Vitoria-Gasteiz City Council Launches Plan for Generational Succession in Local Commerce

The initiative will initially work with 60 businesses, offering personalized advice to prevent closures.

Generic image of a hand analyzing a business plan, representing business continuity.
IA

Generic image of a hand analyzing a business plan, representing business continuity.

The Vitoria-Gasteiz City Council has unveiled an action plan to promote generational succession in local commerce, following observations that a significant number of businesses with owners over 55 years old lack assured continuity.

A preliminary diagnosis indicates that 25% of these businesses are considering closure, and 39% are uncertain about their succession plans. To address this, the Council will provide personalized support through an external consultancy.
The initial study focused on establishments in the city whose owners are over 55 years old, identifying 351 businesses in this situation. Of these, 36% have secured their continuity, but 25% anticipate closure, and 39% have not yet decided what will happen to their business upon retirement. This last figure is of particular concern to the City Council, as it points to a large number of businesses that could close due to a lack of planning, rather than a lack of activity.
The first phase of the plan will initially engage with 60 businesses, through an external consultancy firm to be contracted via tender. This service will span a period of six months and involves approximately 900 hours of direct work. The objective is to offer individualized support to each selected business.
The consultant will contact the establishments, analyze each case, and design a tailored roadmap to meet their needs. This path may lead to business continuity, active succession, or, in some instances, an orderly closure. Personalized technical advice and the search for potential buyers are key components of the plan.

"Part of the problem is not necessarily commercial viability, but rather a lack of foresight. The fact that almost two out of five businesses still don't know what they will do with their succession reinforces this interpretation."

a municipal spokesperson
The City Council aims to intervene before it is too late and prevent closures that might occur solely due to a lack of support or connection with potential individuals interested in continuing the activity. Furthermore, the municipal budget allocated to commerce has increased by 17% this year, reaching 2.7 million euros.