6% women have access to finance
For the economic empowerment of women to tap their economic potential and for a positive cyclical effect, institutional mechanisms and partnerships are needed in terms of access to finance and supportive ancillary business development services, remarked former central bank governor Dr Shamshad Akhtar.
She was speaking at the launch of a new financing programme titled “Women Ventures” (WV) by Karandaaz Pakistan, in collaboration with the UK Department for International Development (DFID), aimed at improving access to finance for women-led businesses. Akhtar, also Karandaaz Chairperson, shared that in Pakistan only 8% of micro, small and medium enterprise (MSME) owners were women. “Access to finance is 6% and only 1% of women are engaged in entrepreneurial activities as opposed to 21% men,” she said.
“Notwithstanding the dearth of capital and tough business conditions, a growing number of women-led businesses are emerging in both traditional and non-traditional areas,” she added. “They are creating new jobs and introducing innovation in business practices.”
The chairperson, while assuring full support, stated, “By providing growth capital to women-led businesses under the newly structured Women Ventures, we (Karandaaz) hope to demonstrate their commercial viability for investment, motivating banks and investors to view them as serious market contenders.”
Expressing her views on the occasion, DFID Pakistan Country Director Annabel Gerry said no lasting developmental impact was possible, either socially or economically, if half of the world’s population was not empowered to reach their full potential.
“Eliminating extreme poverty in the developing world and meeting the global challenges that will emerge in the next decade will require the talents and potential of whole populations, not just one half,” she emphasised.
Gerry stated while businesswomen have traditionally faced greater challenges in accessing financing, they have been better at reaping higher dividends, responsibly handling funds and making a sustainable social impact once their businesses grow.
Talking about the objective behind DFID’s Women Ventures, she said it aims to promote a trusted platform that supports women entrepreneurship in Pakistan for increased economic activity and job creation. WV will start accepting applications from eligible women-led and owned businesses on a rolling basis throughout the year. It has evolved from Karandaaz’s earlier pilot programme called “Women Entrepreneurship Challenge”.
As part of WV, the company will be entering into partnerships with co-investors and market developers to serve a larger number of women enterprises and to strengthen the ecosystem supporting this market segment.
Published in The Express Tribune, July 14th, 2020.
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