76% of SMEs In Food, Beverage, Entertainment Optimistic About Growth

Although different sectors were exposed to and impacted in diverging ways to the extensive changes of the COVID-19 pandemic, Small and Medium Enterprise (SME) confidence across most sectors is on the rise, according to the latest research by Mastercard.

The inaugural Mastercard Middle East and Africa (MEA) SME Confidence Index found that 76% of SMEs in the food, beverage, and entertainment sector are optimistic about the next 12 months.

Confidence levels were highest among businesses in retail, closely followed by food, beverage, and entertainment. Forecasts in this sector are also positive, with 72% of SMEs projecting revenues that will either grow or hold steady. Almost half (47%) are projecting an increase.

Access to training, skills, and digitization is key for future growth

As many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease, small and medium-sized businesses in the MEA region’s food, beverage, and entertainment sector have identified access to training and development support (55%), upskilling staff (53%) and business digitization (50%), as the top drivers for growth.

This highlights the opportunities for small businesses that arise from both internal transformations as well as industry regulations and trends.

Making sure that SMEs have all the support they need to go digital and grow digital is a key focus for Mastercard. The company works closely with the government, financial organizations, and the wider business community to create opportunities for the small business sector.

Solutions that go beyond the restaurant bill

For many small businesses, reducing their dependence on cash through digital payments acceptance has played a major factor in being able to get paid and maintain revenues.

Mastercard offers technology, data-driven insights, consulting, and predictive analytics solutions to empower businesses to acquire new customers, enhance customer loyalty and improve operations.

Mastercard has pledged $250 million and committed to connecting 50 million micro, small and medium-sized businesses globally to the digital economy by 2025 using its technology, network, expertise, and resources in support of the company’s goal of building a more sustainable and inclusive digital economy. As part of these efforts, Mastercard is focused on connecting 25 million women entrepreneurs.

“Due to their very nature, restaurants and entertainment venues rely on physical presence for the best experience, and pandemic restrictions have made this incredibly challenging for SMEs in this sector. But we’ve also seen some wonderful creativity, including virtual experiences, online cooking classes, and pay-now-enjoy-later vouchers to support cash flow. By applying this innovation and tenacity to their strategies in the year ahead, these small and medium-sized businesses will continue to drive optimism and economic recovery. Supporting the ecosystem in which they and other SMEs operate, through varied products and services that resolve pain points, is something Mastercard will continue to do as we champion the growth of a diverse and inclusive economy,” said Amnah Ajmal, Executive Vice President, Market Development, Middle East and Africa, Mastercard.

Rising costs and maintaining staff among concerns

When asked about the main thing that keeps them up at night, 55% of regional SMEs in food, beverage, and entertainment mentioned the challenge to maintain and grow their business was their top issue.

Looking at concerns over the next 12 months, over half (56%) identified the rising cost of doing business, while 44% cited access to capital.

From an operational perspective, concerns for the next year include maintaining current staff levels (44%), training and upskilling staff (43%)