“There is a lack of entrepreneurs” is a phrase that often comes up in Spain. However, according to the Spanish association of small and medium enterprises Cepyme “there is no problem of entrepreneurship”.
Spain creates 10.6 percent of the commercial fabric per year, above the EU average of 9.8 percent, according to the association.
He claims that the problem is not to create companies but to keep them alive.
Cepyme said: “This trend is more acute in Spain in newly created companies, which are more vulnerable than in other European countries.”
In Spain, only half of companies survive three years after their creation, “a lower proportion than in the United Kingdom, Germany, France, Italy and Portugal, among other European countries”.
According to the Cepyme study, 9.2% of companies with employees end up closing in Spain every year.
He added: “This means that every year one in 11 businesses with employees in our country disappears, a trend that was already seen before the coronavirus crisis and which has worsened due to the pandemic.”
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One of the main causes preventing Spanish businesses from surviving, according to the Cepyme report, is over 100 regulations that “discourage” businesses from growing in size.
The association specifies: “These barriers (fiscal, accounting, social, financial and competitive) are becoming a burden for the competitiveness of companies, slowing down the recovery of the economy, job creation and the sustainability of public administration accounts. same in the long run. “
Cepyme estimates that Spain would create 1.2 million jobs and grow by 5.2% more if measures leading to greater business growth were implemented.
Beyond the survival of the economic fabric, the consequences are disastrous in terms of turnover and employment, and leave Spain below the European average.
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While the average Spanish company generates more than 1.1 million euros per year, the European average is 1.4 million, almost a third more, reports ABC.es.
Spain is further behind countries like Germany and Ireland, where corporate turnover reaches up to three million.
And with employment, it’s pretty much the same: while an average Spanish company employs 4.7 people, a European Union company employs 6.
This is without comparison with countries like Germany, the United Kingdom and Austria, where the average size of companies doubles that of Spain.
This information adds to concerns about the characteristics of the Spanish business ecosystem.
The report adds: “SMEs are financed at higher interest rates and have fewer opportunities to attract talent or innovate, characteristics that lead small businesses to have less resilience to crises and a longer lifespan. shorter.
Between 2007 and 2013, small and medium-sized businesses lost half of the total jobs lost during the construction crisis.
Now, in the midst of the COVID-19 crisis, the consequences can be deadly similar.