Navigating the paradox of business improvement districts in Spain: Challenges and opportunities

Abstract

This study investigates the feasibility of implementing business improvement districts (BIDs) in Spain to overcome the limitations of the voluntary Centro Comercial Abierto (CCA) model, including free-rider issues and inconsistent funding. Using a review of legislative frameworks and pilot projects in Barcelona, the research identifies key barriers, such as legal uncertainty, governance conflicts and challenges in collecting mandatory fees, that hinder the adoption of the BID model despite recent regulatory advances in Catalonia, the Balearic Islands and Navarre. Findings highlight the need for place-sensitive approaches to align BID implementation with Spain’s unique urban dynamics and stakeholder concerns. The analysis recommends legislative refinements, including clearer governance structures and effective fee collection mechanisms, alongside leveraging digital transformation and smart city initiatives to foster public–private collaboration. These measures aim to enhance stakeholder cohesion and establish a sustainable framework for urban revitalisation through BIDs in Spain. Emerging trends such as digital transformation and the development of smart cities present new opportunities to align public and private interests, fostering stakeholder cohesion and enhancing the sustainability of these initiatives. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.