Taking advantage of the fact that today is the European Day of SMEs, sage has presented its annual study “Small business, great opportunities”. Among those surveyed are 1,000 Spanish companies who say that, despite rising costs and pressure on revenues in 2022, they are showing noticeably more optimistic about their prospects for success with respect to what was expressed the previous year.
Spain is among the countries with the highest confidence rate, with more than a third (39%) of SMEs saying they feel ‘very confident’ about the success of their business in 2023, compared to 34% globally. A radical turn, since the results of 2022 placed Spanish businessmen as the least confident in the world in the success of their businesses.
More than a fifth (23%) expect a decrease in their costs, while 43% of Spanish SMEs predict an increase in their income, and close to half (42%) expect to increase their workforce.
Spain: overcome the increase in costs by increasing resilience
26% of the Spanish companies surveyed point to the increase in costs and liquidity problems as the main factors that have negatively impacted your business in the last year. In fact, more than 70% of Spanish companies saw their costs increase in 2022. A problem that Spanish and Portuguese SMEs suffer more than their European counterparts, and that also generates more concern. The number of managers of SMEs who declare that they are significantly concerned about the increase in costs for next year almost doubles the global results, 15% in the case of Spain compared to 8% globally.
Despite this, small and medium-sized Spanish companies face next year with optimism and are resilient in the face of adversity, thanks to adopting measures such as reducing costs (31%), improving productivity (26%), and adding new products and services to its offer (23%).
Another key aspect for SMEs to adapt and improve their productivity is the use of technology, something that Spanish companies are clear about, since more than half (55%) plan to increase their investment in technology in 2023. In the next three years, Spanish SMEs plan to deploy emerging technologies such as 5G (29%), Artificial Intelligence (21%) and Blockchain (18%). Despite this, Spanish SMEs also identify the lack of budget and lack of knowledge to learn about the best options as well as some of the barriers to investing in technology.
The Spanish paradox: high growth and productivity in the face of difficulties
Despite the difficulties they face, small and medium-sized companies in Spain lead the way in optimism and confidence, as they reach the highest percentage of all the countries surveyed in terms of their growth targets. 59% of Spanish SMEs they aspire to increase their income between 10 and 40% in the next 10 years, compared to 48% globally. However, only 17% claim to have a formal growth plan that is regularly analyzed and updated, either monthly or quarterly, compared to 49% who have informal plans or do not have growth plans at all.
Another differentiating aspect of the optimism of Spanish SMEs is that they are positioned as the most satisfied worldwide in relation to their productivity rate, with 39% very satisfied, compared to 28% globally. In fact, 33% of Spanish SMEs state that increasing productivity and working more efficiently contributes to increasing confidence in the success of their company. The Spanish are also the most satisfied worldwide with their ability to make and receive payments from customers and suppliers, with 36% satisfaction compared to 30% globally and are above average in aspects such as their ability to work with suppliers, understand their customers, manage costs or create their brand image and reputation.
“Knowing the concerns and needs of SMEs around the world is crucial for us at Sage and, above all, for a country like ours where SMEs are the key to the development of the business fabric (99% of the total). The latest edition of our study reflects the Spanish character and that “Spain is different”. It is true that we are different and that, in the face of difficulties, we do not give up, we are committed to resilience and do what is necessary to move forward.
“But don’t confuse optimism and confidence with being invincible. To support success in the future, both the administrations, as well as the public company and the private initiative, must encourage and support the digital investment of SMEs through investments and legislation so that companies in Spain and around the world can implement processes of digitization that allow them to get ahead”, he comments Jose Luis Martin Zabalageneral manager of Sage in Spain and Portugal.
At the European level, Derk Bleeker, president of Sage in EMEA assesses what the situation is. “In Europe, the economic challenges of the last year have also been suffered: such as high inflation, the energy crisis and the consequences of the Russian invasion of Ukraine. The fact that SMEs in the main EU countries, such as the Spanish ones, are increasingly optimistic about their prospects shows that they are as resilient as ever. Despite this, the very important contribution that SMEs make to economies and communities in Europe and beyond should not be overlooked. It is necessary that the legislators of the European Union continue to support SMEs so that they can innovate and grow while reaching a basic level of digital maturity. A pro-tech, pro-business approach has never been more important.”
For his part, Josep Obiols, CEO of Control Group, highlights that “It is very important to maintain optimism and the ability to grow in the face of adversity. But this attitude, which will allow us to face the path of success, must be accompanied by the necessary tools and support to channel this positive approach”.
