Canarian SMEs warn that excessive bureaucracy hinders their competitiveness

The islands' business sector calls for administrative simplification in the face of rising labor and regulatory costs.

Generic image of business management documents and a calculator on an office desk.
IA

Generic image of business management documents and a calculator on an office desk.

Business associations have warned about the delicate situation facing small and medium-sized enterprises in the Canary Islands, where bureaucratic burdens and new labor costs threaten their economic viability.

The archipelago's productive fabric, consisting of 97% micro-enterprises with small workforces, faces structural challenges that limit their growth capacity. According to sources from the Confederation of Canarian Employers, the accumulation of state regulations without prior debate with the sector is causing a loss of confidence in the labor market.
Unlike the national scenario, where a breakdown in social dialogue is perceived, in the Canary Islands, there is constant and fluid communication between social partners. This understanding has allowed progress on agreements regarding dual vocational training and the modernization of the Canarian Labor Court, which are key tools for adapting to market needs.

"Social dialogue between Canarian employers and unions allows us to reach agreements freely without the intervention or interference of the Government, as is happening at the national level."

a business association representative · Executive Vice President
The employers' association insists that excessive regulation and fiscal pressure act as a brake on investment. With only 150 large companies on the islands, the survival of micro-enterprises is essential to maintain economic activity and employment in the region.