Financing SMEs and Entrepreneurs 2026: Peru
Table of contents
Peru’s economy recorded a solid recovery in 2024, expanding by 3.3%, primarily driven by the strengthening of domestic demand. This was reflected in a notable rebound in public investment and the recovery of private investment, both of which contributed to increased employment and household consumption. Additionally, the economy benefited from strong performance in key primary sectors, particularly fishing and agriculture, supported by favourable climatic conditions. This led to an improvement in export supply and further reinforced overall economic growth. In 2025, Peru’s economy is expected to consolidate its recovery, with a projected growth rate of 3.5%. This expansion would be driven by stronger domestic demand, supported by increased investment amid improving business expectations, favourable financing conditions, and economic stimulus measures. Additionally, exports are expected to continue contributing to growth, bolstered by higher primary supply despite a persistently uncertain global environment.
SMEs play a pivotal role in the Peruvian economy, contributing over 30.9% to value added and around 5.5% to exports. They have a notable presence in commerce, services, and manufacturing sectors. SMEs constitute 99.3% of all enterprises and are vital to employment, accounting for 89.1% of private-sector employment. This underscores the crucial role of fostering their growth, as they are key drivers of Peru's economic development.
In 2024, SMEs1 represented a substantial portion of all outstanding loans, accounting for 34.0%. From 2010 to 2019, the average SME share of all outstanding loans was about 26%, but since 2020 to 2024, this average increased to 37%. Additionally, the number of SMEs grew at an average annual rate of 7.0%, rising from 1.78 million in 2020 to 2.33 million in 2024.
While banks remained the main lenders, alternative financing methods like factoring and invoice discounting have garnered attention, despite fluctuations in their use in recent years. Additionally, over-indebtedness remains a concern, as most SMEs depend on a single financial institution and small-business loans carry higher interest rates, making them less affordable.
In 2024, the interest rate spread between large companies and SMEs in Peru was 18.4 percentage points. Interest rates for small enterprise loans notably increased from 24.0% in December 2021 to 26.6% in December 2024, indicating a rising cost of borrowing for these enterprises.
The Peruvian government implemented programs such as IMPULSO MYPERÚ to address financing challenges and support businesses during the post-pandemic period (2022). These initiatives aim to provide favourable financing conditions and ensure the sustainability of resilient businesses across various sectors. During 2023 and 2024, complementary measures were approved for some of these programs (particularly the COVID-19 Credit Guarantee Program, FAE-TURISMO, and FAE-AGRO) consisting of loan rescheduling and extensions of repayment terms. These measures were aimed at firms facing liquidity constraints and at preserving the continuity of payment chains. As a result, no new loan disbursements were made under these programs in 2023 and 2024; rather, policy actions focused on the management and restructuring of previously granted loans.
In 2024, Peru’s economy expanded by 3.3%, marking a robust recovery supported by strong domestic demand. This performance was underpinned by a rebound in public investment and a gradual strengthening of private investment, which helped support employment and household consumption. Looking ahead, the economic outlook for 2025 remains favourable, with growth projected at 3.5%. This expansion is expected to be driven by continued strength in domestic demand, supported by increasing investment, improved business confidence, favourable financing conditions, and economic stimulus measures. Exports are also expected to continue contributing to growth, supported by higher primary supply, despite the persistence of uncertainty in the global environment.
Moreover, interannual inflation declined steadily throughout 2024 and has recently stabilized, aligning with the Central Bank’s target range of 1% to 3%. This trend was driven by falling prices of key food items such as fish, chicken, eggs, and potatoes. In response, the Central Bank is expected to maintain its monetary easing stance, as inflation expectations remain anchored, helping to prevent further pressure on the exchange rate. Under this scenario, for 2025, the reference interest rate is expected to stand at 4.50%. This rate is projected to decline to 4.25% by the end of 2026 and to 4.00% by the end of 2027.
In this context, SMEs in Peru are expected to benefit from several positive economic conditions, including higher GDP growth and lower inflation which are anticipated to support business expansion and investment. Additionally, the easing of monetary policy is likely to lower borrowing costs for businesses. However, potential upward pressures on the exchange rate, slower global growth, and reduced demand for Peruvian products in international markets could introduce uncertainties. These external risks, combined with possible capital outflows and political uncertainties, add complexity to the SME operating environment. Therefore, while the overall economic outlook appears positive, targeted support and favourable financing conditions remain crucial to ensure the sustainability and growth of SMEs.
SMEs play a vital role in Peru's economy, not only because of their large numbers but also due to their significant contributions to various aspects of economic growth. In 2024, SMEs comprised 99.3% of all businesses in the country. The total number of SMEs reached 2,331,173, with the vast majority being micro-enterprises (94.4%), followed by small enterprises (5.3%) and medium-sized enterprises (0.2%). Although the sector experienced a 1.6% growth rate in 2024 compared to the previous year, it remained below pre-pandemic levels recorded in 2019 (-1.9%).
Source: National Tax Administration Bureau.
