Permitting delays, rising costs top challenges in CofC-Ipsos business study
Excessive permitting delays, high operating costs, and unreliable utilities are the primary barriers to business growth in Puerto Rico, according to a new qualitative study released by the Puerto Rico Chamber of Commerce (Cofc) during its 2025 Annual Convention.
The estudio, titled “Qualitative Assessment Among Puerto Ricans and Business Representatives 2025,” and conducted by global research firm Ipsos, gathered insights through focus groups with residents, business owners, students, health professionals, educators and members of the Puerto Rican diaspora from March to May.
Participants cited government inefficiencies and unstable infrastructure as top concerns affecting the business climate and quality of life. According to the study, 85% of small and medium-sized enterprises (SMEs) identified excessive bureaucracy and permitting delays as the greatest obstacle to growth. Frequent power and telecom outages, limited access to credit, and rising operational costs also ranked among the top challenges.
The health care system was described as fragmented, inefficient and costly — particularly for seniors and patients using government insurance. In education, respondents pointed to deteriorating infrastructure, limited resources and a lack of qualified teachers.
Concerns also emerged about the labor market. Participants said workers are seeking more than wages, including job security, benefits and opportunities for advancement. A respectful work environment and enforcement of labor rights were also seen as critical.
Despite these issues, participants expressed cautious optimism about the island’s potential in tourism, creative industries, tech and sustainability. Puerto Rico’s location, bilingual talent pool and Act 60 tax incentives were cited as key assets.
“This study confirms that Puerto Rican businesses, particularly our SMEs, face significant structural challenges that hinder their potential,” said CofC President Luis E. Pizarro-Otero. He said the findings will guide policy recommendations on permitting, financing and talent retention.
“However, it also makes clear that there is a collective will on the part of the private sector to innovate, adapt, and continue investing in Puerto Rico,” he added.
CofC Executive Director Liza M. García noted that reconstruction efforts after natural disasters have opened opportunities for contractors and small firms. “This qualitative report provides us with a powerful tool for strategic planning and more informed policymaking,” she said.
As part of the convention, the CofC also hosted the Business Boost forum featuring speakers from Ocean Lab, NaciónSushi, Microsoft and Discover Puerto Rico, focused on brand identity, vision and access to capital.
