According to the National Commission for Micro and Small Enterprises (Conamype), 89% of formally registered employers in El Salvador are micro and small enterprises (MSEs). The information was shared by Conamype’s president, Paul Steiner, during a radio interview with YSKL, based on a formal labor report provided by the Salvadoran Social Security Institute (ISSS) with data from the end of 2024.

Steiner emphasized that the majority of businesses providing jobs in the country belong to the MSE sector, not medium or large companies. “The Social Security Institute sent me a report from the end of last year, and 89% of formal employers are micro and small enterprises,” he stated.

This report is one of the first employment market updates released by state institutions with 2024 data, following a seven-month gap in updated ISSS statistics. The latest publicly available figures before this report were from May 2023.

Conamype highlighted that 99.6% of all businesses in the country—both formal and informal—fall under the MSE category, making them a vital driver of the national economy.

Despite concerns about the rising cost of living since 2022, Steiner denied that there had been widespread closures of MSEs. On the contrary, he reported a significant increase in the number of small businesses.

A private company conducted a census of neighborhood stores in 2023, revealing a 25% rise in the number of such businesses since 2018. The growth was particularly notable in areas like La Campanera in Soyapango, while Apopa saw a dramatic 227% increase in neighborhood stores over the same period.

Conamype’s own study found that most of these businesses are self-funded by their owners, with women often leading the enterprises. These businesses typically operate out of the owners’ homes and serve as a means of subsistence for their families.

The data underscores the crucial role that micro and small enterprises play in El Salvador’s economic landscape, both in generating employment and supporting household incomes.