Female Entrepreneurs
FEMALE ENTREPRENEURS
Female Entrepreneurs – A Review of the Literature and Proposed Conceptual Framework
Muhammad Usama Anwar, Dr. Amber Gul Rashid
Institute of Business Administration (IBA), Karachi
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Abstract
Female entrepreneurship is considered an important tool in enabling female empowerment and
emancipation. This paper looks at the literature around female entrepreneurs, focusing on female
entrepreneurship in the developing world - and more specifically in Pakistan - and proposes a
conceptual framework of the phenomenon. It is hoped that it will be useful to fellow researchers
who are undertaking studies in this area. In the light of recent world events, this has become a
crucial area to study and understand – especially with respect to motivations, constraints and
consequences
Keywords: female entrepreneurship, developing world, Pakistan, literature review; home-based
female entrepreneurs
1.0 Introduction
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Female entrepreneurship has long been associated with concepts such as female empowerment
and emancipation. Increasingly, it has also been marketed as crucial for increasing the quality of
life of women in the developing world. Post 9/11, it has also been encouraged as a way of
making changes to the status-quo of women in the Muslim world and re-addressing the balance
of power within the family unit.
The benefits of female entrepreneurship are many and varied, and have been researched in great
detail in the past. The purpose of this research is to facilitate the discussion on how best to
empower women using entrepreneurship. This will in turn help in the marketing of
entrepreneurship as a tool for female empowerment and emancipation. This paper presents a
review of female entrepreneurship in the developing world but the emphasis in on Pakistan.
References from other developing countries have been included as and when appropriate. In a
small number of cases, some research from the developed world has also been included if it was
felt by the researchers that it would add to give a balanced view to the reader. Early on in the
paper, the conceptual framework that the researchers came up with as a result of the literature
review has been presented – which is then followed by an explanation of the model.
2.0 Literature Review
The literature review will first look at the concept of entrepreneurship, and then go on to look at
female entrepreneurship and associated definitions. The focus of the review is on the developing
world, especially Pakistan. The literature review tries to combine recent research with some
older work to present a well-rounded picture.
2.1 Definition of Entrepreneurship
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It is important to start off with a discussion on the definition of entrepreneurship to ascertain
what we mean by this concept. Singh and Belwal (2008: 1) quote Desai (1999) to describe the
roots of the word entrepreneur. They state “The word entrepreneur is derived from the French
verb enterprendre that means to undertake”. We can define an entrepreneur as “……One who
undertakes a commercial enterprise and who is an organisational creator and innovator” (Gartner,
1990; Gartner et al., 2004) quoted in Mordi et al. (2010: 1).
Dzisi (2008: 3–4) gives the definition of entrepreneurship from the economic point of view,
quoting the definition given by Schumpeter and Krizner. “Schumpeter (1934) described the
entrepreneur as the innovator who introduces something new into an economy” and “…Kirzner
(1997 – authors‟ own addition) stressed the fact that the entrepreneur is the decision maker in a
particular cultural context, who commands a range of behaviours that exploit these
opportunities”.
Singh and Belwal (2008: 2) have quoted Donnely et al. (1990) to describe the motivations and
operations performed in order to establish the definition of entrepreneur. They stress “…An
entrepreneur is an individual who propelled by an idea, personal goals, and ambition, brings
together the financial capital, people, equipment, and facilities to establish and manage a
business enterprise”.
While defining entrepreneur, some writers have employed economic indicators like growth and
profit, or incorporated entrepreneurship as an effective tool in reducing poverty. Entrepreneurs
“seek out and identify potentially profitable economic opportunities [and as such are] agents of
growth” (OECD, 1998: 11, in Farr-Wharton and Brunetto, 2007: 2).
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In any activity, we cannot eliminate the characteristics of human behavior. Mordi et al. (2010: 3)
quote Winn (2005) to establish a definition on such characteristics “…One who prospects for or
exploits opportunities and who has a tenacity to face challenges”.
Although entrepreneurship is usually regarded as an activity, some definitions concentrate more
on its operational and functional characteristics. Roomi and Harrison (2010: 3) quote Stevenson
(1983: 1) to state that entrepreneurship is “the pursuit of opportunity without regard to the
resources currently controlled” and go on to quote Shane and Venkataraman (2000)
“Entrepreneurship concerns the environment conditioning opportunity, the process of
discovering opportunity, the evaluation and exploitation of opportunity, and the individual
decision-makers who do these things”.
