing to help women financially, given that women believe
women can not manage cash and bring chances of loss to company. Women are still confronted
by difficulties in the Pakistan due to various their "strict culture and religion beliefs." Traditions
of religion and culture have an important impact on the Pakistan community. Some
conservationists still don't like women's businesses at all and wants them to work in home. This
general belief is reinforced by the research and findings of this report. The study demonstrates
25

that married and professional women were more likely to venture into companies. The main
reasons why they indulge in revenue generation for their households are lower incomes and huge
families. The main problems were the lack of access to finance as well as the lack of funds.
The crisis has deteriorated with the strong male population, volatile consumer patterns, lack of
selling-points, aggressive social attitudes, rigid rules, impractical legislation and insufficient
training and education (Tania Saeed and Shaheen sidi Muhamad, 2007). These factors influence
not only companies but diminish women's morality. A profitable business female adds not only
to economic growth and development and also to change in society. This move would lead to a
social transition by getting more females into the financial environment. Their will be less
dependency on men by women and it would also decrease the family dependency. Women in
Pakistan have different opportunities through different digital technologies Females have greater
opportunities of access to online educational tools and a variety of seminars which would
increase the business performance. The ability to communicate and fund women entrepreneurs
helps women to boost their business performance. In contrast with women, the amount of loans
that are separated from men is relatively significantly higher. Men's employees generally earn
more than women, a trend that, in effect, has a significant influence on women businessmen in
Pakistan. The monetary obstacle that the female entrepreneur faces is mainly related to the lack
of personal resources, which is perceived as one of the largest sources. Education administration
and poor education, that in turn increase the activity of the organization, is perceived to be the
main challenge. Karachi is the countries with the lowest female businesswoman in Pakistan.
Employment exposure, business opportunities and the development of permanent jobs are
regarded as Pakistan's greatest challenge.
In the last 10 years, the frequency of female workers over Pakistan have not improved.
Over the same period moreover, the proportion of women self-employed has risen. Women in
Pakistan, like many nations are mostly found in autonomous business and is looking to make a
better income source. In view of the research findings, different observer maintained that there
are a number of women in Pakistan who face or face challenges, but they have been diminished
with the flow of time. There had been various topics, several new topics and no related literature
could be identified (Tania Saeed and Shaheen sidi Muhamad, 2007). In Pakistan, women face the
hurdle, such as financial ones, family help was accepted during studies, but nowadays, families
have shifted more than just a few years ago. The acceptability of society is yet another
26

knowledge they face. At the other side, women reported that culture has improved for these
business operations in recent years and encouraged women. This research acknowledged the
challenges faced by women in Pakistan in dealing with large family, supporting the family,
connecting and informing relatives. In Pakistan, it turned out that the women had demanded
capital assistance through their families which aid to do business task in better manner. Social
standards have dropped and people today support women in launching their new business and are
making strong contributions to Pakistan's economy and society. Effective education and training
plays a key role in changing culture's perception Pakistan's academic system has changed since
the last few years, helping to break the idea that women are liable for homework. In the latter
situation, Islam also supports women in a pleasing way which enables them to run their own
successful business and fulfil the actual requirement of life. The government must be at centre of
all events and give seminars for women entrepreneurs to develop their expertise in the fields in
which they operate. The figures also strongly approve and disagree strongly with the issue of
whether the state institutions have any kind of funding to improve their capabilities: 26.7 and
26.7 percent respectively.
27

Chapter 6: Conclusion and recommendation
From the research project above, it was outlined that, people with high access to money,
females have lack of economic capacity, limited education and support, cash flow management,
tight budget, lack of adequate resources for the market is known to be the major financial
obstacle for women businessmen in Pakistan. Women are a strong generation of the workforce of
Pakistan. However as opposed to men in society, this overpowering chunk of population poses
disparities in regarding education, equality, job opportunities and all the other important aspects
of society. Experts use different techniques to obtain reliable and accurate evidence on positively
and negatively effects on business activities. Primary data collecting methods utilized by me to
collect right information relevant to the analysis are called at the primary and secondary levels. I
concentrate only on the questionnaire underneath the primary researcher because it provides the
subject with accurate and relevant results. At the other side, I myself am concentrated upon
literature review under secondary study as it helps me provide detailed and actual data on the
research. The introduction of several sector-specific programs will facilitate gender
commercialisation. Training on racial sensitivity and social consciousness and campaigns for
activism should also be a key component of such programmes. Politicians should establish a
holistic national feminist agenda involving important stakeholder and communities. So they must
guarantee that proper execution is enforced in context to the establishment of Women's
Development plan as well as the social protection system on sexuality, and the implementation
of provincial action plans to reduce inequality.
Key finding
Pakistan is a country where almost half of population is females (49.6%). Although
entrepreneurship is considered a “men’s skill” yet there are many women Entrepreneurs who are
playing a vital role in Pakistani economy. But still numbers are very less in spite of good
proportion in total population. Female entrepreneurship is much difficult task than a male
entrepreneurship. There are many difficulties and challenges faced by a female to start a new
business or sustain currently owned business. There are many challenges confronted by a woman
for her business, finance is most important hindrance in this list. This is the major reasons for
women to remain behind entrepreneurially is the lack of access to finance. After concept and
planning, Fund or capital is key element to start a new business to handle expenses including
fixed expenses and variable expenses.
28

