This study aims to investigate the impact of microfinance on poverty reduction through women entrepreneurship in Southern Punjab, Pakistan. We also examine if social capital plays any role in microfinance and women entrepreneurship growth that leads towards poverty reduction. This study uses the data collected through a survey of 210 women entrepreneurs, who secured microfinance loans for their new/established enterprises. By applying correlation and regression analysis techniques, this study finds that access to finance is important for female entrepreneurs and it helps them in realizing their potential as entrepreneurs. A range of entrepreneurial characteristics was found to be critical to the success of women led enterprises in general and to poverty reduction among their families, in particular. Our results reveal that microfinance plays a positive role in women's entrepreneurial performance. We also find that Islamic microfinance contributes more to sustainable women's entrepreneurial performance than non-Islamic microfinance. Although this study used a limited sample of Pakistani female entrepreneurs, yet the results can be relevant to women entrepreneurs in other developing countries with contextual cautions. Future researchers may incorporate more relevant variables and increase the sample size to enhance the understanding of our investigated phenomena.
Purpose: This paper examines Islamic microfinance impeding sustainable women’s entrepreneurial performance in South Punjab, Pakistan. Further, we examine whether human capital mediates the relationship between variables Design/Methodology/Approach: To examine the impact, the primary data were collected from 220 women entrepreneurs who obtained microfinance from Islamic microfinance institutions (IMFIs) and Non-Islamic microfinance institutions operating in South Punjab, Pakistan. The correlation and regression models are used to translate the relationship and measure the impacts of microfinance on women’s entrepreneurial performance. Findings: Results show that Islamic microfinance plays a positive role in women's entrepreneurial success. Further, documented that IMFIs have contributed more to entrepreneurial growth as compared to non-IMFIs. Implications/Originality/Value: This paper can be further extended by incorporating more factors and increasing sample size in order to get more significant results.
Purpose: In the contemporary era, women are playing a vital role in changing the global economy as entrepreneurs, workers, and consumers, yet they encounter many problems and obstacles in the development of entrepreneurship. This study aim is to investigate the impact of Islamic microfinance on women entrepreneurship performance: mediating role of social capital and moderating role of opportunity for social interaction in South Punjab, Pakistan. Design/Methodology/Approach: Data were collected from 183 women entrepreneurs, who were using Islamic microfinance, through the convenience sampling technique. Convenient sampling technique was used to collect the information. PLS-SEM was employed to statistically test the data. Findings: This study results indicate that microfinance had a negative relationship with women's entrepreneurship performance. However, when Islamic microfinance led to the formation of social capital among women that eventually caused the women entrepreneurship performance. Moreover, the extent to which microfinance provisions affected the social capital of clients was dependent upon the microfinance providers facilitated social interaction among clients. . Implications/Originality/Value: This paper will give benefit to academics in preparing a plan for future research. Moreover, findings will also assist policymakers and IMFIs to set out microfinance initiatives that will improve the betterment of clients and will maximize their enterprising results.
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