Government support and effective policies are key to SME growth, says Mastercard survey

A majority of small businesses are seeking support to upskill their teams and for improved telecoms infrastructure

Government support and effective policies are key to helping small and medium enterprises (SMEs) across the Middle East and Africa recover from the pandemic, position themselves for growth and contribute to economic prosperity, new research has found.

Government support and implementation of effective policies was highlighted as “important” by 88 per cent of the region’s SMEs, 50 per cent of which rated this as a “musthave” essential, according to Mastercard MEA’s SME Confidence Index.

This sentiment was especially pronounced in the Middle East and North Africa (MENA) (92 per cent) and Sub-Saharan Africa (90 per cent) regions, the research found.

Rising opportunities

In addition to looking for effective regulatory support from governments, 92 per cent SMEs in MEA said they are also looking for support in upskilling of their teams, and 88 per cent highlighted the importance of improved telecoms infrastructure – pointing to opportunities to effect positive change in wide-ranging areas from education and skills development to systems and infrastructural progress.

Public-private partnerships are crucial for effective development and implementation of initiatives that advance financial inclusion and inclusive growth, the research found. To achieve this, governments and the private sector must play a joint role in enabling a safe and secure operating environment.

“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,” said Valerio Murta, Senior Vice President, Core Products Middle East and Africa, Mastercard.

“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. This is why it’s so important that we prioritise public-private partnerships for SME growth, and why we’re putting our technology, expertise and global network to work, helping to develop the infrastructure to connect more people – and more small businesses.”

Mastercard works closely with governments and the wider business community to advance SME inclusion into the digital economy through tailormade digitisation strategies, cutting-edge technologies, insights and policy advice.

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.” Valerio Murta Senior Vice President, Core Products Middle East and Africa, Mastercard

Government support

Across MEA, 51 per cent of SMEs say government-led initiatives could have a positive impact in supporting their businesses.

These include the UAE, where Dubai Government launched a third stimulus package to support small and medium enterprises maintain business continuity by reducing operational costs, while the Abu Dhabi Executive Council allocated Dh3 billion to the SME Credit Guarantee Scheme.

Furthermore, SMEs in the region recognise the great potential of public-private partgrants, nerships (PPP), and 63 per cent think private sector initiatives and partnerships will benefit businesses and the markets in which they operate.

One in three SMEs (32 per cent) think that collaborating with governments and businesses outside their markets could impact their growth. In Southern Africa this was especially pronounced, with over half (56 per cent) agreeing.

Mastercard has successfully collaborated with regional governments to create growth opportunities for SMEs, by creating an ecosystem where small businesses can thrive. In Egypt, Mastercard worked alongside the Central Bank to develop a comprehensive national digital payments strategy and digital payroll programme, as a way to include more people in the formal economy.

Through its partnership with Saudi Arabia’s domestic payment network, mada, Mastercard became the first company to enable e-commerce in the kingdom.

In Ethiopia, Mastercard is working with the Ministry of Innovation & Technology to drive financial inclusion, support SMEs and enhance digital transformation readiness.

Through technology services, cyber assessments, insights, digital training, mentoring platforms and knowledge initiatives, Mastercard will contribute $250 million (Dh917 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 50 million small businesses, including 25 million women entrepreneurs globally, to the digital economy by 2025.