1. Conservative environment- In South East Asia region female entrepreneurs are more
influenced by social and cultural environment. In this region there are many
circumstances female don’t have flexibility to taking decision and execute monetary
exercise.
2. Gender discrimination- Many financial institutions doesn’t support or encourage any
female to start a new start up because they don’t have faith in capabilities of female that
they cannot deal. It is difficult bridge to cross over. The gender wise distribution of gross
loan portfolio of the state bank of Pakistan(SBP) shows that only 3% of small medium
business loans go to women as compared to the 97% given to men. Similarly, only 19%
of the microfinance lent to women while 87% of the loan goes to men. Female
entrepreneur in Pakistan cannot open a bank account without mentioning her father or
husband’s name in the presence of a witness. These obstacles are not due to
discrimination in bank’s regulations. In fact, according to a study conducted by Asian
Development Bank (ADB), this gap is the result of the banks pre convinced notion that
females clients lack credit worthiness, are dependent on men and that obtaining
information about their reliability is difficult.
3. Work environment- The work environment discourages women to engage in economic
activities because of the failure of the organizations and industries to provide for special
arrangement, such as day-care centres for childbearing women, enforcement of the
Workplace Harassment Act, which has been passed by Federal and provincial
governments.
4. Unorganized Industry- many women runs their business from homes so they don’t have
any accounts so it is difficult to get bank loans.
These are few challenges faced by Pakistani women entrepreneurs. There are many Pakistani
women entrepreneurs who have remarkably done very good work not only in Pakistan but across
the globe.
Alternative methods: Questionnaire should be an important tool for collecting reliable
and accurate background information. Interviews are considered an attractive alternative means
of gathering accurate data on the financing challenges faced by women entrepreneurs in Pakistan
and company's operating activities. Both are critical, but the questionnaire was the most effective
tool as per the subject, as it offers correct data in contrast to the interview.
From the above conducted study it has been articulated that most critical element for an
entrepreneur to take into account at this era is funding. As asked by the unleashed businessmen,
80 percent agreed that owing to monetary restrictions they are forced to close their own
companies, while 38,5 percent agree. The most uneducated women force work is because of their
high degree of deprivation and can not even meet their basic needs. A increased low-income
food family in the 21st generation is very challenging as inflation rise every day. The women can
29

only begin their own company to feeding their kids. Once women are separated, the condition
worsens, because no-one is remaining and they will be allowed to take care of themselves.
However, learned entrepreneurs have agreed, as their culture shows independence, which
specifies obviously that they usually stand by themselves even though they have a rich family
context. The woman businessmen of the illiterate world have accepted that they face difficulties
in keeping the harmony between their jobs and their lives, while the people of literature have
very strong disagreements. The government holds a significant part in economic growth because
its task is to oversee and implement strategies that inspire and provide entrepreneurs and
opportunities for start-up through contributing and creating jobs for others.
30

