Savings groups and the COVID-19 pandemic in Zimbabwe: Critical assessment of the informal social protection scheme

The COVID-19 pandemic has ravaged nations and people's lives throughout the globe across multiple dimensions. Measures to curtail the spread of the disease in Zimbabwe have stifled the capacity of the majority of the population, relegated to the informal sector, to source a living. In the absence of robust social protection interventions from the state, these measures pose a more immediate threat to the lives of marginalised and vulnerable communities than the pandemic itself. Savings groups (SGs), which have providedfinancial relief andprotection from economic shocks and stressors to such population groups, have been entrapped by the preventive and containment measures employed by the Zimbabwean authorities. It is unclear how and to what degree such conditions leave underserved populations exposed to socioeconomic shocks as such vital informal social protection alternatives have been rendered ineffectual. Using documentary review, this study examines the fate of SGs in such socially restricted and economically debilitating circumstances. In addition, the authors discuss strategies for improving the sustainability of such grassroots micro-finance initiatives under COVID-19 induced contraptions. Programmatic andpolicy measures necessary for retaining and protecting the viability of (SGs) as alternatives for informal social protection for marginalised and vulnerable groups under COVID-19 are advanced.

Microfinancing from the Zakat Fund in Baitulmal Aceh and the Readiness of Malaysia's Asnaf Entreprenuers

The recent Covid-19 pandemic has swept the globe. As a result, there has been a spike in the number of relative poor who are experiencing economic hardships. This poses a predicament for the unbankable, reducing their options to apply for funding via banking products. With the available financial capacity, zakat institutions are viewed as the closest alternative in terms of being a source of funding, either through the microfinacing method or the qard hasan principle. Zakat is considered capable of becoming a social entrepreneurial system and a worthy alternative. The question is whether Islam permits microfinancing using zakat funds. If permitted, what is the rationale for distributing zakat through microfinance? Are there asnaf entreprenuers in Malaysia ready to take microfinance from the zakat fund to finance their businesses? This study is done using the case study method by conducting a semi-structured interview with zakat expertise and asnaf entreprenuers. Based on the content analysis, the findings of the study indicate that Islam permits microfinance using zakat funds. Asnaf entreprenuers are likewise eager to acquire microfinance from zakat money in order to strengthen their economic position and develop in life. This microfinancing is expected to have a good effect, particularly on the rising demand for asnaf entreprenuers. So, it is expected that asnaf entreprenuers will be able to switch from being a zakat recipient to a zakat payer within a certain amount of time. This will increase the amount of zakat and decrease the number of poor people. Even the poor's economy can be stimulated without usury (riba). © 2023 UNIVERSITY OF ZILINA.

How well does government microcredit serve the investment needs of small and medium enterprises? An impact analysis on handloom weavers in Bangladesh

PurposeThe purpose of this study is to empirically estimate the impact of a government microcredit program on the handloom weavers to promote small and medium enterprises (SMEs) in Bangladesh.Design/methodology/approachThe data were collected from 311 handloom weavers from the Sirajganj District of Bangladesh from July to December 2015 using a multistage sampling technique. The analysis was conducted using a two-stage least squares regression model incorporating instrumental variables to control for the probable endogeneity problem associated with the study.FindingsThis study finds that government microcredit had no significant impact on borrowers' investment in their business, whereas credit received from multiple sources other than government credit had a significant negative impact. Additionally, literacy level, household assets and the number of operational handloom units positively affected investment, while the number of non-operational handloom units and distance negatively affected the investment.Research limitations/implicationsThis study's findings are more specific for the selected case and may not be generalizable to all kinds of SMEs.Practical implicationsThe policy implications are targeted at increasing loan size based on the number of operational handloom units to improve the performance of government and other microcredit programs to facilitate the growth of SMEs in Bangladesh.Originality/valueThis study specifically focuses on estimating the financial performance of government microcredit programs for SME development within the handloom industry, which has not been sufficiently explored in the literature.

