Exploring the impact of COVID-19 pandemic on women entrepreneurs in Pakistan

Abstract

Purpose The purpose of this paper is to explore the impact of COVID-19 lockdown on micro-businesses owned by women borrowers of microfinance institutions and to provide policy suggestions to assist women entrepreneurs in managing such an unexpected crisis from a qualitative perspective within developing countries such as Pakistan. Design/methodology/approach The study adopts a qualitative research design to explore the impact of COVID-19 on women’s entrepreneurial activities. Seven women entrepreneurs were selected and semi-structured interviews with focused group discussion under case study research design are used. Thereby providing a contemporary view of the issues faced by women entrepreneurs in the period of huge social and economic upheaval. Findings The results provide valuable insights about how the COVID-19 crisis affected women entrepreneurs by particularly considering household income, business sales, lifestyle and mental health. The liquidation of women-led businesses indicated the necessity to reconsider creativity and digitalization for business survival. Moreover, the results also revealed that the impact of the COVID-19 pandemic on the physical, mental and economic well-being of women highlights the need for considering gender gap issues in forming response policies for COVID-19 in developing countries. Originality/value As the COVID-19 crisis is a recent and existing phenomenon, this study is among the first to explore particularly the impact of the COVID-19 outbreak on micro-enterprises mainly owned and managed by women. Thereby claiming that COVID-19 not only physically but also psychologically affected women entrepreneurs. Moreover, the study highlights a need of skill focused training programs for women entrepreneurs to make sure that they can protect their businesses during such difficult times.

Are Women Entrepreneurs’ Business Performances Influenced by Financial Resources? Empowering Women Entrepreneurs in Malaysia Through Financial Resources Post-Covid-19 Pandemic

“…Being an entrepreneur entails substantial challenges, predominantly for a women entrepreneur, whereby she has to accept all the responsibilities for business performance, subsequent earnings as well as failures (Elahi & Malik, 2021;Azam & Moha Asri, 2015;Udriyah et al, 2019). The probability of enhanced performance is substantially more arduous for a women entrepreneur, who has to face and overcome business difficulties besides the complications associated with operating a business in a male governed business environment (Mustafa et al, 2021;Al-Shami et al, 2019;Selvadurai, 2019;Aliyu et al, 2019;Alam et al, 2011). Still, many women have chosen to run their businesses on their own (Khursheed et al, 2021;Muhammad et al, 2020;Hisrich & Brush, 1984).…”

“…Financial resources are vital for commencing and developing businesses (Mustafa et al, 2021;Chipfunde et al, 2021;Guzman & Kacperczyk, 2019;Danga et al, 2019;Papaneek & Harnis, 1980). Financial resources and the talent to secure the resources may make the difference in realizing the anticipated growth in a business after the Covid-19 lockdown is lifted.…”

“…Women entrepreneurs' competence to raise startup capital, incapability to proffer collaterals or guarantees, failure to access formal and informal networks that could help them secure financial aids, and bankers' discrimination were frequently researched . Moreover, (Mustafa et al, 2021;Mahat et al, 2021;Alene, 2020;Brush et al, 2002) states that financial capital is a significant factor that aids small ventures to reinvent and flourish after the Covid-19 lockdown is revoked. This was supported by (Chipfunde et al, 2021;Beck & Demirgu-Kunt, 2006), who said that financial capital provides working capital, foster more significant firm innovation and dynamism, enhances entrepreneurship, promotes more efficient asset allocation, and enhances the firm's ability to exploit growth opportunities.…”

“…However, this is only at the initial stages of the business operation (Dzisi et al, 2015). Moreover, financial resources are significant for women entrepreneurs' business growth after the Covid-19 lockdown is eased (Mustafa et al, 2021).…”

“…Even if the number of women entrepreneurs has been remarkably rising on an annual basis (Thuaibah et al, 2007), research concentrated on women entrepreneurs' performance in Malaysia is insufficient (Teoh & Chong, 2007). Moreover, several researchers have conducted studies on the effect of the Covid-19 lockdown on entrepreneurs, but very little research was conducted on the struggles of women entrepreneurs during and after the uplifting of the lockdown (Mustafa et al, 2021;Kuckertz et al, 2020;Shepherd, 2020).…”