Andorran Family Businesses Drive 65% of GDP, Study Shows Longevity and Prudence

A new study presented by the Andorran Family Business Association (EFA) during its 25th general assembly reveals that family-owned companies account for 65% of Andorra's gross domestic product and 35% of private sector employment.

The report, titled *Radiografia de l’Empresa Familiar Andorrana*, was prepared by Juan Corona Ramón, a doctor in economic and business sciences and honorary rector at Universitat Abat Oliba CEU, and Fernando Álvarez Gómez, a doctor and professor of economics and business at the Universitat Oberta de Catalunya. It describes these businesses as a "systemic pillar" of the Principat, highlighting their average lifespan of 48 years—longer than in neighbouring areas such as Spain, Catalonia or France.

Key findings include that 35.7% of the companies are now led by the third generation, a milestone the authors describe as "extremely complicated" to achieve. Ownership structures remain concentrated: 28.6% have a single shareholder holding 100% of the shares, while in 21.4% of cases one shareholder controls more than 50%. In 83.7% of firms, the CEO is a family member with an average tenure of 20 years.

The study points to financial prudence as a strength, with 70% of companies showing debt levels below 10%—deemed "a success case" by the authors—and half of those in the third generation choosing not to distribute dividends. Nearly 70% pursue an international outlook, all commit to sustainability, and 81.4% prioritise keeping their registered office in Andorra. Some 67.4% of respondents believe family status benefits their operations.

Challenges include succession planning. While 52.6% anticipate generational changes within five years and 51% view it as a priority, only 26.3% have a formal family protocol in place, with 71% lacking an agreed plan.

The assembly also approved a new board, with Daniel Aristot taking over as president from Daniel Armengol, Paula Tarrado as vice-president, Jordi Prat as secretary, and Maria Creus and Joan Betriu as board members.

EFA technical secretary Joan Tomàs noted the sector's long-term vision provides resilience, contrasting with lower third-generation success rates elsewhere, such as under 10% in Spain. The report recommends balancing local roots with global ambitions, promoting reinvestment and addressing succession.