Jul 10, 2024, 3:00 PM
Jul 10, 2024, 3:00 PM

Mastercard Tackles Financial Gap for Small Businesses

Highlights
  • Mastercard is introducing innovative solutions aimed at supporting struggling small businesses.
  • The initiative addresses the universal challenges these businesses face in today's economy.
  • With a focus on inclusive growth, Mastercard aims to enhance prospects for small enterprises.
Story

In a recent discussion held in the Executive Lounge, Mastercard unveiled its innovative approach to addressing the challenges faced by small and medium-sized enterprises (SMEs), often referred to as the "missing middle." This term highlights the significant gap in financial services and support available to these businesses. The European Bank for Reconstruction and Development emphasizes that the effectiveness of any international organization in bridging this gap relies heavily on a robust local presence that can accurately assess and respond to the unique needs of SMEs. Mastercard's Inclusive Growth Score is a key tool in this initiative, providing local financial institutions with insights into community social and economic indicators. This data enables them to predict the potential success of small businesses in their areas. According to Singh, the company collaborates closely with local teams to identify viable market opportunities and ensure that the regulatory environment is conducive to the growth of small enterprises. One of the standout initiatives from Mastercard is the Strive small business program, designed to enhance the resilience of SMEs by facilitating their transition to digital platforms, improving access to capital, and connecting them with essential networks and expertise. The program has been implemented in various markets, including Czechia and the UK, with a tailored approach based on the specific needs of each region. Notably, Mastercard has supported 37 million women entrepreneurs, providing them with resources to expand their businesses. Recent success stories, such as Hoa's business growth of 10 to 15% over the past two years, underscore the significant opportunities that digital transformation presents for small businesses.

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