In terms of employment, SMEs in Peru had a significant impact generating nearly 10.5 million jobs in 2024, which accounted for 89.1% of total private employment. This figure was similar to the previous year and a 3.8% increase compared to 2019. Moreover, micro-firms had the highest share of employment (71.1%), followed by small firms (15.3%) and medium-sized firms (2.6%).
Note: According to the number of employees. Micro: up to 10 workers. Small: between 11 and 100 workers. Medium: between 101 and 250 workers. Large: more than 250 workers.
Source: National Institute of Statistics.
SMEs make a significant contribution to the Peruvian economy, accounting for more than 33% of the added value. Among all companies, small enterprises hold the largest share of added value (16.7%), followed by medium enterprises (9.7%) and micro-enterprises (6.8%). In terms of exports, SMEs play a vital role, representing approximately 4.1% of the total value of Peru's total export value, particularly in sectors such as mining, agriculture, and manufacturing.
According to the Finance and Banking Regulator Authority, SMEs accounted for a significant share of all outstanding loans in 2024, reaching 34.0%. This represents a decrease from 37.1% in 2023. The share of SME outstanding loans experienced a notable rise during the pandemic in 2020, peaking at 40.6%. Prior to the pandemic, the highest share of SME outstanding loans was recorded in 2012, when it represented around 28%. The increase in the share of loans to SMEs is mainly explained by the implementation of financial support programs by the Peruvian government during the post-COVID-19 economic recovery. This underscores the importance of SME lending in the overall credit market and highlights the critical role of SMEs in driving economic growth and development.
Percent
Note: Data for 2020-2024 are preliminary.
Source: National Tax Administration Bureau and Finance and Banking Regulator Authority.
Banks remain the primary source of loans for companies, although micro-firms tend to rely less on them, as shown in Figure 2. Bank credit is primarily concentrated in Lima, the capital city, and other major urban areas across the country. In smaller cities and peripheral regions, urban credit unions are the predominant credit providers. While banks continue to serve as the main financing source for small, medium, and large firms, urban credit unions play a significant role for micro-firms, accounting for 40.5% of their financing. Credit unions and specialized institutions catering to SMEs often offer quicker loan processing and greater accessibility for individuals and entrepreneurs.
Percent
Source: National Tax Administration Bureau and Finance and Banking Regulator Authority.
SMEs are often considered as riskier by the formal financial sector, primarily due to their limited expertise and skills. In 2024, approximately 38.3% of SMEs had loans from a single financial institution, while 29.9% had loans from two lenders, which may include banks and other types of institutions. Only 5.2% of SMEs had loans from more than five financial institutions. This concentration of loans from multiple institutions may indicate potential over-indebtedness within the SME sector. These firms may have borrowed beyond their actual turnover capacity, leading to repayment challenges and financial strain.
Percent
Source: National Tax Administration Bureau and Finance and Banking Regulator Authority.
In 2024, the interest rate spread between large enterprises and SMEs in Peru narrowed to 18.4 percentage points, down from 22.6 percentage points in 2023. Despite this decline, SMEs continued to face elevated borrowing costs, with the average interest rate at 26.6% in 2024.
Although the interest rate spread between large companies and SMEs narrowed in 2024, the still high cost of credit for small enterprises highlights the persistent difficulties SMEs face in securing affordable financing.
Percent
Note: Observed rates at the end of each year.
Source: Central Reserve Bank of Peru.
In recent years, there has been a significant increase in the use of alternative financing sources for SMEs. A notable example is the increasing use of factoring and invoice discounting, which recorded an average annual growth rate of 5.7% over the 2015–2024 period. Likewise, the contribution of factoring to the economy increased from 0.05% of national GDP in 2015 to 3.6% in 2024, reflecting its growing relevance as a business financing mechanism, particularly for SMEs. However, these financing alternatives can be volatile, as fluctuations have been observed in their usage. This volatility is influenced by factors on both the supply and demand side.
To promote the use of factoring, the government has encouraged private firms to accept invoices for factoring since 2020. Sellers now have the option to use their invoices as collateral for factoring when seeking financing from financial institutions. In previous years, this practice was uncommon, as large buyer firms often declined to accept invoices for factoring, citing high operating costs associated with the process.
Despite the government's promotion of factoring and invoice discounting activities, the volume of leasing and hire purchases continues to be larger. As of December 2024, factoring and invoice discounting for SMEs reached PEN 1,032 million, an increase from PEN 738 million in 2023. In contrast, leasing and hire purchases amounted to PEN 1,294 million during the same period, a decrease of approximately PEN 201 million compared to 2023.
Annual in PEN million
Source: National Tax Administration Bureau and Finance and Banking Regulator Authority.
Year-on-year growth, as a percentage
Source: National Tax Administration Bureau and Finance and Banking Regulator Authority.
Non-performing loans (NPLs) are common in the SME sector due to the significant uncertainty they face in their activities. As SMEs are less resilient than larger companies, they are more likely to experience lower sales and reduced demand during periods of slow economic growth, which directly affects their loan repayment capacity. In contrast, larger firms are more exposed to global demand and commodity prices, making them less vulnerable to internal market shocks.
