A. M. 
The legal model of Simplified Joint Stock Companies (SAS) has facilitated the formalization of micro and small enterprises (MSEs) in El Salvador, allowing them to operate legally and without complications. According to Steiner, since its launch last year at the Centro Nacional de Registros (CNR), 1,000 companies have already been registered under this scheme. This type of company allows MSEs to formalize in a period of 4 to 6 hours, thus opening new opportunities for growth and development.
Steiner highlighted that, together with the Fondo de Emprendimiento y Capital de Trabajo (FECAMYPE), it offers three specific lines of credit for MSEs that have been excluded from traditional banking. “In addition, PROGAMYPE will provide them with the necessary guarantee to grant them their financing”, said Steiner, underlining the government’s commitment to support this key sector for the economy.
He also noted that the country’s economic integration policy is based on four main axes: legal framework, procedures, business management, and financing. According to Steiner, current priorities include helping MSEs to restart their businesses, facilitating the paperwork for obtaining permits, and guiding them in the preparation of a business model that can access financing.
One of the recurring concerns among small entrepreneurs is the fear that becoming formalized implies a higher tax burden, a myth that Steiner denied. “There has always been the idea that becoming formalized is synonymous with paying more taxes, and that is not true”, he emphasized, clarifying that formalization brings with it multiple benefits without necessarily increasing tax obligations.
Steiner also highlighted the sustained growth of other forms of companies, such as corporations and limited liability companies, which continue to register an increase in their numbers. “We are seeing tremendous growth and not a decrease in corporations and limited liability companies”, he said, highlighting the professionalization of the sector.
Steiner mentioned that, CONAMYPE organized a meeting with the new mayors to discuss local economic development. At this meeting, they discussed how MSEs can benefit from these efforts, and there was a clear commitment from the municipal authorities to promote economic growth in their territories, leaving aside the idea that development is only achieved with physical works.
