Driving global growth through the power of small business

Behind every thriving community is a network of entrepreneurs turning ambition into reality. The estimated 400 million small and medium-sized enterprises (SMEs) worldwide account for approximately 90% of all businesses, 70% of employees, and 50% of global GDP. These entrepreneurs and their SMEs drive employment and economic output. While these businesses are small by definition – their impact is anything but. From neighbourhood shops to innovative startups, SMEs turn ideas into livelihoods, are highly adaptive, and often lead the way in driving economic resilience and growth.

In emerging markets, their impact is transformative, creating meaningful jobs for young people and helping families build financial security. The World Bank estimates that Sub-Saharan Africa will need to create 25 million new jobs every year until 2050 to keep up with the growing working-age population. Many of these new jobs will need to come from small businesses that are resilient in the face of economic uncertainty.

About one in five of today’s very large companies were SMEs at some point – these businesses hold tremendous potential to drive economic growth. Yet, about 20% of small businesses fail in their first year, and only about 50% make it five years. The economic challenges of recent years – including the COVID-19 pandemic, rising inflation and supply chain disruption – are in part to blame, but ultimately, without access to the digital economy, SMEs risk being left behind. Policymakers can help drive this digital transformation through financial education and business training, enabling the acceptance of digital payments, and increasing access to capital.

Upskilling potential entrepreneurs with financial literacy and practical business skills is the foundation for successful digital transformation. According to an S&P Global study, only one in three adults worldwide could answer basic financial questions. Training programs that cover budgeting, saving, responsible credit use and business management help entrepreneurs make informed decisions about adopting new technologies. For example, Visa provides free online education services for young adults and small business owners around the world through our Global Practical Money Skills and Global Practical Business Skills platforms. So far, these programs have reached over 100 million consumers and 350,000 business owners across more than 150 countries.

In parallel, Visa Foundation’s partnerships complement these efforts and offer access to business education. For example, our multi-year partnership with Women’s World Banking is focused on delivering tailored training programs, digital learning platforms and resources that have helped build the financial and entrepreneurial skills of 8 million SMEs globally.

Besides financial education and business training, Visa also supports small businesses through our extensive payment network connecting 175 million merchants to consumers across more than 200 countries and territories. Our network allows businesses to find new global customers, build partnerships with relevant stakeholders, and identify mentors to help with early-stage growth.

SMEs remain underrepresented in the adoption of key digital technologies, from advanced AI to more accessible tools like e-commerce platforms, digital payment systems, tokenization, search engine optimization and social media marketing.

Figure 1 shows the share of total sales made through digital payments – credit cards, debit cards or online banking – across 50 economies, grouped by income level. While digital payments adoption is positively correlated with income level for all businesses, SMEs lag their larger peers in each income group. This difference is particularly alarming in lower- and upper-middle income countries where the gap is more than 12 percentage points. By moving beyond cash transactions, SMEs can tap into broader markets, improve transaction security and build trust with customers.

Many small businesses are resource-constrained and lack capital to grow their businesses. The World Bank estimates that there is a $5.7 trillion gap in financing for micro, small and medium-sized enterprises across 119 emerging and developing economies. Providing SMEs with capital to invest in affordable and user-friendly digital technologies is essential for unlocking growth and building resilience to economic shocks.

Since 2017, Visa Foundation has deployed over $350 million to more than 100 partners worldwide, helping support more than 12 million SMEs and contributing to the creation of 14 million jobs with access to capital and education. For example, our investment in Aruwa Capital helped raise an additional $60 million for African small businesses like OmniRetail, which is dedicated to digitalizing the purchase of inventory and access to capital for informal retailers. Driven in part by Aruwa Capital’s investment, OmniRetail has revolutionized the way an estimated 120,000 small businesses operate.

Through the Visa Africa Fintech Accelerator, Visa has supported more than 60 startups from over 15 African countries with training, mentorship and opportunity to secure funding. This program was a turning point for Timbo Drayson, CEO and co‑founder of Nigeria-based OkHi, an AI-powered address verification system. At the end of the program, OkHi participated in a demo day and pitched investors across Africa, helping them secure further investments.

The evidence is clear: unlocking the potential of SMEs through digitalization is not just an opportunity, it is an imperative. Entrepreneurs with bold ambitions drive economic progress, but they face hurdles that require collective solutions; that is where public-private partnerships can make a difference.

With digital platforms projected to drive over 70% of new economic output in the coming decade, governments, regulators and industry leaders must act decisively to create frameworks that incentivize collaboration, expand affordable financing, and scale training programs that build digital and financial skills. By working together, we can deliver real progress for real people and build a more resilient global economy.