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  • International Journal of Accounting and Financial Management (IJAFM)

    Universal Research Group

    ISSN: 2322-2107

    Vol.2. September 2012


    Problems Faced by Female Entrepreneurs of Sindh

    Zulfiqar Hussain Pathan

    PhD Research Scholar (MU-ISTD) and Senior IT Assistant (MUET)

    Mehran University of Engineering and Technology, Jamshoro


    Dr. Qazi Muhammad Moinuddin

    Assistant Professor and Secretary

    Mehran University Institute of Science, Technology and Development (MU-ISTD),

    Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan


    Prof. Dr. Roshan Shah Rashidi

    Dean FOSTH, Co-Director

    Mehran University Institute of Science, Technology and Development (MU-ISTD),

    Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan



    The study was conducted to have an overview of the existing conditions, problems /

    barriers / hindrances of female entrepreneurs based in Sindh. It was also conducted to come

    up with recommendations / suggestions to address existing problems to promote gender

    friendly business environment. The analysis was based on primary data collection through

    structured questionnaire. The total sample size (29) twenty nine female entrepreneurs of 04

    districts of Sind i.e are (Karachi, Hyderabad, Sukkur & Matiari). The study clearly indicates

    that lack of Technology; Social Capital, Low Government Support and Financing are the

    main barriers which highly affect to the growth of female entrepreneurs of Sindh. The other

    major problems included are, low education level, lack of managerial experience, low

    marketing skills. This study conveys the message that if the female entrepreneurs of Sindh are

    provided appropriate training, technical knowledge, local administrative support from public

    institutions, free collateral loans, social security, protection and encouragement from their

    families, flexible business environment etc they will enter in to the entrepreneurial occupation

    in a large number and will prove their worth to contribute to the economy of the country. Both

    the government and non government organizations have a major responsibility to promote

    entrepreneurship development for female. Without their interventions the advancement of

    female and female entrepreneurship can not be achieved.

    Keywords: Female Entrepreneurs, Barriers/ Problems

  • International Journal of Accounting and Financial Management (IJAFM)

    Universal Research Group

    ISSN: 2322-2107

    Vol.2. September 2012



    Nowadays female / female empowerment have been increasing so rapidly all over the

    world and female are starting their own business to get greater control over their personal

    lives. In Pakistan, female dont enjoy the same opportunities like men. The segregation of

    gender starts early and become a way of life. However, the economic necessities are forcing

    more and more female to engage in economic activities employment or entrepreneurship

    [Aisha et al, 2009]. Economic census of Pakistan finds female entrepreneurs in Pakistan are at

    the lowest level among the developing countries, it is estimated that female entrepreneurs

    presently comprises about 3% of the total 3.2 Million entrepreneurs in the country and an

    estimated 33% of female are in rural areas. These female are engaged in Garments, Boutiques,

    Parlors, Fashion Designing work and craft such as embroidery; tailoring carpets, shawl

    making, pottery ceramics and food processing having incredible skills and potential.

    The basic purpose of this paper is to identify the main problems which are affecting the

    female entrepreneurial activities in Sindh. For this purpose the secondary data has collected

    from literature as well as from internet and primary data has collected with the help of

    designed questionnaire.

    Conceptual framework / Business Environment of Female Entrepreneurs in Pakistan:-

    Female entrepreneurs do not operate in isolation. They work under the same macro,

    regulatory and institutional framework as their male counterparts in a free market mechanism

    in Pakistan. It is necessary to dig deeper to understand the gender biases embedded in society

    which limit females mobility, interactions, active economic participation and access to

    business development services. The business environment for female in Pakistan reflects the

    complex interplay of many factors, which fall into two basic categories. The first is made up

    of social, cultural and traditional elements. This aspect of the environment has taken shape

    over many centuries. The gender bias of this type of system is rigid and deep-rooted as it

    draws legitimacy from the perpetuation of a traditional mind-set, established rituals and a firm

    belief system.

    The second group of factors derives from the first group, taking the form of

    constitutional structures, policy documents, regulatory arrangements and institutional

    mechanisms. This category is contemporary rather than traditional, so it is cosmetically

    impartial. The traditional systems pose difficulties for female in general and entrepreneurs in

    particular in two ways. First, they are inherently discriminatory and second, they inhibit the

    equity-based composition of modern institutions and their fair working, as modern institutions

    are derived from traditional ones.

    Research Objectives:

    1. To identify the nature of the constraints faced by female entrepreneurs. 2. To categorize different constraints, according to financial, social and human capital needs.

    3. To examine the most critical constraint related with the female entrepreneurs

    Literature Review

    The factors which are discouraging the female are societal norms, low level of funding,

    lack of information, low skill acquisition, low level of education, lack of supporting networks,

    lack of managerial experience and low level of encouragement from spouses and families.

    These factors include:

  • International Journal of Accounting and Financial Management (IJAFM)

    Universal Research Group

    ISSN: 2322-2107

    Vol.2. September 2012


    (a) Socio-cultural factor: A major point to note here is the fact that in Pakistan, many

    female during the socialization process were not given enough opportunity, freedom, and

    wherewithal to develop adequate and appropriate skills that can enable them to have

    entrepreneurial competency. This is essentially inherent in the much created gender-related

    limitations which has the tendency to relegate female/females to the background.

    (b) Low level of Funding: Poor finances and lack of adequate funds for starting

    enterprises are a serious problem to female entrepreneurs. Female generally are poor for lack

    of funds and as such do not have enough financial backing to start a good business or sustain

    an existing one. In this context, Carter (2000) identified four areas of financing that previous

    researchers have noted can pose particular problems for female that are disadvantaged in their

    ability to raise start-up finance: guarantees required for external finance may be beyond the

    scope of most females personal assets and credit track record, once a business is established,

    finance may be more difficult for female entrepreneurs to raise than for their male

    counterparts, because of the greater difficulties that female face in penetrating informal

    financial networks and the relationship between female entrepreneurs and bankers may suffer

    from sexual stereotyping and discrimination. As such, the majority of female business owners

    rely to a significant extent on self-generated finance during the start-up period of their


    (c) Lack/Poor Access to Market Information: Usually, there are not many educated

    female in Pakistan. The literacy level is still at the low rate in the country. As such, much of

    the market information that could have been beneficial and in essence enhance better

    productivity elude female. Most are ignorant of market trends concerning costing, pricing, etc.

    and consequently could not benefit maximally from readings of price movements and


    (d) Lack/Poor Technological Know-how: Low educational status of most female does

    not allow very many of them to have the opportunity of being technologically sound. Many

    technical skills that could up till now have assisted to ensure successful enterprise and

    appropriate production techniques and product diversification are not possessed by many

    female. For this reason, it is almost impossible for them to be relevant in the current

    technological changes and the globalization of production.

    (e) Poor Networking/Linkage: Female are not properly connected. Many as noted earlier

    are poor, uneducated, and unconnected. As such, good networking or linkage for support

    services even when available may be beyond the reach of female.

    (f) Mainstreaming into Arts-related courses/paucity of Female Entrepreneurs: During

    schooling, many girls were not encouraged into the sciences for reasons ranging from the


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