San Salvador, August 29, 2024 – Today, the Mype Observatory of the Fundación de Apoyo Integral (FUSAI) presented the second report “The State of the Mype 2024”, which seeks to make visible and make known, in a comprehensive manner, the challenges and opportunities of micro and small enterprises in El Salvador. The publication of this report is supported by the DINAMICA II Initiative of the Central American Bank for Economic Integration (CABEI), the Government of Germany, through KfW, and the European Union.
The report addresses issues of interest not only to the MSME sector, but to the country’s entire economic sector, highlighting the contribution of micro and small enterprises to the Gross Domestic Product (GDP), the business environment they face, efforts to promote their transition from informality to formality, financing barriers, the prevention of forced migration through entrepreneurship, and the challenges and opportunities arising from the recent expansion of tourism in the country.
One of the main findings of the report is that MSMEs will contribute 42.2% of GDP in 2021, 36.1% in 2022 and 35.4% in 2023. These data show a certain stabilization of the participation of MSEs in the economy, after the most acute stage of the pandemic.
It is worth noting that the MSE sector emerged with great dynamism during the first year of the pandemic. However, its participation tended to stabilize as other sectors of the economy, such as construction and tourism, became more important in the country’s economic growth.
Another relevant point is that only 12.9% of Mype entrepreneurs in tourist areas have completely overcome the aftermath of the pandemic, while 87% continue to face problems such as indebtedness and declining sales. In addition, 42% of entrepreneurs identify the high cost of merchandise, inputs and raw materials as their main current challenge.
For the preparation of this report, 10 partial studies were conducted and more than 16,000 entrepreneurs from different segments and sectors of the Mype throughout the country were surveyed, exploring various dimensions of the problems faced by these companies, which are responsible for 70% of national employment.
The DINAMICA II Initiative, as part of its objectives, seeks to strengthen the entrepreneurial ecosystem of MSMEs, so it has joined this strategic effort that provides relevant inputs on the current state of the sector and that will strengthen the implementation of available resources.
Source: BCIE
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