Small enterprises that are owned by women are significant to the Pakistani economy because they provide employment opportunities and financial support. This paper explores the relationship between social capital and institutional support, and the development of small businesses owned by women in Pakistan. It also investigates how cultural and gender norms and managerial competencies are related to the outcome of business growth. The research depends on social capital theory, institutional theory, and resource-based view. The research methodology was deductive and quantitative, and data was collected using five-point Likert scale through a structured questionnaire. The sample size 350 women entrepreneurs in the small business sector of Pakistani women, including those who were part of the family and friends, and those who were part of the Women Entrepreneurship Expo (WEPX) held at the Expo center. Data was processed with the help of the Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS. The findings indicate institutional support exerts the most significant positive influence on the development of the business. Women entrepreneurs grow their businesses with the help of government policies, financial support programs, legal protection, and training opportunities. The impact of social capital is also positive and significant, because the good relations and the networks of trust give access to information, resources, and new opportunities. Formal support systems and social networks can be used to foster the sustainable growth of women-owned small businesses in Pakistan at large.