Islamic Microfinance and Women Entrepreneurship Performance during COVID-19 Pandemic

Abstract

Purpose: In the contemporary era, women are playing a vital role in changing the global economy as entrepreneurs, workers, and consumers, yet they encounter many problems and obstacles in the development of entrepreneurship. This study aim is to investigate the impact of Islamic microfinance on women entrepreneurship performance: mediating role of social capital and moderating role of opportunity for social interaction in South Punjab, Pakistan. Design/Methodology/Approach: Data were collected from 183 women entrepreneurs, who were using Islamic microfinance, through the convenience sampling technique. Convenient sampling technique was used to collect the information. PLS-SEM was employed to statistically test the data. Findings: This study results indicate that microfinance had a negative relationship with women's entrepreneurship performance. However, when Islamic microfinance led to the formation of social capital among women that eventually caused the women entrepreneurship performance. Moreover, the extent to which microfinance provisions affected the social capital of clients was dependent upon the microfinance providers facilitated social interaction among clients. . Implications/Originality/Value: This paper will give benefit to academics in preparing a plan for future research. Moreover, findings will also assist policymakers and IMFIs to set out microfinance initiatives that will improve the betterment of clients and will maximize their enterprising results.

Keywords

• Islamic Microfinance
• Women Entrepreneurship
• Social Capital
• Social interaction and IMFIs