What's happening? How ready is your neighbor's business, your aunt's shop, or the corner store on your block to take the next step? A study by the Universidad del Sagrado Corazón and the Centro Unido de Detallistas (CUD) offers a new look at small and midsize businesses (pymes) in Puerto Rico, with data that can serve as a foundation for strengthening the sector.
The research, led by Dr. Doris Morales Rodríguez, surveyed 141 pymes affiliated with the CUD between October and November 2025. The profile that emerges shows a sector with proven adaptability, but one that needs concrete tools to move from survival to sustained growth.
Why does it matter? Pymes account for roughly 95% of Puerto Rico's business landscape and generate around 92% of private-sector employment, according to figures from the Departamento de Desarrollo Económico y Comercio cited in the study. The report itself describes them as a fundamental pillar of the Island's economic stability and growth.
73.8% of the businesses surveyed operate with 10 or fewer employees, which classifies them as microenterprises. Their sales are mostly below $1 million annually, and they are concentrated geographically in municipalities such as San Juan, Caguas, Bayamón and Ponce, with 35 municipalities having no representation in the sample.
Proven capacity, new challenges
Puerto Rico's pymes have shown they can keep operating through events such as pandemics and natural disasters: 63.1% reported being able to sustain operations in those situations. Against sustained economic pressures, however, such as inflation and market shifts, preparedness is lower. Only 31.9% consider themselves ready to face economic or market changes.
35.5% of businesses reported that their operating costs increased more than 20% in the past year.
69% experienced significant effects from recent economic volatility.
The most widely used strategy for staying operational was raising prices to consumers, reported by 71 of the 141 businesses surveyed. According to the study, this mechanism can contribute to an inflationary cycle that reduces purchasing power.
The relationship with government
The study points out that the perceived impact of government is the most critical issue identified by the businesses surveyed.
57.5% indicated that government regulations affect their business's operational agility at a moderate to very high level.
63% perceive that the bureaucratic burden increases their operating costs at a moderate to very high level.
57.5% reported that government actions cause delays in their operations frequently or on a recurring basis.
Of the 141 businesses surveyed, 52 reported having participated in some government business support program. The program with the highest participation, the DDEC Incentivos program, was used by only 13 businesses. None reported having participated in the Programa de Asistencia Técnica y Capacitación of the Administración de Desarrollo Industrial (ADI).
Digital, an open opportunity. 64.5% of businesses reported that less than 10% of their sales come from digital channels. Although 31 businesses use social media as a sales channel, only 18 reported using e-commerce. According to the report, pymes have a digital presence, but many rely on social media rather than an online sales platform. The study identifies this gap as an area with potential to improve competitiveness and expand market reach.
What the study recommends
The report proposes four lines of action:
1. Develop regional strategies that encourage business activity outside urban centers, particularly in interior municipalities.
2. Drive digital transformation with programs that go beyond social media and incorporate e-commerce and the digitization of operational processes.
3. Reform the regulatory and tax framework to reduce the administrative burden, tax pressure and costs that the regulatory environment itself creates.
4. Redesign government support programs so they are accessible, relevant and known to the businesses they aim to serve.
This content was translated with the assistance of Artificial Intelligence (AI).
