A new investigation of the Financial Inclusion Center in ACION reveals that digital technologies are feeding micro and small businesses in emerging markets
Survey of more than 20,000 micro and small businesses in five main cities shows that digital tools are promoting sales and improve productivity, but the flexible financial services necessary to strengthen the financial health of companies
WASHINGTON, April 24, 2025 / PRNewswire/ – A new investigation of the Center for Financial Inclusion (ICC) in the accent published today reveals that the MSEs that adopt digital tools have up to 10% more likely to inform the growth of income, but the use of these tools remains low. The CFI report provides the clearest image of the challenges and opportunities that determine the commercial trajectory of micro and small businesses (MSE) in five emerging markets that change rapidly.
The MSE survey through Addis Abeba, Delhi, Jakarta, LakesAnd São Paulo revealed that digital products and services offered growth opportunities and greater efficiencies, while highlighting the limitations of resources, the risks of consumer protection and greater vulnerability to economic and climatic shocks, such as the challenges facing companies.
The key results of the study include:
The MSEs that adopt digital tools had up to 10% more likely to inform income growth, but the use of these tools remained low. In Addis AbebaMore than half of the MSE reported that they did not use digital technology applications. MSE in Delhi, Jakartaand Lakes They were using at least one digital tool.
Entrepreneurs from the 5 cities reported having used an average of 1.8 to 5 formal financial services, which reflects various levels of adoption and commitment to financial tools. Companies that integrated digital payments reported significantly higher income per employee.
Entrepreneurial women represented 70% of MSE owners in JakartaBut only 11% in DelhiWith figures of 35% in São Paulo, 43% in Addis Abebaand 53% in Lakes. In many markets, MSEs do not start by choice but in response to unemployment, which makes companies more vulnerable and reduce long -term resistance, which has implications for the design of financial services.
1 in 3 micro and small businesses reported having been affected by drought, floods or other environmental shocks, and less than 20% informed having been able to find emergency funds within a week. Of the entrepreneurs affected by an environmental shock, up to 29% said they were more likely to invest in adapting their businesses to the changing climate.
The study, supported by the MasterCard Center for inclusive growth, used adaptive cluster sampling, a research technique that allowed a strong focus in urban areas with a large number of MSE. CFI focused on understanding the promoters of financial health for the MSEs that represent the largest source of income generation in emerging markets. A total of 20,000 MSE was surveyed, with 4,000 interviews conducted to build a sample that represents 1.7 million MSE in the 5 cities.
“Today, small businesses face unprecedented threats, from cyber attacks to the economic impact of extreme weather events.” saying DALAL PAYALExecutive Vice President of Global Programs at the MasterCard Center for inclusive growth. “The research published by Acion highlights the opportunity to work together with small businesses to provide solutions that assure them against these challenges; it is not just about mitigating risks in the digital economy, but ensuring that small businesses have the opportunity to prosper during this increasingly volatile time.”
The research highlighted the importance of access to digital technology and formal financing, but notable resilience was determined by a broader range of factors, including personal security networks, such as savings and informal support systems. Companies that combined access to credit, savings and insurance with a strong financial education were better positioned to manage clashes, and entrepreneurs with higher education levels were more likely to use a combination of different formal financial services, contributing to a stronger resistance and better financial health.
The researchers tracked the use of 10 non -financial and non -financial digital technologies between MSE, which show marked differences in adoption. In Addis AbebaMSE used an average of only 1.6 digital technologies, largely due to bad internet connectivity. In contrast, Delhi, Jakartaand Lakes It showed a broader adoption of digital tools, with messaging applications and social networks widely used to involve customers. Electronic commerce platforms remained underutilized by MSE in all cities, emphasizing the potential of significant growth when barriers such as digital literacy and access are addressed.
The study also revealed that many MSE are already making small investments to prepare for clashes, such as supplying in supplies before the expected interruptions, investing in backup energy sources or reinforcing physical infrastructure. However, the same companies reported low loan levels in emergency response, demonstrating that financial services are not structured to support this type of preventive investments or recovery oriented. During emergencies, traditional approval and approval processes can be interrupted, leaving companies without timely support and underlining the need for disaster resistant financial services, such as pre -paper lines or sure products that can provide immediate assistance to companies when they need it most.
Edoardo TotoloVice President of Research and Programs of the Financial Inclusion Center in Action and the main author of the report, said: “Our research shows when micro and small businesses are connected to the digital economy and a variety of financial solutions, they are better equipped to resist real world emergencies. Unfortunately, insurance, savings and responsible credit remain out of the reach of many of these businesses that are the engines of their national economies. Although the advantages of being digital are clear, political leaders and financial suppliers must design products adapted to the needs of these vulnerable companies that can easily use and trust to ensure that advances in technology improve their financial health. “
About the Financial Inclusion Center in Acion
The Financial Inclusion Center (ICC) is an independent group of experts that uses rigorous research and defense to advance inclusive financial systems for low -income people worldwide. We work to advance in inclusive financial services for the billions of people who currently lack the financial tools necessary to improve their lives and prosper. We take advantage of the associations to carry out rigorous investigations and evaluate promising solutions and advocate for the change based on evidence. CFI was founded by Acion in 2008 as a group of independent experts in inclusive finances. Mass https://www.centerforforfinancialinccion.org
About the action
ACION is a non -profit organization in a mission to create a fair and inclusive economy for the almost two billion people who fail through the global financial system. We develop and scale digital financial solutions responsible for owners of small businesses, small producers and women, so that they can make informed decisions and improve their lives. Through specific investment strategies, advice and leadership solutions of expert thinking, we work with local partners to develop and climb cheaper financial solutions, more accessible and friendly to customers. Since 1961, Acion has helped build 267 financial services suppliers that serve low -income customers in 75 countries, reaching 440 million people. Mass https://www.accion.org.
About the Mastercard Center for Inclusive Growth
The Mastercard Center for Inclusive Growth I advance equitable and sustainable economic growth and financial inclusion worldwide. The center takes advantage of the company’s central assets and competencies, including data ideas, experience and technology, while administering the philanthropic mastercard impact fund, to produce independent research, climb global programs and train a community of thinkers, leaders and makers in the first line of inclusive growth. For more information and to receive your latest ideas, follow the center in LinkedIn, Instagram and subscribe To your bulletin.