Certain writers portray entrepreneurship as a human behavior linked to personal achievement
“Entrepreneurial behavior is often driven by diverse reasons including the desire for personal
accomplishment” (OECD, 1998 in Itani et al., 2011: 2). Some authors also mention that
entrepreneurial behavior is visionary, with its concern being the exploitation of possessions in a
more refined manner. Hampton et al. (2011: 2) quote Timmons (2009) to state “Entrepreneurial
behaviour is about utilising resources beyond the immediate scope of the entrepreneur and his or
her venture…”
As can be seen, entrepreneurship can be (and has been) studied from various different angles,
hence creating divergent yet complementary views of the phenomenon – leading to a better
appreciation of the complexities involved in it.
2.2 Female Entrepreneurship
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There is one gender-specific definition the authors came across that specifically appealed to them
due to its emphasis on female entrepreneurship. “Female entrepreneurs are defined as those who
use their knowledge and resources to develop or create new business opportunities, who are
actively involved in managing their businesses, and own at least 50 per cent of the business and
have been in operation for longer than a year” (Moore and Buttner, 1997 in Farr-Wharton and
Brunetto, 2009: 2)
In the context of this paper, we will extend this definition to explicitly include home-based
female entrepreneurs “Female entrepreneurs are defined as those who use their knowledge and
resources to develop or create new business opportunities – whether this be informally in a home
environment without formally registering their business or formally via business registration,
hiring office premises, etc. - who are actively involved in managing their businesses, are
responsible in some way for the day-to-day running of the business, and have been in operation
for longer than a year” (the new words introduced in the definition by the present authors have
been italicized).
It is important to see female entrepreneurship as a distinct yet related concept to male
entrepreneurship so that we can make efforts to understand the similarities and differences
among both these groups.
3.0 The Model of Female Entrepreneurship
Based on our review of the literature, we have built a model of entrepreneurship that tries to
encapsulate the essence of female entrepreneurs – with its emphasis on female entrepreneurs in
the developing world. During the discussion, we have paid special attention to Pakistani
entrepreneurs.
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Of course, our underlying assumption here is that female entrepreneurship is in itself a different
phenomenon as compared to male entrepreneurship, requiring a separate model to explain it.
This does not mean that entrepreneurship for males and females is a completely different
phenomenon; however, both encompass varied aspects due to the different traditional
expectations from these genders, especially in the developing regions of the world.
3.1 Discussion
The subsequent sections of the paper elaborate and elucidate upon the different aspects of the
model – presented pictorially in Figure 1.0. As mentioned earlier, while discussing female
entrepreneurs in the developing world, we have paid special attention to Pakistani entrepreneurs.
1.0 Model of Female Entrepreneurship
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Push & Pull Theory
Personal
Social factors
Financial Factors
Professional Work
Environment
Motivation
Local Governmental, Financial &
Family Upbringing & Networking
Not-for-Profit Institutions
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Management Style & Personal Attributes
Programs
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Personal
Financial
Social & Cultural
Family
Lack of Education & Unawareness
Lack of Managerial skills &
Trainings
 Govt. Related Issues
3.1.1 Motivation
 Lack of Networking & Mentorship
 Labor related Issues
The social capital prospect is not necessarily the same
for malesrelated
and females
 Marketing
issues (DeTienne and
 Harassment
Chandler, 2007). Most writers describe the motivating factors for female entrepreneurs using the
 Environment
pull-&-push theory “The array of factors that may contribute in varying degrees to „pushing‟ or
„pulling‟ a woman into business ownership” (Stevenson, 1986 in Itani et al., 2011: 3).
Personal factors like self fulfillment and achievement are motivational factors for females across
the globe. One significant factor contributing to this is the status of females in society, especially
in the developing world. Their leadership-role is discouraged; they are considered subservient to
males (Dzisi, 2008). They come to business because they want to prove themselves to others,
including family members (Itani et al., 2011). With the world becoming a global village, many
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women even in remote and far-flung places are becoming exposed to the idea of financial
independence as a route to empowerment.
In many countries, spouses work together to run the household. This also means that issues such
as childcare costs acquire greater importance, along with the opportunity cost of letting go of a
stable income in order to earn what may possibly be a risky venture. We cannot deny the
importance of financial factors while pursuing an entrepreneurial activity. Supporting the family
income (Jamali, 2009) and raising their standard of living are also contributory motivational
factors in female entrepreneurship.
