Abstract

Women’s entrepreneurship is critical for fostering economic growth and inclusive development globally. Women’s home-based businesses are crucial for women with restricted mobility and employment options to earn an income in developing countries. This study considers the impact of women’s home-based entrepreneurship on their family’s financial position. We collected data from 504 women entrepreneurs in Mardan City, Pakistan using a questionnaire/interview procedure. Chi-square and logistic regression were used to analyze the predictors of family financial position. The results showed that women entrepreneurs’ age, marital status, homeownership, rural versus urban location, household size, and business income significantly affect their family’s financial position. The findings revealed that women entrepreneurs have a substantial impact on the financial position and welfare of their families consistent with the multiplier effect ascribed to women in entrepreneurship. Implications and directions for future research are discussed.

Highlights

  • Women’s home-based entrepreneurship has been considered one of the most important drivers of economic growth in developed and developing economies [1,2]

  • In order to understand women’s home-based businesses (WHBB) more fully, we investigate associations with women’s age, marital status, homeownership, rural versus urban location, household size, business type, and business income in relation to overall family financial position

  • The findings revealed that several factors are significantly related to WHBB entrepreneurs’ contributions to their family’s financial position

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Summary

Introduction

Women’s home-based entrepreneurship has been considered one of the most important drivers of economic growth in developed and developing economies [1,2]. Women’s entrepreneurship is viewed as a vehicle for converting available resources into valuable goods and services while creating employment opportunities that will lead to wealth creation [6,7] and social empowerment. In addition to their economic activities, women entrepreneurs serve as role models that inspire other women to pursue entrepreneurship [8]. Women are presumed to be poorer than men [9] in the developing world because, in patriarchal societies, men are responsible for fulfilling the financial needs of their families This notion may be changing because women’s contributions at the household level and to the economy overall have been steadily increasing. As women’s home-based entrepreneurial businesses continue to grow, there is a need to assess the financial impact of women’s businesses on the family’s financial position

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