This year’s spotlight on Fuenlabrada is no coincidence: the city unexpectedly made it to the finals of a European competition evaluating cities’ contributions to the development of small street businesses. For Spain, this could be a landmark event—as, for the first time, a municipality from Madrid is just one step away from recognition at the EU level. At a time when small businesses across the country face pressure from major chains and changing consumer habits, Fuenlabrada’s success could chart a new course for other cities.
In the ‘Vibrant Cities’ category (from 50,000 to 250,000 residents), Fuenlabrada is competing with two Portuguese cities—Braga and Caldas da Rainha. Local authorities emphasize that the city stood out among competitors thanks to strong cooperation between entrepreneurs, residents, and the administration. According to Javier Bokesa, who is responsible for economic development, Fuenlabrada is the only Spanish city to reach the finals in this category, sparking a wave of discussion among experts.
The face of small business
В Fuenlabrada насчитывается около 3 000 небольших магазинов, большинство из которых расположены на первых этажах жилых домов и не связаны с крупными сетями или франшизами. Это мясные лавки, булочные, аптеки, семейные магазины, где работают не более 250 человек. Именно такие точки, по мнению местных жителей, формируют уникальную атмосферу города и обеспечивают рабочие места для соседей.
From 2018 to 2025, the city authorities have invested nearly two million euros to support entrepreneurs. The funds were allocated for grants, training, infrastructure development, and the promotion of new initiatives. The owner of the city’s oldest butcher shop, José Naranjo, notes that for the first time in a long while, he feels genuine support from the administration. His business has been operating since 1890, and he admits: “The old city center has emptied out a bit, but now new ideas and events are emerging to bring life back to the streets.”
A connection between generations
The stories of local entrepreneurs are often rooted in family traditions. Carmen Ruiz, who manages a pharmacy, recalls how her parents bought the business in 1945. According to her, the situation has changed in recent years: after a period of decline, small businesses are gaining momentum again, largely thanks to active cooperation with the municipality.
The bakery owner, Ignacio Iglesias, takes pride in offering products that stand apart from large chains: “Everything here is fresh, not frozen like at the franchises.” He adds that even small requests—such as fixing the sidewalk by the entrance—are addressed quickly, something rarely seen in other cities.
Standing up to the giants
The opening of large shopping centers, according to Sofía Díaz Borrego, head of the Fuenlabrada Entrepreneurs Association (Aefsur), has become a serious challenge for local shops. However, it is solidarity and constant search for new formats that allow small businesses to survive. Associations and the local administration regularly organize joint events to attract shoppers not only from the city but also from neighboring areas.
Among these initiatives is an annual entrepreneurship award, where the best projects receive financial support. The winner receives €10,000, while the two other finalists get €5,000 and €3,000 respectively. All applications are evaluated based on their social impact and influence on the urban environment.
City of opportunity
Fuenlabrada is home to the Center for Training and Employment Initiatives (Cife), which helps residents find jobs and develop their own businesses. According to local officials, it is the combination of support for small businesses and active engagement with the population that has allowed the city to reach the European level.
Another notable initiative is the Fuenlavidad fair, held for the fourth consecutive year. About 200 shops take part: in the run-up to Christmas, shoppers can win €1,000 if they make a purchase at one of the participating stores. This approach not only boosts sales but also strengthens the bond between residents and entrepreneurs.
Final in Brussels
This year, cities are competing for the title of Europe’s Small Business Capital in three categories: ‘Leading Cities’ (up to 50,000 residents), ‘Vibrant Cities’ (from 50,000 to 250,000), and ‘Forward-looking Cities’ (over 250,000). In the latter category, by the way, Barcelona, Zaragoza, and Utrecht are taking part. The final will be held in Brussels, where the winner will gain not only recognition but also the opportunity to influence the shaping of new European strategies for small businesses.
For Fuenlabrada, this is not only a chance to make itself known but also to set the tone for all of Spain. The question of who will emerge victorious remains open, but it’s already clear: competition for small business in Europe is becoming increasingly fierce.
