Málaga may be the leader in Andalucia when it comes to the creation of new businesses but that does not mean that everything in the garden is rosy, far from it.
There were 3,574 new companies created in Málaga during 2010, but there were also a lot of businesses going under. In the past two years, some 10,000 businesses have folded due to the continuing economic crisis, which works out at 14 per day. Since the start of the economic crisis, unemployment in Málaga has risen by 320%.
According to the Málaga Federation of Employers (CEM), the only sector with a positive outlook is the tourist sector, but there are four main areas of concern for businesses. The areas of great concern are funding, the complexity of the taxation system, an inefficient industrial relations framework and a totally unsustainable public default.
The CEM urges the newly elected mayors to set about paying outstanding debts to suppliers, a figure currently estimated at €400 million.