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Women Entrepreneurship: Turning Challenges into Opportunities

Women Entrepreneurship: Turning Challenges into Opportunities

1. Abstract
Apart from gaining an insight to the issues these entrepreneurial women have to face, the
objectives also include researching into the problems they have in generating the finances and
understanding the social reasons which force them to work. Gender specific issues are also to be
discussed in this report. To fulfill the objectives a thorough primary research was carried out.
The sample size was then further divided into literate and illiterate women entrepreneurs for the
precision of the results. The results have shown that both literate and illiterate women
entrepreneurs have problems all the way up from starting their business to keep running it
successfully. However the literate women are slightly better off than the illiterate women as they
have a greater exposure to this world due to their family backgrounds and education which helps
them compete effectively and with courage. The literate women tend to open up their own
business with a pursuit of happiness which automatically makes them more motivated to work
whereas the illiterate women mostly end up working and opening their business to fulfill their
basic necessities in life. The culture in this part of the world hasn’t seen a woman working in the
past, thus making it difficult for them working in the 21stcentury. This mentality is however
changing with time as women grow in different sectors of the economy with expertise and
making it clear that they are here to work and stay.

2. Introduction
An entrepreneur is an individual who, rather than working as an employee, runs a small
business and assumes all the risk and reward of a given business venture, idea, or good or
service offered for sale. The entrepreneur is seen as a business leader and in novator of new
ideas and business processes.

Entrepreneurs are a very important part of any developing economy as where on one side
there are large multinationals, the other part of the economy is filled up by the entrepreneurs
coming up with diversified businesses.

Small businesses made up 90% of the economy back in the 1980s-90s in Pakistan! This
figure clearly showcases the importance of these individuals working separately but towards
one target, which on a personal scale is to make a living for them and on a coun trywide
scale is to boost up the economy through a growth in the GDP levels.

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Women Entrepreneurship: Turning Challenges into Opportunities

It is important to consider the fact that every person needs to work in order to create a
sustainable economy. This specifically means that women are an integral part of this
development in every country. The Developed world has acknowledged the significance of
entrepreneurship and has taken concrete step to facilitate those people who are engaged in such
activities but in Developing counties entrepreneurship lacks encouragement. Arguably in
maintaining the economic growth, women are the most active players in the formal as well as
informal sectors of economy.

In developing countries women are faced with multifaceted challenges. Unlike their
personal abilities the informal sector enhances their problems like irregular employment,
low wages, social insecurity, no social security benefits, dreadful working condition, limited
opportunities for skill up gradation and harassment.

The traditional roles of Pakistani women are to look after the house affairs, helping the husbands
in fields and bringing up their kids. While in the urban area they try their level best to contribute
something to the house income. Some are doing jobs in the public/private sectors but due to
cultural and social barriers they are confined to houses. In such situation women
entrepreneurship is a myth not a reality. Even then many women are engaging themselves in
entrepreneurial activities. Their ratio is increasing with high rate. It has risen enormously due to
death of their male counterpart, sickness, imprisonment, divorce or separation of their spouses
and being single by choice.

In Pakistan females belonging to middle class families are very concerned to their families and
they are trying to contribute in raising the income of the house. To achieve this objective they
engage themselves in different entrepreneurial activities even with high risks.
Rural woman in Pakistan is portrayed as a picture of destitution, despondency, and
powerlessness and voiceless. Many authors sketched rural women with strokes of poverty,
illiteracy, remoteness, prey to feudal mindset and cultural norms which make women as some of
the most marginalized communities in the world (Jones & Snelgrove, 2006, p.3).

Independence, independent thinking and deciding about their academic and professional career
appear to be dream for rural women in conservative societies of developing countries including
Pakistan. Statistics reveals that 65 percent of women in Pakistan are illiterate (UNDP, 2004),
with higher rates in rural areas about 88 per cent, and climbing to over 93 per cent in Baluchistan
province (ADB, 2000). On the same canvas, the other side of the picture reveals some hopeful
women of middle and upper class families with lots of education, job and business opportunities,
mostly living in urban areas. It is yet debatable as to what extent urban women are independent
in making decision regarding education, doing job or establishing enterprise.

