Women play an increasingly significant but somehow candid role in the development and expansion of small and home-based businesses in Pakistan’s burgeoning economy. Despite socio-cultural challenges and limited access to resources, their entrepreneurial spirit has transformed many households, neighborhoods, and communities. This content discussed the pivotal role of women in this sector, examining their contributions, challenges, and the way forward for empowering women entrepreneurs in Pakistan.
Women entrepreneurs
Women entrepreneurs in Pakistan represent an untapped potential for economic growth and societal progress. Small and home-based businesses have emerged as a feasible avenue for women to participate in the economy while balancing familial responsibilities. These ventures range from traditional handicrafts and food production to contemporary online services, highlighting the diversity of their contributions.
Women-led businesses are crucial to addressing Pakistan’s economic challenges, including unemployment and poverty. Their participation fosters financial independence, promotes gender equality, and improves living standards. However, the road to success is often fraught with systemic obstacles such as cultural barriers, limited financial access, and lack of formal training.
This article explores the multifaceted role of women in Pakistan’s small and home businesses, emphasizing their contributions, challenges, and future potential.
Contributions of Women to Small and Home Businesses
1. Economic Empowerment
Women engaged in small and home businesses contribute directly to household incomes. Many operate businesses in sectors like food production, textiles, beauty services, and e-commerce. For example, women making traditional handicrafts or homemade delicacies not only preserve cultural heritage but also create livelihood opportunities.
Economic empowerment allows women to achieve financial independence, which positively impacts family decision-making and child welfare. According to the World Bank, women’s financial contributions often result in better education and healthcare access for their children.
2. Driving Social Change
Through entrepreneurship, women challenge traditional gender roles and stereotypes. Running a business enhances their visibility in public and private spheres, creating role models for younger generations. Women like Roshaneh Zafar, founder of Kashf Foundation, have set powerful examples of how women’s entrepreneurial ventures can drive societal change by providing financial access to underserved women.
3. Employment Generation
Women entrepreneurs often employ other women, creating a ripple effect in empowering local communities. For instance, rural women running tailoring shops or small beauty salons often hire apprentices or assistants, providing skill-building opportunities for others.
4. Expanding Digital and E-commerce Horizons
The rise of digital platforms has enabled women to establish online businesses with minimal investment. From selling handmade jewelry on Instagram to managing online tutoring services, women are leveraging technology to access wider markets. E-commerce platforms like Daraz and social media have provided them with tools to compete in a dynamic economic landscape.
Challenges Faced by Women Entrepreneurs
Despite their significant contributions, women in Pakistan encounter numerous hurdles that hinder their entrepreneurial growth.
1. Cultural and Social Barriers
Deep-rooted cultural norms often restrict women’s mobility and decision-making autonomy. In many areas, patriarchal mindsets discourage women from stepping into entrepreneurial roles. These barriers are particularly pronounced in rural regions where women face societal resistance to economic participation.
2. Limited Access to Financial Resources
Access to finance remains a critical challenge for women entrepreneurs. Most women do not have property or collateral to secure loans, and banks often hesitate to extend credit to small-scale female entrepreneurs. Microfinance institutions have addressed this gap to some extent, but the coverage remains limited.
3. Lack of Formal Education and Skills
A significant percentage of women lack access to formal education and vocational training. This limits their ability to manage finances, market their products effectively, or adapt to new technologies. Skill development programs remain scarce and often inaccessible to women in remote areas.
4. Balancing Work and Family Responsibilities
Cultural expectations often place the burden of household responsibilities squarely on women. Balancing these duties with entrepreneurial activities is a constant struggle, leading many women to operate on a small scale or abandon their businesses altogether.
5. Market Access and Competition
Women entrepreneurs face difficulty accessing broader markets due to limited mobility, inadequate infrastructure, and a lack of networking opportunities. Competing with established businesses and larger firms is an added challenge, especially for those operating in traditional or informal sectors.
Strategies to Empower Women Entrepreneurs
Empowering women to excel in small and home-based businesses requires targeted interventions from the government, the private sector, and civil society.
1. Policy Reforms and Financial Inclusion
Supportive Policies
- Governments should introduce policies that encourage female entrepreneurship, such as tax incentives for women-owned businesses.
Accessible Loans
- Expanding microfinance options and creating gender-sensitive financial products can address the credit gap.
Subsidies
- Subsidized equipment and raw materials can enable women to scale their operations.
2. Skill Development and Education
- Establishing vocational training centers tailored to women’s needs can enhance their capabilities.
- Incorporating business management and digital literacy into women’s education can prepare them for modern entrepreneurial challenges.
3. Leveraging Technology and Digital Platforms
- Providing affordable internet access and digital training can help women expand their reach.
- Government and private initiatives can support women in using e-commerce platforms effectively.
4. Networking and Market Access
- Trade fairs and exhibitions for women entrepreneurs can provide them with exposure to broader markets.
