Unravelling the role of female entrepreneurship through microfinancing in attaining sustainable development goals: A strategic exploration

Abstract

In an era where women's economic empowerment is of paramount importance, this study aims to unravel the mechanisms through which microfinance interventions can catalyse entrepreneurship among women in Pakistan. A stratified random sampling is conducted to ensure a representative sample of women entrepreneurs who use microfinance services. A total of 313 responses are obtained and subjected to statistical analysis is conducted using structural equation modelling, specifically Smart PLS (Partial Least Squares). The findings reveal that microfinance services significantly impact women's entrepreneurship endeavours. This effect is, in part, mediated by the enhancement of economic security, underlining the pivotal role of financial stability in fostering entrepreneurial pursuits among women. Furthermore, this research sheds light on the moderating influences of household decision-making dynamics, mobility, and prior work experience. The study underscores the importance of considering not only financial aspects but also sociocultural and experiential factors when designing microfinance interventions. The findings have implications for promoting entrepreneurship as an integral component of Sustainable Development Goals (SDGs), such as no poverty, gender equality, decent work and economic growth, and reduced inequality.