Micro and small enterprises are important contributors to job creation and global economic development. They 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. It has also pushed many to the brink of failure. To address the transition to digital, Mastercard – through the Center for Inclusive Growth – today launched Strive. Strive is a global small business initiative focused on strengthening the financial resilience of small businesses and supporting their recovery and growth.
Championing financial inclusion
Strive had an initial philanthropic investment of $25 million from the Mastercard Impact Fund. This will help more than five million micro and small businesses 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,” said Michael Miebach, CEO of Mastercard. “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.”
“This program builds on lessons learned and a body of work developed as part of Mastercard’s long-term focus on financial inclusion,” said Shamina Singh, President and Founder of the Mastercard Center for Inclusive Growth. “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 small business initiative that thinks globally
As part of the Strive initiative, global platforms will combine with localized programs to address and respond to the unique challenges and opportunities of the most vulnerable small business populations in regions across the world.
Strive Community is the first of these programs. It will impact more than five million small businesses across Europe, Latin America, Africa, the Middle East and Asia. The program will have the support of Caribou Digital, a research and advisory firm. Caribou Digital is 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. It will also help them 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.
A small business initiative for the underrepresented
Strive UK, the second program launched as part of the Strive initiative, 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 and insights and digitization support. Working together with local small business focused NGOs including Enterprise Nation, Digital Boost and Be the Business, while complementing UK government efforts such as Help to Grow, Strive UK will focus on providing dedicated resources to the most vulnerable small 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. A European Union survey in 2019 found that roughly 80 percent of large businesses had implemented at least one digital technology. Meanwhile, only 30 percent of micro businesses have done so.
Today’s 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.
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. We will achieve this by making transactions safe, simple, smart and accessible. We use 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 the company. We have connections across more than 210 countries and territories. We are building a sustainable world that unlocks priceless possibilities for all. www.mastercard.com
About Caribou Digital
Caribou Digital is a research and advisory firm. It helps clients change the world through building inclusive and ethical digital economies. Our team of experts works across a range of sectors and businesses, from startup financing to data analytics, to financial inclusion and the use of space for development. We ensure our clients lead the field in the use of technology to deliver equitable and sustainable development.
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