Mastercard Global Partnerships’ Post

Small businesses are the backbone of economies worldwide, driving innovation, and economic growth. However, many small businesses, particularly those owned by marginalized groups, face significant barriers to accessing financial services. Financial inclusion, the effort to ensure that all individuals and businesses have access to affordable and appropriate financial products and services, is crucial in leveling the playing field and unlocking the full potential of small businesses. In this article, we explore the importance of financial inclusion for small businesses and the ways in which it can empower them to thrive. Small businesses often encounter various challenges when it comes to accessing financial services. Traditional financial institutions may be reluctant to lend to small businesses due to perceived risk factors such as limited credit history, lack of collateral, or volatile cash flows. Moreover, small business owners from marginalized communities, including women, minorities, and individuals in rural areas, may face additional barriers such as discrimination and lack of access to financial education. Financial inclusion is essential for small businesses to access the capital they need to start, operate, and grow. By providing access to credit, savings, insurance, and other financial services, financial inclusion enables small businesses to invest in equipment, inventory, marketing, and expansion initiatives. Moreover, it helps them build financial resilience, manage cash flow fluctuations, and navigate unforeseen challenges such as economic downturns or natural disasters. Financial inclusion is not just a moral imperative; it is also a strategic imperative for fostering inclusive economic growth and prosperity. By empowering small businesses with access to financial services, we can unlock their potential as engines of innovation, job creation, and community development. Through collaborative efforts involving governments, financial institutions, civil society organizations, and the private sector, we can build a more inclusive financial system that works for everyone, regardless of their background or circumstances.

The Small Business Administration has reported that new business applications in the U.S. have soared to a historic high, reaching 17.2 million since the start of 2021. Despite fluctuations in consumer confidence, small business owners are boldly venturing into new endeavors, driven by shifts in priorities during the Great Resignation and other post-pandemic economic factors.   With nearly half of SMBs planning to seek capital this year, we must understand how we can support this boom of small businesses and their financing needs. Traditional lending solutions –– such as bank loans –– and increased regulations are creating barriers that make it more difficult for new and growing businesses to access the capital they need to grow and thrive. By getting to the root of what new and existing SMBs are looking for in their lending experience, such as digital, on-demand, flexible and easy-to-use solutions, we can drive positive change in how SMBs access capital - and contribute to the overall health of our economy.   #FinancingSolutions #eCapital   Source: https://lnkd.in/eHv6B6vx  

The Critical Role of Banks in Small Business Success Small businesses are the lifeblood of the American economy, driving innovation and creating jobs across the nation. 💪 However, the path to success for many small business owners can be challenging without the right financial support. This is where banks come in. Key ways banks can support small businesses include: Customized Financial Products: Offering specialized loans, lines of credit, and merchant services that address the unique needs of small businesses. Flexible repayment terms and competitive interest rates can make a significant difference. Advisory Services: Providing expert advice on financial planning, cash flow management, and investment strategies. Banks can act as trusted advisors, helping business owners navigate complex financial landscapes. Community Engagement: Actively participating in local business networks and chambers of commerce to understand and address the specific challenges faced by small businesses in different regions. Support for Innovation: Funding and supporting innovative projects and startups through incubators and accelerators. Encouraging entrepreneurship can lead to groundbreaking advancements and economic growth. As we look to the future, it's clear that the partnership between banks and small businesses will be more important than ever. Together, we can build resilient, thriving communities. 🌍💼 #Finance #SmallBusinessSupport #Banking #EconomicDevelopment #EntrepreneurialSuccess

Today we’re incredibly proud to announce Better Tomorrow Ventures' continued investment in Relay—the banking platform that gives U.S. small businesses cash flow clarity and control—as part of their $32 million Series B financing. The company has seen incredible growth over the last few years. Their revenue grew 3x in 2022, and close to 6x in 2023, driven by their unwavering commitment to solving one of the core challenges small businesses face: cash flow. 68% of U.S. small business owners report having cash flow problems, and half operate with just 27 days of cash buffer. For too long, they’ve struggled to find banking solutions that provide actual solutions to the cash flow challenges behind these stats. Relay is building the banking platform where business owners can go to understand their cash position, manage back-office processes, and collaborate with their teams on key financial workflows. And in doing so, they’re helping to increase the success rate of small businesses. We’re eager to continue working with them in pursuit of that mission as they enter their next stage of growth! Learn more about Relay’s plans to invest in the success of small businesses: https://lnkd.in/e_XZJPAQ cc Jake Gibson Sheel Mohnot Yoseph West

