How local partners drive sustainable growth for small businesses

By Mercy Corps

If you want to grow a forest, planting a single tree is never enough. Plant the seeds, nurture the soil, and the growth will begin. That is what Mastercard Strive, a small business program from the Mastercard Center for Inclusive Growth, is doing for small businesses in Indonesia: creating snowball effects that drive sustainable growth.

The secret? Local partners.

Instead of offering a one-sided solution, Mastercard Strive and partner Mercy Corps Indonesia work hand-in-hand with local government agencies, community mentors, and grassroots networks. The reason is simple: while development programs are usually time-bound, local leaders remain. They carry the community’s trust, understand its culture deeply, and have the influence to create lasting change.

Findings from the Mastercard Strive: Small Business Barometer Report 24/25 highlight just how critical this role is. Government, along with local peer and community networks, serves as a cornerstone of support for entrepreneurs facing structural barriers. According to the report, 68% of businesses prefer to turn to government-related entities as their primary source of support, while 45% rely on family and community networks. This shows a clear preference for local, trusted connections when navigating challenges.

Local government and Mastercard Strive: A winning formula

The results of these partnerships are already taking shape in Garut, West Java, where collaboration with local agencies has been steadily growing for nearly two years. Garut is home to more than 100,000 small businesses, yet only a fraction are formally registered, and even fewer receive regular support due to limited government resources. Tackling this challenge alone would be daunting for any local authority.

Working closely with local business groups and government authorities, Mercy Corps Indonesia conducted a needs assessment study, to better understand what type of help entrepreneurs really needed after seeing the problems for themselves. The study revealed that many small businesses were eager to go digital and expand, but lacked consistent guidance and knowledge to get started. This insight revealed an opportunity to complement existing local initiatives with more hands-on, scalable support.

Thus, when Mastercard Strive introduced hybrid training and mentoring that complemented existing government programs, the impact multiplied. What was once a fragmented effort has become a cohesive foundation for small business growth. By working side by side, Mastercard Strive and local government have proved that small business empowerment can scale faster and farther when done together.

Partnering with the government proved to be a strategic step, creating impact that extends well beyond the program itself. The data and insights generated by Mastercard Strive have become a valuable resource for policymakers as they shape regional development plans. “The reports we receive from Mastercard Strive are invaluable,” said Ridzky Ridznurdhin, former Head of SMEs and Cooperatives Agencies, now serving as Head of Regional Revenue Agency in Garut. “They give us a clear picture of challenges, opportunities, and strategies for our five-year plan. This illustrates how a well-designed program and executed in collaboration with local actors, can deliver sustained impact.”

Meet Enung, local talent who empower her community, continuously

Government programs matter, but they are only one piece of the puzzle. Real change takes root when local mentors, people who know their communities inside out, step in and can turn new ideas into tangible results. Through Mastercard Strive, we have mobilized over 200 local mentors who empower small businesses using a hybrid approach, combining in-person training and mentoring with digital platforms to maintain ongoing support and connection.

One of them is Enung Hasanah from Garut Regency, West Java. Once a teacher, she later became an entrepreneur and, in 2021, established a small business community in her hometown called Rumah Kami (which means Our Home). What started as a modest gathering place for sharing advice soon grew into a hub where entrepreneurs could learn from one another and draw strength from a shared network.

The arrival of Mastercard Strive gave the community fresh momentum. Beyond offering training and mentoring, the program created pathways to banks, government offices, and other partners that small businesses often struggle to reach on their own. For Enung, those new connections were just as valuable as the knowledge gained. “It wasn’t just about learning new skills,” she says. “It was about gaining access to the networks that small businesses need to thrive.”

That, she believes, is what makes the difference. Skills provide direction, but networks ensure progress continues long after a program ends. Through Mastercard Strive, her community has built strong ties with institutions that will keep supporting entrepreneurs in the years ahead.

Looking back, Enung is proud of how far the group has come. What started as only a few small business owners has grown into a vibrant network with the strength and confidence to stand on its own. “Our community is getting bigger and stronger,” she explains. “Together with the local government and financial institutions, we can help small businesses grow in ways we never imagined. And the best part is, it will not stop.”

The Ripple effect

The beauty of Mastercard Strive lies in its design. It is a catalyst, not a crutch. Once local governments, mentors, and communities take ownership, growth becomes self-sustaining.

Empower one woman, and she feeds her children. Empower her further, and she inspires her neighbors. Multiply that across villages, towns, and provinces, and you create a movement.

That is the ripple effect of Mastercard Strive in Indonesia. And it all begins with local partners.

Inspired by our story? Discover how Mastercard Strive is helping small businesses across Indonesia grow and thrive in the digital age here.