The Association of Small and Medium Enterprises of Formentera (Pimef) has revealed the results of its annual survey, which highlights the main economic and labor challenges faced by companies on Formentera during 2024. The data reflect difficulties in hiring qualified personnel, the weight of the high cost of rents and the impact of the triple insularity on business performance. One of the most relevant data of the survey is that 70% of Formentera ‘s companies have been affected by the lack of qualified personnel. This problem, which has worsened in recent years, is due to two main factors: the shortage of accessible housing on the island and the low qualification of available workers. These elements generate a high turnover and make it difficult to maintain a stable work team, which has a negative impact on business operations.
High rents that stifle businesses
The cost of commercial premises in Formentera is another critical point highlighted by the Pimef survey. According to the data collected, 44.74% of respondents pay between €2,000 and €4,000 per month in rent, while 15.79% report rental costs between €6,000 and €8,000 per month. This situation, according to Pimef, represents a significant burden for companies, especially small and medium-sized ones, which find it difficult to keep up in an environment of high operating costs. The survey also highlights the lack of effective work-life balance policies in some companies on the island. Although 66% of companies have implemented work-life balance measures, 34% still do not have policies in place to facilitate work-life balance. This aspect is an opportunity for companies to strengthen their attractiveness as employers in a competitive labor market with recruitment problems.
Impact of triple insularity on operating costs
The concept of triple insularity, which reflects the high cost of transport and logistics due to Formentera’ s remoteness from the main supply centers, particularly affects the island’s businesses. According to Pimef data, these high costs have limited the growth and profitability of local businesses, and are a constant challenge that requires support measures from the institutions to reduce the effects of this geographical factor. Pimef ‘s business radiography reveals a complex and challenging reality for Formentera’s companies. The association has stressed that these data serve to guide their efforts and those of local authorities towards practical and sustainable solutions that favor the island economy.
