Generational Succession in Spanish SMEs: A Structural Challenge for Business Continuity

The Spanish business landscape is undergoing a structural transformation with profound legal and economic consequences. Small and medium-sized enterprises (SMEs), which account for over 99% of active businesses in Spain, are facing a silent yet decisive crisis: the lack of adequate generational succession. According to data from the Instituto de la Empresa Familiar (IEF), more than 60% of family businesses lack a formalized succession plan, and only 30% successfully transfer control to the second generation.

The underlying causes of this issue are multifaceted. Firstly, there is a growing disinterest among younger generations in taking over family businesses, particularly in traditional sectors such as agriculture, livestock, and manufacturing. This phenomenon stems from perceived low profitability, demanding working conditions, and limited career prospects associated with these industries. Secondly, the legal and fiscal complexity inherent in business transfers, combined with frequently unresolved intra-family conflicts, hinders an orderly transition in both ownership and management.

The socioeconomic impact is especially severe in rural areas. Technical reports such as the Libro Amarillo (Yellow Book) of the 2021 Spanish General State Budget warn that the lack of generational succession in the agricultural sector jeopardizes the sustainability of productive activity in depopulated regions, where farming and livestock not only provide employment but also serve as essential pillars for territorial and ecological balance.

In this context, specialized firms like RLD play a strategic role. With over three decades of experience in corporate and succession advisory, this firm provides legally robust solutions to ensure the continuity of family businesses through restructuring, professionalization, and the search for strategic investors. Its methodology focuses on preserving the founders' legacy, whether through intra-family succession mechanisms or, alternatively, by identifying external investors to secure the business's viability.

Furthermore, in many cases, intermediate solutions are imperative, such as appointing a professional CEO outside the family to enhance competitiveness and ensure long-term sustainability. However, it is common for family dynamics themselves to act as a blocking factor, preventing the adoption of necessary measures for the company's survival. In this regard, an objective approach must prevail: preserving economic activity, employment, and generated value, regardless of whether family control over management is maintained.

The disappearance of family businesses not only leads to job losses and reduced economic activity but also erodes a business model that has historically demonstrated resilience, deep-rooted local ties, and long-term value creation. Therefore, it is imperative that public administrations, in collaboration with the private sector, establish a regulatory and fiscal framework that facilitates business succession.

The State must implement structural measures that go beyond temporary subsidies. These include introducing specific tax benefits for intra-family transfers, reducing bureaucratic burdens, and establishing incentives to repopulate rural areas. Applying social security contribution discounts for businesses in depopulated zones or simplifying administrative procedures would significantly lower operational and labor costs, making the continuity of family businesses more attractive.

Final Comments

The generational succession crisis in Spanish SMEs is not merely an economic challenge but a matter of public interest affecting market stability, employment, and territorial cohesion. Ensuring the continuity of family businesses requires coordinated action across legal, fiscal, and corporate spheres, guided by the principles of legal certainty and the promotion of the common good. Only through a comprehensive approach can we prevent the silent collapse of a fundamental pillar of the Spanish economy.