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This week, President Luis Alemañy González of the Economic Development Bank (EDB) revealed new statistics regarding the influence and expansion of small and midsize enterprises (SMEs) in Puerto Rico for the first quarter of 2024.
“SMEs are crucial to the economic progress of any community. Their role in employment and the island’s economic activities is considerable, comprising 44% of private sector jobs from companies with 49 employees or fewer,” Alemañy González remarked. “In the last three years, over 7,500 SME businesses have been established, particularly in the retail, health, professional services, and restaurant and hospitality sectors.”
The official also highlighted that businesses with 50 or more employees account for 56% of establishments, based on the latest data from the first quarter of 2024.
“Moreover, 96% of private establishments in Puerto Rico are classified as SMEs, primarily located in the retail trade sector, which also accounts for the majority of jobs,” Alemañy González noted.
According to the concentration of establishments, those with fewer than five employees total 30,438 and provide jobs for 54,185 individuals. This segment experienced a 6.4% rise in the number of establishments and a 3.2% increase in employment.
Following this group are those with five to nine employees, which consist of 9,773 establishments and offer 64,132 jobs, showing a 0.2% uptick in the number of establishments and a 0.6% rise in employment.
Thirdly, there are establishments with 10 to 19 employees, amounting to 6,283 establishments and 83,679 jobs, with 1.5% growth in establishments and a 2.1% increase in jobs.
Lastly, establishments with 20 to 49 employees comprise 4,220 businesses employing 126,807 individuals, with a 3.5% upswing in establishments and a 4.8% increase in employment.
In the first quarter of 2024, among the total of 53,088 private establishments, 30,438 had fewer than five employees, 9,773 had five to nine employees, 6,283 had 10 to 19 employees, 4,220 had 20 to 49 employees, and 2,374 had 50 or more employees, the latter accounting for 4% of all establishments.
“In summary, smaller businesses, which on average employ fewer than 50 individuals, account for 50,714 establishments, representing 96% of the total enterprises registered in Puerto Rico. This ratio shifts when considering the covered private employment, according to the most recent data from the Quarterly Census of Employment and Wages (QCEW),” Alemañy González added.
During the first quarter of 2024, the average number of jobs in the private sector was 744,825, of which 328,803 jobs, or 44%, were in establishments with fewer than 50 employees, while 416,022 jobs, or 56%, were within private enterprises with payrolls of 50 or more.
This announcement followed the International Monetary Fund’s report issued the previous day, indicating that both Puerto Rico and Haiti are experiencing economic decline.
