Small Business

The Honduran tax authority (SAR) will hold Misión Mipyme on October 20 in El Progreso, offering business registration assistance, advisory services, and financing options for small enterprises and entrepreneurs.

Protest signs against Chinese retailers appeared in Tegucigalpa and Comayagüela as small Honduran merchants express alarm over competing with larger, better-capitalized stores that can import goods in bulk.

Chinese-backed stores expanding across Honduras since the 2023 diplomatic opening have left small merchants reporting sales drops of up to 70% and facing unfair competition through alleged tax breaks and inflated rent bids, prompting calls for equal regulatory oversight.

Honduras's MIPYMES federation president José Castañeda endorsed the government's plan to reduce operating expenses while redirecting resources to productive infrastructure, citing poor road conditions and a growing public-sector labor liability that drains budgets with each administration.

Merchants warn that the growing presence of Chinese products and stores threatens Honduras's small and medium businesses, which struggle to compete on price and selection, with concerns over a proposed mega-store affecting thousands of market vendors.

The head of Honduras's micro and small-business association claims Chinese-owned companies operating in Honduras receive tax exemptions on imports, sales, income, and services that local entrepreneurs do not, creating unequal competition.

A representative of small and medium enterprises warned that ongoing power cuts and rising fuel prices pose an existential threat to hundreds of businesses across Honduras.

Small business owners in three Olancho municipalities are protesting the possible opening of Chinese-owned retail stores, saying they cannot compete and fear loss of sales and income.

Small-business owners in the Sula Valley report daily losses of approximately L10 million (about $400,000) from six- to eight-hour power outages in September, with three blackouts so far accumulating roughly L30 million in damages.

About 100 formal restaurants have closed in Honduras through 2026 as economic contraction cuts consumer visits and rising utility costs, water shortages, and operational expenses squeeze the sector, says the president of the Honduran Gastronomy Association.

The head of Honduras's small-business chamber, Victorino Carranza, called on Congress's recent electricity system reforms to cut operating costs for micro and small enterprises, saying companies should pay only for energy consumed and that unpredictable rates now hamper financial planning.

About 300 shoe and textile workshops have closed in the San Pedro Sula area over 24 months as cheap imports from China and Panama undercut local makers, affecting over 1,500 workers and prompting artisans to seek better access to raw materials and financing.

José Castañeda, president of Honduras's small and medium enterprise federation, argues that weak domestic production and outdated economic policies—not Chinese immigrants—are the real obstacles to Honduran competitiveness, as Congress investigates the entry of approximately 13,000 Asian citizens since 2022.

Economic Development Minister Eddy Ordóñez said the government is shifting from steep fines to warnings and guidance for small businesses, has conducted over 1,500 compliance trainings, and expects to announce a manufacturing-sector expansion creating more than 1,600 jobs.

Honduras's Health Ministry is now requiring sellers of used clothing to obtain a sanitary license, a new requirement that traders say costs about 21,000 lempiras (roughly $840) and must be completed within three days, raising concerns among small vendors who previously faced no such mandate.

About 50 restaurants closed nationwide in July as rising costs for utilities, supplies, and labor combined with weak consumer demand and municipal red tape, threatening roughly 2,000 jobs, the Gastronomic Association of Honduras says.

Gremipe, the micro and small business association, warns that about 30,000 microenterprises have shut down nationwide so far this year, costing roughly 80,000 jobs, with power outages and rising production costs blamed for the closures.

The city of San Pedro Sula distributed equipment and supplies to 150 entrepreneurs across neighborhoods including Las Brisas, Bográn, and Chamelecón through its Capital Semilla program, paired with training in financial literacy, business planning, and digital marketing.

A National Congress member proposed reopening the enrollment period for a microbusiness tax-incentive program that expired, conditioning new benefits on companies creating at least 20% more jobs and adding safeguards against fraud and duplicate claims.

Local authorities and small and medium-sized businesses in western Honduras called for approval of electricity-sector reforms, saying constant blackouts cause up to 100 million lempiras (about $4 million) in monthly losses.

Frequent blackouts are crippling Honduras's micro, small, and medium-sized enterprises, with the sector reporting estimated daily losses of 15 million lempiras (about $600,000) as outages lasting up to six hours halt production and sales.

Unannounced electricity cuts in San Pedro Sula are causing production delays and losses for small workshops and artisans, with some considering closure due to lost income and the prohibitive cost of private generators.

Fernando Josué Fiallos Rivera, 39, a store owner in Siguatepeque, Comayagua, was killed in a shooting last night when armed attackers posing as customers opened fire inside his shop; no arrests have been reported.