governmentcouncil

Legal and Policy Frameworks

El Salvador has adopted the following legal frameworks, strategies, and vision documents related to social innovation:

Social Entrepreneurship
Social Innovation
Social Businesses
Social [and Solidarity] Economy
Impact Economy
Community based
led organizations

Current stage of implementation:

Stage5: Impact Economy

with:

Stage1: “No Policy or Recognition: No formal recognition, discussion, or policy exists. The sector operates informally or without government involvement.”;
Stage2: “Initial Discussions & Awareness: The government acknowledges the sector and has started discussions or consultations, but no formal policy framework or regulation exists.”;
Stage3: “Draft Policy or Framework in Development: A draft policy, strategy, or regulatory framework is currently being developed. The government may be conducting research, stakeholder consultations, or legislative drafting.”;
Stage4: “Pilot Programs or Limited Implementation: Some initiatives, pilot projects, or partial government-backed programs exist, but full implementation has not yet been achieved. Policies may be tested in select regions or for specific groups.”;
Stage5: “Policy Adopted but Not Fully Implemented: A formal law, policy, or regulation has been passed, but it has not been fully implemented, enforced, or funded. Gaps in execution may still exist.”;
Stage6: “Policy in Effect & Actively Implemented: The policy is fully enacted and actively being implemented. There is clear government support, funding, and enforcement mechanisms in place.”;
Stage7: “Policy Reviewed & Strengthened: The existing policy has been evaluated and improved over time based on feedback, data, or evolving needs. New funding, incentives, or structural reforms may have been introduced.”; and
Stage8: “Leading in Policy Innovation: The country is recognized as a leader in this policy area, with best practices, strong regulatory frameworks, and incentives that actively promote and support the sector.”

More details:

Ecosystem Actors

Key Actors in the Ecosystem

The leading actors driving social innovation in El Salvador include government ministries, social enterprises, NGOs, philanthropic institutions, academia, and other ecosystem builders. The top three most influential actors are:

Government entity (ministries/agencies)
Impact investors & financial institutions (Impact funds)
Academic and research centers

Examples:

Education and Capacity Building

Formal and informal education programs that support social innovation exist in the following forms in El Salvador:

Comprehensive national framework:“ The government has integrated social innovation education into national curricula, vocational training, or entrepreneurship development programs, with structured support and funding.

Coordinating Bodies

A centralized body responsible for coordinating social innovation efforts across sectors does not exist in El Salvador.

Details:

INVEST IN EL SALVADOR

Ecosystem Communication

The level of communication and coordination among key actors in El Salvador’s social innovation ecosystem is currently Moderate:“ some collaboration, but existing gaps in coordination.

Support Mechanisms for Policy and Finance

Policy Incentives and Support Mechanisms

To support social innovation, El Salvador has implemented the following incentives and mechanisms:

Tax benefits for social enterprises and impact-driven businesses,
Fiscal advantages for impact investors,
Low-cost or preferential financing options (e.g., social bonds, impact investing incentives),
Public-private partnerships to foster innovation

Further information:

Financing Mechanisms

Impact

Flagship Programs and Achievements

Notable achievements and flagship programs in social innovation in El Salvador include:

International Collaborations

El Salvador is involved in international collaborations on social innovation through the following initiatives:

Tech for Good Innovations

Technological innovations in El Salvador that may be transferable to other countries include:
NA

Further details:

Impact Measurement Frameworks

El Salvador has a formal framework or methodology for measuring social innovation impact.

Further details:

‍https://www.innovacion.gob.sv/

Economic Contribution of Social Innovation

Social innovation contributes to El Salvador’s economy through:

https://www.fia.ues.edu.sv/cefie-ues/

Reports on Social Impact

Reports and studies that assess the social impact of innovation in El Salvador.

Policy Momentum

Momentum for social innovation as a public policy issue in El Salvador is currently rated as:
Significant Momentum: Social innovation is actively supported through policies, funding, or initiatives, with clear government engagement and implementation.

Barriers to Growth

The following barriers are currently hindering the growth of social innovation in El Salvador:

Weak collaboration between public, private, and civil society sectors,
Limited access to skilled professionals in the sector

Collaborative Ideas

Stay Updated

Receive fresh insights, stories, and calls-to-action directly to your inbox.