By Patricia Okumu
Mastercard, through the Center for Inclusive Growth today launched Strive, a global initiative focused on strengthening the financial resilience of small businesses and supporting their recovery and growth.
Micro and small enterprises represent approximately 90 percent of business and more than 50 percent of employment worldwide. However, the pandemic necessitated a rapid shift to digital platforms and processes that have created new opportunities but also pushed many to the brink of failure. To address the transition Mastercard Impact Fund kicks off with initial commitment of $25 million help more than five million micro and small businesses globally access the tools and resources they need to digitize.
“When small businesses thrive our local communities and economies thrive, but when they struggle, the impact is widespread. What small business owners need right now are partners who will listen to them and develop innovative solutions that will help them grow in the wake of the pandemic. It comes down to an investment in making their success our success. That’s what makes programs like Strive so critical today and tomorrow,” said Michael Miebach, CEO of Mastercard.
President and Founder of the Mastercard Center for Inclusive Growth, Shamina Singh added that, “This program builds on lessons learned and a body of work developed as part of Mastercard’s long-term focus on financial inclusion, By leading with an equity-intentional lens and partnership-driven approach, Strive will meet owners where they are and connect them to the resources they are telling us they need to succeed and grow over the long-term.”
A data insights led initiative will combine localized programs with global platforms to address and respond to the unique challenges and opportunities of the most vulnerable small business populations in regions across the world.
As part of the Strive Initiative, the first of these programs will impact more than five million small businesses across Europe, Latin America, Africa, the Middle East and Asia. With the support of Caribou Digital, a research and advisory firm focused on aiding the development of inclusive and ethical digital economies, the program will help small businesses utilize technology resources that will digitize their operations, streamline financial and back-office services and improve market access to ensure they succeed in our modern economy. Grants will be allocated to organizations that are experienced in working with micro and small business owners.
“We are excited to partner with Mastercard to provide small businesses with the tools they need to reach their potential in a digital world,” said Chris Locke, founder of Caribou Digital. “By partnering with a wide range of interconnected organizations, the program will deliver valuable resources for digitization and foster further innovation, while enabling us to drive impact at scale.”
With a data insights first approach, Mastercard is responsibly working with regional fintechs, social impact firms and non-profit organizations to ensure the most vulnerable small businesses have access to secure tools and resources that will simplify their ability to manage cash flow, gain and retain customers and prosper digitally. In Europe, Strive Community will initially partner with fintechs to support small businesses in Spain and France.
Strive UK launched second as part of the Strive initiative, will focus at supporting the most vulnerable businesses with a local market. This aims to bolster the financial resilience and unlock the growth of 650,000 U.K. micro and small enterprises through personalized advisory services, data science-driven tools, insights and digitization support. Strive UK will also work together with local small business focused NGOs on providing dedicated resources to the most vulnerable businesses including those that are women and minority owned.
Even before the pandemic, small businesses were falling behind their larger competitors in integrating digital technologies in the way they do business. A European Union survey in 2019 found that roughly 80 percent of large businesses had implemented at least one digital technology versus only 30 percent of micro businesses.
This announcement builds on Mastercard’s $250 million commitment to support small businesses’ financial security made last year. Strive extends Mastercard’s longstanding commitment to financial inclusion, with efforts underway to bring in a total of one billion people and 50 million micro and small businesses with a focus on 25 million female entrepreneurs into the digital economy by 2025.