Although some researchers disagree with this (Roomi et al, 2009), it has been pointed out by
most researchers in this area. In some cases, it has been observed that self-employed females
cannot cope with this challenging environment as compared to paid employment (Rosti and
Chelli, 2009) and hence their motivation may suffer. This is an important factor to consider for
any policy that aims to encourage long term female entrepreneurial involvement to foster socioeconomic development.
The job-market situation also poses threats to females and they may become entrepreneurs to
find more opportunities. At jobs, females may not be provided with roles that allow them to grow
according to their capabilities (Remi-Alarape et al., 2009). Their growth may be barred and a
certain atmosphere is created in which they cannot elevate themselves from their current position
to high ranks. (Dima Jamali, 2009) – the proverbial glass-ceiling.
In some cases, it has also been observed that females become self-employed because there is no
paid employment available for them and self-employment is their last resort (Jamali, 2009).
Secondly in most cultures, females are generally only involved in household activities; their self-
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employment is discouraged. This sometimes prompts women to rebel against expectations by
becoming self-employed; it gives them self fulfillment (Smile Dzisi, 2008) and an opportunity to
prove themselves (Itani et al., 2011).
In lower-income classes, female entrepreneurship may be due to the need to meet family
expenses, while among middle-income groups it can be attributed to the desire to raise the
standard of living. (Nadgrodkiewicz, 2011).
3.1.2 International Development Programs
International development programs on female entrepreneurship involve all the efforts made by
developed nations, world financial institutions and other organizations working world-wide.
They include financial & technical aid, assistance to managerial skills and other opportunities to
grow business. USAID (Ibrahim, 2009) and World Bank (McLymont, 2008) are forerunners in
this category.
Access to finance has been the major issue across the globe for female entrepreneurs, especially
in under-developed countries. The World Bank has introduced many initiatives with its partners
to provide funding for female entrepreneurs. In Nigeria, the World Bank in collaboration with
Access Bank P.L.C. (McLymont, 2008) is providing lending facilities to such females. In
Pakistan, the World Bank is one of the donors of Pakistan Poverty Alleviation Fund (PPAF)
which is actively involved in micro-financing; female entrepreneurs represent a large group 54% - among their creditors (Mustafa & Ismailov, 2008).
The United States Agency for International Development (USAID) is working actively in
Pakistan for female entrepreneurs. They assist women in running small businesses in far-flung
areas and provide them opportunity to improve the standard of their products and enable their
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entrance into potentially profitable markets (USAID Web-blog). USAID also initiates programs
to develop basic management skills among female entrepreneurs in collaboration with local
institutions (Daily Times, 2011).
The US Department of State has also extended its assistance to the development of female
entrepreneurs in many countries; it convinced Goldman Sachs to include Pakistani females in
their training program for female entrepreneurs. Other partners in this venture involve
Organization for Pakistani Entrepreneurs of North America (OPEN) and the Thunderbird School
of Global Management – both of them work to promote female entrepreneurship (US
Department of State Official Blog, 2011). Melanne Verveer, United States Ambassador-at-Large
for Global Women's Issues, is the driving force behind this initiative.
3.1.3 Local Governmental, Financial, and Not-for-Profit Institutions
The role of females in the development of a country cannot be neglected or underestimated
(Langowitz and Minniti, 2007) as it not only provides a platform for women to prove themselves
(Eddleston and Powell, 2008) but also contributes to the welfare of the overall economy.
Governments worldwide are taking steps to promote female entrepreneurial activities.
Studies have stressed the need for effective governmental planning and strategies to promote and
encourage female who are or want to be an entrepreneur (De Bruin et al., 2007).
The
Government of Pakistan has also realized the importance of female entrepreneurship to boost the
output of the economy. Prior to the 2006 Trade Ordinance, representation of females in local
Chambers of Commerce was next to nothing. After the revised format of the Ordinance, women
not only have effective representation but they have also shaped their own Chambers
(Nadgrodkiewicz, 2011).
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In many parts of the world, ground realities are different despite funding and effort. Female
entrepreneurs still have problems due to the lack of governmental support (Singh and Belwal,
2008). Businesses formed by women are sometimes very small scale and may not even be
registered with the government (Tambunan, 2009); this may happen due to complex registration
procedures.
