Micro, small and medium-sized enterprises (MIPYMES) account for most of the entrepreneurial park in Central America, as they represent 97% of the establishments in the region. However, despite the economic and social importance of MIPYMES, government policies often do not adequately address their needs and demands.

That was one of the main conclusions reached at the Central American Conference on the Business Environment for MIPYMEs that was held on 25 and 26 October 2005 in San Salvador. The meeting was organized by the Meso-American Council on Competitiveness, the Center for the Promotion of Micro and Small Enterprises in Central America (CENPROMYPE), the British Department for International Development (DFID) (through the PEMCE project), the Federation of Exporters’ Chambers and Associations of Central America, Panama and the Caribbean (FECAEXCA) and the RUTA project.

Basic export infrastructure, market deficiencies and competitive disadvantages, as well as the lack of access to knowledge and technology, are some of the main problems mentioned by the micro, small and medium-sized entrepreneurs.

Accordingly, the participants at the Conference expressed their determination to work for the creation and development of a regional agenda to significantly increase the competitive capacity of MIPYMEs.

This agenda focuses on three fundamental components: the promotion of public policies for the advancement of MIPYMEs, the improvement of financial services for the sector, and the development of entrepreneurial skills and competitiveness.

At present, 5.6 million people in the Isthmus work in micro, small and medium-sized enterprises, accounting for 42% of total jobs. Moreover, MIPYMEs contribute 30% to the gross domestic product. Nevertheless, the majority of units in this sector have a low level of productivity; hence, public, financial and business policies are needed to help MIPYMEs grow and enhance their competitiveness on the market, especially in the context of the new free trade agreements.