Four out of every ten companies created in 2019—the year prior to the pandemic—failed to endure and were forced to close their doors. This percentage is still far from the “bloodbath” of the Great Recession: 73% of those set up in 2007, the year before the first major crisis of the 21st century, have disappeared. This is according to the latest report by Iberinform, which confirms that “business survival in Spain shows great fragility.”
Twenty-three percent of companies created in the last five years have ceased operations. Of the 506,192 corporations established between 2020 and 2024, 126,095 are inactive. Of those, 67% have not officially communicated the reasons for their situation—whether due to bankruptcy proceedings, ex officio removal, dissolution, extinction, or the closing of registry records due to uncollectible debt—according to the “Business Mortality” study conducted by Informa D&B.
According to the study, the third year of a company’s life records the highest business mortality: the survival rate drops by 17 points to 80%. The fourth year is the second-worst in the series, as the rate plunges another 11 points, reaching 69%. Consequently, one in four business projects fails between their third and fourth year of existence.
Iberinform details that two out of every four business projects do not reach their tenth year, at which point the survival rate crosses the midway mark and is cut to 48%. By year 15, the survival rate is limited to 34%, concluding with the fact that 77% of companies created this century no longer exist. “After 15 years, survival prospects stabilize.” The direct consequence is that only one in four companies manages to reach 30 years of age.