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Women Entrepreneurship: Turning Challenges into Opportunities

Women entrepreneurs in Pakistan have to face many hurdles before they can actually settle
down, more than an average male entrepreneur.

Women have established a reputable image of themselves as excellent workers in all


industries, such as teaching, pharmaceuticals, IT, media, government sector, hospitals. They
are also upfront in opening up new boutiques and beauty parlors. Many of them work in
different NGOs providing a helping hand to this society. Despite the fact that they are
emerging in all industries they have to face difficulties in this male dominated society.

They are not given a chance to come up in the upper hierarchy of a firm where vital decision
is carried out just because of their gender. They are not allowed to work due to their gender
as this has become part of our culture. Despite increasing trends of women participation in
small and medium enterprise (SMEs) in North America, Europe, East Asia (e.g. Asian Tigers)
and elsewhere, women entrepreneurship is largely in low growth in Pakistan. And those women
who are already in the business, they had experienced unconventional economic, cultural, social,
religious and familial hardships and those who intend to do business they get ready first to face
weighty and grave challenges. Generally, women entrepreneurship has under-performed in
Pakistan as a result the creation of meaningful and sustainable jobs and contribution to national
and regional economy.

The basic purpose of this research is to highlight the problems and issues which are being
faced by the women entrepreneurs while performing their activities and to provide
appropriate solutions, so that the future entrepreneurs can utilize them in the best manner.

To make Pakistan a developed nation and to get rid from the curse of poverty it is necessary
for every single person including the women to take part in the economic development of
their country. Furthermore it is an era of women empowerment, so to make women
empowered in Pakistan it is worthwhile first to know those factors which can stop them to
be economically independent generally in Pakistan.

3. Literature review
The literature review will first look at the concept of entrepreneurship, and then go on to look at
female entrepreneurship and associated definitions. The focus of the review is on the developing
world, especially Pakistan. The literature review tries to combine recent research with some
older work to present a well-rounded picture.

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Women Entrepreneurship: Turning Challenges into Opportunities

3.1 Definition of Entrepreneurship


It is important to start off with a discussion on the definition of entrepreneurship to ascertain
what we mean by this concept. Singh and Belwal (2008: 1) quote Desai (1999) to describe the
roots of the word entrepreneur. They state “The word entrepreneur is derived from the French
verb “enterprendre” that means to “undertake”. We can define an entrepreneur as “…One who
undertakes a commercial enterprise and who is an organizational creator and innovator”
(Gartner, 1990; Gartner et al., 2004) quoted in Mordi et al. (2010: 1).

Dzisi (2008: 3–4) gives the definition of entrepreneurship from the economic point of view,
quoting the definition given by Schumpeter and Krizner. “Schumpeter (1934) described the
entrepreneur as the innovator who introduces something new into an economy” and “…Kirzner
(1997 – authors‟ own addition) stressed the fact that the entrepreneur is the decision maker in a
particular cultural context, who commands a range of behaviours that exploit these
opportunities”.

Singh and Belwal (2008: 2) have quoted Donnely et al. (1990) to describe the motivations and
operations performed in order to establish the definition of entrepreneur. They stress “…An
entrepreneur is an individual who propelled by an idea, personal goals, and ambition, brings
together the financial capital, people, equipment, and facilities to establish and manage a
business enterprise”.

While defining entrepreneur, some writers have employed economic indicators like growth and
profit, or incorporated entrepreneurship as an effective tool in reducing poverty.

Entrepreneurs “seek out and identify potentially profitable economic opportunities [and as such
are] agents of growth” (OECD, 1998: 11, in Farr-Wharton and Brunetto, 2007: 2). Female
Entrepreneurs 5 Proceedings of 2nd International Conference on Business Management (ISBN:
978-969-9368-06-6).

