# Startup ecosystem challenges in Spain and Portugal

> Live situation record from CLSTR: https://clstr.news/situations/startup-ecosystem-challenges-in-spain-and-portugal
> Updated: 2026-10-19T00:08:44.000Z. Sources: 12. Developments: 3.

The startup ecosystems in Spain and Portugal continue to navigate significant operational and structural hurdles. A study of 1,006 entrepreneurial projects from the 19th EmprendeXXI Awards, conducted by CaixaBank DayOne and Afi, confirms that profitability remains a major obstacle. In 2024, only 28% of participating startups achieved a positive operating result, and only 56% reported any results at all. Despite these difficulties, optimism remains high; 92% of companies expect to report results by 2026, with approximately 73% anticipating they will reach profitability.

In Spain, business activity shows regional contrasts. In the province of Cuenca, the CEOE CEPYME reported a 20.85% increase in the formation of commercial societies between January and August 2026, marking a four-year high. 

However, national entrepreneur satisfaction remains notably low. A Stripe survey found that only 25% of founders in Spain would choose to establish a company there again, the lowest ranking among ten major economies compared. While new legislation has simplified initial company formation, founders report that ongoing operations remain difficult. Primary challenges in Spain include administrative interactions, which scored 3.3 out of 10 against a European average of 5.4. Other significant obstacles cited include taxes, payroll, and notary requirements. Notably, the cost of restructuring a workforce in Spain is reported at 62 months of salary per employee, the highest recorded in the Stripe survey.

## Claims

- A study by CaixaBank DayOne and Afi analyzed 1,006 entrepreneurial projects. (corroborated by 2 sources)
- Only 28% of participating startups achieved a positive operating result in 2024. (corroborated by 2 sources)
- 73% of startups expect to achieve profitability by 2026. (corroborated by 2 sources)
- In 2024, 56% of the analyzed companies reported results. (corroborated by 2 sources)
- 92% of startups expect to report results in 2026. (corroborated by 2 sources)

## Timeline

### 2026-10-19: Spain business trends show regional growth amid low entrepreneur satisfaction

While Cuenca reports a 20.85% rise in new company formations, a Stripe study reveals only 25% of Spanish entrepreneurs would start a business in the country again due to administrative difficulties.

5 sources. https://clstr.news/cluster/spain-business-trends-show-regional-growth-amid-low-entrepreneur-satisfaction

### 2026-09-28: Spain ranks lowest in entrepreneurship satisfaction, Stripe survey finds

A Stripe survey shows only 25% of Spanish founders would start a company in Spain again, citing high operational hurdles like taxes, payroll, and costly dismissal regulations.

2 sources. https://clstr.news/cluster/spain-ranks-lowest-in-entrepreneurship-satisfaction-stripe-survey-finds

### 2026-09-28: Startups in Spain and Portugal face profitability challenges

A study by CaixaBank DayOne and Afi shows only 28% of Spanish and Portuguese startups were profitable in 2024, though 73% expect to achieve profitability by 2026.

6 sources. https://clstr.news/cluster/startups-in-spain-and-portugal-face-profitability-challenges

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Cite as: Startup ecosystem challenges in Spain and Portugal. CLSTR, https://clstr.news/situations/startup-ecosystem-challenges-in-spain-and-portugal