Growing up in Rawalpindi was a unique experience, as it presented before me an extremely diverse range of real-life characters that provided me with a multidimensional perspective on life. One such character was a not-so-educated lady, Saira, who was the sole breadwinner of her family because her husband got bedridden due to a chronic disease and her children were not old enough to earn. So, to run her kitchen, she started sewing people’s clothes. Her work was so exceptional that she started receiving orders from large boutiques, and so, eventually, she had to hire employees to work with her on big projects. Hence, a lady with meagre resources and a very basic education not only managed to earn a handsome income but also became an example of financial independence for other women. Although I was just a minor back then, her story, as told by the elders, was an inspiration for me and everyone I knew, even in the conservative households. Fast forward to this day, and as I am writing this article, my brain is constantly reminding me of her story, which was a stimulus for my entire neighborhood, so much so that everyone started taking their daughters’ and sisters’ education and career pursuits quite seriously and encouraged them to develop their own sustenance skills. This transformative experience reflects the profound impact that individuals, even those with inadequate resources and basic education, can have on shaping a community’s mindset. It serves as a microcosm of the broader potential that is fundamental to empowering women through initiatives like small and medium enterprises (SMEs), a topic that holds paramount importance for the sustainable development of Pakistan.

SMEs and sustainable development are closely linked concepts for developing countries in the current age, as they provide a perfect model for dealing with issues like poverty, hunger reduction, gender equality, and sustainable economic growth. However, it is important to first define SMEs and their basic characteristics. Small and medium enterprises have been widely defined by different countries and organizations, so there is an absence of a universal definition. For instance, Germany defines it as having no more than 225 employees and an annual turnover not exceeding 50 million Euros. On the other hand, Japan’s description of SMEs includes mining, manufacturing, shipping, and building industries within the scope of SMEs, along with a workers’ count of not more than 300. Similarly, in Pakistan, too, different authorities have defined SMEs differently. For example, the Pakistan Bureau of Statistics defines it based on employee enrollment, whereas the State Bank of Pakistan takes both the nature of businesses and employee count into consideration while defining SMEs. Nonetheless, one characteristic common to all definitions of SMEs is that they provide sustainable employment opportunities to a small number of individuals and lower the burden on governments and large businesses to create employment opportunities for an increasing population. In other words, these SMEs provide avenues of growth and earning livelihoods on a small scale to skilled people who belong to low-income families, thus formulating an effective framework for the sustainable growth.
Women in Pakistan are known to be multi-taskers as they perform their familial obligations as mothers, wives, sisters, etc., and simultaneously fulfil their responsibilities at the workplace. Moreover, women have restricted mobility, decision-making powers, and limited time available for working towards the growth of their businesses. Similarly, sometimes they are expected to contribute to the family businesses without any monetary incentives making their input unrecognized.  Very often this leads to women being economically dependent. Secondly, it also hinders the economic growth of the country because almost half of the workforce in Pakistan cannot contribute as fully as their male counterparts. According to United Nations Development Program (UNDP) report of 2021, only 20 percent of women in Pakistan participate in the labor force, contributing very little to the country’s GDP. Various social, financial, economic, and cultural obstacles in Pakistan impede women from initiating and maintaining their enterprises. Nevertheless, certain motivating aspects, such as familial support, autonomy, personal fulfilment, and inspiring success stories, serve to keep them motivated.
Women in Pakistan are more likely than their male counterparts to cite access to finance as a constraint because they face difficulties in accessing necessary financial services and products. Financial institutions often request land or property deeds as forms of collateral or verified documentation and these services also necessitate male family members as signatories to avail loans. This can often become problematic for women to provide since there are challenges regarding ownership of property, access to legal documentation and male members as guarantors.
While these challenges persist, efforts on both national and global fronts are underway to reshape this narrative. These initiatives and collaborations have been initiated to empower women economically and foster their inclusion in the larger entrepreneurial landscape. For instance, the Revenue Mobilisation and Investment Team (ReMIT) stated that amongst the women who participate in Pakistan’s labour force, only 19 percent are either self-employed or are bank account holders, whereas only 0.1 percent are employers. The remaining workforce works for governmental or non-governmental departments. Therefore, small and medium-scale enterprises are extremely crucial for women and for the country’s ailing economy.
The importance of SMEs for women has increased considerably in recent years, especially after the global consensus on meeting sustainable development goals. The NGO’s, international microfinance institutions, and governments all over the world, including Pakistan, are coming up with ways to incorporate women in the framework of SMEs so that the SDGs are met in a comprehensive manner. In this regard, the Government of Pakistan came up with initiatives like ‘Khadijah,’ that was started by Pakistan Single Widow (PSW), a women’s entrepreneurship program that aims at promoting women’s economic empowerment as well as gender equality by establishing reliable training mechanisms for women and enhancing their capabilities, enabling them to actively engage in cross-border trade. Similarly, the Pakistan Poverty Alleviation Fund, Small and Medium Enterprise Development Authority, etc., have collaborated with the European Union under the Growth for Rural Advancement and Sustainable Progress Project (GRASP), which focuses on mobilizing the women of rural Sindh and Balochistan by forming their linkages within industry and working on their capacity building. Likewise, the government is currently negotiating a five-year loan agreement program with the Asian Development Bank (ADB), which aims to develop women – inclusive finance sector in the country. All these efforts, along with many others, are working in the country to include women in the larger entrepreneurial network, which at present is dominated by men. Moreover, these steps will enable women to access their bank accounts, take loans, and exercise agency over their own finances, thereby creating a positive impact on their entrepreneurial endeavors. However, these initiatives will need time to be implemented in true letter and spirit as they require structural and systemic changes. 
Lastly, it is important to understand how women’s integration in small and medium enterprises ensures Pakistan’s sustainable development. Thus, specifically targeting Pakistani women and enabling them to become entrepreneurs in small and medium enterprises will have far-reaching impacts on fulfilling SDGs like poverty eradication, zero hunger, good health for all citizens, gender equality, and inclusive and sustainable economic growth. In short, by creating a welcoming space for women in SMEs, the country will automatically be able to provide employment opportunities to the skilled labor force, which includes both men and women, and subsequently, will be able to embark on the journey of sustainable development. HH

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