THE ROLE OF MICROFINANCE IN ENHANCING WOMEN’S MICRO-ENTERPRISES: A CASE STUDY OF DISTRICT HYDERABAD, PAKISTAN

Abstract

Women are vital to Pakistan's economic development, significantly contributing beyond traditional roles towards sustainable and inclusive growth. Accessible financial services, such as microfinance, empower marginalized populations, particularly women, fostering entrepreneurship and alleviating poverty, which drives fiscal development. Women's micro-enterprises have a transformative impact on household economics, their economic empowerment, and contribute meaningfully to Pakistan's GDP growth. Therefore, microfinance has been widely recognized as an effective strategy for boosting women's financially. The study examined how microfinance services affect women-owned microenterprises in Hyderabad, Pakistan, with a focus on enterprise creation, growth, and development. The study compared the beneficiaries and non-beneficiaries of microfinance institutions (MFIs) such as Mobilink Microfinance Bank, NRSP, and APNA Microfinance Bank using survey data from 200 women entrepreneurs. The results exhibited that microfinance significantly boosts working capital, fixes assets, and enhances business revenue. However, challenges such as high interest rates and lack of financial literacy persist that offer policy suggestions to improve microfinance accessibility and effectiveness for women empowerment in Hyderabad.