CFI’s report provides the clearest picture yet of the challenges and opportunities that determine the business trajectory of micro and small enterprises (MSEs) in five rapidly changing emerging markets.

The survey of MSEs across Addis Ababa, Delhi, Jakarta, Lagos, and Sāo Paulo revealed digital products and services offered opportunities for growth and greater efficiencies, while highlighting resource constraints, consumer protection risks, and heightened vulnerability to economic and climate shocks, as challenges faced by the businesses.

Key findings from the study include:

• MSEs adopting digital tools were up to 10% more likely to report revenue growth, but usage of these tools remained low. In Addis Ababa, more than half of MSEs reported using no digital technology applications. MSEs in Delhi, Jakarta, and Lagos were using at least one digital tool.
• Entrepreneurs across the 5 cities reported using an average of 1.8 to 5 formal financial services, reflecting diverse levels of adoption and engagement with financial tools. Businesses that integrated digital payments reported significantly higher revenue per employee.
• Women entrepreneurs represented 70% of MSE owners in Jakarta, but just 11% in Delhi, with figures of 35% in São Paulo, 43% in Addis Ababa, and 53% in Lagos. In many markets, MSEs are not started by choice but as a response to unemployment, making the businesses more vulnerable and reducing long-term resilience, which has implications for financial service design.
• 1 in 3 micro and small businesses reported being impacted by drought, floods, or other environmental shocks, and less than 20% reported being able to come up with emergency funds within one week. Of those entrepreneurs impacted by an environmental shock, up to 29% said they were more likely to invest in adapting their business to the changing climate.

The study, supported by the Mastercard Center for Inclusive Growth, used Adaptive Cluster Sampling – a research technique that enabled a strong focus on urban areas with high numbers of MSEs. CFI focused on understanding the drivers of financial health for MSEs that represent the largest source of income generation in emerging markets.

A total of 20,000 MSEs were surveyed, with 4,000 interviews conducted to build a sample that represents 1.7 million MSEs across the 5 cities.

“Nowadays, small businesses are facing unprecedented threats, from cyberattacks to the economic impact of extreme weather events,” said Payal Dalal, executive vice president of global programs at the Mastercard Center for Inclusive Growth.

“The research released by Accion highlights the opportunity to work alongside small businesses to provide solutions that secure them against these challenges; it’s not only about mitigating risks in the digital economy but making sure small businesses have the opportunity to thrive during this increasingly volatile time.”

The research highlighted the importance of access to digital technology and formal financing, but noted resilience was determined by a wider range of factors including personal safety nets, such as savings and informal support systems.

Businesses that combined access to credit, savings, and insurance with strong financial literacy were better positioned to manage shocks, and entrepreneurs with higher education levels were more likely to use a mix of different formal financial services, contributing to stronger resilience and improved financial health.

Researchers tracked the use of 10 distinct non-financial and financial digital technologies among MSEs, showing stark differences in adoption. In Addis Ababa, MSEs used an average of only 1.6 digital technologies, largely due to poor internet connectivity.

In contrast, Delhi, Jakarta, and Lagos showed wider adoption of digital tools, with messaging apps and social media used widely to engage customers.

E-commerce platforms remained under-utilized by MSEs across all cities, emphasizing potential for significant growth when barriers such as digital literacy and access are addressed.

The study also revealed many MSEs are already making small investments to prepare for shocks, such as stocking up on supplies before expected disruptions, investing in backup power sources, or reinforcing physical infrastructure.

Yet the same businesses reported low levels of borrowing in response to emergencies, demonstrating that financial services are not structured to support these types of preemptive or recovery-oriented investments.

During emergencies, traditional application and approval processes can be disrupted, leaving businesses without timely support, and underscoring the need for disaster-resilient financial services, such as pre-approved credit lines or insurance products that can provide immediate assistance to businesses when they need it most.

Edoardo Totolo, vice president of Research and Programs at the Center for Financial Inclusion at Accion and lead author of the report, said: “Our research shows when micro and small businesses are connected to the digital economy and a range of financial solutions, they are better equipped to withstand real-world emergencies. Unfortunately, insurance, savings, and responsible credit remain out of reach for many of these businesses that are the engines of their national economies.