Most governments are putting efforts into encouraging female entrepreneurship but many
women are unaware of these schemes to promote their businesses (Itani et al, 2011). However,
this situation is not true for all women; those who are well-informed, keep an eye on support
programs and are able to develop links are utilizing these opportunities efficiently to grow their
businesses (Farr-Wharton and Brunetto, 2007).
Financial institutions play a vital role in promoting the growth of entrepreneurial activities.
Females across the globe complain about lack of financial resource (Halkias et al., 2011). Credit
lines for female entrepreneurs granted by financial institutions have not been of significant
volume. However, there is some evidence that reveals the other side of the picture. Growing
competition in the African banking sector is compelling banks to gain more female customers in
order to increase their profit (McLymont, 2008).
Stereotyping haunts female entrepreneurs - they complain about the discouraging attitude of
financial institutions towards them (Roomi et al., 2009). “There are reports claiming
discrimination against women entrepreneurs when applying for loans from private sector banks,
even though they often have superior collateral” (ECA, 2004, in Roomi et al., 2009). In the
developing world, however, in most cases female do not possess personal assets and are unable
to offer any collateral.
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In many instances, local chambers of commerce are implementing a number of initiatives to
guide, assist and aid women to establish their businesses. Collateral for loans has been a tough
requirement for females in Pakistan and the State Bank of Pakistan has yet to convinced of the
merits of advancing loans to women without collateral (Nadgrodkiewicz, 2011).This gives rise to
a vicious cycle where women are unable to secure the initial funding to get started on their path
to start an entrepreneurial venture – hence leading to a lack of opportunities for women to gain
financial independence.
Micro-financing is an area where the government, international development programs and notfor-profit organizations are doing valuable work in conjunction with one another. As mentioned
earlier, Pakistan Poverty Alleviation Fund (PPAF) is one example; it has significantly boosted
female entrepreneurial activities as the majority of its creditors are females (Mustafa & Ismailov,
2008).
Considerable efforts have been made by the governmental & non-governmental sectors to
provide micro-finance in Pakistan, and females are key targets of such programmes. Khushhali
Bank (established by the Government of Pakistan), Kashaf Bank and National Rural Support
Program (NRSP) are the leading micro-financiers in Pakistan (Microwatch, 2008).
The First Women Bank Limited is also an initiative by the Government of Pakistan for the
welfare of female entrepreneurs. The main idea behind it was to improve the socio-economic life
of women in Pakistan. It provides loans to female entrepreneurs, training & advisory services to
better manage their business, and other market opportunities (International Labor Organization
(ILO), 2003). Shell Tameer and SMEDA are also doing valuable work to foster entrepreneurship
– both for males and females.
3.1.4 Management Style & Personal Attributes
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The managerial approach of female entrepreneurs is more democratic than their male
counterparts - they build trust among their workers through transformational and interactive
management style (Moore, 2011). Farr-Wharton and Brunetto (2007) mention that female
entrepreneurs share power to create a collaborative work environment; their first management
focus is strategic with employees as their second priority; they extend a supportive attitude
towards the mistakes of their employees.
Personal attributes of female entrepreneurs may also sometimes create opportunities or barriers
for them. There is a high proportion of females who have a fear of failure (Itani et al., 2011). At
the other end of the spectrum, some studies reveal that female entrepreneurs love to take risk, are
open to challenges, and put in their best efforts to pursue their goals (Mordi et al., 2010).
In traditional Muslim societies and communities, male-female segregation is the norm and
presents its own issues. Female entrepreneurs guard their privacy and prefer a working
environment where they don‟t have to interact with males (Itani et al., 2011), or the interaction is
kept to a minimum.
However, this also creates opportunities – one of the authors of this paper knows of the great
need for female entrepreneurs who want to start female-only swimming classes, female only
event management and catering services, and female only taxi/car-hire services in Pakistan. Such
offerings are starting to come on the market as female consumers become more demanding and
emancipated; however, they also further cement the male-female segregation phenomenon,
leading to a further consolidation of the gender imbalance in such societies. Additionally, such
businesses may hire females as their front-facing workers, but the logistical affairs generally
remain under male supervision and domain.
3.1.5 Family Upbringing & Networking
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Families play an important role in female entrepreneurship; recent studies reveal two opposing
pictures in this respect. In some cases, families are very supportive (Halkias, 2011) and play an
important and supportive role in helping females to develop business ideas (Jamili, 2009). On the
other hand, females consider families as a constraint. They receive no appreciation for their work
and in most cases they are discouraged (Itani et al., 2011).
