Safavian, MehnazHaq, Aban2013-09-302013-09-302013-08978-0-8213-9833-310.1596/978-0-8213-9833-3https://hdl.handle.net/10986/15929Fostering the entrepreneurship of women is important for Pakistan's economic growth and inclusion agenda, and access to financial services is an important component of starting and growing a business for women entrepreneurs. Most women?owned businesses are small, household?based cottage industries; microfinance products should be a natural source of start?up and working capital finance for this clientele. Microfinance portfolio data suggest that although Pakistan's sector has shown improvement in reaching women, it still lags its regional peers, only 59 percent of microfinance clients are women. The original purpose of this work was to determine whether women entrepreneurs have access to, and are using, microfinance loans as a source of finance for their businesses. However, the findings of the report go beyond the narrow objective of understanding whether microfinance institutions (MFIs) are reaching Pakistan's businesswomen. As the research unfolded, the evidence suggested that not only are women entrepreneurs not being served, but also that the outreach to women in general is potentially more limited than previously assumed and that the issues of consumer protection and responsible lending practices in Pakistan might merit further exploration. The report raises and addresses two distinct issues. First, some evidence suggests that women are often not the final users of loans, but rather are conduits to male household members. The report documents findings that suggest that the practice of passing on loans to male household members is potentially quite widespread; women may be bearing all the transaction costs and risks of accessing loans, but are not the final beneficiaries. Second, a very low proportion of female microfinance clients are entrepreneurs. The report explores why businesswomen in Pakistan may not be using microfinance products to meet their startup and working capital requirements, in spite of identifying access to finance as a key constraint to their business operations. The report focuses on products, services, policies, and other elements of the business model of microfinance in Pakistan that affect both demand for and access to microfinance by women borrowers, some of whom fall into the narrower category of entrepreneurs.en-USCC BY 3.0 IGOaccess to bankingaccess to banking servicesaccess to creditaccess to financeaccess to financial servicesaccess to fundsaccess to informationaccess to loansaffordable financial servicesATM cardsbank accountbank accountsbank branchBanking Regulationsbanking sectorbanksbeneficiariesbeneficiarybenefit paymentborrowerborrowingborrowingsbusiness activitiesbusiness developmentbusiness development servicebusiness development servicesbusiness failureBusiness Incubationbusiness managementbusiness opportunitiesBusiness riskbusiness supportbusiness trainingbusinesswomencapital financecapital requirementscash flowCCCenter for WomenChallenges for Womencheckscollateralcommercial banksCommunity Developmentconsumer protectionCooperative Developmentcredit disciplinecredit historiescredit informationcredit information bureaucredit information bureauscredit officercredit productcredit productscredit riskscredit transactionscurrent accountsdated checksdeceptive practicesdefaultsdepositdepositsDeveloping Countriesdisbursementdisbursementsdiscriminationdiscriminatory practicesdocumentation requirementseconomic activitieseconomic activityEconomic Developmenteconomic growthemployeeemployersEmpowermentEnterprise Developmententrepreneurentrepreneurship developmentExchange rateexclusion of womenfamiliesfemale borrowersfemale clientsFemale Entrepreneursfemale entrepreneurshipfemale populationfinancial accessfinancial exclusionfinancial literacyfinancial needsfinancial outreachFinancial Productsfinancial servicefinancial service providersfirst loansformal loanfunding sourcesGendergender dividegroup lendinggroup lending programsgroup loansguarantorguarantor requirementguarantor requirementsguarantorshousehold investmenthouseholdshuman capitalhusbandhusbandsindividual loanIndividual Loansinequalitiesinequalityinflationinformal economyInformal Savinginformal savingsinstallmentinstallmentsinsurance policiesInsurance Productinsurance productsinsurance servicesInterest paymentInternational BankInternational DevelopmentInternational FinanceInvestingKey ChallengesLabor Force Surveylack of accesslack of creditlack of informationlenderslife insuranceLoanloan amountloan applicationloan officersLoan paymentsLoan Portfolioloan productsloan sizeloan sizesloans for womenloans for women entrepreneursloans from familyloans to individualloans to womenmarket datamarket segmentationmarketing strategiesmarried womenMFIMFIsMicro CreditMicrocreditMicrofinancemicrofinance institutionmicrofinance institutionsMicrofinance LendingMicrofinance Loanmicrofinance loansMicrofinance Sectormicroinsuranceminimum balancemobile phonesnew businessnew businessesNominal interest ratesNominal Yieldopportunity costsOutreachOutstanding loansOwnership Structurepermanent residentsPersonal guaranteepersonal guaranteespersonal savingsPolicy Environmentportfolio qualityportfoliosprofit marginsprofitable businesspromissory notesrates of returnreal interestreal interest ratesrepaymentrepayment capacityrepaymentsreturnsRural CreditSavingssavings accountssavings groupssavings productssmall businesssmall businessessmall loansmall loanssmall saverssocial barrierssources of fundsstartup capitalState Banksupply of creditTaxtransactiontransaction coststransparencyurban areaswithdrawalwomanwomen borrowersWomen EntrepreneursWomen Entrepreneurshipwomen loan officersworking capitalWorld Bank10.1596/978-0-8213-9833-3