Family-owned businesses are not the backdrop of Madrid’s economy, but one of its leading protagonists. They also embody one of the clearest expressions of a purpose-driven business model, formed by companies that are born to endure, create jobs, root themselves in their communities, and project their legacy to future generations.
92.8% of the companies in the Madrid region are family-owned — a share that even exceeds the national average of 92.4% — and their presence has continued to grow over the past decade. This is confirmed by the first regionally localized study on family-owned business in Madrid, presented by the Madrid Association of Family Business (ADEFAM).
Specifically, between 2015 and 2024, these firms moved from representing 85.6% to 92.8% of the total companies in the Madrid region; their contribution to employment rose from 54.9% to 58.9%, and their contribution to Gross Value Added (GVA) from 39.2% to 46.2%. In absolute terms, the 235,000 family-owned Madrid firms sustain 1.5 million jobs and generate more than €1 billion of added value for the region. These figures confirm that their contribution goes beyond economic growth, reflecting stability, territorial cohesion, and a commitment to high-quality employment.
The profile of Madrid’s family-owned business is predominantly young, as nearly two-thirds are under 25 years old, with 18.3% in the entrepreneurial phase and 47.3% still in development. 32.4% are already consolidated, and only 2% exceed half a century of operation. This latter figure places Madrid above the national average, where long-standing family firms account for barely 1.3% of the total. Thus, about one in three family-owned companies has already undergone some form of generational transfer, underscoring the importance of anticipating succession, professionalizing management, and preparing new generations to ensure the continuity of these business ventures.
Verónica García Castelo, president of ADEFAM, stated that “this study allows us to focus on companies essential for Madrid’s economic and social development. They are firms that share the aim of enduring, of generating stable employment, of boosting the development of their surroundings, and of leaving a positive mark on society generation after generation. At ADEFAM we believe this reality must be cared for and fostered, because family-owned enterprises commit to a business model rooted in legacy, people, and building the future. And that is why we believe strengthening the family business is also strengthening the future».
Financial strength to keep investing, growing, and creating jobs
Despite a predominantly young profile and a smaller size, the study shows that Madrid’s family-owned businesses compete on more favorable economic terms than non-family firms. With an average turnover of about €477,000 and around five employees per company — compared with more than €2 million in turnover and 13 employees at non-family firms — they still achieve an economic profitability of 4.2%, higher than the 3.1% of non-family firms. The financial profitability has also steadily improved, widening the gap with non-family firms from 0.36 percentage points in 2014 to 2 points in 2024.
The financial solidity also reinforces that outlook. In this regard, Madrid’s family businesses show a solvency ratio of 1.99 versus 1.74 for non-family, and a liquidity ratio of 1.69 versus 1.54. Their debt level is also lower — 44% versus 47.3% — and this variable has declined more sharply over the past decade, placing them in a better position to withstand uncertain economic environments and seize investment opportunities.
The study by ADEFAM and SAFER also points to a higher relative tax burden. The corporate tax burden on EBITDA is 25% for Madrid’s family firms, versus 16% for non-family firms. This underscores the need for a stable and predictable regulatory framework that allows these companies to continue investing and generating employment and economic wealth in the region.
Family-owned business is not synonymous with SMEs: it’s about scale, leadership, and competitiveness
One of the report’s most striking conclusions is that the family model is far from limited to small business. Almost half of Madrid’s large companies — 48.9% of those with more than 250 employees — are family-owned. In that segment, family firms account for around 40% of employment and a little over 20% of the GVA, demonstrating that the model can reach meaningful scale without losing its family essence or its commitment to a long-term approach to doing business.
The study also records a notable persistence among family businesses in the region. Thus, 68% of these family firms remain active a decade after their founding, compared with 66% of non-family firms. Moreover, of those still operating in 2024, 93.6% maintained their family character. And contrary to what one might expect, not only do family firms remain family; 36% of those that were non-family in 2015 had become family-owned by 2025, largely due to ownership concentration within a single family.
Its presence is also cross-cutting across sectors. 94.6% of Madrid’s retail companies are family-owned, 93.4% in construction, and 92.1% in manufacturing, three key activities within the region. Moreover, in nine other sectors, more than 95% of companies are family-owned, making this family business model a decisive actor in Madrid’s productive fabric.