As can be seen, entrepreneurship can be (and has been) studied from various different angles,
hence creating divergent yet complementary views of the phenomenon – leading to a better
appreciation of the complexities involved in it.

3.2 Female Entrepreneurship


Female Entrepreneurs 6 Proceedings of 2nd International Conference on Business Management
(ISBN: 978-969-9368-06-6)

There is one gender-specific definition the authors came across that specifically appealed to them
due to its emphasis on female entrepreneurship. “Female entrepreneurs are defined as those who
use their knowledge and resources to develop or create new business opportunities, who are

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Women Entrepreneurship: Turning Challenges into Opportunities

actively involved in managing their businesses, and own at least 50 per cent of the business.
(Moore and Buttner, 1997 in Farr-Wharton and Brunetto, 2009: 2)

In the context of this paper, we will extend this definition to explicitly include home-based
female entrepreneurs “Female entrepreneurs are defined as those who use their knowledge and
resources to develop or create new business opportunities – whether this be informally in a home
environment without formally registering their business or formally via business registration,
hiring office premises, etc. - who are actively involved in managing their businesses, are
responsible in some way for the day-to-day running of the business, and have been in operation
for longer than a year” (the new words introduced in the definition by the present authors have
been italicized).

It is important to see female entrepreneurship as a distinct yet related concept to male


entrepreneurship so that we can make efforts to understand the similarities and differences
among both these groups.

A careful review of the literature published in Pakistan on the subject of women entrepreneurship
explicitly indicates that there The Women– Annual Research Journal Vol. 5, 2013 (31) are few
studies available for review such as Goheer (2002, 2003) and Ahmed & Naimat (2011). As a
result, it is hard to make academic guess or draw conclusions. Against this backdrop, this study
has reviewed mainstream literature on the subject for more comprehensive understanding of the
field.

According to Hisrich, Langan-Fox & Grant (2007) the roots of entrepreneurship literature are set
in a number of disciplines such as economics, sociology, business, management, and
psychology. Earlier, similar evidence was presented by Moore (1990) arguing that most of the
entrepreneurship research has been contributed by management researchers. Alongside,
marketing research community seems having increasing interest in study of small business and
entrepreneurship (Bjerke & Hultman, 2002; Buskirk & Lavik, 2004).

Researchers in the discipline of economics and associated areas are also contributing significant
amount of research in the field especially in the areas of government data analysis, venture
capital and financing of women-owned businesses (Devine, 1994; Walker & Joyner, 1999).
Empirical evidence on female entrepreneurship literature appeared in late 1970s and women
entered in corporate life in the United States and Europe. Chusmir and colleagues (1990) found
out that active researchers in psychology have contributed significant amount of research related
to gender issues in organizations with focus on women at work.

Carter, Anderson & Shaw (2001) investigated the extant literature on the women
entrepreneurship with especial focus on demographic characteristics, motivation of women in
business and their business ownership experiences. Authors reported a large body of research
literature focused on women entrepreneurs. However, knowledge on female entrepreneurship is

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Women Entrepreneurship: Turning Challenges into Opportunities

still inconclusive and inconsistent with reference to country contexts (Baker, Aldrich & Liou,
1997; Carter, Anderson & Shaw, 2001; Terjesen, 2004). From 1976-2001, about a ninety per
cent research based literature related to female entrepreneurship found in entrepreneurship
journals was of an empirical nature (Greene et al., 2003). (32) Women Entrepreneurship:
Opportunities and Challenges in Pakistan there has been acute shortage of reviews of the
literature on the subject of WEs.

Only a few studies have been published on extensive review of literature with insights into
female entrepreneurship. For example, Moore (1990) published one of the first literature reviews
on the subject of WE which invoked a wave of academic research about female entrepreneurship
and identified that there is strong need to have more empirical evidence for theory development.
Baker, Aldrich and Liou (1997) reported ignorance of journals and electronic and print media for
not noticing the tremendous growth in women’s entrepreneurship. Greene, et al (2003)
contributed more detailed and in-depth review of literature and with insights into 25 years of
research published in entrepreneurship journals from 1976 to 2001.

