A. M. 
The economic outlook for Salvadoran micro and small enterprises (MSEs) in 2025 is shaping up to be one of the most critical in recent years. This is reflected in the three recent reports from the Observatorio MYPE, which show a sector caught between persistent structural shortcomings and new technological and environmental pressures that will redefine its competitiveness.
Although the global discourse points to an era of Artificial Intelligence (AI) and accelerated digitization, the reality of the micro and small enterprise (MSE) sector in El Salvador is far more complex. According to reports, a marked “digital duality” persists: while a small minority of dynamic businesses adopt technological tools to optimize their operations, the majority still use technology only for basic communication and social media presence, without a direct impact on productivity. The challenge for 2025, according to the analysis, shifts from “jumping on the digital bandwagon” to using technology to improve costs, timelines, and processes.
Formalization remains one of the sector’s biggest challenges. Although institutional efforts to streamline procedures have progressed, micro and small enterprise (MSE) entrepreneurs continue to make a pragmatic calculation: if the cost of formalization outweighs the benefits, they remain informal. Reports indicate that the success of public policies will depend on creating real incentives to maintain formality, linking it to access to social security and higher-value markets, especially through public procurement.
Another growing challenge stems from the global environmental landscape. New green standards driven by international cooperation and large corporations have made energy efficiency and waste management key requirements for accessing value chains. For MSEs, this shift represents a significant cost, but also an opportunity if adequate financing is guaranteed.
The gender gap remains one of the most persistent findings: women-led businesses tend to be smaller and have less access to credit, despite maintaining better payment histories. The report indicates that Fintech and digital banking models could be a decisive tool if gender-responsive design criteria are incorporated to help democratize access to financing.
Finally, a quiet but significant shift is observed in the entrepreneurial profile: an emerging segment is moving from family-run subsistence businesses toward more professionalized and scalable microenterprises. While they are not seeking large investment rounds, they are using accessible technology to grow and standardize processes, consolidating a pragmatic type of entrepreneurship adapted to the local context.
The MSME sector faces a challenging 2025, where technology, formalization with incentives, and environmental sustainability will be key factors. Reports conclude that entrepreneurial talent exists, but the country needs an economic ecosystem that reduces friction and allows these businesses to make the leap toward greater productivity and sustained growth.
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