By Kelly Devine, President, Mastercard Europe, and Payal Dalal, EVP, Global Programs, Mastercard Center for Inclusive Growth

NORTHAMPTON, MA / ACCESS Newswire / February 13, 2026 / Originally published by Mastercard

Europe's economic future rests on its smallest players. More than 25 million micro and small businesses make up 99% of all EU enterprises and employ nearly half the population. Yet, a persistent gap is holding them back.

A new report from the Mastercard Strive EU programme, "Enabling Innovators, Empowering Micro-businesses: A Path to Europe's Competitiveness", reveals a stark reality: while 84% of micro-businesses recognise digitalisation as essential, barriers such as complexity and limited capacity keep them on the sidelines as larger firms surge ahead. Closing this gap is critical for Europe's competitive, sustainable, and inclusive growth.

The Innovators driving Europe's digital future

Start-ups, scale-ups, and organisations creating digital solutions for micro-businesses, dubbed the Innovators, are shaping Europe's transformation. They understand the challenges: tight budgets, no IT teams, competing priorities, and the need for immediate value. The report highlights both the opportunities and obstacles Innovators face, and what's needed to help them scale.

Four ways to unlock Innovators' potential

1. Build strong partnerships

Direct sales to micro-businesses are costly and inefficient. Innovators depend on partners - financial institutions, trade associations, larger solution providers - to distribute tools and build trust. Yet, partnership processes remain slow and resource heavy. A more coordinated ecosystem is essential.

2. Provide tailored funding and support

Access to capital is a major hurdle, especially during the scale-up phase. Innovators need simplified public funding, mission-aligned private investment, and non-financial support such as mentorship, expert guidance, and structured market-entry pathways.

3. Simplify regulation

Complex, fragmented rules increase compliance costs and can delay market entry. Regulations on emerging technologies like AI must be proportionate, predictable, and harmonised to encourage innovation rather than stifle it.

4. Close the adoption gap

Micro-businesses want solutions that are affordable, relevant, simple, and quick to integrate. Strengthening collaboration between Innovators and micro-businesses is key to scaling impact.

A call for coordinated action

Europe's competitiveness depends on empowering micro and small businesses with digital tools, trusted partnerships, and sustainable practices. Innovators are ready to scale - but they cannot do it alone.

Four priorities demand urgent attention:

• Targeted support for regions and sectors slow to digitalise.

• Create EU-backed platforms connecting Innovators with mentors, partners, and investors.

• Streamline funding access through portals and reusable application profiles.

• Harmonise regulations to reduce compliance burdens.

Through the Mastercard Strive EU programme and expanding initiatives across the region, we're committed to supporting Innovators who understand micro-businesses best. But this challenge requires collective action - from public and private sectors, policymakers, and entrepreneurs. Together, we can build an innovation ecosystem where every idea with potential can grow, scale, and shape Europe's future.

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SOURCE: Mastercard