An important aspect of the study was the inclusion and discussion of literature grounded in
feminist theory, social theory that addresses issues of political, economic, and social rights of
women. Feminist theorydriven research has provided additional perspectives, such as work-
family balance (Honig-Haftel & Martin, 1986), gender differences (Chaganti, 1986), and
arguments related to methodological biases of previous research (Brush, 1992).

Some investigations have focused on the success stories of male and female enterprises and
traced factors that contribute to the success and failure of the enterprise. Sabarwal and Terrell
(2008) provide evidence of contradictory findings related to gender differences and attribute
some differences to data classifications. On the contrary, Chaganti and Parasuraman (1996),
identified that female-owned businesses perform equally good like firms owned by males in
terms of job growth.

Nevertheless, Bosma et al. (2004) found significant difference associated with male and female
enterprises and found male-owned firms do better than female-owned businesses. According to
Fischer, Reuber, and Dyke (1993) previous empirical findings related to female entrepreneurship
―diverse and often contradictory by concluding that there are significant The Women– Annual
Research Journal Vol. 5, 2013 (33) gender differences in manufacturing, service and retail
industries. Those differences relate to training, motivation, and experience. An increasing body
of empirical research attributes some of the gaps and contradictions in the literature to the lack of
theory-driven research about women entrepreneurs (Moore et al, 1997).

According to DeBruin, Brush, and Welter (2006) growing focus of research scholarship on the
subject of women entrepreneurs and the top eight entrepreneurship journals published nearly 10
per cent literature was on WE. Researchers increasingly focus on illustrating separate theory on
WE.

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Women Entrepreneurship: Turning Challenges into Opportunities

However, some researchers have raised serious academic concerns to develop a separate theory
on women’s entrepreneurship and call for theoretical concepts that incorporate women’s
distinctive experiences (De Bruin, Brush & Welter, 2006). In order to improve the research focus
Brush (1992) suggested holistic approach to investigate women entrepreneurs by pointing out the
importance of integrated network of relationship may yield better insights into female
entrepreneurs and their businesses.

A most recent study contributed on the subject of women entrepreneurship in Pakistan by Ahmed
& Naimat (2011) which emphasized on the importance of networking for the promotion of WEs
in Pakistan. Authors reiterated that social, cultural, legal, and religious are serious and major
impediments in the way of WEs and that the forces of patriarchy manipulate their professional
role and create stumbling blocks for women’s career development motives (Shabbir, 1996;
Shaheed, 1990; Shah, 1986).

Nevertheless, the study reveals that young women have capability to recognise opportunity and
also get engaged in networking to smoothen their way out. According to Goheer (2003) WEs in
Pakistan concentrates on retail, industrialized business and service sector. The service sector is
dominant and focus remains on education, healthcare, beauticians and garment (Goheer, 2002).

Another crucial problem for Wes’ slow growth in developing countries including Pakistan is
attributed to (34) Women Entrepreneurship: Opportunities and Challenges in Pakistan the lack of
women mobility, uneducated and rude, mostly rude and rough male workforce that is not ready
to accept the authority of women (Goheer, 2003). Additionally, socio-cultural norms and values
support patriarchal societal structure and roles based on gender. This is a critical omission in
academic literature on WE especially limited knowledge exists on the importance of social
compositions, work, family, and planned social life differ broadly in rising economies (Allen &
Truman, 1993; Aldrich et al., 1989). In developing countries, mainstream literature has missed
out this aspect which creates academic and research gap.

4. Objectives

 To find out present status of Pakistan women entrepreneur.


 To find out the problems of Pakistan women entrepreneurs.
 To find out the sectors where Pakistan Women entrepreneur possibility is very high.
 To find out governmental and NGO‟s efforts for enhancement of women entrepreneur.
 To find out Pakistan women entrepreneurs future in coming years.

