How Mastercard Strive USA Powers Small Business Growth and Resilience

Small businesses are the heart of the U.S. economy, driving 43.5 percent of gross domestic product and employing nearly half the American workforce. They generate two-thirds of new jobs and serve as incubators for innovation and entrepreneurship. Many of the world’s most successful companies started as small businesses, which have consistently proven to be key drivers of technological and industry advancements.

By providing a pathway to wealth-building for low- and moderate-income entrepreneurs, small businesses foster a more inclusive economy and strengthen the middle class, ultimately supporting a more resilient U.S. economy that is better equipped to withstand economic downturns, supply chain disruptions, and labor market shifts.

Today, entrepreneurship is thriving in the United States. More people are opening small businesses than ever before. This surge—which shows no signs of slowing down—is reshaping the American business landscape and creating new pathways to financial security. Yet nearly half of all new small businesses fail within five years, a rate that has not changed in decades. The Mastercard Strive USA program is working to improve that success rate.

Why Do So Many Small Businesses Struggle?

While failures are a natural part of starting a business, fragmented support programs, complex policies, and limited access to capital, mentorship, and digital tools represent significant hurdles. Even the most innovative ideas can fail without the right support infrastructure. ??

In low-income or remote areas, Community Development Financial Institutions (CDFIs) are particularly crucial in the small business ecosystem because they provide much-needed financial services. However, their funds are often tied to loan capital, leaving little funds for investments in technology or other operational infrastructure. Business support organizations such as technical assistance providers and incubators face similar constraints, struggling to scale their services effectively. Yet both CDFIs and business support organizations offer opportunities to create a robust small business ecosystem.

“Over the past 30 years, CDFIs have become a conduit for public-private partnerships, as the private sector aims to drive capital to create impact in low-income communities,” said Victoria Brown, senior director at DAI’s Sustainable Business Group, where she leads implementation of Mastercard Strive USA.

Addressing Constraints on the Small Business Ecosystem

Mastercard Strive USA, funded by the Mastercard Center for Inclusive Growth and implemented by DAI, is a five-year project to support small business resilience and growth. Focused on overcoming three critical roadblocks—access to affordable capital, digital tools, and network and know-how—Mastercard Strive USA partners with community-focused institutions to:

• Get Capital: By supporting community financial institutions, including local banks, minority depository institutions, and credit unions, Mastercard Strive USA makes it easier for small businesses to access funding when and where they need it.
• Go Digital: Mastercard Strive USA connects lenders to digital tools that streamline lending and investment processes. It also provides business support organizations with the resources needed to train entrepreneurs in digital skills and e-commerce, enabling these businesspeople to better compete in the digital marketplace.
• Grow Networks and Know-How: Through partnerships with local and national organizations, Mastercard Strive USA connects small businesses to expert advice, helping them develop new skills and expand their capabilities.

DAI’s day-to-day implementation includes strategic advice for Mastercard Strive USA, awareness raising, and comprehensive monitoring, evaluation, and learning. The DAI team also helps organize the Mastercard Strive USA Summits, where grantees and industry leaders discuss the latest innovations in financial health and economic growth.

Two Years of Impact

One emblematic example of Mastercard Strive USA’s approach to helping small businesses and small business support organizations is their support for NYC Funds Finder, launched by their grantee Next Street and in collaboration with the NYC Department of Small Business Services. Over 5,000 small businesses have utilized the platform, benefiting from more than 830 hours of technical assistance and establishing direct connections with numerous community lenders. During the initial grant period, they reached close to 80,000 small businesses and facilitated nearly $30 million in loans for small businesses.

Leveraging the infrastructure and expertise of Mastercard and drawing on best practices from DAI projects globally, Mastercard Strive USA has supported more than 30 organizations across the United States. From establishing a network of grantees in its first year, and elevating insights and knowledge in Year 2, Mastercard Strive USA is now turning its focus to facilitating collaborations within the program.

Mastercard Strive USA’s goal is ambitious but essential: set in motion a cycle of inclusive growth across the U.S. and fill gaps in the small business ecosystem. The project aims to deploy $50 billion in total by its fifth year and reach five million small businesses. By addressing capital access, digital transformation, and network development, Mastercard Strive USA is creating a sustainable, resilient future for America’s small businesses—ensuring they remain the heart of the U.S. economy.