l Salvador’s micro, small, and medium enterprises (MSMEs) are undergoing a significant technological shift to scale operations and reach new customers. According to the «El estado de la mype 2025» report by the FUSAI Observatory, 81.7% of small businesses and 64.7% of expanding microenterprises have already digitized at least one internal process. To expand their visibility, many entrepreneurs currently rely on tools like WhatsApp to connect with buyers, while adoption of digital payments is rapidly rising, with 55.9% of small businesses using platforms such as Transfer365 to process sales.
Building on this operational momentum, the country’s E-Commerce Law acts as a key catalyst by granting full legal backing to online contracts, sales, and agreements. This updated regulatory framework provides businesses with the security needed to diversify sales channels, enter cross-border trade, and access broader international markets.
In parallel, government initiatives like the Digital State Modernization Law and the Regulatory Improvement Law are addressing one of the sector’s steepest hurdles: formalization expenses. By transitioning bureaucratic procedures into digital workflows, public institutions are reducing administrative costs and easing the path toward legal registration. However, this transformation must be accompanied by a gradual formalization roadmap that considers the capabilities of each segment. The formalization process must adjust to the characteristics of the companies to prevent associated costs and obligations from limiting their growth.
Ultimately, turning these technological laws into tangible commercial opportunities requires targeted support for developing business segments. Experts emphasize that sustained growth will depend on delivering practical digital training, technical assistance, dedicated tech financing, and high-quality internet infrastructure across the nation.