Balearic Islands face business succession crisis due to aging workforce

The Balearic Islands are facing a significant wave of retirements among the self-employed that threatens the continuity of local businesses and essential trades. Approximately 30,000 self-employed individuals in the islands are aged 56 or older, with roughly 17,600 having surpassed the age of 60.

This demographic shift poses a risk to vital services such as plumbing, electricity, carpentry, and small-scale retail. The lack of successors—whether family members, buyers, or employees—could lead to the permanent closure of established businesses. In 2025, the region already saw the loss of 311 small businesses, a trend that may accelerate in rural areas.

While administrative efforts have focused on encouraging entrepreneurship and new business creation, experts suggest that additional measures are needed to ensure business succession. Proposed solutions include facilitating business transfers, incentivizing family or professional succession, providing training for youth in high-demand trades, and reducing barriers to business acquisition.