“While the advantages of going digital are clear, policymakers and financial providers must design products tailored to the needs of these vulnerable businesses that they can easily use and trust to ensure advances in technology improve their financial health.”

The post Digital Adoption Still Low Among 1.7 Million Small Businesses, Despite 10% Revenue Boost – Report appeared first on Tech | Business | Economy.

Between outrageous transfer fees, failed transactions, and endless intermediary delays, the financial sector sometimes feels like a slow-moving train bound to get users upset.

Interestingly, the Nigeria Inter-Bank Settlement System (NIBSS) revealed that electronic payment transactions in Nigeria reached ₦600 trillion in 2023, however, cash says it’s going nowhere, and inefficiencies are unending.

OnePipe is stepping in to change this with its latest innovation, PaywithAccount, a seamless, secure, and automated bank-to-bank payment solution designed to wipe out intermediaries and enhance financial efficiency. 

The solution is particularly beneficial for small businesses struggling with cash flow constraints, delayed payments, and high transaction fees. 

A study by PwC revealed that 48% of Nigerian Micro, Small, and Medium Enterprises (MSMEs) have experienced delayed payments due to various reasons, with 33% reporting severe consequences. 

Traditional systems usually involve manual invoicing, repeated follow-ups, and high transaction fees, leaving business owners with less time to focus on growth.

OnePipe is simplifying financial transactions through API-driven solutions. Ope Adeoye, founder and chief plumber at OnePipe, said:

“Small businesses are the backbone of our economy, but too many struggle simply because getting paid is a challenge. We believe financial technology should remove obstacles, not create them. PaywithAccount helps businesses worry less about collections so they can focus on what truly matters—growth, innovation, and serving their customers.”

OnePipe was built on a vision to pull the services of financial institutions together into a set of APIs that are uniform in nature, making use cases born out of this to create the unimaginable.

Since that moment of inspiration, OnePipe has grown exponentially, now servicing 22,000 businesses monthly and processing transactions worth over half a billion dollars. 

Nonetheless, a fundamental challenge remained—direct bank-to-bank payments without third-party friction. With PaywithAccount, that missing piece is finally in place, enabling direct payments from accounts across 19 major banks, with more institutions expected to join.

PaywithAccount is Supporting SMEs and Enhancing Financial Inclusion

PaywithAccount is not limited to being a convenient tool; it brings a solution that addresses the tiresome challenges faced by businesses, especially SMEs. The removal of intermediaries ensures faster settlements, improved cash flow, and reduced operational costs.

Ngover Ihyembe-Nwankwo, executive director at Nigeria Inter-Bank Settlement Systems PLC (NIBSS), spoke on its significance: “Account payments can really empower small businesses, drive growth, and ensure financial inclusion. Many businesses struggle with cash flow limitations, inefficient payment processes, and high transaction costs. They need solutions that provide speed, security, and simplicity without the friction that often comes with traditional payment methods.

“At NIBSS, our core vision is to empower the financial ecosystem to innovate within the framework of interoperability, ease of connectivity, collaboration, and cost-optimisation,” she said.

“PaywithAccount is another heartening example of what happens when industry players leverage these guardrails to enhance the overall quality of our nation’s digital payment system.”

For entrepreneurs across Nigeria, the ability to receive payments on time means the difference between survival and growth. Mrs Olumide Ashade, founder of King’s Court School in Lagos, shared her perspective:

“As a school owner, I want to focus on my students, not spend hours tracking unpaid fees. Many of our parents pay in instalments, but managing these payments manually has been stressful. A solution like PaywithAccount means we can offer flexibility to parents while keeping our finances in order.”

One of PaywithAccount’s greatest strengths is the collaboration behind its success. Ihyembe-Nwankwo asserted the importance of ecosystem-wide cooperation: “Innovation does not happen in silos… It requires a full ecosystem. You need regulators, financial institutions, fintech innovators, and businesses all working together to solve problems and drive progress.”

Again, compliance and security are top priorities. “The financial ecosystem thrives on trust, and that trust is built on a strong foundation of compliance, risk management, and consumer protection,” she added.

