Covid-19 accelerated the shift to digital, but confidence was already on the rise in certain markets, and female entrepreneurs are beating their male peers to the digital punch, according to J.K. Khalil, country manager for Saudi Arabia, Bahrain and the Levant region at payment giant Mastercard.
“Ninety-one percent of women business owners and entrepreneurs in the MEA already have a digital presence or identity for their business, compared to only 68 percent of their male counterparts,” Khalil told Arabian Business.
“In terms of a digital footprint, 71 percent of businesses run by women have a company website, and 55 percent already have a social media presence and a very strong one.”
Khalil said that overall, women’s confidence in digital transactions is higher, and 30 percent reported no challenge in accepting digital payments versus cash.
Small and medium-sized enterprises in a post-pandemic world are increasingly looking at digitalisation as a way to stay competitive, grow distribution channels, target more customers, and move beyond brick and mortar limitations, according to Khalil.
Embracing digital is also a way to ensure resilience against any new potential lockdowns or restrictions on movement.
“In 2019, there was 14 percent global penetration of e-commerce. In 2020, we’re talking about 19 percent,” Khalil said. “We can expect 24-27 percent towards year end [2021].”
For SMEs in the Middle East and Africa, 67 percent believe e-commerce will have a long-term positive impact, according to Mastercard’s SME Confidence Index.
J.K. Khalil, country manager for Saudi Arabia, Bahrain and the Levant region at payment giant Mastercard.
As entrepreneurs become more comfortable accepting digital payments, consumers also must become more comfortable spending digitally. In Saudi Arabia, that shift is well underway with 94 percent of consumers saying they’d consider using at least one emerging payment method, such as cryptocurrency, biometrics, or a QR code over the next 12 months, Mastercard data showed.
“So that tells you how sophisticated the Saudi consumer has become and how digital savvy they have become,” Khalil said.
Under the kingdom’s ambitious Vision 2030, the country is looking at increasing SMEs’ contribution to GDP from 20 percent to 35 percent within the next decade.
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