Sometimes, this feeling of being discouraged also persuades women to think about selfemployment in order to prove themselves (Itani et al., 2011). Those females who come from an
entrepreneurial background - either one or both of their parents is or has been self-employed - are
very confident in their business approach (Mordi et al., 2010).
Networking is a source of competitive edge (Miller et al., 2007); it plays a decisive role during
the daily operations of an entrepreneurial venture as well as for future growth (Cantzler and
Leijon, 2007). As resources in an economy are always scarce, better planning to acquire these
resources and their effective utilization is imperative. Efficient networking keeps an entrepreneur
one step ahead of his/her competitor in grabbing these resources (Timmons, 2009).
In some cases, women derive new business ideas and opportunities from these networks (FarrWharton and Brunetto, 2007). Some studies describe women as being more effective in
developing networks (Sorenson et al., 2008); however, a lot also depends upon their personal
attitude towards trust and information sharing. They like to develop networks only with people
they are comfortable with and in whom they have trust (Farr-Wharton and Brunetto, 2007).
In most cases, these female entrepreneurs come from close-knit families and are comfortable
sharing information and seeking advice from people in their close circle (Robinson and
Stubberud, 2009). It‟s not always true that females join or develop networks only to access
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resources, grab opportunities or to seek advice. Some studies mention that females use their
networks just for emotional support (Roomi et al., 2009).
3.1.6 Goals
A difference exists between male and female entrepreneurs in this respect (Halkias, et al., 2011);
females mostly strive to achieve self-fulfillment and accomplishment through self-employment
(Roomi et al., 2009). During a study conducted in Ghana, female respondents ranked selffulfillment higher than other end results (Dzisi, 2008).
If we analyze this in the broader context, we find that females are considered to be submissive.
In male dominant societies, they are just a helping tool for their males and they do not enjoy lead
roles (Dzisi, 2008). Perhaps these factors are the reasons due to which self-fulfillment ranks
higher than any other goal of self-employment for these female entrepreneurs.
In the context of Pakistan, this factor is not significant. Only 2.37% of all (male and female)
entrepreneurial activities in Pakistan are due to self fulfillment (Global Entrepreneurship Monitor
(GEM), 2010). Family responsibilities have been a big constraint for female entrepreneurs
(Mordi et al., 2010). They do not find the behavior of their husbands and other family members
supportive (Jamali, 2009).
Due to these reasons, one of their main goals by becoming self-employed is to balance work and
family life (Roomi et al., 2009). A study conducted in the UAE found that for female
entrepreneurs, a successful balance between work and family life is the key attribute of success
(Itani et al., 2011). Raising the standard of their family‟s living by earning enough is also a
salient feature that female entrepreneurs look for from their self-employment (Roomi et al.,
2009).
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Although in some cultures this is not at the top of a female entrepreneur‟s list, it is still a goal
that these women strive to achieve (Dzisi, 2008). In some developing economies where the
income of a single member is no longer enough to support the entire family, women come out of
their traditional comfort zones and join entrepreneurial activities to double the income in order to
support their families (Jamali, 2009).
However, the authors of this paper suspect that many of the female entrepreneurs in the
developed world may also have the same goal. After this review of literature, it is safe to assume
that generating revenue is a prime focus for female entrepreneurs but in some economies it is not
at the top of their list. 38.03% of the total (both male and female) entrepreneurial activities in
Pakistan are fueled by the aim to increase the family income (GEM, 2010).
Shah‟s thesis (2002) on Pakistani women entrepreneurs is an excellent, though slightly dated,
source of information on not only the issues but also the positive aspects of female
entrepreneurship in Pakistan. She has researched how – despite numerous issues – females are
getting ahead as entrepreneurs and supporting not just themselves as individuals but also
benefitting their families.
3.1.7 Constraints
Female entrepreneurs encounter several issues that further exacerbate the barriers between them
and their successful entrepreneurial venture. These constraints may come from their personality,
immediate family, or from the environment in which they exist and the societal expectations and
perceptions of the people around them.