Micro Finance in India - Emerging Challenges

For promoting financial inclusion in India, both banks and Non-Banking Finance Companies - Micro Finance Institutions (NBFC-MFIs) play a pivotal role by providing microfinance to individuals and tiny enterprises. There are 187 lending institutions in India engaged in providing microfinance of more than Rs.2.27 lakh crore. Today, microfinance activity is more technology driven to ensure adequate, timely and hassle free financial services. During the Covid-19 pandemic, the sector suffered significantly due to lack of demand for credit and increasing loan defaults. Hence, RBI announced certain measures including debt restructuring to provide relief for stressed micro loan customers and creating more liquidity in the market. Post the pandemic, there are enough business opportunities for the microfinance sector to prosper. However, the age old issues such as lack of due diligence in lending, over-indebtedness and multiple borrowing by customers and unethical recovery practices need to be addressed. Therefore, there is a need to make microfinance activity more digital, promote financial literacy, strengthen risk management systems, upgrade skills of the field level staff and formulate an effective grievance redressal system. Towards this end, the article attempts to review the performance of the microfinance sector at a time when India is currently celebrating the 75th year of Independence and offer suggestions to strengthen the microfinance sector in the country.

Surviving amidst pandemic: Indonesian Islamic microfinance experience

The purpose of this study is to investigate the Indonesian Islamic microfinance institutions' (IMFIs) condition, and their strategies to survive and to explore their contribution during the pandemic by combining and synthesizing the result of all previous studies. To achieve that goal, this research uses a systematic literature review method by mining all data available which in addition makes this paper different from other previous works. This enables us to provide a deeper, broader, and more comprehensive understanding of the topic. Google Scholar is set as the database for three reasons. This research found that Indonesian IMFIs are affected by the pandemic and classified into three categories based on the severity of the impact: Severely hit, affected yet stable, and IMFIs that grow during the pandemic. Indonesian IMFIs had in total 6 types of strategies to survive during the pandemic: Active and passive approaches, common and innovative schemes, as well as persuasive and administrative activities. The study also found the contributions of Indonesian IMFIs during the pandemic and classified them into two categories financial and non-financial contributions. This research is unique by delivering comprehensive nonsegregated data and well-synthesized condition of IMFIs in entire Indonesia during the pandemic. The results of this study give policymakers a fundamental ground to develop proper policy in fostering IMFIs after the pandemic. IMFI practitioners should also take benefit from the results by mirroring, modifying, or improving the strategies to face future economic turbulences. © 2022 The Authors.

Impact of Geographical Diversification on Credit Risk of Microfinance Organizations in Armenia

This paper analyzes the existence of relationship between credit risk and the geographical diversification of financial institutions, originating from emerging countries. Due to economic unstable situation in the world caused by Covid-19, credit portfolios of banks and MFIs caused negatively which in some situations can lead to default. In the current situation, it became necessary to discover new approaches to credit risk management and new researches to be done. For this purpose, financial indicators of MFIs operating in Armenia were evaluated and Pearson analysis of MFIs data, risks & profitability efficiency calculation was made to take out impact of diversification of MFIs on credit risk reduction. Both international literature and practical data of MFIs operating in Armenia were identified. Another research was made for taking out the number of branches and credit risk correlation. Our findings show that geographic diversification is statistically significant with the expansion of gross loans. In contrast, empirical results suggest that the geographical diversification of MFIs does not have a significant correlation with the size of the credit risk reserve, which means that the representation of MFIs in different regions in the form of branches will not always lead to credit risk reduction, and in some cases may lead to operational risks and additional costs. We adopt cost funding and assets size variables impact assessment evaluation through instrumental variables method. Our results confirm the endogenous nature of those variables with risk level of MFIs. © 2023 Publishing House of the Higher School of Economics. All rights reserved.

Analysis of default risk in microfinance institutions under the Basel III framework

International organizations such as OECD, WBG, IMF, UN and EU, as well as research studies, have highlighted the increasing contribution being made by microcredit finance institutions (MFIs) to financial inclusion, sustainable economic development and the fight against poverty. However, access to MFI credit is still far from the desired level for small and micro‐enterprises, especially in developing countries. The countries of Latin America and the Caribbean, where approximately half of the small formal companies do not have access to credit, have the world's highest financial gap ratio compared to potential demand (87%). In this context, effective instruments are needed to assess default risk, through credit ratings. Based on the Basel III regulations, an empirical study was conducted of two microcredit portfolios corresponding to two MFIs in two Latin American countries (Bolivia and Colombia) during the period 2012–2015, to identify the explanatory variables of the probability of default on loans granted by MFIs, using a logistic regression model and a neural network. The results obtained show that the main variables in this respect are the amount of the loan, the number of payments in arrears, the guarantees provided, the assessment of the credit analyst, male gender of the borrower and the level and trend of the general stock exchange index. The conclusions presented advance previous research findings and may be useful for MFI managers, regulatory institutions, financial analysts, scholars, policy‐makers and applicants for microcredits to undertake a business project, especially in times of emerging crisis, such as that caused by the Covid‐19 pandemic.