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Women Entrepreneurship: Turning Challenges into Opportunities

5. Methodology
There is no readily accessible sampling frame for choosing a sample of women entrepreneurs in
Pakistan. So we use snowball sampling technique for identifying respondents and a sample of
130 women entrepreneurs is selected from Lahore majorly surrounding the areas of Johar Town,
Valencia Town, Bahria Town, and Garden Town. The sample is comprised of women
entrepreneurs from a variety of sectors, which includes Beauty Saloon, Ladies GYM instructors,
Boutique and Food business. The research captured data from schedules of these selected
women. Schedules are:

Data Collection Instrument: Data used in this study is primary in nature for which a structured
questionnaire is adapted.
Analysis Tool: Data is entered and analyzed by using SPSS version 21.

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Women Entrepreneurship: Turning Challenges into Opportunities

6. Results and Discussion

What is your age category?* Lack of significant general management skills

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 27.838a 12 .006
Chi-Square

The results show that above 30 women of the age 20-29 years assume that Lack of significant
general management skills are neither important nor relevant as the barrier factors which hold the
women back. Women aged 40 above assume that it is very important factor, which hold the
women back.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your age category? * Exclusion from informal networks

Chi-Square Test
Value df Asymp.Sig (2-
sided)
Pearson 17.023a 9 .048
Chi-Square

The results show that above 40 women of age 20-29 years assume that there is no such barrier of
informal networks which can hold the women back to be entrepreneurs. And around 10 women
of age 40+ assume that it is not relevant barrier which will hold the women back.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your age category? * Failure of senior leadership to assume accountability for
women's advancement

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 21.317a 12 .046
Chi-Square

The results shows that around 40 women of age 20-29 years and 20 women lies between 30-
39years assumes that the factor of failure of senior leadership to assume accountability for
women’s advancement is less relevant.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your age category? * Consistently exceeding performance expectations

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 21.317a 12 .046
Chi-Square

The results show that more than 40 women of age 20-29 years votes that consistently exceeding
performance expectations are less success factors which will motivate the women to step ahead
as for entrepreneurs.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your age category? * Successfully managing myself

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 22.660a 12 .031
Chi-Square

The results shows that around 30 women of age 20-29years and around 15 women of age 30-39
years assume that successfully managing herself is neither important nor relevant in the key
success factors which will motivate the women to step ahead as entrepreneurs. And around 20
women of age 20-29 years assumes that it is less relevant factor.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your age category? * Seeking out difficult or highly visible assignments

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 21.425a 12 .044
Chi-Square

The results show that more than 30 women of age category 20-29 years and around 20 women of
age category 30-39 assumes that seeking out difficult or highly visible assignments are neither
important or relevant factors in the key success factors for women entrepreneurs.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your educational background? * Communication

Chi-Square Test
Value df Asymp.Sig (2-
sided)
Pearson 23.751a 12 .022
Chi-Square

The result shows that the women who have done matriculation and formation/training courses
feel that communication skills are more relevant in your business.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your work type? * Successfully managing myself

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 32.115a 16 .010
Chi-Square

The results shows that the women owing beauty salon thinks there is no such relation of
successfully managing myself with success of your business and food business owners assumes
that it is less important factor which could relate with your business life and managing herself.

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your work type? * Seeking out difficult or highly visible assignments

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 27.607a 16 .035
Chi-Square

The women working as beauty salon owners assume that seeking out difficult or highly visible
assignments are not such relevant factor for your business success factors

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Women Entrepreneurship: Turning Challenges into Opportunities

What is your work type? * Ability to use initiate

Chi-Square Test
Value df Asymp.Sig
(2-sided)
Pearson 29.787a 16 .019
Chi-Square

The women owing beauty salon thinks that its quite good step which they initiate as business
entrepreneurs and around 15 women assumes it to be good. While more than 15 food business
owners think that its good initiative that they have taken for their business.

