Advancing Financial Inclusion for Women Entrepreneurs in Pakistan

Advancing Financial Inclusion for Women Entrepreneurs in Pakistan

By: SDPI

Partner/Donor: Friedrich Naumann Foundation (FNF) Pakistan

Team Members: Dr Vaqar Ahmed, and Ms Mahnoor Arshad

Introduction: The importance of women as innovators, entrepreneurs, tech-experts, start-up founders, business owners, and home-based workers across multiple fields and disciplines is increasingly being recognized and acknowledged globally. Despite this, the economic gap between men and women is still quite significant and financial inclusion, especially in the developing countries, is a major challenge. Women encounter obstacles in accessing credit, training, and information, as well as networking opportunities, in addition to confronting legal and policy barriers. While women’s access to capital is improving worldwide, the scenario in Pakistan contrasts sharply due to a myriad of socioeconomic barriers hindering them from reaching their full economic potential. A primary factor among these barriers is limited access to finance.

To understand these barriers and research about the way forward, Friedrich Nauman Foundation (FNF) Pakistan in collaboration with Sustainable Development Policy Institute (SDPI) initiated a study on “Advancing Financial Inclusion for Women Entrepreneurs in Pakistan”. The study highlights the current global landscape of women’s entrepreneurship, especially in the context of Pakistan, the challenges that women in Pakistan face with regards to accessing finance, and some of the other associated challenges regarding capacity-building, socio-legal barriers and mainstreaming financial and digital knowledge among women. It also provides recommendations on how public and private sectors can collaborate on policy strategies to create a business and trade environment that empowers women.

Objectives:

The study aimed to:

• Analyze the key obstacles that prevent women entrepreneurs in Pakistan from accessing formal financial services, including cultural, regulatory, and institutional challenges.
• Advocate for the development and implementation of gender-sensitive financial policies that facilitate greater access to credit, banking, and digital financial services for women-led businesses.
• Strengthen financial literacy and capacity-building initiatives to equip women entrepreneurs with the skills needed to navigate the financial system effectively.
• Encourage collaboration between government bodies, financial institutions, and the private sector to create tailored financial products and services that meet the unique needs of women entrepreneurs.
• Contribute to Pakistan’s economic development by empowering women entrepreneurs through improved access to finance, thereby enabling them to grow their businesses and participate more fully in the national economy.

Impact and Outcome:

The study has created a significant impact by addressing the financial challenges faced by women entrepreneurs. Its key contributions include:

• Influencing financial institutions and policymakers to recognize the need for more accessible financial products and services tailored specifically for women entrepreneurs, increasing their participation in the formal economy.
• Empowering women entrepreneurs to expand their businesses, contributing to economic resilience and job creation by identifying and addressing the barriers to financial inclusion.
• Contributing to the development of gender-responsive financial policies and initiatives, thereby helping policymakers design interventions that promote greater financial inclusion for women.
• Advocating for the importance of financial literacy programs, leading to increased awareness and capability among women entrepreneurs to manage finances and access credit effectively.
• Supporting the broader goal of inclusive economic development by ensuring that women entrepreneurs can fully participate in and benefit from Pakistan’s financial system.

Status: Completed