KARACHI: The government must facilitate new businesses, especially women entrepreneurs, who face a lot more hurdles compared to men, Aban Haq, head, Karandaaz Innovation said in an interview with The News.
Karandaaz was engaged in finding financial solutions for smaller businesses and SMEs, mostly with the use of technology. “If we promote mobile banking, people living in far-flung areas, will have access to it,” she said.
Aban Haq overlooks matters related to the financing of women entrepreneurs.
She said finding financing for the SMEs was not an easy task, as around seven percent financing of the major banks goes to the small and medium businesses. However, she said, women-led businesses were getting even lower finances.
Karandaaz is supporting women entrepreneurs since 2017 with direct support, loans and indirect support, which was finding funding resources for them. “They need help and free of cost support, they can get funding from Karandaaz,” she said.
In 2018, Karandaaz provided 36 businesswomen with funding, of which 10 received Rs20 million each.
“Initially, we received responses from women in major cities, but now we want to reach the larger population,” she said, adding that Karandaaz supported businesses led by women with at least three years of experience, with an NTN number.
Haq said they focused on businesses that created jobs for women. “We do track those businesses as well,” she added.
With the support of Karandaaz, 500 SMEs have received funding so far, of which number of women entrepreneurs was 54 or around 10 percent only. They share risk of bank loans with these businesses.
Besides funding, Karandaaz supports businesses in human resource policies and provides technical support.
She said tax laws were the major hurdles being faced by the entrepreneurs in general and women entrepreneurs in particular. “At the federal and provincial level, there is no collaboration between the tax authorities, several issues are not clear especially in ecommerce businesses,” she said.
“If you want to promote entrepreneurship, they need to be supported.”
Talking about the startups, she said start-up eco system faced weaknesses, as start-up ideas were being stolen. “Investors in startups should focus on growth of business, not just return. Innovation should be supported,” she suggested.
She said announcements of reform policies at the top would not have bigger impact without being replicated at the ground level as well.
Karandaaz Pakistan is a not-for-profit company established in August 2014. It focuses on fostering economic growth and creating jobs through financial inclusion of unbanked individuals and un-served enterprises, with a special focus on women and youth.
Karandaaz Pakistan receives financial support from the UK’s Department for International Development (DFID) and the Bill & Melinda Gates Foundation (BMGF).
