Impact of Microfinance on Women-Owned Businesses' Financial Well-Being: A Case Study of SAFWCO Microfinance in Hyderabad, Pakistan

Abstract

The research examines how the services offered by SAFWCO Microfinance Company Private Limited (SMCPL) affect impoverished women in Hyderabad Sindh, Pakistan. One of the primary difficulty’s women encounter is access to financing, but Sindh Agricultural and Forestry Workers Coordinating Organization (SAFWCO) microfinance delivers funds directly to them, motivating families to initiate businesses. The purpose of the study is to explore the connection between microfinance services and the financial development of female entrepreneurs, identify the challenges and obstacles they encounter, evaluate the influence of SAFCO on financial literacy and business management capabilities, and analyze the role of familial support, especially from husbands, on women's enterprises in Hyderabad Sindh. The research incorporates a resource-based perspective, feminist theory, and social capital theory. The findings revealed a significant correlation between microfinance services and their positive effect on the economic status of women-led businesses. The researcher suggests developing online platforms and promoting awareness among women to help market their products on the internet, as well as providing networking avenues such as collaboration, mentorship, and resource-sharing to facilitate the growth of women’s businesses.