By The Star Staff
Economic Development Bank (EDB) President Luis Alemañy González shared recent data earlier this week on the impact and growth of small and midsize enterprises (SMEs) in Puerto Rico with respect to the first quarter of 2024.
“SMEs play an important role in the economic development of any society. Their contribution to employment and the economic activity of the island is significant, with 44% of private employment covered by companies with 49 employees or less,” Alemañy González said. “Over 7,500 SME establishments were created in the past three years, with the retail, health, professional services, and restaurant and hospitality services sectors standing out.”
The official also noted that companies that hire 50 or more employees have a coverage of 56% of the establishments, according to the most recent data available in the first quarter of 2024.
“Also, 96% of private establishments in Puerto Rico are SMEs and are concentrated mostly in the retail trade industry, where, in addition, the majority of jobs were accounted for,” Alemañy González said.
SMEs are concentrated, taking into consideration the number of establishments, in those that have fewer than five employees, reaching a total of 30,438 establishments and employing 54,185 workers. This group showed a 6.4% increase in the number of establishments and a 3.2% increase in jobs.
In second place are establishments with five to nine employees, which make up a total of 9,773 establishments and provide 64,132 jobs, which saw a 0.2% increase in the number of establishments and a 0.6% increase in jobs.
Meanwhile, in third place are establishments that employ between 10 and 19 workers, which have 6,283 establishments and 83,679 workers, and showed growth of 1.5% in establishments and 2.1% in jobs.
Lastly, there are those with 20 to 49 employees, which have 4,220 establishments with 126,807 jobs. This group showed a 3.5% increase in establishments and 4.8% in the number of jobs.
During the first quarter of 2024, of the total of 53,088 private establishments, 30,438 employed less than five people, 9,773 had five to nine employees, 6,283 had 10 to 19 employees, 4,220 had 20 to 49 employees, and 2,374 were establishments with 50 or more employees, the latter representing 4% of the total number of establishments.
“In other words, smaller companies, which individually employ fewer than 50 people, total 50,714 establishments, covering 96% of the total number of companies established in Puerto Rico. This proportion changes when we talk about covered private employment, according to the latest information provided by the Quarterly Census of Employment and Wages (QCEW),” Alemañy González added.
The average number of jobs covered in the private sector, also during the first quarter of 2024, was 744,825, of which 328,803 jobs or 44% correspond to people who work in establishments with fewer than 50 employees, and 416,022, 56%, work in private companies with payrolls of 50 employees or more.
The news came a day after the International Monetary Fund issued a report stating that Puerto Rico and Haiti are declining economically.
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