Family businesses in the Balearic Islands are more resilient and more profitable than the Spanish average 03 December 2025 Category: General The report “Family businesses in the Balearic Islands: relevance and survival”, prepared by the Banca March Chair of Family Business, highlights the archipelago as one of the autonomous communities with the most resilient, profitable and efficient family businesses. According to the report, 75% of family businesses in the Balearic Islands are more than ten years old and their survival rate of 82% is higher than the national average. Family businesses contribute 81.7% of the Gross Value Added (GVA) of the Balearic Islands, outperforming non-family businesses in terms of profitability and survival. 93% of companies in the Islands are family-owned and they generate 87% of employment. This is the first report issued by the Chair’s Observatory, which will be followed by regular publications on key aspects of family businesses. Family businesses, the backbone of the Balearic productive fabric The Banca March Chair of Family Business has presented the report “Family businesses in the Balearic Islands:relevance and survival”, which positions family businesses as the backbone of the Balearic productive fabric due to their higher survival rates, adaptability and financial performance — higher profitability and lower indebtedness — compared with non-family businesses. According to the report, 75% of Balearic family businesses are more than ten years old, reflecting their high level of stability and business maturity, and their survival rate over the 2015–2023 period stands at 81.5%, above the national average of 77%. These figures place the Balearic Islands among the regions with the highest business resilience. This study, which provides a Balearic-specific perspective on the national report prepared by the Family Business Institute (IEF), reveals that family businesses contribute 81.7% of the region’s Gross Value Added (GVA), compared with a national average of 57.8%. This consolidates the Balearic Islands as one of the autonomous communities where family businesses make the greatest contribution to wealth generation in Spain. In addition, the Balearic Islands rank among the regions with the highest presence of family businesses in Spain, alongside the Canary Islands and Galicia: 93% of companies in the archipelago are family-owned and they generate 87% of regional employment. Alfredo Martín, Director of the Banca March Chair of Family Business: “This publication underscores how the Balearic Islands are one of the regions where family businesses make a more decisive contribution to the creation of employment and wealth. In a changing and highly competitive environment, family businesses demonstrate their capacity for resilience and adaptation, as well as their long-term vision, with decisions focused on business continuity and stability”. Profitability, efficiency and lower indebtedness of family businesses in the Balearic Islands In terms of economic performance, family businesses show higher economic profitability (4.9%) and financial profitability (10.5%) than non-family businesses (3.6% and 7.9%, respectively). They also display lower indebtedness (47.7%), reflecting prudent and sustainable management of their resources. The efficiency and profitability of family businesses are particularly pronounced among larger and more established companies, confirming their capacity for adaptation and their structural contribution to the Islands’ economic fabric. Moreover, the sectoral profile of Balearic family businesses shows a strong concentration in trade, construction and hospitality, sectors closely linked to the Islands’ economic model. Likewise, their highly concentrated ownership structure and long-term orientation reinforce the stability and continuity of these companies, which are fundamental to the Balearic economy. With this initiative, the Banca March Chair in Family Business, established in 2004 by Banca March, the Balearic Association of Family Businesses, the Instituto de Empresa Familiar, and the University of the Balearic Islands, reaffirms its mission to provide training, conduct research, and bring the university closer to the business community, contributing to the development and sustainability of family businesses, which represent nine out of ten companies in the Balearic Islands.