The Impact of the Omnibus Low Cipta Kerja on the Sustainability of MSMEs and Economic Growth by Applying the Canvas Model Business Method and the Use of Financial Technology, Especially Crowdfunding and Microfinance

The purpose of this study is to find out the impact of the omnibus low cipta kerja on the sustainability of MSMEs and economic growth by applying the canvas model business method and the use of technology financial capital, especially Croudfunding and microfinance. The role of financial technology, especially in crowdfunding and microfinance, has an important role in improving the performance of MSMEs and will affect the increasing economy, when the Covid-19 Pandemic hit in Indonesia creating uncertainty in almost all aspects of life, especially the economy. To restore and maintain economic activity still running well, the government issued several policies One of which is maintaining the investment climate in Indonesia by omnibus low cipta kerja, the government provides ease, speed, certainty, and efficiency in business for entrepreneurs. Technology finance especially Crowdfunding and microfinance offer easy access to capital which is expected to help MSMEs to immediately contribute to increasing growth economy through MSME activities that have an impact on reducing unemployment, it is hoped that MSMEs can use the Business Model Canvas to survive because it can make actors MSMEs can capture potential business opportunities that can be taken. The enactment of Law Number 11 of 2020 omnibus low cipta kerja (Ciptaker Law) can provide The advantage for Micro, Small and Medium Enterprises (MSMEs) that a single license is related to MSMEs, for example, home industry licensing (PIRT) is made easier by (1) granting permits one door, (2) Provide incentives & facilities for medium and large businesses partnering with MSEs, (3) Integrated Management of MSMEs, namely by providing opportunities for local agencies involved in empowering MSMEs, (4) Ease and financing of fiscal incentives namely providing convenience and financing to improve the economy, (5) providing the government prioritizes the special Allocation Fund for the development of MSMEs, (6) provides Legal assistance and protection, (7) MSE products are prioritized for government service provision, (8) Partnership with MSMEs, (9) provides convenience for cooperatives. This research uses a Mix Method research approach is a combination of quantitative with a combination of qualitative. Using the combined method is expected to be able to complement each other from the research questions there has been. Quantitative emphasizes the technical analysis of statistical tests so that the data is more accurate Qualitative techniques emphasize process analysis of the inductive thinking process that is related to the dynamics of the relationship between observed phenomena and always using scientific logic. Where this method is a way of formulating and interpreting existing data to provide a clear picture of how to increase Indonesia's economic growth and the performance of MSMEs by implementing the canvas business model and using crowdfunding and microfinance as an intervening variable for the Job Creation Act that provides convenience for MSMEs. Results from this research are (1) There is an increase in the performance of MSMEs and an increase in the growing economy of SMEs that use financial technology, especially in Crowdfunding and microfinance as an alternative to capital requirements through the Job Creation Act, (2) There is an increase MSME performance and increasing economic growth for MSMEs using Business The Canvas Model (BMC) in analyzing the MSME sustainability strategy through the Job Creation Law, There was an increase in the performance of MSMEs and an increase in economic growth in MSMEs that using financial technology, especially in Crowdfunding and microfinance and Business Model Canvas (BMC) through the omnibus low cipta kerja. © 2023 WITPress. All rights reserved.

Microcrédito como política pública para geração de trabalho e renda

O microcrédito Produtivo Orientado é incentivo ao desenvolvimento de empreendedores mediante o financiamento em fomento às atividades produtivas. Esse subsidia consumo, desenvolvimento do negócio, bem estar, educação e tecnológica tendo na orientação empresarial fator essencial. A atenção para esse segmento, relevante e frágil, é crescente, entre outros fatores, em função de políticas públicas para alívio da vulnerabilidade dos microempreendimentos pelas ações de combate a COVID-19. Logo, o presente artigo como pesquisa básica, descritiva e qualitativa, tem como objetivo geral analisar o MPO como política pública, especificamente avaliar o programa como estratégia para o Desenvolvimento Sustentável. Por fim, o resultado demonstrou que o MPO é uma política pública que colabora para o DS.Alternate abstract:The Oriented Productive Microcredit is an incentive to the development of entrepreneurs through financing to promote productive activities. This subsidizes consumption, business development, well-being, education and technology, having business orientation as an essential factor. Attention to this relevant and fragile segment is growing, among other factors, due to public policies to alleviate the vulnerability of microenterprises through actions to combat COVID-19. Therefore, this article as a basic, descriptive and qualitative research, aims to analyze the OPM as a public policy, specifically to evaluate the program as a strategy for Sustainable Development. Finally, the result defined that the OPM is a public policy that contributes to the SD.