- Mentorship programs can connect women with experienced business leaders, fostering guidance and collaboration.
5. Addressing Social Norms
- Public awareness campaigns highlighting successful women entrepreneurs can challenge stereotypes and inspire change.
- Community-level interventions, including engaging male allies, can create a supportive environment for women’s participation.
Pakistan – Case Studies for Female Small Business Startups
Below are two case studies that describe two women from very ordinary and humble backgrounds who were able to erect small or rather home businesses from nothing, literally ground zero up, and successful in establishing and providing for their families even amidst challenges posed by a semi- hostile Pakistani society, which is not known to be conducive, especially for working women coming from lower middle classes, to say the least. These three case studies have been referenced from the Care.org and Aljazeera websites.
1. Saadia Shahid – Online Clothing Business
Saadia Shahid, from Rawalpindi, Pakistan, launched her own online clothing business, employing four local women. She began with a stitching center five years ago and gradually transitioned to an online platform. Despite cultural banking restrictions that often require women to have a male guarantor for loans, Saadia secured a microfinance loan to start her venture. Her business not only provided her with financial independence but also empowered other women in her community by offering employment opportunities. The shift to an online model was particularly beneficial during the COVID-19 pandemic, allowing her to maintain operations and continue serving customers.
2. Saeeda Begum – Handmade Garment Business
Saeeda Begum, a 52-year-old entrepreneur from Rawalpindi, Pakistan, started her handmade garment business, “Shining Little Stars,” seven years ago after the passing of her husband. Facing financial challenges, she utilized her stitching skills to support her four children. Specializing in smocked frocks, children’s ghararas, and ladies’ garments, Saeeda now employs up to six women, all of whom she has personally trained. Despite societal challenges in a male-dominated environment, she successfully markets her products and manages her business, providing a source of income for herself and her employees.
Zahida Kazmi: Pakistan’s First Female Taxi Driver
Zahida Kazmi, born in Peshawar, Pakistan, is recognized as the country’s first female taxi driver. After being widowed in 1992 at the age of 33, she faced the challenge of supporting her six children in a male-dominated society. She acquired a yellow cab and began her career by picking up passengers from Islamabad’s airport. Her fluency in Pashto enabled her to serve a diverse clientele, including those traveling to remote areas in northern Pakistan. Over time, she became a respected figure in the transportation industry, serving as the chairperson of Pakistan’s Yellow Cab Drivers Association. Despite her groundbreaking work, efforts to train other women as taxi drivers met with limited interest, even among her daughters. In 2015, Zahida suffered a brain hemorrhage, which, along with high blood pressure and diabetes, affected her ability to drive long distances. To cover medical expenses, she sold her taxi and later transitioned to transporting schoolchildren using a van acquired through community donations.
Zahida Kazmi’s journey is a demonstration to her resilience and determination, challenging societal norms and paving the way for women’s empowerment in Pakistan. Her story has been featured in various media outlets, including the BBC and Aljazeera, highlighting her role in breaking gender barriers in the country. Zaahida’s story and struggle is a very special and poignant tale of determination and courage as working outside the home boundaries for females, especially in the field of commercial taxi services, is fraught with dangers in a society like Pakistan where educational and civic awareness levels are considered one of the lowest in region.
Case Studies – Takeaway
These stories highlight the resilience and determination of Pakistani women entrepreneurs who overcome cultural and financial barriers to achieve success and contribute positively to their communities.
The Way Forward
To unlock the full potential of women in small and home-based businesses, a multi-pronged approach is essential. Collaborative efforts from stakeholders—governments, NGOs, private organizations, and local communities—can ensure sustained progress.
1. Focus on Rural Women
Special attention should be given to rural women who face compounded challenges due to isolation and lack of resources. Initiatives tailored to their needs, such as mobile training units and community business hubs, can make a substantial difference.
2. Scaling Up Informal Businesses
Transforming informal businesses into formal enterprises can enable women to access government incentives, formal credit, and legal protection. Simplifying the process of business registration is crucial for this transition.
3. Encouraging Young Women Entrepreneurs
Schools and colleges should incorporate entrepreneurship programs to cultivate business acumen among young women. Encouraging them to pursue innovative ideas can foster a new generation of business leaders.
4. Promoting Collaborations
Encouraging collaborations between women entrepreneurs and established businesses can create learning and growth opportunities. These partnerships can also foster innovation and sustainability.
Conclusion
Women in Pakistan’s small and home businesses are not just participants in the economy—they are change-makers shaping the nation’s future. Their contributions demonstrate resilience, creativity, and determination to overcome structural barriers. By addressing their challenges and providing holistic support, Pakistan can unlock a wealth of untapped potential that benefits not just women, but society at large. Empowering women entrepreneurs is not merely an economic imperative—it is a step towards achieving a more equitable and inclusive society. The journey requires collective effort and commitment, but the rewards are immense, promising a brighter future for Pakistan.