Interestingly, recent studies reveal that psychological constraints play a big role in this context;
the fear of failure impacts the performance of entrepreneurial females (Halkias, 2011). In
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Pakistan this factor is significantly high. According to research conducted by GEM, 27.7% of
business activities in Pakistan do not even get started because of the fear of failure (for both
males and females). A study of the literature, however, shows that this is not the case with all
female entrepreneurs; some of them love a challenge and like to take on risks (Mordi et al., 2010)
- as mentioned earlier.
Researchers consistently point to a lack of access to finance as the major barrier that female
entrepreneurs face (Jamali, 2009; Roomi et al., 2009). A majority of the females rely on family
funding (Halkias, 2011) or personal savings (Itani et al., 2011). A study conducted in Nigeria
discovered that after family funding, these female entrepreneurs rely on donations, bank loans,
governmental schemes and charity by church (Halkias, 2011). A similar situation has also been
observed in the context of Pakistani female entrepreneurs. Although USAID (USAID Web-blog)
is working actively for the females of remote areas in Pakistan, finance is still one of the major
constraints faced by these female entrepreneurs. Due to non-availability of easy access to capital,
women do not have funds to grow their businesses (ILO, 2003).
In many societies in the developing world, females are generally not encouraged to take on
leadership roles. They are perceived as being submissive and subservient to their male
counterparts (Dzisi, 2008). This stereotyping poses barriers for females as in a male-dominated
society, a female leader is discouraged. A study conducted in Lebanon blames cultural norms
and stereotyping as one of the biggest constraints for these female entrepreneurs (Jamali, 2009).
Pakistani females are also facing similar issues. Being a patriarchal society, males are not cooperative towards their female counterparts and their attitude is negative (ILO, 2003). A study by
USAID (Goheer and Penksa, 2007) revealed that in the Pakistani culture, the mobility of females
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and their participation in self-employment is discouraged. Females are generally protected and it
becomes a matter of “family reputation and honour” when a woman goes out to work.
Safety and security issues further contribute to this. The traditional perception in Pakistani
society is that the male is the primary breadwinner - outside the home - and the female is the
primary caregiver - within the four walls of the home. This means that the female may be
hesitant in becoming financially independent – whether as home-based worker or outside the
home – as she may fear that it will lead to family discord and marital strife. This is an even more
important consideration for females who are contemplating starting their own business due to the
time investment and (very often) relatively considerable financial investment involved.
There is also a perception about females being only housekeepers/homemakers (Itani et al.,
2011); such perceptions coupled with family responsibilities are big constraints. The support of
the husband in fulfilling family responsibilities can be extremely helpful for these females.
However, as a study conducted in the UAE shows, husbands do not play an active role in the
daily household responsibilities - the fact that females need to leave their children in order to
pursue entrepreneurial activities is not appreciated (Jamili, 2009). Male family members may
even discourage female entrepreneurs.
The need to complete all household work without any assistance from other family members
leaves less working hours for these females, especially in rural areas. Large family size further
exacerbates this issue (Tanbunan, 2009) and living in a joint (as opposed to a nuclear) family
system may mean additional responsibility without additional assistance, although this is not
always the case. Unmarried females are also facing similar problems (Mordi et al., 2010) with
parents being concerned for their daughters‟ future “marriage prospects” if they are perceived as
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independent and domineering in a society that values a female‟s shyness and “meekness” – in
short, a society in which her submissive nature is seen as her biggest asset.
Lack of education is another prime characteristic that discourages female entrepreneurs.
Evidence from a study carried out in Nigeria declared this constraint to be high priority because
it triggers further problems - lack of education seems to be the root cause due to which females
have a greater fear of failure (Halkias, et al., 2011) and lack knowledge regarding financial
resources and information along with a lack of awareness regarding the different opportunities
available. Even in developed countries such as Australia, females are unaware of the efforts of
their government to facilitate them (Farr-Wharton and Brunetto, 2007).
Female entrepreneurs also lack managerial skills (Itani et al., 2011). These females have less
knowledge about market conditions and lack basic training to run a business venture (Roomi et
al., 2009). In Pakistan, both local and international efforts are being made in this area but
females are still facing this problem. The ILO (2003) report on Pakistan also revealed lack of
knowledge as an important factor that was holding back female entrepreneurs.
Lack of governmental support and related issues have also created problems for female
entrepreneurs. An Ethiopian study pointed out that although a government may devise different
strategies and plans for female entrepreneurs, there is a gap between the announcement and the
implementation of these plans (Singh and Belwal, 2008). The same study identified heavy tax
rates, corrupt officials, bribery and slow official procedures as additional concerns.
