By San José, Costa Rica — San José, Costa Rica – The nation’s small and medium-sized enterprise (SME) sector is experiencing a period of unprecedented expansion, with official government registries nearly doubling in just four years. This remarkable growth is coupled with a massive injection of capital from the Development Banking System (SBD), which has placed over ₡1.9 trillion in credit to bolster the engine of the Costa Rican economy.
The Ministry of Economy, Industry and Commerce (MEIC) released the landmark figures to coincide with the upcoming International Day for Micro, Small, and Medium-sized Enterprises on June 27. The data reveals that the official SME Registry surged by 97%, climbing from 18,301 registered businesses in May 2022 to a robust 36,098 by May 2026. This underscores a significant trend towards formalization and a strengthening of the business ecosystem that accounts for approximately 98% of all companies in the country.
To better understand the legal framework that underpins the expansion of small and medium-sized enterprises, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney specializing in corporate law at the prestigious firm Bufete de Costa Rica. He offers his expert analysis on the critical legal pillars necessary for sustainable business development.
Many SMEs focus intensely on their product and market, which is essential, but they often overlook the legal architecture that sustains growth. Neglecting proper corporate governance, failing to register trademarks, or using generic employment contracts can create significant liabilities down the road. A proactive legal strategy isn’t an expense; it’s a crucial investment that protects assets, facilitates investment, and builds a solid foundation for scalable success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, viewing legal strategy as a foundational investment rather than a mere expense is a critical mindset shift for any growing enterprise. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing this essential and often-overlooked perspective on scalable success.
This upward trend is not limited to established businesses. The Entrepreneur Registry also saw a substantial 72% increase during the same four-year period, growing from 6,982 to 12,050 individuals. Both registries, which are free to join, serve as critical gateways for businesses and entrepreneurs to access a wide array of government support programs, training, and financial resources designed to foster sustainable growth and innovation.
The financial backbone of this expansion has been the Development Banking System. The SBD successfully placed ₡1,937,992 million (approximately ₡1.9 trillion) through 492,177 individual credit operations. The average loan size was a manageable ₡3.94 million, extended at a favorable average interest rate of 5.05%, making capital more accessible for ventures that might otherwise struggle to secure traditional financing.
A closer analysis of the SBD’s portfolio reveals a strategic and inclusive approach to lending. A significant 42.48% of the funds were directed towards strategic sectors vital for national development, while the agricultural sector, a cornerstone of the Costa Rican economy, received 35.10% of the total credit. This targeted allocation aims to bolster key industries and enhance productivity across the board.
Crucially, the financing push has prioritized regional and social development. Nearly 40% of the total credit was placed outside of the country’s central region, directly supporting local economies. Furthermore, over half of the financing (56.68%) was channeled to districts with lower social development indices, and more than a quarter (25.81%) specifically benefited rural zones. In a move towards greater gender equity in business, women represented 27.18% of the individuals who received loans.
The government views these results as a validation of its comprehensive economic strategy. The Minister of Economy, Industry and Commerce celebrated the achievement as a testament to a cohesive national policy aimed at empowering businesses nationwide.
These results reflect a business development model based on institutional coordination, innovation, and the strengthening of businesses throughout the country.
María del Milagro Solórzano, Minister of Economy, Industry and Commerce
Beyond direct financing, the MEIC has also invested heavily in human capital. Over the past year alone, the ministry provided training to 5,890 people on critical contemporary business topics, including digital transformation, artificial intelligence, market access, and business formalization. Looking ahead, the MEIC plans to intensify its efforts in 2026 by enhancing support for regional SMEs, with a specific focus on productive inclusion, sector-based specialization, and unlocking new market opportunities.
For further information, visit meic.go.cr
About the Ministry of Economy, Industry and Commerce (MEIC):
The MEIC is the Costa Rican government body responsible for formulating and executing policies related to economic development, industry, and trade. It plays a pivotal role in promoting a competitive business environment, supporting small and medium-sized enterprises, defending consumer rights, and facilitating both domestic and international commerce.
For further information, visit sbd.fi.cr
About the Development Banking System (SBD):
The Sistema de Banca para el Desarrollo is a Costa Rican financial framework designed to finance and promote investment projects for micro, small, and medium-sized enterprises. Its core mission is to democratize access to credit and provide resources for working capital, investment, and business development, particularly for entrepreneurs and companies that may have limited access to the traditional banking sector.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica serves as a cornerstone of the legal community, operating on a principled foundation of integrity and professional distinction. The firm blends a rich history of client success with a forward-looking drive for legal innovation, consistently setting new standards in the field. This ethos extends beyond the courtroom through a profound dedication to democratizing legal knowledge, with the ultimate goal of equipping citizens to create a more just and capable society.