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Women Entrepreneurship: Turning Challenges into Opportunities

Table: Percentage of respondents on different factors:

Factors Description Respondent Percentage (%)


Age 20-29 years 46.3
Educational Background Formation/Training Course 30.9
Present work situation Business Owner 55.9
Years of experience 5-10 years 39.7
Company situation Created my company myself 77.9
Spend hours per day at business Work 8-10 hours per day 41.9
Business type Beauty Saloon 31.6

Table: Percentage of respondent on different factors:

No. Barriers to hold women back Likert scale Respondent


percentage
(%)
1 Having recognized expertise in a specific Neither important Nor 53.7
area relevant
2 Lack of significant general management Less relevant 39.7
skills
3 Exclusion from informal networks Neither important Nor 66.2
relevant
4 Stereotyping and preconceptions of Neither important Nor 26.5
women’s role and abilities relevant
5 Commitment to personal or family Less relevant 36
responsibilities
6 Failure of senior leadership to assume Less relevant 50
accountability for women’s advancement
Success factors for women to get
ahead
7 Optimising entrepreneurial spirit and Not relevant 43
skills
8 Consistently exceeding performance Less relevant 56.6
expectations
9 Successfully managing others Less relevant 51.5
10 Successfully managing myself Neither important Nor 39.7

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Women Entrepreneurship: Turning Challenges into Opportunities

relevant
11 Seeking out difficult or highly visible Neither important Nor 54.4
assignments relevant
12 Gaining intercultural and language skills Neither important Nor 42.6
relevant
Work meets your expectations?
13 Work/Life balance Quite Good 41.2
14 Financial rewards Good 37.5
15 Communication Good 37.7
16 Career/personal development Good 41.9
17 Ability to use initiative Good 27.2
18 Team player Good 50
19 Equal opportunities Good 44.1
20 European and International perspective and Not relevant 56.6
chances

7. Conclusion
To understand how the role of work and family is experienced in a different culture such as
Pakistan and to explore the unique influences, this research study was conducted. Built on
qualitative phenomenological approach, the following themes emerged: Conceptualizing key
success barriers and success factors for motivational drivers of women entrepreneurs. Challenges
in achieving work-life balance and effective techniques/strategies to balance work and family.
The findings of the data reveal that factors of barriers and success have different meanings for
different people.

7.1 Social/Personal Problems: In Pakistan generally and specifically in Lahore, Women


entrepreneurs face social/personal problems such as Time Distribution/role conflict, Lack of
Education, Lack of Community/society, Lack of related field experience and Unfavorable market
behavior. According to them, women entrepreneurs face Major business problems like finance,
marketing, personnel and other. Chief family issues were time, role conflict/lack of family
support, income/money and other problems.

7.2 Limitations: This study had some limitations as authors were not capable to distribute the
questionnaire all over the city, time period to carry out the study was very limited, some of the
respondents did not answer the questions seriously, sample size was limited, which cannot be
easily liable to the whole population and all respondents cannot retain same level of precision
answering the questions due to lack of time and concern.

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Women Entrepreneurship: Turning Challenges into Opportunities

8. References

 http://www.umt.edu.pk/icobm2012/pdf/2C-78P.pdf
 http://sujo.usindh.edu.pk/index.php/THE-WOMEN/article/view/873/824
 http://www.umt.edu.pk/icobm2012/pdf/2C-10P.pdf
 http://www.businessnewsdaily.com/5268-women-entrepreneur-challenges.html
 https://www.researchgate.net/publication/261031527_Problems_Faced_by_Women_Entrepre
neurs_and_Their_Impact_on_Working_Efficiency_of_Women_in_Pakistan
 https://www.booksie.com/posting/mehrunisa012/women-entrepreneurship-turning-
challenges-into-opportunities-359138
 http://www.ijaetmas.com/wp-content/uploads/2016/05/ncadoms_107.pdf
 http://www.zenithresearch.org.in/images/stories/pdf/2016/APRIL/ZIJMR/1_ZIJMR_VOL6_ISSUE
4_APRIL2016.pdf
 https://www.worldwidejournals.com/global-journal-for-research-analysis-
GJRA/file.php?val=August_2014_1409305450__191.pdf

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