Balearic government figures show that there were 57,004 active companies in August this year, 93% of the 61,380 recorded in the same month two years ago and up from the 55,817 in August 2020. A trend in business registration began in June and continued as tourism opened up and restrictions were eased.
Llorenç Pou, the director general for the economic model, says that 2020 was a very tough year but that the "great social shield" (protective measures for business) allowed a significant part of the business fabric to resist. During the current crisis, there has been "resilience, unlike the last one (the financial crisis from 2008)" and there has been more hibernation than business destruction.
When considering Balearic businesses, Pou explains that 20% are activated during the summer months. There is a strong seasonal component, and so this is an aspect to take into account when analysing figures for the decline in the number of businesses.
"Many businesses were not activated during the 2020 season. This doesn't equate to a destruction of the business fabric." In the second quarter of 2020, 95% of the decline in the number of businesses was due to temporary businesses that had not been activated. This year, on the other hand, there has been a growth in both temporary and permanent (non-seasonal) companies.