Analyzing the impact of Women-Owned Home-based Businesses in Income Generation and Household Livelihood in Khyber Pakhtunkhwa Pakistan

Abstract

Women entrepreneurship through home-based businesses has a significant contribution to income generation and household livelihoods, particularly in developing countries. The study identifies the determinants and the barriers to the women entrepreneurs taking the case of District Abbottabad, Pakistan. The study is unique in the sense that it examines the role of women-owned home-based businesses in income generation and household livelihoods particularly in the context of District Abbottabad. The study collected data through a cross-sectional survey of 100 women-owned home-based businesses from the district Abbottabad by using convenience sampling and snowball sampling techniques. The study found that 89 percent of the households having women-owned home-based businesses were enjoying the increase in income. Moreover, it suggested stitching centers and tuition academies on most priority followed by beauty parlors to beginners. Household livelihood model estimates showed that home-based businesses have a positive and significant role in households’ livelihood, particularly enhancing physical and financial capital. The study explores that lack of finance, lack of space, and unfair taxes particularly in the case of beauty parlors were the main hardships that were faced by the women entrepreneurs. It found that easy access to credit, better education, and training facilities may combat the financial problems of women doing household businesses in District Abbottabad. The study concludes that increased involvement of women in economic activities through home-based businesses may lead to a favorable change in the growth of an economy.