Microfinance and women entrepreneurs in Pakistan

Abstract

Purpose The purpose of this paper is to outline findings of an initial exploratory study, undertaken as part of a larger ongoing research project, seeking to understand the influence and impact of microfinance on women's entrepreneurship and empowerment within developing countries such as Pakistan. Design/methodology/approach The research conducted in this study used 37 semi‐structured questionnaires from women borrowers financed by two microfinance institutions of Pakistan. Findings The findings show that microfinance institution is providing credit to women for starting their business. However, 62 percent of the women borrowers established their own business from microfinance loan and other 38 percent did not use microfinance for the said purpose. The lack of training by microfinance institutions is also considered to be a factor in very less number of women starting new business from microfinance loan. Research limitations/implications A small sample is used from the Punjab province of Pakistan, therefore care is required when generalizing the results. Originality/value This paper will facilitate discussion in exploring the area of microfinance in a developing country and form a base for conducting research in future on the issue of microfinance and women's entrepreneurship.