Financing Ready-made Micro Businesses: A Case Study of National Bank of Pakistan

Abstract

The aim of this study is to ascertain the causes of success or failure of two selfemployment schemes cum financing ready-made micro businesses, 'Yellow Cab' and 'NBP Karobar' by National Bank of Pakistan and modality of launching and financing ready-made micro business at a very wide scale by the microfinance banks and institutions in Pakistan. The methodology included qualitative mode of inquiry and explanatory analysis of data. This research is undertaken in two stages. In the primary data collection method, at the first stage, one-on-one interviews were taken from the NBP officials having expertise in the relevant products affairs, at the second stage, a survey through interviews was undertaken in Karachi from borrowers of those products. The samples were selected through convenience procedure of non-probability sampling method. The findings of this research discover the potential of financing a wide range of ready-made micro businesses/enterprises at an extensive scale throughout the country to provide maximum self-employment cum entrepreneurial opportunities and nourishing the microfinance sector.