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CHALLENGES: CONFRONTING THE ISSUES WOMEN FACE IN MICROFINANCE
Roshaneh Zafar, Founder & MD Kashf Foundation
Introducing Kashf Foundation 18 years as Change Agents in economic
empowerment arena Trendsetters in MF industry in Pakistan Built around the notion of solution building for
family and community security. Heavily focused on responsible finance through
an evolving business development & women’s entrepreneurship
Principles of accountability include shared values reciprocity, respect, transparency, trust & reliability.
Barriers to Women’s economic participation
• Women are not literate. Women’s mobility is constrained
• Women do not own land and other assets
• Women focus on low return based activities
• Women lack access to banks/ financial services
Financial
Economic
Social Cultur
al
Legal/ Politica
l
What does research show? 1/2
Components Hypothesis Results
1. Entrepreneurial Capacity
Business Management capacity Sufficient but limited
Financial Management capacity Absent
Vocational skills Obsolete
Product/service quality Absent
Labor costing/pricing Basic
Knowledge of product cycle development
Basic
Marketing Word-of-mouth
2. Access to Capital
Business assets (equipment, tools, etc.)
Sufficient for informal sector
Physical assets (land, rented space, etc.)
Home-based
Financial assets (credit, savings, etc.) Insufficient
Labor Family/ neighbors
Components Hypothesis Results
3. Access to markets
Business networks Localized to community
Competitors Highly saturated
Market outreach Fixed suppliers/ intermediaries
4. Social barriers Barriers within household ‘Triple burden’
Barriers within community Mobility restricted
Barriers within market Gender restrictions
What does research show? 2/2
The Role of Microfinance in Women’s Economic Participation (1/2)
Individual Household MF Strategies to address these constraints
Financial Barriers
Women lack access to banks/ financial services in own right
Men control cash income, men have specific expenditure patterns
• Designing pro women strategies that reflect the concept of agency and removes the need for physical collateral.
• Building affordable delivery mechanims that allow procuring loans in proximity to the community
• Promoting and providing affordable and accessible savings
Economic Barriers
Women undertake activities which produce low returns;Women have a heavy domestic workload
Gender division of labor, unequal access and control of land, labor and inputs unequal control of joint household produce and income stream (from the produce)
• Introducing cashflow backed loan products products that involve a feel-good approach and also cater to the financial needs of women led businesses
• Providing business development services
• Helping create value chains
Fin
an
cia
l E
du
cati
on
Basic Financial Literacy
Systemized Financial Education B
usin
ess D
evelo
pm
en
t S
erv
ices
Business Incubation Labs
G
en
der
Em
pow
erm
en
t
Social Theater
Gender Trainings
Women Entrepreneurs ‘ Council
Med
ia C
am
paig
n
Public Service Messages
TV Series on entrepreneurship
Microfinance Plus Activities
Key aspects of Responsible Finance
Productive Enterprise Lending
Financial Education
Business Incubation Support
Client Grievance System
Consumer Protection Code
Thank you!