Uncertainty at the international level, combined with forces that attract business and squeeze profits, is impacting economies across regions, including Alicante. Data from the Commercial Registry shows a striking pattern: 2022 saw the highest level of new company formations in 15 years, paired with a record tide of liquidations for the second consecutive year. The jump to 5,145 new firms aligns closely with entrepreneurship blossoming among people who recently lost jobs and with opportunities unlocked by advancing technologies. Yet some projects behind the 1,249 closures reveal weaker planning and insufficient feasibility checks.
Against a backdrop of post pandemic recovery and the economic strains from the war in Ukraine, the tempo of company creation and liquidation in Spain appears fast and furious. Last year’s company formations rose 4.5 percent over 2021, marking the strongest figure since 2007 when 6,696 startups were registered. Liquidations increased by 8 percent from the previous year, shaping a new high. In Alicante today, roughly 60,000 firms remain registered with Social Security, reflecting a dynamic but uneven business climate.
Economic analyst Ignacio Jiménez Raneda, former rector of the University of Alicante and Professor Emeritus of Fundamentals of Economic Analysis, interprets these numbers through the lens of creative destruction. He notes that a surge in business ventures often coexists with a higher rate of failure, producing simultaneous increases in incorporations and liquidations. The surge occurred during a period of notable instability, yet it did not deter many aspiring entrepreneurs, particularly those who had the most to lose from unemployment. He cautions that the present climate is not ideal for decision making, but risk remains unavoidable and necessary for progress.
Elche’s José María Gómez Gras, a professor of Business Organization at Miguel Hernández University, highlights how new opportunities across sectors are driving startup activity. He points to ongoing digitalization and the adoption of new technologies as a catalyst for a substantial inflow of new ventures tied to these trends. Regarding closures, Gómez Gras stresses that some firms could not withstand recent crises and notes that projects launched without solid feasibility analysis often succumb to the pressures they face.
The rise in Alicante’s startup count last year contrasts with a 1.9 percent decline nationwide, representing a drop of just over 100,000 in total. Alicante emerged as the fifth most active region for constitutions, trailing behind Madrid, Barcelona, Malaga, and Valencia.
On the other hand, the nationwide burnout figure rose by 9.5 percent to 37,200 closures. In Alicante, which ranks fifth among provinces for closures, the cities of Madrid, Barcelona, Valencia, and Malaga remain at the top of the list.
Services account for a large share of new activity
About 40 percent of the startups formed last year in Alicante were service-oriented, mirroring broader national patterns. Sectors tied to construction and real estate services also registered a notable retreat, down about 25 percent.
In terms of service lines, the hotel and hospitality sector is particularly prominent among new ventures, a reflection of a strong tourism rebound and occupancy rates that compare with the peak years before the pandemic. The hospitality revival has helped drive the cadence of new business activity as visitors return to the coast and city centers.
Construction posted an especially robust year as real estate activity recovered. More than 50,000 real estate transactions were completed during the year, a 38 percent rise from 2021 and the best annual figure in about a decade and a half. The industrial sector represented about 5 percent of total mergers, while agriculture accounted for roughly 3 percent, signaling where growth has been concentrated and where it remains modest.
These shifts reflect a broader pattern in Spain, where regions are adapting to new economic realities while responding to global pressures. The Alicante region has demonstrated resilience through a mix of entrepreneurial energy and sectoral adjustments that favor services, tourism-driven activities, and strategic real estate movements. Marked variations across provinces point to different local drivers and risk appetites, but the overall message is clear: a high pace of company formation coexists with a meaningful level of shutdowns, underscoring an ongoing process of market reconfiguration and renewal. This dynamic has implications for policymakers, investors, and small business owners who navigate a landscape defined by rapid change and emerging technologies, as cited by regional economists and academics. [Attribution: University of Alicante and Miguel Hernández University analyses; regional economic reports]