The intersection of institutional complexity and contextualisation in women entrepreneurship

Purpose This study investigates how regulatory, normative and cognitive systems intertwine and influence women’s entrepreneurial activities in Pakistan. It employs a gender-sensitive lens to examine this complex interplay, focusing on women entrepreneurs who are clients of microfinance institutions (MFIs). Design/methodology/approach The research methodology combined document analysis and semi-structured interviews with 50 women entrepreneurs associated with MFIs. A multi-perspective approach contextualised gender and entrepreneurship within Pakistan’s institutional environment. Findings The findings show that despite gender equality efforts, disparities persist in property rights, workforce participation and political representation. While regulatory initiatives, such as microfinance schemes, support women entrepreneurs, their effectiveness depends on concurrent shifts in cognitive and normative institutions. MFIs emerge not just as credit providers but as institutional mediators that engage families, address normative barriers and build cognitive capacity through community outreach and education. This demonstrates how regulatory, normative and cognitive pillars function interdependently rather than separately in shaping women’s entrepreneurial experiences. Practical implications Policymakers should design inclusive policies that address regulatory, normative and cognitive dimensions simultaneously, incorporating education, skills development and societal norms. This multi-dimensional approach can support women entrepreneurs in navigating institutional barriers and accessing entrepreneurial opportunities. Originality/value The study extends Scott’s institutional framework by specifying the mechanisms through which institutional pillars interact in patriarchal contexts, demonstrating that regulatory access requires simultaneous normative alignment and cognitive development. It reconceptualises MFIs as institutional mediators operating across all three pillars and advances gendered entrepreneurship theory by showing women’s agency as adaptive negotiation within existing institutional structures.