The automation PaywithAccount brings makes transactions more predictable and reliable. Adedeji Olowe, founder of Lendsqr, explained:

“Reliable repayment is the backbone of growth for lenders. At Lendsqr, we understand that payment delays are a significant problem for lenders. We have helped many of our lenders transition from debit cards to PaywithAccount, which reliably ensures loan repayments are on schedule.”

The telecom industry, for example, stands to benefit greatly. PaywithAccount can bridge the gap between prepaid and postpaid services, providing telcos with a more flexible and reliable payment structure. 

PaywithAccount also provides a seamless alternative, ensuring that even market traders can receive digital payments without issues, as many small market sellers have started realising the importance of digital payments, after losing customers due to cash scarcity.

Beyond business benefits, PaywithAccount is expected to enhance financial inclusion by providing unbanked and underbanked individuals with easier access to digital transactions, further integrating them into the formal economy.

The post Breaking the Chains of Payments Inefficiency, OnePipe Launches PaywithAccount for SMEs appeared first on Tech | Business | Economy.

However, the reality is that cost-effective solutions do exist for businesses of all sizes. Read on for expert tips on how to protect your small business. 

Trevor Cooke, the online privacy expert at EarthWeb, outlines six practical, budget-friendly strategies to enhance your business’ security. 

What Are The Risks?

Small businesses are not immune to cyber threats; in fact, they are often more vulnerable due to limited resources and a lack of expertise in cybersecurity. Cybercriminals exploit this vulnerability through various tactics, including phishing attacks, ransomware, and data breaches.

Trevor explains, “Moreover, the proliferation of remote work and reliance on cloud-based services have expanded the attack surface for cyber attackers, making it easier for them to infiltrate business networks and steal sensitive information.”

Trevor’s Cost-Effective Solutions

Trevor says, “Contrary to popular belief, implementing effective cybersecurity measures does not necessarily require a significant financial investment. Small businesses can adopt several cost-effective strategies to enhance their cybersecurity posture.” 

Here are some of Trevor’s top tips:

Use Open-Source Security Tools

Trevor advises, “Leverage open-source software for antivirus protection, firewalls, and intrusion detection systems.” These tools offer robust security features without the high costs associated with proprietary solutions. Examples include ClamAV for antivirus and pfSense for firewall protection.

Put Together Your Own Employee Training

Invest your time in creating cybersecurity training programs to educate employees about common threats, phishing scams, and best practices for safeguarding company data. Trevor notes, “You can find free resources online which your employees can work through, rather than you having to create it all from scratch. By raising awareness among staff members, businesses can significantly reduce the risk of human error leading to security breaches.”

Perform Regular Risk Assessments

Build regular risk assessments into your routine so you can identify vulnerabilities in your IT infrastructure and prioritize security measures accordingly. This proactive approach helps businesses address potential weaknesses before they can be exploited by cyber attackers.

Implement Strong Password Policies

Trevor recommends enforcing strong password policies and requiring employees to use complex passwords and change them regularly. Additionally, consider implementing multi-factor authentication (MFA) for an extra layer of security.

Securely Encrypt Your Data

Encrypt sensitive data stored on company servers, laptops, and mobile devices to protect it from unauthorized access. Trevor says, “Tools like VeraCrypt and BitLocker offer free encryption solutions that are easy to implement and highly effective.”

Ensure Regular Software Updates 

Keep all software and operating systems up to date with the latest security patches to address known vulnerabilities. Cybercriminals often exploit outdated software to gain unauthorized access to systems.

Trevor says, “Small businesses must prioritize cybersecurity and allocate resources wisely to protect their assets and reputation.” In implementing cost-effective security measures and fostering a culture of cybersecurity awareness, businesses can significantly reduce their risk of falling victim to cyberattacks.

The post Cybersecurity On A Budget: How Small Businesses Can Keep Safe appeared first on Tech | Business | Economy.

But these businesses need more than just governmental support – they need practical solutions to enable them to access their markets.

Building blocks of the economy

This small business sector creates significant employment opportunities and will be a key focus on the government, as it seeks to “unleash the potential of small businesses, micro businesses and informal businesses”.

The success of this sector is critical for South Africa because it directly reduces unemployment and poverty. Yet two-thirds of the startups in South Africa fail within the first two years – one of the highest business failure rates in the world.

This is because small businesses face some challenges that government intervention alone can’t fix.

