More Extortion, Fewer Companies

In El Salvador every week at least two companies report that they intend to close down due to the impact of extortion, a problem that, far from being resolved, seems to be getting worse every year.

Monday, May 7, 2018

Representatives from the Chamber of Commerce and Industry of El Salvador (Camarasal), said that the country's employers do not see any significant improvement in the security climate, following the six month extension last April of the extraordinary measures of the Sánchez Cerén administration to try to control crime and insecurity.

Javier Steiner, president of Camarasal, explained to that " ... What we believe is that the extraordinary measures that keep being approved without any changes are no longer extraordinary, and what we need is an analysis of what has not worked, the current situation, and what we must do to transfer relief and peace to the Salvadoran population."

A 2016 study conducted by the Salvadoran Foundation for Economic and Social Development (Fusades), called Extortions of Micro and Small Enterprises in El Salvador (Mypes), showed relevant data on the extortion of which national micro and small businesses are victims.

According to the study, "... the majority of micro and small urban companies operate in environments where there is a presence of gangs, in all areas of the country, between 64% and 73% companies said that in the vicinity of their establishments there are gang members. The presence of gangs is mentioned more in the municipalities of the first two phases of the El Salvador Seguro Plan, although in the rest of the municipalities the presence is high."

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More on this topic

Insecurity and Uncertainty

March 2018

Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.

The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.

El Salvador: Growing Industrial Unrest Due to Insecurity

March 2016

Businessmen have stated their categorical opposition to statements made by a government official that confuse extortion with the funding of organized crime.

The statements by the Technical Secretary of the Presidency of El Salvador, Roberto Lorenzana, against companies in the country that suffer from extortion caused a strong reaction from the private sector, four days after Industrias La Constancia publicly announced that it was suspending operation of its plants because of increasing insecurity and violence.

Insecurity in Eastern El Salvador

October 2013

Extortion and theft in shops and transport trucks has led to the closure of many small businesses.

According to Howard Gutierrez, president of the Chamber of Commerce, San Miguel subsidiary, crime is unstoppable and the authorities are not doing enough to curb it. In that subsidiary alone there are reports of 15 businesses having closed.

70% of MiyPEs in El Salvador Suffer From Extortion

September 2013

A study by the union of micro and small businesses reveals that 70% of them are victims of extortion, of which 65% do not file any complaints for fear of retaliation.

The study which included the participation of over 425 representatives of MSE's was conducted jointly by the National Council of Small Business in El Salvador (CONAPES) the MiyPEs Union and the Society of Businessmen and Industrialists of El Salvador (SCIS).

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