As small business optimism declines, banking partners can provide support

Written by Small Business Gateway Manager, Johanna Hutcherson

Most businesses are feeling a pinch with the current global economic climate. One sector in particular feeling the squeeze are small business merchants. In a recent National Federation of Independent Businesses (NFIB) report , it found nearly half of small business owners in the U.S. agree the economy won’t improve in the next 6 months. Their grim outlook is impacting how they staff their stores, their expansion plans and how they manage inventory.

Considering small businesses represent around 90% of businesses and more than 50% of employment worldwide, the decline in small business optimism could be felt long term. Instead of having small businesses brace for the impact of economic uncertainty, there are several opportunities where?your business can support this sector and help them survive these latest challenges. ?

Help small businesses innovate their payments

Small business are more likely to be open to new ideas, processes and technology. Independent businesses produce 16 times more new patents per employee in comparison to large firms and this entrepreneurial mindset can often bring fresh perspectives and new methods of thinking. The drive to innovate can be translated through to payment strategies. With Small Medium Enterprises (SME’s) being nimbler and more flexible than larger corporations, at the early stage’s entrepreneurs can act as innovation labs.

With small businesses often being the first to experiment with new business models – from new Tap on Phone services outside normal retail stores to subscription services and product commercialization. These models can provide the opportunity to stand out in a crowded market and connect with customers in a new way.

Help small businesses compete outside their traditional retail shop

NFIB’s February 2023 Jobs Report noted labor costs as the top business problem are near 48-year record high levels. This is a staggering situation considering 1.5 million new jobs are created within the US each year by small businesses.

For entrepreneurs struggling to find labor and keep their storefronts staffed, a mobile app to accept payments on the go and an easy to build website, could be key to keep their business going. The Mastercard Gateway Merchant Console app and online store builder offers 14 languages and associated currencies with the aim of making eCommerce easily accessible with little IT or coding skill.

Help small businesses understand the big picture

For many small business owners, the challenging economy, labor shortage and day-to-day business management can be overwhelming. Instead of small business owners having to look at multiple systems to understand the health of their business, consider offering them our small business gateway solution with built in Merchant Portal where they can manage their store, upload products, view transactions and manage their orders. Available via desktop and mobile, the Merchant Portal can help them keep track of their business on the go. ?

Don’t discount the power of small businesses

SME’s have a valued place in the economy and in the market. As a partner you have a unique relationship with your SME customers. In your area of expertise, payments, they look to you first. Through Mastercard Gateway you can package solutions together to reach a wide range of their needs.

Our payment solutions are designed to help small businesses adapt to changing payment environments, improve cash flow, and reduce the costs through secure payment data and continually improving technology. Growth in a small business not only benefits the local economy by the local community. A study found that 67% ?of every dollar spent at a small business stays within the local community with this idea being reiterated by, Thierry Breton, the EU’s Commissioner for the Internal Market “The role of small businesses cannot be captured through numbers alone… They’re the lungs of the economy, the ‘social glue’ for local communities”.