Impact of COVID-19 on the Income of Entrepreneurs Who Borrowed from SHG

The COVID-19 pandemic has shaken the world. After liberalization in 1991, microfinance became a panacea for poor people without collateral and information asymmetry. The higher cost of microfinance and debt traps highlighted the need for the state to intervene in resource redistribution. In addition, national lockdowns and COVID-19 restrictions have made it difficult for emerging economies like India to achieve this sustainable development goal. The Reserve Bank of India introduced self-help group (SHG) bank linkage to ensure the financial inclusion of the poor. The difference-in-difference method examined how SHGs affect entrepreneur households' income. CMIE Consumer Pyramid dx data were used for analysis. The data establish that SHGs have increased the income of the households, and demographic factors such as education, income level and gender also impact the financial inclusion of the poor. © 2023 Management Centre for Human Values.

Mind the Gap in Financial Inclusion! Microcredit Institutions fieldwork in Peru

Financial inclusion remains a key political issue. Since microcredit first captured public attention, Microfinance Institutions (MFIs) have expanded rapidly all around the world. Although much economic and financial literature has highlighted the importance of microfinance as a factor of development, there is also an intense debate about its effectiveness as a development tool. This paper is a descriptive analysis of the microcredit state of the art contrasted with the fieldwork done in Peru. A qualitative research methodology was used;29 in-depth face-to-face interviews were done with different microfinance agents: MFIs, NPOs, microfinance associations, and microfinance customers in Peru. Peru has been chosen because it has a dynamic and well-regulated microfinance sector with more than 70 entities specialized in microfinance. Though statistical generalization is not possible, interview data provided rich and contextual evidence, which is often missing from a quantitative research approach. This paper highlights the importance of financial and accounting education in microcredit beneficiaries and how can it be enhanced in the digital age. The COVID-19 pandemic has forced vulnerable population to embrace new digital technologies and has highlighted the digital gap that still exists in Latin America although this situation presents opportunities and challenges. This present study contributes to the debate over how to improve microcredit intervention´s impact on the more vulnerable and identifies some unique insights into the interrelationships of financial education and financial inclusion. The results of the present study confirm that financial and accounting education are key elements in financial inclusion. ©2023 ASEPUC.

Barriers to Digital Financial Inclusion during Covid-19: A Study Using Integrated Delphi – AHP Framework

The state of Kerala has made remarkable progress in the field of financial inclusion. It was among the first states in India to be identified as a 'Total Banking State'. However, the progress achieved with respect to digital financial inclusion has not been proportionate to the success it achieved in terms of account opening. This is particularly important in the current Covid pandemic and the emphasis on cashless transactions. The current study uses the Delphi - AHP Integrated method to identify, prioritise and rank various barriers to digital financial inclusion in PSBs. Using this, the study develops an index for Digital Financial Inclusion barriers. The findings of the study revealed bank officials prioritised Access related barriers (0.387) highest, followed by Awareness & Knowledge related barriers (0.352) and lastly, Attitude barriers (0.261). Further, the study finds significant variability in the Digital Financial Inclusion Barrier level with respect to gender, age, education, income and SHG membership among customers of PSBs.

Financial Inclusion: Trends and Research Agenda for Social Policymakers

For the past few decades, microfinance has played a significant role in banking the unbanked, but its impact on poverty has been disputed. Gradually, the attention of policymakers shifted to financial inclusion, hoping that financial deepening could impact poverty. The world bank has published three sets of Global Findex reports in 2011, 2014, and 2017. We examine the broad trends and cross-sections that emerge from these reports and propose some explanations of the trends. We note that despite the increasing financial inclusion, poverty has increased since the COVID-19 pandemic, indicating that financial inclusion does not offer resilience to the poor. We draw an agenda for researchers where more information and research are required. These future research directions are targeted primarily to development and social policymakers and researchers. 2022– All Rights Reserved.

