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Micro and small enterprises (MSEs) represent 25% of formal employment in El Salvador, according to data presented by the Comisión Nacional de la Micro y Pequeña Empresa (CONAMYPE), based on records from the Instituto Salvadoreño del Seguro Social (ISSS) for 2025. This data shows that one in four formal jobs in the country is linked to an MSE. This share reflects the importance of these businesses within the formal labor market and, at the same time, highlights the potential for expanding the formalization of more productive units.
CONAMYPE presents formalization as an opportunity for MSEs to advance their growth and contribute to generating greater economic well-being for salvadoran families. The institution emphasizes that having a formal business structure allows businesses to integrate more broadly into the mechanisms and opportunities available within the formal economy. The data also establishes a difference between the participation of micro and small enterprises (MSEs) in total employment and their presence in formal employment. According to information presented by CONAMYPE, MSEs currently generate 74% of total employment, but their share drops to 25% when only registered formal employment is considered.
This difference positions formalization as one of the main areas of opportunity for the sector. CONAMYPE’s objective is for a greater number of productive units to become formalized, so that the growth of MSEs can also translate into greater economic opportunities for those who work in them.
The information used by CONAMYPE for this indicator comes from the 2023 MSEs Survey, the Encuesta de Hogares de Propósitos Múltiples (EHPM) 2025, and ISSS records from 2024-2025, in addition to the institution’s own calculations. Thus, the 25% formal employment figure is key to understanding the current participation of micro and small enterprises (MSEs) in the formal labor market. For CONAMYPE, increasing formalization represents an opportunity to strengthen these businesses and expand the economic benefits they can generate for salvadoran families.
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