How digitalization and women’s economic participation improves MSEs financial resilience

The Covid-19 pandemic is far from over, but its impact, which is still unfolding before our eyes, will be felt for a long time. Each Micro and Small Enterprises (MSEs) has a story about how they adapted, coped, and learned about themselves as a result of this collective experience. MSEs are frequently discussed as if they were a monolithic group, however they are as gloriously diverse as humans and demonstrate an enormous capacity for adaptability and ingenuity when confronted with such adversity.

In Mexico, there are over 4.5 million MSEs who drive the Mexican economy and local communities. MSEs represent a type of economic empowerment for those who participate, that allows them to provide a better life for their families and immediate circle. Women lead a sizable proportion of this population, accounting for more than 30% of MSEs in Mexico.

Although all the MSEs faced the weight of the Covid-19 pandemic, the impact was different according to gender. According to the Organization for Economic Co-operation and Development (OECD), women-led businesses are more likely to report a negative economic impact and a greater lack of liquidity than men-led businesses. Women's businesses are also less likely to be digitalized due to a lower digital culture among women. As a result, women entrepreneurs are less prepared to deal with financial challenges such as the pandemic.

Given the number of MSEs in Mexico, emphasizing their diverse experiences is critical, especially if they are led by women. The Mastercard Center for Inclusive Growth commissioned BFA Global to detail the current landscape of Mexican MSEs. As a result, this comprehensive document demonstrates the complex and specific needs of MSEs, the lessons learned from the covid-19 pandemic, and the resilience paths that will allow SMEs, particularly those led by women, to reach their full potential.

Supporting tailored digitization strategies can strengthen Mexico’s resilience and unlock significant economic benefits. With the philanthropic support of the Mastercard Impact Fund and in collaboration with a team of small business specialists, we launched the Strive Mexico program, an initiative that will support 400,000 small businesses over the next three years, with a strong emphasis on the needs of Mexican businesswomen.

However, we cannot complete this task on our own, therefore with this initiative, Mastercard will collaborate with an extensive network of entrepreneurial partners, ranging from federal and state governments to financial service providers that comprise our entrepreneurial ecosystem seeking to ensure a meaningful and long-lasting impact of Strive Mexico.

The world can only progress through collaboration and inclusion, which begins with the partnerships we form. Putting women on the path to resilience and advocating for the development of an inclusive and equitable business ecosystem for all entrepreneurs, regardless of size, is critical for driving an inclusive digital economy that benefits all. We hope you will join us in this effort to boost up Mexico's economic engine.