Colombia Sees Rise in Microbusinesses, Decline in Jobs and Revenues

In the first quarter of 2025, Colombia recorded an 8.3% rise in the number of microbusinesses compared to the same period last year. Yet, paradoxically, employment in these small units fell by 0.6%, and their revenues plunged 8.5%, according to the National Statistics Department.

This trend points to a growing informal and survival-driven economy. Microbusinesses — defined as operations with fewer than nine employees — are proliferating, especially in trade, motor vehicle repair, transportation and food services. These sectors were the biggest contributors to the growth in microbusiness count, but not all created jobs.

In fact, job losses were sharpest in service activities, manufacturing, real estate, and construction. This suggests that while more Colombians are starting businesses, they’re hiring fewer people — often operating solo or with minimal help — amid declining revenues and rising economic pressures.

Meanwhile, business creation overall is slowing. In 2024, only 297,475 new businesses were registered, 2.8% fewer than in 2023. Yet the total number of businesses grew marginally by 0.3%, reflecting a longer survival rate among corporations.

Of note, companies (as opposed to sole proprietors) now make up a growing share of new registrations, and 45% of them generated at least one job — mostly in trade, manufacturing, and hospitality.

Despite setbacks in sectors like mining and services, Colombia’s business landscape remains resilient. Confecámaras says this shift reflects growing formalization, even if it’s yet to translate into significant job creation.