Micro, small, and medium-sized enterprises (MSMEs) in Costa Rica are a key driver of the economy, representing more than 33% of private sector employment and contributing 36% of GDP.
There are nearly 152,000 MSMEs in the country, equivalent to an average density of 26 companies per thousand inhabitants, according to the Latin American Center for Innovation and Entrepreneurship (Celiem).
Despite their economic potential, these companies face a series of challenges in the country that hinder their growth and sustainability, according to the Global Entrepreneurship Monitor (GEM) 2025.
Dificulties
Although Costa Rica ranks 4th worldwide in the desire to start a business, it is 50th out of 51 economies in the intention to hire people for startups. Another worrying fact is the fear of failing with a business. In this regard, the country ranks 47th, reflecting that the current business environment offers uncertainty for success with an SME.
The GEM also showed that Costa Rica ranks 17th out of 19 economies analyzed in business financing, while in ease of access to credit for companies it ranks 16th, in business entry agility relative to market dynamics it ranks 17th, and in commercial and professional infrastructure it ranks 13th.
Regarding government policies, the report indicated that the impact of taxes and bureaucracy ranked 15th, and support and relevance actions by the public sector ranked 14th out of 19.
“The startup activity rate today is 5.5, compared to 11.33 in 2014 or 15.04 in 2012. This should undoubtedly draw our attention to the major and urgent challenges we face in our ecosystem,” said Luis Álvarez, executive director of Celiem.
To overcome the initial stage of business, it is essential to have the right support
Ongoing training to improve technical and managerial skills, as well as working on the entrepreneur’s professional development and leadership, are also key. Finally, formalizing a business facilitates access to financing, training programs, and other benefits, boosting its growth and stability. In 2024, Celiem served 625 companies, helping them improve their business management and market competitiveness.