I get asked all the time how the banking business is these days with higher interest rates. My answer? The demand hasn't changed much at all, and lately, busier than ever. Many clients are aware of higher rates, but it still makes sense for them to invest in their businesses regardless of rates. And with the potential for decreasing rates this year, new projects are full steam ahead. Politics aside, the American dream is just more expensive these days! https://lnkd.in/efNK6bz7

Mastercard Strive partners with Boost Capital to unlock digital #financialservices for over 10,000 small businesses in the Philippines, with a focus on women-led small businesses. The program builds on our previous experience in Cambodia, where we worked with our innovation fund winner, Boost Capital, on de-risking and expanding #smallbusiness credit through financial education data. In Cambodia, we empowered about 6,000 small businesses with financial literacy. Those we engaged demonstrated better financial health and behavior. They’re now 8% more likely to repay their loans on time. Today, we look forward to leveraging our learnings and insights to support financial service providers in the Philippines. We aim to enhance their financial services and merchant onboarding and extend financial literacy training to their small business customers. Learn more: https://lnkd.in/gQcV2RRF #digitalization #financialinclusion  Mastercard Center for Inclusive Growth, Mastercard, Lucinda Revell, Gordon Peters, Nur Hasan, Subhashini (Shuba) Chandran, Simon Javier Calasanz, Natasha Jamal

Check out one of the pretty cool things the team worked on while I was out! In collaboration with OnDeck, we surveyed hundreds of small businesses to gain new insights into the health of small businesses nationwide. 🔍 🩺 We found that most small business owners are optimistic about their growth capabilities over the next 12 months, with optimism increasing slightly from Q4 2023. Check out our blog for a full breakdown of the findings: https://gag.gl/fScBOs Find any surprises? Sound off below! 📣 #smallbusiness #lending #fintech

According to a recent U.S. Treasury Report, small business start-up applications are surging in 2024, averaging 430,000 per month. That’s a 50% increase from pre-pandemic levels! The numbers show that, despite the challenges of the recent years, optimism in the small business space is bouncing back 😎 What does this mean? 🌟 70% of net-new American jobs are coming from small businesses. 🌟 Lending requirements are starting to ease, improving small businesses’ access to capital. #2024Trends #EconomicTrends #EntrepreneurLife https://lnkd.in/eQ5GmBrB

Empowering Small Businesses: Financial Strategies from Fruit Trucks to Regional Banks Whether you’re running a fruit truck, scaling a local business, or leading a regional bank, sound financial management is crucial at every level. The same principles that apply to big corporations can be tailored to small enterprises, giving them the flexibility and resilience needed to thrive in today’s market. Here are some key financial strategies for small business success: 1. Cash Flow is King Regardless of size, businesses live or die by cash flow. Keep a close eye on income, expenses, and receivables. Use digital tools to forecast cash needs, manage working capital efficiently, and make better decisions. 2. Build Relationships with Financial Institutions Even small vendors can benefit from strong banking relationships. From loans and credit lines to business advising, regional and national banks can provide strategic support for growth, innovation, and overcoming financial hurdles. 3. Leverage Data for Better Decisions Data-driven insights aren’t just for Wall Street. Use simple financial models and analytics to understand customer demand, manage inventory, and adjust to market shifts. Whether you’re buying produce for the week or managing an investment portfolio, understanding trends matters. 4. Adapt Funding Models Fruit trucks may need microloans or crowd funding, while regional businesses might seek more traditional loans or community grants. Larger firms can consider private equity or institutional investors. The key is matching the funding source to your scale and growth plan. 5. Risk Management is Key Risk is inevitable. For smaller businesses, it may be a delayed shipment or a broken refrigeration unit. For larger firms, it could be regulatory changes or market volatility. Either way, having a risk management plan can minimize losses and sustain business operations. 6. Think Big, Even if You’re Small Don’t limit your growth mindset based on the size of your business. Innovative financing, strategic partnerships, and long-term planning can elevate your small business into a national presence, just like many successful fruit trucks have scaled into well-known brands. Every business, from local vendors to regional players, contributes to the economic ecosystem. Let’s continue to empower small businesses with the financial knowledge and resources they need to succeed. After all, today’s small business could be tomorrow’s household name. What financial strategies have you found most effective in scaling your business? #SmallBusinessFinance #CashFlowManagement #BankingRelationships #RiskManagement #BusinessGrowth #Entrepreneurship

If you're struggling to explain working capital to a non-finance person, send them the post below. It's a continuation of the visuals we shared on the topic at ValueCurves. This post explains working capital in even simpler terms. #workingcapital #fractionalcfo https://lnkd.in/gmETwVxf