Listen in to explore how microentrepreneurs can be the catalyst for economic growth, the systemic shifts needed to empower them, and the emerging trends shaping their future.
Social Impact Pioneers - Werner Wallner, Managing Director of the Hilti Foundation; Amalia Johnsson, CEO of Hand in Hand International; and Payal Dalal, Executive Vice President of Global Programmes at the Mastercard Center for Inclusive Growth join us to share their wisdom. With decades of experience in financial inclusion, entrepreneurship acceleration, and economic development, they bring invaluable insights into how small businesses can transform lives—and entire economies.
Why Microbusinesses Matter
Microbusinesses make up 90% of global enterprises and contribute to over 50% of global GDP. In Kenya alone, 50% of working-age adults are informal entrepreneurs living below the poverty line. Strategic investment in this sector could boost national GDP by as much as 60%. Hand in Hand’s acceleration programmes—which offer advanced business training, credit access, and robust market linkages—have already increased participant incomes by 140%, often placing them among the country’s top 15% of earners. But despite their enormous potential, micro-entrepreneurs remain the most underserved economic players, especially women. This episode delves into how we can change that.
Delivering System-Level Change
Transforming microenterprise growth isn’t about isolated interventions—it requires systemic change. Our guests discuss how governments, financial institutions, and NGOs must coordinate efforts to unlock the full potential of micro-entrepreneurs. From broadening financial access to redefining women’s role in entrepreneurship, this conversation underscores the urgency of moving beyond ‘entrepreneurs by necessity’ and recognising them as economic powerhouses. Werner shares how financial inclusion initiatives have enabled thousands of women to build credit histories, access financing, and achieve long-term business growth. Meanwhile, Amalia highlights how tailored sectoral support for rural entrepreneurs is proving just as effective as urban interventions.
Emerging Trends: AI, Cybersecurity, and Digitalisation
The future of small business success hinges on emerging technologies. Payal discusses the game-changing potential of Generative AI, which is already enhancing financial coaching and unlocking new digital financing opportunities for small businesses. However, the shift to digitalisation also brings new threats—cybersecurity risks are escalating, and over 50% of small businesses that suffer a cyberattack fail financially. Our guests stress the need for proactive measures to protect entrepreneurs in the digital economy while ensuring technology remains an enabler, not a barrier.
Whether you're a policymaker, an investor, an NGO leader, or simply passionate about economic empowerment, this episode is packed with actionable insights and bold strategies.
Links:
Mastercard, Center for Inclusive Growth: https://www.mastercardcenter.org
Hand in Hand International: https://www.handinhandinternational.org
Hilti Foundation: https://www.hiltifoundation.org
Democratizing data analytics and AI to level the playing field for small businesses: https://www.mastercardcenter.org/insights/article/democratizing-data-analytics-and-ai-to-level-the-playing-field-for-small-businesses
Hand in Hand: From informal entrepreneur to MSME owner: Making enterprise acceleration work for underserved women https://www.handinhandinternational.org/wp-content/uploads/2024/10/From-informal-entrepreneur-to-MSME-owner-acceleration-learning-report.pdf