Housing crisis hampers SME growth, says Foment

Foment del Treball has warned that unaffordable housing is limiting small and medium-sized enterprises (SMEs) in Catalonia from attracting skilled workers, pressuring wages and undermining competitiveness. The business organisation's Territorial SME Council made the remarks on Tuesday during the presentation of its 'PIME 360 Catalunya' report, which assesses the state of Catalan SMEs in the first half of 2026. The report identifies the housing crisis as a "direct barrier to competitiveness" for SMEs, with 95% of Catalan businesses classified as small or medium-sized. Pep Garcia, president of Foment's Territorial SME Council, demanded urgent, effective public housing policies and a major agreement between public and private sectors. "Without affordable housing, there will be no labour mobility, no territorial cohesion, and not enough talent for businesses," Garcia said.

Without affordable housing, there will be no labour mobility, no territorial cohesion, and not enough talent for businesses.

Inflation and skills mismatch add pressure

Salvador Guillermo, Foment's director of Studies and Economics, stressed that housing solutions must come from public policy, not private companies increasing labour costs through housing allowances. He criticised a lack of public investment in housing over the past 15 years. The report also highlights a mismatch between vocational training and business needs, making it difficult for SMEs to fill technical roles despite a strong labour market. In the first quarter of 2026, 31,943 job vacancies in Catalonia remained unfilled, with two-thirds concentrated in SMEs. Inflation and rising operating costs are further squeezing SME profit margins, reducing their ability to reinvest and grow. Sectors like hospitality and retail struggle to pass on cost increases due to limited pricing power.

Budgets and foreign investment offer opportunities

Despite challenges, the report points to opportunities in the Catalan government's 'expansionary' 2026 budgets and rising foreign direct investment. Foment calls for targeted measures to improve SME access to public contracts. It also identifies growth potential in software development, precision engineering, environmental management, and specialised logistics, particularly in areas like Sabadell, Terrassa, the Vallès region and the Baix Llobregat.

Reported by Foment del Treball, viaempresa.cat.