Intermediate Cities and Small Businesses Reshape Colombia’s Economy
Small businesses in Colombia now generate much of the country’s economic momentum, while intermediate cities have become the main source of new business growth, according to economist Eduardo Freire’s analysis of the 2024 National Urban Economic Census (CENU). The nationwide census found that Colombia’s registered business establishments doubled from one million in 1990 to more […]
Recent data from Colombia’s 2024 National Urban Economic Census (CENU) reveals the significant role small businesses and intermediate cities play in the nation’s economic growth. Neighborhood stores and local service providers are now central contributors to economic activity nationwide. According to economist Eduardo Freire’s analysis, these entities have become the primary drivers of new business expansion, especially in cities beyond Bogotá, Medellín, and Cali.
Between 1990 and 2024, Colombia's registered business establishments doubled from one million to over two million. However, the most notable growth occurred in intermediate cities like Bucaramanga, Pereira, Santa Marta, Ibague, Popayan, and Villavicencio. This expansion can be attributed to factors such as lower operating costs, improved connectivity, and the rise of industries like tourism, healthcare, and agroindustry.
Small businesses, particularly corner stores or "tiendas de barrio," are the backbone of Colombia’s economy, handling over 60% of the country’s food purchases, with this figure rising to 96% among lower- and middle-income households. Despite the overall decline in industrial units from 9.5% to 5.2% of Colombia’s business population between 1990 and 2024, service-oriented activities, including retail, personal care, and small-scale food service, have steadily grown to fill this gap.
Written by urgent.news from Colombia One's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
