Abstract
Given that most types of borrowings are simply not available for the small scale retailers in Pakistan, the business borrowing without collateral for this sector is a critical factor to be reckoned with. The main objective of this study is to explore the availability of loans to retailers owning shops, especially grocery stores, worth ten to fifteen million rupees and minimum stock of half million rupees and five or less than five persons at their service counters. In this connection, linkages of business borrowing with collateral, volume of business and insurance and its implications on business growth are being examined by randomly surveying 150 shops of different localities in Karachi. This paper also attempts to investigate how business borrowing to this cash-starved sector influences its growth.
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