THE IMPACT OF ECONOMIC TRUST, ECONOMIC NETWORK, AND FINANCIAL INNOVATION ON THE FINANCIAL WELL-BEING OF MICRO-ENTREPRENEURS IN BALOCHISTAN: A QUALITATIVE STUDY

Abstract

This qualitative study explores how economic trust, networks, and financial innovations influence the financial well-being of micro-entrepreneurs in Balochistan, Pakistan. Despite various development projects, micro-entrepreneurs face sustainability challenges. Utilizing semi-structured interviews with 20-25 participants, the study reveals that financial well-being is linked to kinship-based trust, diverse economic networks, and suitable financial innovations. Economic trust hinges on family support, community reputation, and tribal obligations, while institutional trust is hindered by documentation issues. Economic networks foster information sharing and resource mobilization, and innovations like microfinance are effective only when aligned with existing trust frameworks. The study highlights financial well-being as a composite of income stability, business growth, resilience, and subjective satisfaction. It offers insights for development policymakers, stressing the importance of reinforcing traditional mechanisms, addressing gender barriers, and designing culturally compatible financial products for sustainable impacts.