There is a strong need for entrepreneurship and SME growth in El Salvador to help drive economic growth, reduce the flow of outward migration and create opportunities for young people, who could be otherwise recruited into gangs. Insecurity and violence stand in the way of economic growth, and yet violence and migration would be lessened if more people had opportunities through economic growth—the cycle needs to be broken. This becomes even more important in the context of climate change, which will greatly alter the country’s future and economic opportunities.
Key findings
The government recognises the need for SME growth and is committed to driving entrepreneurship. However, strong reliance on the government and external funding from USAID has not led to many strong, sustainable local business development service providers, although there are a few notable organisations. There are also strong international and regional players that are working in El Salvador who have the potential to strengthen and grow their offering. The impact case for working in El Salvador is strong. With USAID funding dwindling, it is more important than ever to get support to the organisations that can deliver high quality business development services.
Other resources
- ANDE's ecosystems mappings library contains other useful resources, indexed by region and country.
About Argidius’ mappings
We regularly commission SME ecosystems mappings in our target geographies. These studies are intended to give contextual overview and shed light on the challenges and opportunities for SME development and poverty alleviation. They include an inventory of service organisations and an analysis of the services landscape including areas of unfulfilled needs (gaps) Argidius use these maps to help identify organisations positioned to address these gaps.
