Seven in Ten Microbusinesses in Colombia Are Owner-Operated

Written on 05/15/2026
Josep Freixes

A study reveals that 70% of microbusinesses in Colombia are owner-operated: bakeries and neighborhood stores play a key role. Credit: Reg Natarajan, CC BY 2.0 / Flickr.

Seven out of every ten microbusinesses in Colombia are operated directly by their owners. That was revealed by the latest Microbusiness Survey (Emicron) from Colombia’s National Administrative Department of Statistics (DANE), a study that once again highlights the enormous weight small productive units carry in the national economy and in the daily livelihood of millions of families.

Behind those figures are the traditional neighborhood stores, bakeries, small workshops, family businesses, and informal ventures operating out of garages, homes, or tiny storefronts.

In many parts of the country, these establishments remain the main source of employment and income, especially in working-class sectors and mid-sized municipalities where large companies have little presence.

Seven in ten microbusinesses in Colombia are owner-operated

DANE’s Microbusiness Survey showed that most of these economic units operate under a self-employment model. The report states that nearly 70% of microbusinesses are run directly by their owners, without a large corporate structure or extensive payrolls.

The study also confirms that microbusinesses continue to be one of the main drivers of employment in Colombia. These economic units include establishments with up to nine workers and cover activities such as commerce, manufacturing, transportation, lodging, restaurants, and personal services.

According to DANE, during the fourth quarter of 2025 the number of microbusinesses increased by 4.1% compared to the same period the previous year, while employment generated by these activities grew by 2.7%. Revenue from these businesses also posted a positive variation of 1.2%.

The data reflect an economic reality that has persisted for decades: a large share of Colombian employment depends on small family-run businesses operating with narrow margins, limited investment capacity, and high levels of informality.

Within that universe, neighborhood stores and bakeries occupy a central place. DANE estimated that in 2024 there were 540,233 microbusinesses related to those two sectors across the country.

The research also found that 88.4% of bakery and neighborhood store owners are self-employed, while only 11.6% act as formal employers.

In practice, this means that most of these businesses depend almost exclusively on the daily effort of their owners and their families. These are establishments where the owner runs the register, organizes products, handles accounting, receives suppliers, and in many cases even lives in the same place where they work.

Neighborhood stores remain essential to the daily functioning of thousands of communities. In both urban and rural areas, they are the immediate source of basic products such as rice, eggs, bread, milk, beverages, and cleaning supplies. They also fulfill a social function, as many neighbors buy on credit or make small purchases they would hardly be able to make at large retail chains.

Bakeries, meanwhile, play a similar role. In addition to generating local employment, they function as small economic hubs around which much of life in working-class neighborhoods revolves.

A model often marked by informality

Although microbusinesses represent an economic lifeline for millions of Colombians, they also reveal the structural weaknesses of the national labor market.

A large share of these productive units operate under informal conditions. Many owners lack stable access to credit, struggle to contribute to social security, and face difficulties growing or modernizing their businesses.

Various analyses of Colombia’s business structure agree that microenterprises account for nearly 95% of all companies in the country, yet they maintain low productivity levels and limited expansion capacity.

Even so, microbusinesses remain the closest economic alternative for thousands of people who cannot find formal employment. In Colombia, opening a neighborhood store, a bakery, or a small commercial establishment continues to be one of the fastest ways to generate household income.

The phenomenon also has a strong social component. Many families sustain their economy thanks to businesses inherited or created out of necessity. In numerous cases, the income earned barely covers basic expenses, but it allows households with no other sources of employment to maintain a certain degree of stability.

The “hustle economy” remains alive

DANE’s data also show that sectors such as transportation and storage, lodging, food services, and construction were the main drivers behind the recent growth of microbusinesses in Colombia.

However, experts warn that the increase in these small economic units also reflects the country’s difficulty in generating formal and stable employment. Many workers end up becoming self-employed or entrepreneurs out of necessity rather than opportunity.

The so-called “hustle economy” remains an everyday reality for millions of Colombians. In cities and municipalities, it is common to find family businesses surviving through long working hours and fluctuating income.

Despite the difficulties, neighborhood stores and bakeries continue to demonstrate a remarkable ability to withstand economic crises, inflation, and shifts in consumer behavior. For many communities, these small businesses remain far more than commercial establishments: they represent the economic foundation of thousands of households and one of the silent pillars of the Colombian economy.