A Multidimensional Model of Women-Owned Micro and Small Business Growth in Rural Sindh, Pakistan: The Roles of Entrepreneurial Capabilities, Enabling Environments, and Institutional Support

Abstract

Although women-owned MSBs can be an important element in rural livelihoods and women’s economic empowerment, their growth is limited by interrelated personal, household, social, market and technological factors. This study investigates factors affecting the growth of women-owned MSBs in rural Sindh, Pakistan and analyzes if and how the growth determinants differ amongst the types of businesses and the support from the government. Based on the Resource Based View, Social Capital Theory, Entrepreneurial Orientation and Self-Efficacy perspectives and institutional and cultural approaches, a framework for linking entrepreneurial skill and innovative capacity, the family aspects, social aspects, market aspects, and technological adoption to growing business is formulated. A quantitative, cross sectional design was used. A five-point likert-type structured questionnaire on the topic of women entrepreneurs was used for primary data collection from 400 women entrepreneurs of micro and small business from the rural areas of Sindh. Purposive (judgmental) sampling was used to select respondents while convenience sampling was used in certain cases when on site situations required such access to respondents. Data analysis was carried out by SPSS and SmartPLS 4 in which descriptive data analysis was performed in order to test measurement model, direct relationship, structural model and moderated relations. Analysis of data was performed by SPSS and SmartPLS 4 software, descriptive data analysis was used to test measurement model, structural model, direct relationships, and moderating effect. The results show that all the 5 determinants show positive significant relationship with the growth of business. The factors that have the highest contribution to technological adoption are entrepreneurial skills and innovation, market factors, family factors, and social factors, with the variables of β = 0.31, β = 0.29, β = 0.24, β = 0.18, and β = 0.15 respectively. Most of the relationships are significantly moderated by sector type, except for the relation between family factors. In terms of Government support, most relationships are strengthened, but the effect of Government support is not statistically significant in the relationship between social factors and relationship. Based on the findings, it is concluded that small-scale entrepreneurizations of the rural women are not only influenced by individual capability and supportive relationship but also depends upon other factors like market, technology and institutional enabling ones. The study brings the evidence from rural region of Sindh and implications for specific entrepreneurship training, inclusion of digitalization, connectivity to markets, family-friendly support and government sector targeted programs.