Riding the Wave: Understanding the Context of Female Entrepreneurship in Pakistan

Introduction

The growing majority of studies on women entrepreneurship support the notion that female entrepreneurs demonstrate new opportunities by employing fellow women (Welter, Smallbone, Isakova, Aculai & Schakirova, 2004; Aidis, Welter, Smallbone & Isakova, 2007). This substantive notion suggests that the autonomy and development of women entrepreneurship is very critical, such that outcomes lead to self-empowerment, social security and confidence among women. Without a doubt, since entrepreneurship contributes to societal development; it therefore becomes pertinent that women entrepreneurship is given the desired attention. While previous studies have examined women entrepreneurship in developed economies (Coughlin & Thomas, 2002; Carter & Shaw, 2006; Marlow, Carter & Shaw, 2008) there exists a paucity of research that has examined women entrepreneurship in Pakistan. Interestingly, the renewed interest in women entrepreneurship in developing economies, suggests a need to examine how it varies according to context. Despite repeated government claims of fostering women development within developing economies, the complete set of socio-economic factors considered in improving female entrepreneurship have worsened. This we argue is one of the hallmark constraints to female entrepreneurship, and allows for a greater understanding of the complexities faced by Pakistani women entrepreneurs.

Interestingly, the most striking feature of the Pakistani market is the growing proportion of female entrepreneurs. Rising unemployment and an increase in gender inequality has resulted to deterioration in the living standard for Pakistani women (Zakaria & Fida, 2012). Sensitivity to the barriers faced by Pakistani women entrepreneurs reveal a high level of masculine domination across every sphere of the society. The underlying norm in these societies consider women as ‘virtuous’ and men as custodians who dictate rules by keeping women on the right path (Roomi, 2013). Such norms justify that women should be instructed to remain dressed in the hijab rather than being entrepreneurial (Syed, Ali & Winstanley, 2005). Although, relatively lower access to capital has been a cause for concern, the challenges facing Pakistani women entrepreneurs are particularly severe. Thus, the experiences of women entrepreneurs reveal that contextual challenges such as cultural and religious norms restrict entrepreneurial development. This is particularly interesting as traditional and religious societies are strongly patriarchal in their nature; such that women are often confined to child nurturing (Danish & Smith, 2012). In this stem, Pakistani women are treated as second-class citizens within their society. It is reported that Pakistani men solely decide the education, health and finance of the family, while women are confined to the less negotiable role of motherhood (Gronlund, 2007; Rehman & Roomi, 2012).