Uncertainty at the international level, factors that attract business activity and slow profits, are shaking economies across Spain and, specifically, the province of Alicante. Data from the Commercial Registry illustrate this tension: in 2022 Alicante recorded the highest number of company formations in fifteen years, while also posting a new peak in liquidations for the second consecutive year. This duality has multiple interpretations, but the fact that 5,145 firms were created during the period signals a surge in entrepreneurship among people who recently lost jobs and highlights the opportunities sparked by digital technologies. Yet, alongside these promising ventures, a substantial number of projects launched with limited feasibility emerged, contributing to the wave of closures.
In a landscape marked by extraordinary complexity, the economy is rebounding from the worst impacts of the pandemic even as a war in Ukraine continues to drive costs higher and create new layers of uncertainty. The pace of founding and closing commercial companies in Spain appears remarkable. Startups formed in the previous year rose by about 4.5 percent from 2021, reaching the highest level since 2007 when 6,696 companies began operations. On the liquidation side, the year saw an 8 percent increase over the prior period, maintaining a record pace. Today there are approximately 60,000 companies registered with Social Security in Alicante, reflecting a dynamic business environment that blends risk with opportunity.
Explaining these patterns, Ignacio Jiménez Raneda, former rector of the University of Alicante and Professor Emeritus of Fundamentals of Economic Analysis, describes the figures as reminiscent of the theory of creative destruction. The current era is one of many business ventures, not all of which endure, leading to simultaneous growth in incorporations and liquidations. Jiménez Raneda notes that rapid activity took place amid pronounced instability that did not deter aspiring entrepreneurs, many of whom were unemployed. “It’s not the best moment because decisions are tough, but there is no choice but to take the risk,” he emphasizes.
Elche-based economist José María Gómez Gras, a professor of Business Organization at Miguel Hernández University, points to the potential created by new opportunities across industries. In his words, the country is amidst digitalization and the deployment of new technologies, which generates a significant influx of startups tied to these advances. Regarding closures, Gómez Gras explains that some firms could not withstand the pressures of recent crises, especially new ventures that were not backed by robust feasibility analyses and thus succumbed to market realities.
The rise in Alicante’s startup activity last year stands in contrast with a national trend that showed a 1.9 percent decline—slightly over 100,000 fewer enterprises across the country. Within Spain, Alicante ranked among the top five regions for new company constitutions, surpassing several major metropolitan areas and only trailing Madrid, Barcelona, Malaga, and Valencia in terms of total formations.
On the liquidation front, the nationwide picture showed a 9.5 percent increase to about 37,200 closures. Within the province, Alicante ranks fifth for the number of companies that shut down, following Madrid, Barcelona, Valencia, and Malaga. The data underscore a shift in the regional economy where activity remains robust in formation while also facing the pressures of a tougher climate for sustained operations.
In terms of the services sector, roughly 40 percent of new firms are linked to service activities that mirror broader national patterns. The construction and real estate sectors both experienced a notable decline, the former dropping around a quarter. Within services, the hospitality and food service subsectors emerged as the most common beginnings for startups, a development that aligns with the recent revival in tourism and a strong occupancy rate during peak seasons comparable to pre-pandemic levels. This signals a recovery in demand for lodging and related services that historically anchor regional growth.
Construction also marked a strong year, driven by healthy momentum in the real estate market. More than 50,000 property transactions were closed during the year, reflecting a roughly 38 percent rise from 2021 and representing the strongest annual total in over a decade. The industrial sector contributed a modest share to mergers, around 5 percent, while agriculture remained a minor player with about 3 percent of the activity. Overall, the Alicante market demonstrated a balance between new enterprise formation and market volatility, with services and real estate leading the charge in both creation and expansion.