REFERENCES
Books and Journals:
Ayesha, Kalim. 2012. "Women Entrepreneurship The emerging Workforce in 21st Century."
Innovative Educational Solutions (IES).
Sanjay, K. 2013. "Challanges faced by Women Entrepreneurs in India." International Journal
ofManagent and Social Sciences Research.
Afza, T., Hassan, M. and Rashid, M. A., 2010. 'Enterprising Behaviour of Enterprise-less Rural
Women Entrepreneurs of Khyber Pakhtunkhawa of Pakistan', Europeon Journal of
Social Sciences, Vol. 18, No. 1, pp. 109-119.
Ahl, H., 2006. 'Why research on women entrepreneurs needs new directions', Entrepreneurship
Theory and Practice, Vol. 30, No. 5, August, pp. 596-621.
Ahmad, S. Z. 2011. 'Businesswomen in the kingdom of Saudi Arabia: Characterstics, Growth
patterns and Progression in Regional Context ', Equality,diversity and Inclusion: an
International journal, Vol. 30, No. 7, pp. 610-614.
Amutha, D., 2011. 'Enterprise Involvement of Women Entrepreneurs', Research on Humanities
and Social Sciences, Vol. 1, No. 1, pp. 39-44.
Hafizullah and et.al., 2012. 'Problems faced by Women entrepreneurs in Kohat city of Khyber
Pakhtunkhawa Pakistan', International Journal of Human Resource stuides , vol. 2, No.
1.
Jones, L., 2004. 'Reaching low-income Women with Entreprise Development
Services:Challenges and Opportunities', A think piece frem SEEP network.
Neergaard, H. and Thrance, C., 2011. 'The Nordic Welfare Model: Barrier of facilitator of
women's entrepreneurhip in Denmark?', International Journal of Gender and
Entrepreneurship, Vol. 3, No. 2, pp. 88-104.
Palaniappan, G., Ramanigopal, C. S. and Mani, A., 2012. 'A study on problems and prospects of
Women Entrepreneurs with special reference to ERODE DISTRICT', Journal of
Physical and Social Sciences, Vol. 2, No. 3, March.
Pareek , 2012. 'entrepreneurial role stress.', Mimeographed Ahmedabad: Indian Institute of
Management.
Rao, G. T. and SuriGanesh, M. P., 2011. 'Women Entrepreneurship in India (A case study in
Andhera Pardesh)', The Journal of Commerce, Vol. 3, No. 3.
Roomi, M. A. and Parrot , G., 2008. 'Barriers to Development and Progression of Women
Entrepreneurs in Pakistan', Journal of Entrepreneurship, Vol. 17, No. 1, May, pp. 59-72.
Singh, S., and et.al., 2011. 'Motivation to become an entrepreneur: A study of Nigerian women's
decision', African journal of economic and management sciences, Vol. 2, No. 2, pp.
202-219.
Tambunan, T., 2009. 'Women entrepreneurs in Asian developing countires their development anf
main constraints', Journal of Development and Agricultural Economics, Vol. 1, No. 2,
May, pp. 27-40
Afza, Talat and Mohammad Osman. 2010. "Enterprising behaviors of enterpriseless rural
women ofKhyber Pakhtunkhwa ."European Journal of Social Sciences .
Amber, Dr. 2011. "Female entrepreneurs- A review of the literature and proposed
conceptualframework ."Unpublished paper, Institute of Business Administration (IBA),
Karachi.
Kalim. 2012. "Women Entrepreneurship The emerging Workforce in 21st Century."
31

InnovativeEducational Solutions (IES).
Dhaliwal, 2004. "Asian female entrepreneurs and women in business Page 207-216."
Enterpriseand innovation managment studies.
Erum Fatima, and Syed Shahzaib ul hassan. 2012. "Social networking websites; conduit for
womenentrepreneurs in Pakistan."International journal of computing and corporate
research .
Muhammad Azam Roomi, and Guy Parrott. 2008. "Barriers to development and progression in
womenentrepreneurs in Pakistan."The journal of Entrepreneurship.
Nawaser, and Khaled. 2010. "Issues and challanges for women entrepreneurs in Global scene."
Autralian. Journal of Basic and Applied Sciences .
Nelson. 2011. "Challanges Facing Women Micro Entrepreneurs in Dar Es Salaam." International
Journalof Human Resource Studies.
Pat, Rhona H. and Gerry, F. 2014. "The challenges of growing small businessess."
Insights from Womenentrepreneurs in Africa.
Roomi, Muhammad Azam. 2011. "Entrepreneurial capital, social values and islamic traditions."
International small business journal.
Sanjay, K. 2013. "Challanges faced by Women Entrepreneurs in India." International Journal
ofManagent and Social Sciences Research.
Sumaira Rehman, and Muhammad Azam Roomi. 2012. "Gender and work life balance:
a phenomenologicalstudy of women entrepreneurs in Pakistan."Journal of small
business and enterprisedevelopment Vol. 19.
Tambunan, Tulus. 2009. "Women entrepreneurship in Asian developing countries: their
impactdevelopment and main constraints." Journal of Development and Agricultural
economics .
Tania Saeed, and Shaheen sidi Muhamad. 2007. "Women entrepreneurs and access to finance in
Pakistan ." Womens policy journal of Harvard.
Xavier Gine, 2014. "Money or ideas? A field experiment on constraints toentrepreneurship in
Rural Pakistan." World bank policy research working paper no.6959.
32