The financial resilience of small retail businesses in Tarragona

Identifier:  TFG:10236

Handle: https://hdl.handle.net/20.500.11797/TFG10236

Authors:  Roldán Montfort, Josep

Abstract:
This study examines the financial resilience of small retail businesses in the city of Tarragona (Spain) over the 2019–2024 period, aiming to understand how firms have coped with recent shocks—such as COVID-19, rising operating costs and inflation—and which factors are associated with stronger adaptive capacity. The research follows a mixed-methods design. First, a quantitative analysis is conducted through a survey of small retailers, capturing variables related to liquidity and cash management, leverage, profitability, cost structure and financial management practices. These indicators are used to build the Financial Resilience Index (IRF-TGN), which classifies firms by resilience levels and allows for the exploration of descriptive differences according to business profile. Second, a qualitative analysis is carried out through semi-structured interviews with key stakeholders from the local retail ecosystem and institutions, providing deeper insights into perceptions, strategies and constraints. The study identifies management practices associated with higher resilience (e.g., tighter cash-flow control, ability to pass through prices, diversification and digitalisation) and outlines the main risks and challenges in the current environment. Finally, it proposes an integrated explanatory model linking financial structure, financial management decisions and the adaptive capacity of Tarragona’s small retail sector.