SMEs enjoy high post-pandemic profit supported by international trade

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Two in five SMEs in EEMEA are making more money than before the pandemic, driven by digital growth and international sales opportunities, according to the latest MasterCard report.

Company data ‘Borderless Payments‘ highlighted how 46% of small and medium-sized enterprises (SMEs) in Eastern Europe, Middle East and Africa (EEMEA) are now enjoying more revenue and profit than before the economic crash of the pandemic.

Its report identifies e-commerce and international sales as the main drivers of this shift, with 71% seeing online sales growth above the global average, while 77% plan to do more business internationally at the future.

The research, which looked at 3,000 SMEs, highlighted that three-quarters had to change their business model to survive the pandemic, while 64% globally believe it changed the way they do business forever.

The pandemic has accelerated digital transformation to exploit cross-border opportunities, with nearly half of EEMEA SMEs saying they are now doing more business internationally.

Sixty-four percent of respondents credit cross-border payments with the opportunity to grow their business, a clear indication that cross-border payments will be a key part of business growth in the EEMEA region, and therefore economic recovery, going forward. ‘coming.

Fifty-nine percent are now making and receiving more cross-border payments than they were before the pandemic, while 72% say the pandemic has allowed them to get more competitive quotes from cross-border vendors and 46% say use international suppliers. reduces the risk.

Speaking on the findings of the report, Stephen Graingerexecutive vice president of Mastercard, describes how the impact of the pandemic and the unprecedented disruption it has caused “has realigned the regional and global economy”, prompting many SMEs to start exploring new markets.

“As small businesses in EEMEA and around the world rapidly expand their international customer and supplier networks, particularly online, it is crucial that financial institutions have the right cross-border solutions to support them,” comments Grainger.

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