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SMEs identify easier access to funding, digital payments, training and upskilling staff as key drivers of growth
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Rising cost of doing business worries the majority
Confidence of Small and Medium Enterprises (SMEs) in the UAE is on the rise after the disruptions caused by the Covid-19 pandemic, says a Mastercard research.
The inaugural Mastercard Middle East and Africa (MEA) SME Confidence Index found that 88% of SMEs in the UAE are optimistic about the next 12 months. Two-thirds (66%) are projecting revenues that will either grow or hold steady.
With many regional economies entering the normalization and growth phase and easing of social restrictions, UAE SMEs have identified easier access to funding (40%), acceptance of digital payments (34%) and training and upskilling staff (34%) as the top three drivers for growth.
Asked about the main thing that keeps them up at night, 60% of SMEs in the UAE mentioned the challenge to maintain and grow their business was their top issue.
Looking at concerns over the next 12 months, 61% identified the rising cost of doing business, while 38% cited the need for easier access to capital and funding.
Private sector partnerships (57%) and government-led initiatives (53%) were identified as having the biggest potential to positively impact SMEs and the wider UAE market.
“Access, whether it is to growth, stability and financial support, stands out as the top concern that SMEs in the UAE face today. The fundamental benefit of a digital economy is that it eases access across these barriers,” said Girish Nanda, Mastercard country manager UAE and Pakistan.
As consumer trends evolve in a post-pandemic world, businesses must adapt and prepare for the future. Mastercard’s Economic Outlook 2021 estimated that 20-30% of the Covid-19 related surge in e-commerce would be a permanent trend in share of overall retail spending globally.
Furthermore, recent studies from Mastercard showed that 73% of UAE consumers are shopping more online than they did since the start of the pandemic and 97% of UAE shoppers would consider making a purchase with an emerging payment technology over the next year.