“President Ramaphosa has announced a range of reforms that will seek to help small businesses navigate regulatory and legal frameworks. While reducing red tape will make businesses easier for thousands of small business owners, they are still at a disadvantage when it comes to accessing markets,” explains says Michelle Geere CEO of Adbot, the leading provider of simple, successful, and supportive online advertising solutions for owners of small and medium-sized enterprises (SMEs) in Africa.

Small businesses often struggle to access markets, especially in a world where big brands with big budgets dominate the advertising space. Almost a quarter listed access to markets as a bigger challenge than funding.

Accessing markets through technology

Yet with the rise of digital mediums, small enterprises now stand a chance of reaching their customers, directly through their devices. There are over 3.5 billion Google searches every day, bringing an incredible opportunity for businesses to access markets. But the world of digital marketing can also be daunting for small business owners.

“As a small business owner, you most likely don’t have time to learn complicated interfaces such as Google. And in a business focused on making every cent count, creating jobs and driving economic activity, you most likely don’t have funds to outsource your digital marketing to an agency. That is where Adbot comes in,” says Geere.

Adbot creates access to new markets and reduces the red tape for small businesses in South Africa, by providing online advertising solutions for owners of small and medium-sized enterprises, supporting entrepreneurs contributing directly to economic growth and job creation.

Ifeoluwa Adepoju, the Head, legal & Compliance, Future Africa also commented thus;

“In the pursuit of economic empowerment, small businesses stand as the building blocks of our nation’s growth. While government initiatives pave the way for regulatory reforms, true success lies in the synergy of technology and compliance. With the rise of digital marketing, data privacy has become a central concern. Compliance with data protection regulations, such as GDPR or CCPA, is essential.

Small businesses need to ensure they handle customer data responsibly. In a world where digital access opens doors to global markets, it’s essential that legal and compliance solutions bridge the gap, allowing small businesses to harness the full potential of online advertising. Only then can we empower entrepreneurs, drive economic transformation, and pave the path to prosperity while reducing unemployment and poverty.”  

Continuing, Geere said: “We’re committed to helping smaller businesses benefit from harnessing the potential of online advertising. We understand the challenges faced by entrepreneurs, and we must overcome these if we are to stimulate business growth and achieve economic transformation. Small businesses are essential for the country’s economic recovery, and we must give them all the tools for success if we hope to reduce unemployment and poverty levels”.

[Featured Image Credit]

The post Beyond Government and Legislation: Small Businesses Need Access to Market appeared first on Tech | Business | Economy.

Going green, even for small businesses, not only contributes to a healthier planet but also brings numerous benefits to the bottom line. Here, we will explore the various advantages that small businesses can reap by embracing eco-friendly practices.

1. Cost Savings

Contrary to popular belief, going green can actually save small businesses money in the long run. Implementing energy-efficient measures, such as using LED lighting, optimizing heating and cooling systems, and adopting smart power management, can significantly reduce utility bills. Additionally, small businesses can explore renewable energy sources like solar panels, which not only lower energy costs but may also qualify for tax incentives and grants.

2. Enhanced Brand Reputation

Consumers today are increasingly conscious of the environmental impact of their purchasing decisions. By going green, small businesses can align themselves with sustainability and position their brand as socially responsible. This commitment to the environment not only attracts environmentally conscious customers but also fosters loyalty among existing clientele. A positive brand reputation can differentiate a small business from its competitors and open doors to new opportunities.

3. Increased Employee Engagement

Going green can have a profound impact on employee morale and engagement. Employees are often motivated by a sense of purpose and meaning in their work. When a small business actively promotes eco-friendly practices, it cultivates a positive workplace culture that resonates with employees. Engaging employees in sustainability initiatives, such as recycling programs or reducing waste, fosters a sense of collective responsibility and can boost overall employee satisfaction and productivity.

4. Regulatory Compliance and Risk Mitigation

With environmental regulations becoming more stringent, going green helps small businesses stay compliant with legal requirements. By proactively adopting sustainable practices, businesses can avoid penalties and mitigate the risks associated with non-compliance. Additionally, being environmentally conscious prepares businesses for future regulatory changes, ensuring continuity and minimizing disruption to operations.