Mind the Gap in Financial Inclusion! Microcredit Institutions fieldwork in Peru

Financial inclusion remains a key political issue. Since microcredit first captured public attention, Microfin-ance Institutions (MFIs) have expanded rapidly all around the world. Although much economic and fin-ancial literature has highlighted the importance of microfinance as a factor of development, there is also an intense debate about its effectiveness as a development tool. This paper is a descriptive analysis of the microcredit state of the art contrasted with the fieldwork done in Peru. A qualitative research methodo-logy was used;29 in-depth face-to-face interviews were done with different microfinance agents: MFIs, NPOs, microfinance associations, and microfinance customers in Peru. Peru has been chosen because it has a dynamic and well-regulated microfinance sector with more than 70 entities specialized in microfin-ance. Though statistical generalization is not possible, interview data provided rich and contextual evidence, which is often missing from a quantitative research approach. This paper highlights the importance of fin-ancial and accounting education in microcredit beneficiaries and how can it be enhanced in the digital age. The COVID-19 pandemic has forced vulnerable population to embrace new digital technologies and has highlighted the digital gap that still exists in Latin America although this situation presents opportunities and challenges. This present study contributes to the debate over how to improve microcredit interventions ' impact on the more vulnerable and identifies some unique insights into the interrelationships of financial education and financial inclusion. The results of the present study confirm that financial and accounting education are key elements in financial inclusion. (c) 2023 ASEPUC. Published by EDITUM -Universidad de Murcia. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Microfinance and women entrepreneurship development: evidence from Tunisia.

The main objective of this paper is to investigate the effects of microfinance on women's entrepreneurship and empowerment, using national household data from Tunisia. We have employed Logistic Regressions and Fuzzy-set qualitative comparative analysis (fsQCA) to study the consequences of microfinance use.We find positive and significant effects of access to credit on women's work, attitudes toward income increase, execution of the micro-projects, and schooling attendance. The results confirm the potential of micro-finance in women's empowerment and Entrepreneurship Development in Tunisia, especially during COVID-19 pandemic.

The performance of rural banks in Indonesia during the Covid-19 pandemic

Economists, academics, and practitioners are worried that the COVID-19 pandemic has a negative impact on the banking industry in the world, especially in Indonesia, such as other events that have occurred in the world in the last 25 years, namely the Asian Financial Crisis in 1997, Severe Acute Respiratory Syndrome (SARS) in 2003, and the Global Financial Crisis in 2008 (Overby et al., 2004;Hill and Shiraishi, 2007;Winoto and Bustaman, 2020). Rahmi and Sumirat (2021) used commercial banks for their research data and stated that the COVID-19 pandemic has a negative effect on ROA. [...]this research was conducted, studies examining the impact of the COVID-19 pandemic on the performance of rural banks in Indonesia had never been done. [...]this study proposes several research hypotheses as follows: H1: the COVID-19 pandemic has a negative effect on CAR H2: the COVID-19 pandemic has a positive effect on NPL H3: the COVID-19 pandemic has a negative effect on ROA H4: the COVID-19 pandemic has a negative effect on CR Research and Methodology Data and sample The sample selection used the purposive sampling method by selecting rural banks that had complete data, selecting rural banks operating before the COVID-19 pandemic occurred and were still operating until this research was conducted, and selecting rural banks from the largest bank size to the smallest.

IMPACT OF COVID 19 ON BORROWINGS FROM SELF-HELP GROUPS AND OTHER SOURCES OF MICROFINANCE

COVID 19 is a pandemic that has emerged as a major crisis for the entire world. With the emergence of COVID 19, the borrowing pattern of individuals have changed drastically. During the second phase of COVID 19, the Government has imposed severe restrictions in terms of the Work from Home and Social distancing. This led to a decline in borrowing, particularly from the Self-help groups. This study seeks to establish the relationship between borrowings and Lockdown. Further, the study seeks to measure the gendered impact of COVID 19 on borrowings from different sources. The Difference in Difference method & Kernel based PSM (Propensity Score Matching) was used to identify the impact of COVID region (Rural Vs Urban) and the gendered impact of COVID 19 on the borrowings from different sources of microfinance. The results establish that during the COVID 19 period, the Rural regions witnessed a decline, whereas the borrowings from the bank and nonbanking finance companies increased drastically. © 2022 Gokhale Institute of Politics and Economics. All rights reserved.

Formal Micro-Credit for Refugees: New Evidence and Thoughts on an Elusive Path to Self-Reliance

The provision of formal micro-credit for refugees has been promoted as a dignified way to improve their ability to generate income through small-scale enterprises and reduce poverty. As humanitarian funding declines in protracted displacement situations, such approaches are sought to transform refugees into self-reliant, resilient, entrepreneurial agents who are no longer dependent on aid and can overcome a crisis with their own resources and financial confidence. The paper in hand questions this claim on the basis of new, comprehensive empirical insights on the financial lives of refugees in non-camp settings in Jordan. By applying the perspective of the credit users, not the suppliers, our evidence shows that the pervasive use of debt (mostly informal) does not signify latent demand for formal micro-credit. In a context where refugees face restrictions on right to work, move, set up businesses, and imagine a future in the host country, formal credit cannot improve self-reliance. The paper sheds light on a larger variety of sources of debt that are crucial for refugees to manage their lives. In conclusion, the paper argues that the rhetoric around micro-credit as a path to refugee self-reliance has to be re-visited as problematic, even damaging, and humanitarian actors should push this agenda with caution.