Even in developed countries, governments may not be very successful in properly advertising
their plans to female entrepreneurs (Farr-Wharton and Brunetto 2007). In Pakistan, female
entrepreneurs are also facing these issues; registering a business is in itself an uphill task in
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which government officials are not co-operative (ILO, 2003), as mentioned earlier. Networking
and mentorship play an important role in fostering female entrepreneurship. In Islamic countries,
where women do not mingle freely with males, networking is an issue. As mentioned above,
their preference for minimum interaction with males and privacy and trust issues make it difficult
to network (Farr-Wharton and Brunetto, 2007; Itani et al., 2011). Most females have a single
mentor in their network from whom they seek information (Farr-Wharton and Brunetto 2007).
Skilled labor is also a major concern; generally, skilled labor is not available for reasonable
wages (Roomi et al., 2009). The ILO (2003) study in Pakistan also described the availability (or
rather, non-availability) of labor among the most frustrating issues faced by female entrepreneurs.
These females put in a lot of effort to develop their labor force but once they are skilled, they
leave them for a better opportunity resulting in a high turnover of staff for these small ventures.
Product marketing and promotion create further issues for female entrepreneurs, most of whom
do not have any formal promotional plans available. They mostly rely on word-of-mouth
(Halkias, et al., 2011) to spread their message. Customer acquisition as well as finding a target
market and then distributing their product to the target market may also be problematic for
female entrepreneurs (ILO, 2003). A recession further fuels problems (Jamali, 2009) as they
have a limited number of buyers.
A female entrepreneur also faces several societal issues; harassment is a major problem for them
in many countries. Sexual harassment remains a common complaint (Mordi et al., 2010). The
ILO (2003) report about Pakistan specifically mentions this issue as well. Police harassment is
commonplace in such instances. Basic infrastructure and suitable premises are also an issue. In
Africa, self-employed females mostly operate in a hostile environment which is not suitable for
business purposes (Halkias, et al., 2011). In Pakistan, many female entrepreneurs operate from
Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)
Female Entrepreneurs
22
home where even basic facilities such as electricity may not be easily available (ILO, 2003).
Despite the above mentioned constraints, female entrepreneurs are still making headway in the
business world - which is an encouraging sign.
4.0 Conclusion
The purpose of this paper was to look at the literature around female entrepreneurship in general,
and in the developing world in particular – with a focus on studies around Pakistani female
entrepreneurs. Pakistan finished in 132nd position out of a total of 134 countries (Nadgrodkiewicz,
2011) in terms of female economic activity and opportunities available to females. The war on
terror, economic recession and floods (GEM, 2010) along with lack of access to finance,
technological constraints, environmental/societal issues, insufficient supply of labor and tax
policies are fueling an unfriendly environment in which female entrepreneurs are finding it
difficult to succeed, despite having clear motivations and goals.
It is important to mention here that overall entrepreneurial activity is pretty low in Pakistan and
female entrepreneurship activity rate is even lower - 3.43%. This is 4.1 times less than their male
counterparts (GEM, 2010). It is crucial to research home-based as well as non-home-based
female entrepreneurs in order to get an accurate picture of the status of female entrepreneurs in
Pakistan. Especially with relation to the former, there is a dire need to give a voice to these
faceless and voiceless females who play a big – yet in general unseen – role towards making a
household financially stable.
More research is needed in both the urban and rural areas of Pakistan to understand the
phenomenon of female entrepreneurship and also to understand the differences in home-based
Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)
Female Entrepreneurs
23
versus non-home-based female entrepreneurs. Although access to home-based female
entrepreneurs may be difficult to obtain, especially for male researchers, it is still an area where
efforts need to be focused. This is important not just for altruistic reasons of humanitarian
support for these women, but also to gain knowledge that may be helpful in realizing their full
economic potential as well. The long term developmental strategy of a country is incomplete
without giving adequate thought to this sector and obtaining adequate information about them
before making policy decisions.
It is heartening to see Pakistani educational institutions such as IBA and SSUET focusing on
encouraging entrepreneurship among their students. It is hoped that this paper will foster interest
in researching both Pakistani home-based and non-home-based female entrepreneurs in the urban
and rural regions. There is a dire need to understand the issues in the lives of female
entrepreneurs so that they can be solved in a manner that will encourage other females to also
think about entrepreneurship.
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