5. Operational Efficiency and Innovation

Implementing green practices often leads to improved operational efficiency. Small businesses can streamline processes, reduce waste, and optimize resource utilization, ultimately increasing productivity and reducing costs. Moreover, embracing sustainability can spark innovation within the organization.

Finding alternative materials, developing eco-friendly products or services, and exploring circular economy practices can give small businesses a competitive edge and open up new markets.

6. Access to Green Funding and Partnerships

Numerous grants, loans, and funding opportunities are available to support businesses that prioritize sustainability. Governments, organizations, and financial institutions often offer incentives and preferential treatment to environmentally friendly businesses. Small businesses can leverage these resources to invest in green initiatives, upgrade equipment, and expand their operations. Moreover, adopting green practices can attract partnerships with other environmentally conscious organizations, leading to collaborations and business growth opportunities.

Conclusion

Going green is no longer just a buzzword; it is an essential aspect of running a successful and responsible business. 

By embracing eco-friendly practices, small businesses can reap great benefits. Taking a proactive stance towards sustainability not only contributes to a healthier planet but also creates a competitive advantage in the marketplace. 

So, let’s go green and build a brighter and more sustainable future for small businesses and the world at large.

The post The Benefits of Going Green for Small Businesses appeared first on Tech | Business | Economy.

Unfortunately, many small businesses overlook the importance of cybersecurity, mistakenly believing they are not significant targets. However, the reality is that small businesses are increasingly becoming prime targets for cybercriminals. 

Focusing on the importance of cybersecurity for small businesses, this piece highlights key measures to be taken in order for small businesses to protect their digital assets.

1. Growing Cybersecurity Threat Landscape

The threat landscape in cyberspace is constantly evolving, and small businesses are not immune to these risks. In fact, they are particularly vulnerable due to limited resources and less robust security infrastructure. Cybercriminals often view small businesses as attractive targets because they tend to have weaker security measures and are more likely to pay ransoms. By understanding the risks they face, small businesses can take proactive steps to mitigate them.

2. Protection of Sensitive Data

Small businesses often handle sensitive information, such as customer data, financial records, and intellectual property. Failure to secure this data can have severe consequences, including financial loss, damage to reputation, and legal liabilities. Implementing strong cybersecurity measures, such as encryption, access controls, and regular data backups, can safeguard this critical information from unauthorized access and ensure business continuity.

3. Preserving Customer Trust

Customers place a great deal of trust in businesses when providing their personal information. A single data breach can erode that trust and lead to a loss of customers, negatively impacting a small business’s reputation and revenue. Demonstrating a commitment to cybersecurity reassures customers that their data is safe and enhances their confidence in doing business with the organization.

4. Regulatory Compliance

Many industries have specific regulatory requirements for data protection and privacy. Failure to comply with these regulations can result in hefty fines and legal consequences. By prioritizing cybersecurity, small businesses can ensure they meet the necessary compliance standards, protecting both their operations and their customers’ rights.

5. Cost of Cybersecurity Incidents

The financial impact of a cybersecurity incident can be devastating for a small business. Studies show that the average cost of a data breach for a small company can be substantial, including expenses related to incident response, recovery, legal fees, and damage control. Investing in cybersecurity measures, such as firewalls, antivirus software, and employee training, is a proactive approach that can save businesses from incurring significant financial losses in the long run.

6. Business Continuity and Resilience

Small businesses must prioritize business continuity and resilience in the face of cyber threats. A successful cyber attack can disrupt operations, leading to costly downtime and lost productivity. Implementing robust cybersecurity measures, coupled with backup and disaster recovery plans, helps minimize the impact of cyber incidents, enabling small businesses to recover quickly and continue their operations without significant disruption.

Conclusion

The importance of cybersecurity for small businesses cannot be overemphasized. Cyber threats are growing in sophistication and frequency, and small businesses must be prepared to defend against them. 

By understanding the risks they face, protecting sensitive data, preserving customer trust, among others, small businesses can establish a strong cybersecurity posture. Investing in cybersecurity measures is not just a smart business decision; it is an essential component of long-term success in today’s digital landscape.

The post Cybersecurity Tips for SMBs on How to Protect Your Digital Assets appeared first on Tech | Business | Economy.