El Salvador’s capital has recorded one of the most significant leaps in the Global Startup Ecosystem Index (GSEI) 2025, advancing 405 positions from its 2024 ranking. San Salvador now holds the 300th place globally, compared to 705th last year, showcasing its rapid emergence as a promising hub for startup development in Latin America.
The ranking, published annually by StartupBlink, evaluates the top 1,000 cities worldwide with the strongest potential for entrepreneurship and technological innovation. In 2023, San Salvador was ranked 715th; in just two years, it has improved by more than 400 spots, securing 1,516 points in the latest evaluation.
Officials attribute this progress to a combined push from the Government of El Salvador and the private sector. According to the Ministry of Economy (MINEC), the country’s startup ecosystem is valued at over $330 million, with notable growth in the Fintech sector.
Minister of Economy María Luisa Hayem emphasized that legislative measures, such as the Law to Promote Innovation and Technological Manufacturing approved in June 2023, have created favorable conditions for entrepreneurs. The law offers 15 years of income tax and other tax exemptions to companies engaged in activities like software development, cloud computing services, system analysis, and high-tech manufacturing.
“This achievement reflects El Salvador’s new direction: a country where ideas are transformed into opportunities,” Hayem stated. “We will continue promoting the establishment and growth of both local and international startups.”
On a global scale, the top three positions in the GSEI remain unchanged: San Francisco (USA) holds first place for the fifth consecutive year, followed by New York (USA) and London (UK). Completing the top ten are Los Angeles, Beijing, Boston, Shanghai, Paris, Tel Aviv, and Bangalore.
San Salvador’s rapid climb marks it as one of the fastest-rising startup ecosystems in the 2025 index, signaling a strong trajectory for innovation, investment, and technology-driven business growth in El Salvador.