MSMEs in El Salvador and Panama face revenue and credit challenges

Micro, small, and medium-sized enterprises (MSMEs) in El Salvador and Panama are facing significant economic hurdles, primarily driven by declining revenues and limited access to financing.

In El Salvador, the FUSAI MYPE Business Dynamics Report for the second quarter of 2026 indicates that falling income is the leading financial problem for micro-businesses. Among entrepreneurs facing financial difficulties, 55.5% cited decreased revenue as the cause, while 29.3% struggled to cover operating expenses. Additionally, 28% of business owners reported a decline in demand, often linked to changing consumer preferences and reduced purchasing power.

In Panama, representatives from Fedecámaras, including Alicia Jiménez, have called for urgent measures to address difficulties in accessing credit, excessive regulations, and reduced cash flow. These factors are contributing to business closures and increased labor informality, which stands at approximately 47%. Industry leaders argue that public policies should focus more on strengthening existing businesses that generate employment rather than solely on new entrepreneurship.