Security conditions encourage the creation of new businesses in El Salvador

The National Commission for Small and Medium Enterprises (Conamype) reports a total of 48,017 micro and small businesses (mype) and enterprises registered in the Mype Registry until July 2022.

The president of Conamype, Paul Steiner, explained that this registry is an institutional tool to enhance the performance of this business sector.

«It certifies them as micro and small companies and also helps them present themselves to banks. It is not a formal document, but for a company in the process of being formalized, the Mype Registry identifies and supports them », he limited.

However, Steiner said that the universe of mypes operating in the country is around 1.1 million businesses, and that the current security conditions promoted by President Nayib Bukele are encouraging the generation of more businesses.

«We are seeing growth in the mype thanks to the security measures promoted by President Bukele. Many of the extortions have fallen, and that means more liquidity for entrepreneurs that allows them to invest,» he said.

On the other hand, the official highlighted that as of 2019, state institutions have also been concerned with facilitating access to soft loans to strengthen mypes and ventures through entities such as the Development Bank of El Salvador (Bandesal) and Banco Hipotecario (BH), which offer lines of credit that adapt to the nature of the business.

He also said that in 2021, the number of companies registered in the Mype Registry increased by 7% compared to the previous year.

In 2020, Conamype reported the registration to the Mype Registry of 7,200 new micro and small companies (mypes), while the following year, 7,742 were formally registered.