81% of SMEs in MENA optimistic about future growth guided by potential for digitalization, better data, access to credit and upskilling: Mastercard MEA SME Confidence Index
81%
of SMEs in MENA optimistic about future growth guided by potential for digitalization,
better data, access to credit and upskilling: Mastercard MEA SME Confidence
Index
·
81% of
SMEs in MENA are optimistic about the next 12 months
·
Optimism
in MENA fueled by growth potential of better data, access to credit and
upskilling of staff
·
Research
identified key areas with the greatest potential for growth with half of SMEs
projecting an increase in revenues in the next 12 months
June 27, 2021 | Amman, Jordan – After facing unprecedented changes in the wake of the
COVID-19 pandemic, Small and Medium Enterprise (SME) confidence in MENA is on
the rise, according to the latest research by Mastercard.
The inaugural Mastercard Middle East and
Africa (MEA) SME Confidence Index found 81% of SMEs in MENA are optimistic
about the next 12 months. In fact, 77% are projecting revenues that will either
grow or hold steady. Over half (56%) are projecting an increase.
Access to data, digitalization and skills key
for future growth
As many regional economies gradually enter
the normalization and growth phase, and social restrictions continue to ease,
small and medium sized businesses in MENA have identified better data and
insights (42%), easier access to credit (41%) and upskilling staff (40%), as
the top three drivers for growth. This highlights the opportunities for small
businesses that arise from both internal transformation as well as industry
regulations and trends.
Making sure that SMEs have all the support
they need to go digital and grow digital is a key focus for Mastercard. The
company works closely with government, financial organizations and the wider
business community to create opportunities for SMEs across the region.
Mastercard has pledged $250 million and
committed to connect 50 million micro, small and medium size businesses globally
to the digital economy by 2025 using its technology, network, expertise and
resources in support of the company’s goal of building a more sustainable and
inclusive digital economy. As part of these efforts, Mastercard is focused on
connecting 25 million women entrepreneurs. For many small businesses, reducing
their dependence on cash through digital payments acceptance, has played a
major factor in being able to get paid and maintain revenues.
"The
results from the SME Confidence Index clearly indicates an upliftment in
sentiment that most business across MENA are feeling today. This is a positive
sign for the region on its journey to economic recovery, and a clear indication
of the power of technology in helping enable this growth. As a technology enabler
of choice, Mastercard is working closely with small and medium businesses
across the region to ensure that their needs are being heard and met with the
latest tools and technology that can help them make the most of out of an
evolving digital economy,” said Khalid Elgibali – Division President,
MENA, Mastercard.
The challenge to maintain and grow business a
key concern, whilst public and private partnerships seen as engine for growth
When asked about the main thing that keeps
them up at night, 50% of SMEs in MENA mentioned the challenge to maintain and
grow their business was their top issue. Looking at concerns over the next 12
months, over half (53%) identified the rising cost of doing business, while 39%
cited access to capital. Private sector partnerships (58%) and government-led
initiatives (53%) were identified as having the biggest potential to positively
impact SMEs and the wider MENA market.
"With rising costs among the key concerns of
SMEs in MENA, it is crucial that we prioritize a safe and secure digital
economy that can keep commerce going, enable healthy cash flows, and support
access to capital by virtue of a digital track record. A strong digital economy benefits everyone in multiple ways, from
SMEs being able to grow their customer base through eCommerce, to consumers
having a choice of payment methods. Transforming a smart economy through
technology, insights and omni-channel solutions is how Mastercard supports businesses
of all sizes,” added Elgibali.
As consumer trends evolve in a post-pandemic
world, businesses must adapt and prepare for the future. Mastercard’s Economic Outlook
2021 estimated that 20-30% of the COVID-19 related surge in e-commerce would be
a permanent trend in share of overall retail spending globally. Furthermore,
recent studies from Mastercard showed that 74% of consumers in MENA are
shopping more online than they did since the start of the pandemic and 95% of
the region’s shoppers would consider making a purchase with an emerging payment
technology over the next year.
Ends
Notes to editor:
Survey Methodology:
·
Telephone or face-to-face interviews of 1,533 SME decision-makers in 7 countries
in 3 regions (MENA,SSA & SA)
·
Up to about 300 respondents per country in Kenya, Nigeria, Ivory Coast
and South Africa
·
Up to about 100 respondents per country in Egypt, UAE and KSA
·
Research conducted End of March – End of April (South Africa: until mid-May
2021)
·
Nationally representative sample on SME size
·
Readable sample sizes of:
·
Region clusters
·
SME size, years in business
·
Gender & age of decision-taker
About
Mastercard (NYSE: MA), www.mastercard.com 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 company. With
connections across more than 210 countries and territories, we are building a
sustainable world that unlocks priceless possibilities for all.
For further information please contact: rama.alsayegh@mastercard.com