Effect of COVID-19 pandemic on women entrepreneurial sustainability: the role of Islamic microfinance institutions

Purpose The breakout of the COVID-19 pandemic has forced governments all over the globe to bring radical changes to all walks of life. Strict lockdowns are not only adversely affecting the social, economic, and psychological wellbeing of individuals but also questioning the sustainability of most businesses. In wake of the current scenario, this study is aimed at exploring how the COVID-19 pandemic is influencing the sustainability of entrepreneurship particularly from a female perspective and further providing insights into the role of Islamic financial institutions in the sustainability of businesses during COVID-19. Design/methodology/approach This is a qualitative study that takes social constructivism approach to study the underlying phenomenon. Semi-structured interviews are conducted to collect primary data. Secondary data are also utilized in this study to theoretically define various concepts relating to entrepreneurial sustainability. The application of thematic analysis revealed various risks associated with sustainability. The interviews reveal the ground realities and tell us about the hardships being faced by the entrepreneurs due to ongoing crises. The participants of the study also shed light on the role of Islamic financial institutions during the pandemic. Findings The study results revealed that it may look impossible for women entrepreneurs to halt or avoid the adverse consequences of the pandemic;however, a few female entrepreneurs strived to guard their existing portfolios with the help of Islamic microfinance institutions. Whereas, several women, especially those running home-based businesses, lost their income streams. Despite these rapid challenges, most female entrepreneurs are working on inventive online systems to sustain their business activities during the crisis. Finally, guidelines are suggested which can help achieve sustainability of the entrepreneurial startups. Research limitations/implications The outcomes of this study are expedient for funding agencies, government authorities and Islamic financial institutions as well as for non-government institutions to establish sustainable and broader policies for women to become successful entrepreneurs during severe disasters like COVID-19. Moreover, the study is a helpful tool for women entrepreneurs to avert the worst impact of the pandemic with the help of Islamic microfinance institutions. The themes of this study help generate realistic information to appraise the strategies to create facilitating business environments that drive the women to carry out the entrepreneurial activity during any crisis like the COVID-19. Practical implications The results of this study provide evidence that crisis can be anticipated up to some extent if entrepreneurs become able to take proactive decisions in case of expected or identifiable threats. The study may also help the women entrepreneurs to comprehend the serious consequences of the pandemic by shifting their mode of financing to Islamic finance. Although this pandemic is a cause of physical discomfort instead this research may encourage the female entrepreneurs not to lose heart, just find the potential opportunities for their home-based and small businesses and manage funding from the Islamic microfinance institutions. Originality/value The study adds to the existing literature on entrepreneurial sustainability with a particular focus on the role of Islamic microfinance institutions for women entrepreneurs' sustainability in Pakistan. Secondly, the study employs the entrepreneurial sustainability model (ESM) that, according to the best of our knowledge, has not been used by the researchers earlier to study the given research phenomenon. Thirdly, the study findings are expedient for funding agencies, government authorities and financial institutions as well as for non-government institutions to establish sustainable and broader policies for women to become successful entrepreneurs during disasters like COVID-19.

Understanding the Function of a Social Business Ecosystem

Social entrepreneurs face challenging situations in trying to expand and grow businesses with little investment and limited resources. Interactions and networks between social entrepreneurs, investors, and other stakeholders are indispensable in promoting social entrepreneurship. Together, they come to form a cyclical “social business ecosystem” (SBE), in which social entrepreneurs can finance their projects by paying “share transfer fees.” By using a theoretical/mathematical model in our method, this study examines the fundamental role of share transfer fees in an SBE. In particular, it establishes a moral hazard model that can explain important characteristics of an SBE. As main results, the study identifies conditions under which an SBE can mitigate the moral hazard of social entrepreneurs. The results suggest that SBEs work efficiently for relatively small social projects. This is consistent with actual cases of social business. Within this framework, this study also explores the practical implications of knowledge spillover;social entrepreneurs conduct SBEs more efficiently if they take advantage of knowledge spillover.