Fostering Women’s Entrepreneurial Success: The Significance of Informal Institutional support in Venture Creation

Abstract

The significance of women entrepreneurs in creating jobs and driving social and economic progress cannot be overstated. In less developed economies like Pakistan, the participation and impact of women entrepreneurs are notably lower as compared to more advanced nations. This research aims to investigate the effect of informal institutions on venture creation in Pakistan within the framework of institutional theory. Employing a quantitative approach, the study concentrates on women entrepreneurs operating in Hazara and Peshawar divisions. Data collection involved the utilization of five point Likert scale questionnaire through simple random sampling. Empirical analysis of the collected data was executed employing the path analysis methodology within the framework of structural equation modeling (SEM) facilitated by Smart PLS 3. Findings from the research revealed a significant positive impact between informal institutional support in women entrepreneurship and venture creation. The study underscores the significance of government and relevant bodies focusing on critical determinants such as family support, fear of failure, and social networking to enhance the landscape of venture creation. This research contributes to the theoretical literature and sheds light to bring clarity to the particular role of informal institutional factors generally, social networking, family support and fear of failure constraints in enhancing venture creation. It's crucial to evolve women entrepreneurship support programs by government. These programs necessarily address the unique challenges being faced by women when handling the informal institutions. Raising awareness and stimulating societal norms and stereotypes that curtail women’s economic participation is decisive. Launching campaigns to mold societal perceptions can aid break down gender-based obstructions and promote a more comprehensive entrepreneurial setting.