Percent, non-performing loans (more than 90 days of delay) over total outstanding loans
Source: National Tax Administration Bureau and Finance and Banking Regulator Authority.
As part of the economic recovery process and in response to the negative effects of the COVID-19 pandemic, the government implemented various programs to provide favorable financing conditions for companies across all sectors, ensuring resilient businesses in the economy. These programs included REACTIVA PERÚ, FAE-MYPE, PAE-MYPE, FAE-AGRO, FAE-TURISMO, Programa de Garantías COVID-19, and FAE-TEXCO which were implemented between 2020 and 2022. These initiatives played a crucial role in providing financial support and assisting businesses in overcoming the challenges presented by the pandemic. During 2023 and 2024, complementary measures were approved for some of these programs (particularly the COVID-19 Credit Guarantee Program, FAE-TURISMO, and FAE-AGRO) consisting of loan rescheduling and extensions of repayment terms. These measures were aimed at firms facing liquidity constraints and at preserving the continuity of payment chains. As a result, no new loan disbursements were made under these programs in 2023 and 2024; rather, policy actions focused on the management and restructuring of previously granted loans.
Building on these efforts, the government introduced the IMPULSO MYPERU Program on December 30, 2022 (Law No. 31658), which strengthens the company financing through government guarantees for working capital loans, fixed asset acquisition, and debt consolidation.
By August 30, 2024, the IMPULSO MYPERU Program had reported placements exceeding PEN 11 066 million and guarantees totaling PEN 8,949 million, benefiting 206 515 micro, small, medium and large-sized enterprises. The average ticket size for these placements was PEN 53 558. The majority of placements were directed towards medium-sized enterprises, which accounted for 37.1% of the total, amounting to PEN 4 110 million. Small enterprises represented 31.9% (PEN 3 532 million), micro-enterprises 17.4% (PEN 1 923 million), and large enterprises 13.6% (PEN 1 501 million). In terms of the number of beneficiaries, micro-enterprises constituted the largest share, with over 117 220 companies (56.9%), followed by small enterprises with 76 734 companies (37.2%). Medium-sized enterprises accounted for 5.8% of the beneficiaries, totaling 12 056 companies, while large enterprises represented just 0.2%, with 505 companies.
The Commerce sector emerged as one of the main beneficiaries of the program, with 48% of the total beneficiaries (99 347 enterprises). This was followed by the Manufacturing sector with 11% (21 852 enterprises), Transport with 10% (19 765 enterprises), and Agriculture with 7% (14 912 enterprises), among others. As a macro-region, the highest number of beneficiaries were located in Lima and Callao, representing 26% of the total (54 181 beneficiaries), followed by the Northern region with 26% (53 468 beneficiaries), Southern region with 26% (53 185 beneficiaries), Central region with 16% (32 129 beneficiaries) and Eastern region with 7% (13 552 beneficiaries).
The economic effects of the public credit programs, particularly the IMPULSO MYPERU Program, have been substantial. These programs, which represented 1.0% of national GDP in 2024, have benefited over 206 515 companies that collectively generate more than 1.3 million jobs. Public credit programs that offer lower interest rates and longer repayment terms have significantly increased the probability of business survival by 7.2 percentage points relative to a scenario without such support. The Commerce and Services sectors saw even greater increases in their business survival rates, with rises of 7.6 and 6.8 percentage points, respectively, compared to a scenario without intervention.
Furthermore, the annual sales levels of SMEs beneficiaries increased by approximately 18.9 UIT per year compared to a scenario without intervention, with the Manufacturing sector showing the highest increase, at approximately 21.6 UIT. Beneficiary SMEs also saw a significant rise in employment, adding approximately 34 workers per 100 companies relative to a scenario without intervention. The Manufacturing, Construction, Commerce, and Services sectors showed particularly positive increases in hiring. Additionally, beneficiary companies experienced a substantial increase in their probability of accessing other sources of financing, with a 29 percentage point increase compared to a scenario without intervention.
Source: See Table 4.
References
Central Reserve Bank of Peru (2024). INFLATION REPORT. March 2024.
Ministry of Production (2024). SMEs in numbers 2023. Obtained from: https://ogeiee.produce.gob.pe/index.php/en/shortcode/oee-documentos-publicaciones/publicaciones-anuales
Ministry of Production (2024). SMEs in numbers 2022. Obtained from: http://ogeiee.produce.gob.pe/index.php/shortcode/oee-documentos-publicaciones/publicaciones-anuales
Ministry of Economy and Finance. (2025). Report on the update of macroeconomic projections 2025–2028. Government of Peru. Obtained from: https://www.gob.pe/institucion/mef/informes-publicaciones/5911860-marco-macroeconomico-multianual-2025-2028
Superintendency of Banking, Insurance and AFP (SBS) (2025). Financial System Information Folder: Statistical Tables. Government of Peru. Obtained from: https://www.sbs.gob.pe/app/stats_net/stats/EstadisticaBoletinEstadistico.aspx?p=14
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← 1. SME and entrepreneurs: Consider micro-enterprises as an indicator of entrepreneurship. From now on, the term SMEs is used to refer to both micro, small, and medium-sized enterprises.