El Salvador has recorded significant growth in its micro and small business sector, with authorities reporting a 93% increase between 2020 and 2024, according to data linked to the country’s Social Security system.

Paul Steiner, head of the National Commission for Micro and Small Enterprises (CONAMYPE), stated that the expansion reflects both the formalization of businesses and improved security conditions across the country.

Officials say the growth demonstrates increasing confidence among entrepreneurs who are now registering and operating their businesses within the formal economy. The strengthening of public security has also been identified as a key factor encouraging commercial activity and investment at the local level.

In recent years, El Salvador has promoted initiatives aimed at supporting entrepreneurship, simplifying business processes, and creating opportunities for small enterprises to access financing, training, and new markets.

The micro and small business sector plays a vital role in the Salvadoran economy, generating employment and supporting thousands of families nationwide. Authorities believe the continued formalization of businesses could further strengthen economic development and expand opportunities for entrepreneurs in different regions of the country.

The reported increase also reflects broader efforts by the government of Nayib Bukele to combine economic growth strategies with security policies designed to improve the business climate in El Salvador.