Government support key to SME growth in ME, says Mastercard
GOVERNMENT support and the setting up of effective policies are key to helping small and medium enterprises across the Middle East and Africa recover from the pandemic, position for growth and contribute to economic prosperity, new research has found.
About 88 percent of the region’s SMEs ranked these factors as ‘important’ for future growth, while 0 percent rated them as ‘must-haves’, the inaugural Mastercard MEA SME Confidence Index showed.
This sentiment was especially pronounced among SMEs in the Middle East and North Africa, where 92 per cent categorised them as important factors, the research found.
“The contribution of small businesses to regional economies is ultimately about much more than the immediate gains to livelihoods it’s also about the sustainable development of an ecosystem that can advance inclusive growth and prosperity for all,” said Valerio Murta, senior vice president of core products for the Middle East and Africa at Mastercard.
Besides effective regulatory support, 92 per cent of SMEs in MEA are also looking for support to upskill their teams and 88 per cent want improved telecom infrastructure, the Mastercard research found.
“Collaboration is the key to developing a commercial landscape that is fit for future growth. Through effective partnerships, the public and private sectors can together create a supportive environment where SMEs can thrive,” Murta said.
Six in 10 SMEs in the region said private sector initiatives and partnerships would benefit businesses and the markets in which they operate, Mastercard said.
One in three SMEs said collaborating with governments and businesses outside their markets could affect their growth. In southern Africa, this was especially pronounced with more than half ( 6 per cent) agreeing, the report found.
A public policy paper titled Reimagining support for small businesses, released by the Mastercard Policy Centre for the Digital Economy in partnership with global consulting firm earney, recommends how effective policy and innovation can address many of the challenges faced by SMEs serving the business-to-business market.
Recommendations include providing ongoing working capital stability for SMEs, removing barriers that hinder women-owned businesses’ ability to receive capital by allowing different types of collateral and ensuring a safe, secure operating environment for SMEs in terms of cyber security, trust and transparency.
The Mastercard research found that more than half of all SMEs across MEA said government-led initiatives could have a positive effect on supporting their businesses.
Mastercard has successfully collaborated with regional governments to create growth opportunities for SMEs, by creating an ecosystem where small businesses can thrive.
Through technology services, cyber assessments, insights, grants, digital training, mentoring platforms and knowledge initiatives, Mastercard will contribute 2 0 million over five years to support small businesses’ financial security globally. As part of its goal to build a more sustainable and inclusive world, Mastercard has committed to connect 0 million small businesses, including 2 million women entrepreneurs globally, to the digital economy by 202 .