Javed Ghulam Hussain, Samia Mahmood - 2012 Cambridge Business Economics Conference ISBN 9780974211428 Impact of Microfinance Loan on Poverty Reduction

2012 Cambridge Business & Economics Conference ISBN : 9780974211428 Impact of Microfinance Loan on Poverty Reduction amongst Female Entrepreneurship in Pakistan Javed Ghulam Hussain Birmingham City University, City North Campus Franchise Street, Perry Barr, Birmingham, B42 2SU, UK Email: [email protected] Samia Mahmood Birmingham City University, City North Campus Franchise Street, Perry Barr, Birmingham, B42 2SU, UK Email: [email protected] Email: [email protected] Track: Economics and Finance Cambridge Business and Economics Conference June 27-28, 2012 Cambridge, UK 1

2012 Cambridge Business & Economics Conference ISBN : 9780974211428 Impact of Microfinance Loan on Poverty Reduction amongst Female Entrepreneurship in Pakistan ABSTRACT: The purpose of this paper is to examine the impact of microfinance loan on poverty reduction for female entrepreneurs as perceived by fund providers and experienced by aspiring female entrepreneurs in a developing country context. This study is based on an empirical investigation of 123 semi structured questionnaires and case study of 10 female entrepreneurs who secured funds for their enterprises. The study is exploratory and broadly focused. Emergent empirical results explores the impact of access to microfinance on poverty reduction of women by establishing microenterprise and using case study approach to assess the attributes of female entrepreneur’s client and examines what may constitute success or failure in enterprise and household context. The research findings suggest entrepreneurial attributes and characteristics are critical for the success for an enterprise in general and the improvement in household of women in particular. The study contributes to the body of literature by attempting to understand and analyse the nature of micro clients’ success indicators, outcomes such as ability of individual to break out of poverty, improvement in family health, educational engagement of children and enhanced skills such as product knowledge, peer mentoring and business networks which contribute towards the success. June 27-28, 2012 Cambridge, UK 2

2012 Cambridge Business & Economics Conference ISBN : 9780974211428 INTRODUCTION The analysis of statistics by Minnitie et al., (2005) suggests women’s economic activity is central in promoting and enhancing growth prospects of world economies. Given such recognition it is important for all, but more specifically emerging economies to offer conducive economic and financial environment for females to engage in self employment. It is recognised that poverty is a complex inter linked and complicated phenomenon that cannot be considered or measured in terms of monetary value. According to United Nation Development Program UNDP Annual Report (2008) “lack of access to essential resources goes beyond financial hardship to affect people’s health, education, security and opportunities for political participation”. Poverty is traditionally viewed as lack of income, assets and the resources but recent studies recognise that it includes issues related to dignity and autonomy (Cagatay, 1998). Weiss, et al., (2003)