Economic Growth in Comunitat Valenciana Masks Rising Challenges for Small Businesses

The economic outlook for Spain's Comunitat Valenciana region in 2025 presents a paradox of robust growth alongside rising precarization among small and micro businesses. While forecasts predict a leading GDP growth of 3.6% for the region, the highest in Spain, and a historic surge in company creation and employment, concerns persist over the fragile state of small enterprises.

Ruth Merino, Consellera of Finance and Economy, announced that September was the best month ever for business creation in the region, with a 31.4% year-on-year increase. Social Security affiliation reached record highs in October, and unemployment levels in the region fell to their lowest since 2008. Merino credited this success to the adaptability and strength of the local business fabric and underscored the Generalitat's proactive efforts in mobilizing resources to protect employment despite the lack of support from the central government, which she criticized for prioritizing debt repayment over cooperation.

Contrasting this upbeat economic narrative, Vicente Lafuente, the new president of the Confederación Empresarial de la Comunitat Valenciana (CEV), warned of serious challenges facing microenterprises and freelancers. Speaking at the Encuentros SER event in Valencia, Lafuente highlighted the polarization between large corporations and small businesses, with the latter experiencing significant precarization. He stressed the need for generational renewal in agriculture and better training to sustain small business competitiveness.

Lafuente criticized the national policy approach, particularly the increasing use of royal decrees, which he said intimidate business advocates. He specifically mentioned concerns over labor policies championed by Minister Yolanda Díaz, emphasizing the critical role small and medium-sized business owners play as direct employers. Furthermore, he called for consensus on working hours and absenteeism, spotlighting youth demotivation linked to rising depression and unstable life projects. On fiscal matters, Lafuente demanded a fair tax system and improved autonomous financing free from political stalemates.

Together, these perspectives reveal the complex economic reality in Comunitat Valenciana: a flourishing macroeconomic environment buoyed by strong entrepreneurship and public support, yet shadowed by the precarious conditions threatening the viability of its smallest businesses and the need for sustained public-private collaboration to address these disparities.