Micro, Small and Medium businesses drive employment in Central America

The labor panorama in CA indicates that the main generator of employment are the micro businesses that carry out non-agricultural activities.

Thursday, November 6, 2008

Based on reports from Costa Rican analyst, Juan Diego Trejos, almost 50% of employment is concentrated in "low production, non-agricultural activities," that is, self-owned businesses, companies with less that 10 employees; in most cases these are informal companies.

"The private companies provides little in terms of employment," Trejos said.

Even though the tendency is stronger in Nicaragua and Honduras, it is also true that the neighboring countries have not attended to the productive, or main, sector.

More on this topic

Why do SMEs fail?

March 2012

Over 50% of SMEs fail before they are three years old, 90% are no more than five years old and only 10% survive.

In the case of Nicaragua the subject is sensitive, "because 60 percent of its business backbone is made up of micro, small and medium enterprises, which account for 40 percent of gross domestic product (GDP), estimated at more than six billion dollars.

Nicaragua: Micro, small and medium enterprise development project

April 2008

The Wordl Bank project supports the update of the Government’s Poverty Reduction Strategy under the National Human Development Plan, which has an emphasis on private sector development.

During the past six years, Nicaragua has experienced macroeconomic stability with steady positive GDP growth, low inflation, stable exchange rates and declining interest rates.

Mini and small companies in Guatemala organize.

November 2008

Mini and small business persons on the West side of the country are organizing to expand their activities to other markets.

To achieve their goal they propose to give greater added valued to their products and foster diversification.

To date about 60 associated companies operate in the Departments of Totonicapan, San Marcos, Solola and Quetzaltenango.

Honduran SMEs Request Incentives

September 2010

Micro, small and medium sized enterprises have asked the government to create financing incentives.

The proposal seeks to develop the sector and ensure growth in the micro enterprise sector next year.

José Enrique Núñez, president of the Honduran SME Association (Anmpih in Spanish), told Laprensa.hn that, "the proposal will incentivize the opening of the new market and generate an increase in companies' production, thereby creating jobs for many people".

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