Building the E-commerce Infrastructure for Small Businesses to Thrive in Latin America
September 20th, 2020 – The World Bank estimates there are up to 445 million micro, small- and medium-sized enterprises in the developing world. In Latin America, nearly 90% of all businesses fall into this category. However, many of these businesses operate informally due to a lack of market information and poor access to digital and financial services for growth. Around 70% of Latin Americans do not have a bank account, and 60% of transactions made by small businesses are still in cash.
The shift towards online shopping, however, is well underway. More than 75% of Latin American consumers now go online to start or finalize a purchase decision. E-commerce in Latin America is projected to reach US$74.8 billion by the end of 2020. However, according to Google estimates, only 10% of SMEs in Latin America have a web presence, and only 2% sell online.
As more consumers embrace e-commerce in these developing markets, the opportunity to bring more SMEs online is accelerating.
Written by Crowdfund Insider
Related Post
SME Digitalisation to manage shocks and...
Although uptake of digital practices by SMEs continues to increase, so too has the “digital gap” with larger firms. Understanding the dr...
Fostering convergence in SME sustainability reporting
Small and medium-sized enterprises (SMEs) play a pivotal role in driving sustainable economic growth. Representing over 90% of businesses gl...
Advancing gender parity in entrepreneurship: strategies...
Gender parity in entrepreneurship is not just a moral imperative but a crucial driver of economic growth and innovation. Closing the gender ...
