Effectiveness of microfinancing on women’s entrepreneurial intentions through structural equation modeling in Balochistan, Pakistan

Abstract

BACKGROUND: Women entrepreneurship holds a fundamental role in uplifting economies, by providing job opportunities, driving innovations, and alleviating poverty. This study focuses women entrepreneurial intentions in Balochistan Pakistan, where extreme poverty and limited women participation exist. Despite women’s informal, unregistered, and unrecognized status, they possess the potential for productivity and can play a vibrant role in economic activities. OBJECTIVES: This study aims to investigate the impact of microfinancing, risk, and opportunities on women entrepreneurial intentions in Balochistan, Pakistan. Therefore, it seeks to explore the mediating and moderating effects of opportunities and risk attitudes. The emphasis is on identifying women entrepreneurs who are risk-takers, planning to initiate businesses, and require initial funds. METHODS: This is an exploratory and descriptive study; based on primary data collection through survey from 280 women entrepreneurs in district Quetta of Balochistan, Pakistan. Snowball sampling was employed for cross-sectional data gathering, and empirically analyzed by PLS-SEM. RESULTS: The results exhibited positive and significant roles of microfinancing, opportunities, and risk attitudes in influencing women’s entrepreneurial intentions. The findings revealed the absence of financial assistance, which is the primary barrier for business startups and expansions. CONCLUSIONS: Findings recommend microfinancing stimulate women entrepreneurial activities; enhance risk-taking ability to explore more business opportunities. Microfinance institutions (MFIs) are advised to formulate improved strategies tailored for women’s entrepreneurial development in Balochistan, Pakistan.