Cairo, Egypt: To shed light on the impact of the global health crisis – and the ongoing recovery – on small businesses around the world, Mastercard published Recovery Insights: Small Business Reset. The report found that in the Middle East and Africa, small accommodation companies consistently outperformed large companies in 2021 as people traveled locally.
Looking at 19 markets around the world, the report finds that sales of small and medium-sized enterprises (SMEs) lagged large companies by up to 20 percentage points at the height of the crisis. However, spending picked up in 2021. Total SME sales increased 4.5% through August 2021 since the start of the year compared to the same period in 2020, while e-commerce sales increased by 4.5% through August 2021. are up 31.4%.
âSupport for neighborhood businesses has been a rallying point throughout the pandemic. However, the challenges faced are very real, due to their reliance on local markets, local supply chains and tighter cash flow, âsaid Bricklin Dwyer, Mastercard chief economist and director from the Mastercard Economics Institute. âBut, we see better opportunities ahead. The digital switchover has opened the door to the silver lining of the pandemic: a resurgence of entrepreneurship and innovation. “
Supporting small business owners is an ongoing priority for Mastercard, which is committed to bringing 50 million small businesses and 25 million women entrepreneurs into the digital economy by 2025. Mastercard’s Digital Doors program helps businesses to connect and stay protected, ensuring they have the right tools to maximize their digital presence and integrate e-commerce seamlessly, including the free small business digital readiness diagnostic. Most recently, Mastercard committed $ 25 million to help more than five million micro and small businesses digitize through the Strive initiative.
Mastercard also works closely with governments, businesses, and other organizations around the world to create environments, programs, and policies for small businesses to thrive. Mastercard provides high-frequency local spending information to dozens of city, state, and federal governments through our City Possible and Recovery Insights programs, as well as content such as the recent guidance document on How governments can support SME takeovers.
You can read the full Recovery Insights: Small Business Reset here. This is the fifth report in the Recovery Insights series; other reports can be found here.
The Mastercard Economics Institute developed the Mastercard Small Business Performance Index as a more universal classification system for SMEs. The index relies on a comprehensive AI-powered algorithm to identify unique metrics, such as number of placements, sales volume, number of transactions, within the network’s aggregated and anonymized sales activities MasterCard.
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About Mastercard Economics Institute
Mastercard Economics Institute was launched in 2020 to analyze macroeconomic trends from a consumer’s perspective. A team of economists, analysts and data scientists rely on information from Mastercard – including Mastercard SpendingPulse â¢ – and third-party data to provide regular reports on economic issues to key customers, partners and decision makers.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our business. With connections in more than 210 countries and territories, we are building a sustainable world that opens up invaluable possibilities for all.
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