A Growing Economic Engine
Family businesses in Madrid have proven to be a fundamental pillar for the region's economy, sustaining around 1.5 million jobs. This phenomenon has intensified in recent years, with a notable increase in their participation within the Madrid business fabric.
According to the first regionalised study conducted by the Association of Family Businesses of Madrid (Adefam), these companies now represent 92.8% of the total businesses in the Community, a significant increase from the 85.6%% recorded in 2015. Furthermore, their contribution to employment has grown from 54.9%% to 58.9%%, and their contribution to Gross Value Added (GVA) has risen from 39.2%% to 46.2%%.
Despite their current success, family businesses face significant challenges related to succession. Only a scant 1.8%% have managed to reach a third generation. This highlights the urgent need to prepare new generations to ensure the continuity and sustainable growth of these businesses. The president of Adefam, Verónica García Castelo, emphasises that "anticipating succession and professionalising management are key to securing the future".
Although they are smaller than their non-family counterparts —with an average turnover close to 477,000 euros, compared to over two million— family businesses show superior economic profitability: 4.2%% compared to 3.1%% recorded by non-family businesses. Additionally, they exhibit a lower level of indebtedness and stronger financial ratios.
However, these organisations also face significant fiscal challenges. The corporate tax burden reaches 25%% on gross operating profit (Ebitda), contrasting with the 16%% applied to non-family businesses. Adefam urgently calls for the establishment of a stable regulatory framework that allows for continued investment and job creation.
Despite the economic and generational challenges faced by family businesses in Madrid, they show a remarkable commitment to remain active: approximately 68%% continue operating ten years after their creation. This commitment to permanence is crucial for maintaining their role as decisive players within the regional productive fabric.
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