A. M. 
The MSME Observatory reveals that the third quarter of 2025 consolidated a sustained recovery trend among salvadoran micro and small businesses, reflected in the MSME Business Confidence Index, which reached 108.9 points, its highest level since 2021.
Furthermore, 69% of business owners expect to end the year favorably, demonstrating an unusual level of optimism in the country’s markets and trade fairs.
Progressive recovery after challenging years
According to the MSME Observatory report, business confidence grew 8.5 points compared to the previous quarter and 3.5 points compared to the same period in 2024, demonstrating a recovery that remains progressive and stable.
The net positive balance of +29.8 points confirms that businesses are experiencing a favorable environment and improved economic prospects for the short term.
Challenges and uneven progress across segments
Despite the positive outlook, the recovery of micro and small enterprises (MSEs) is unfolding at different speeds. Subsistence microenterprises led the way with a 5.1-point jump in the confidence index, followed by the simple and expanded accumulation segments.
However, increased competition (reported by 45% of business owners) remains the biggest challenge, although other obstacles such as merchandise shortages and bureaucratic procedures have lessened its impact.
New expectations and caution in the sector
The report warns that, although expectations for the end of 2025 are high, average profitability has not yet reached anticipated levels.
A gap exists between the sector’s optimism and actual results, requiring prudence in business decisions. Nevertheless, the positive attitude and confidence continue to encourage new investments, loans, and expansion among salvadoran entrepreneurs.
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