A recent survey conducted by the General Council of the Colleges of Administrative Managers has unveiled the financial landscape of small and medium-sized enterprises (SMEs) within Spain’s economy in 2023. Titled the “2023 Barometer,” the survey provides crucial insights into the economic performance and challenges faced by SMEs across various sectors.
According to the findings, approximately 23% of SMEs, totaling around 700,000 businesses, closed the year with losses. This figure contrasts with the 64% of SMEs that reported closing with profits, indicating a mixed performance within the sector.
Revenue trends also emerged as a significant aspect of the survey, with 26% of SMEs reporting decreased revenues in 2023 compared to the previous year. In contrast, 47% of SMEs reported increased revenues, reflecting the diverse economic conditions experienced by businesses.
Debt management remains a pressing concern for SMEs, as 26% of businesses experienced an increase in debt levels during the past year. However, 39% of SMEs successfully reduced their debt burden, highlighting the importance of effective financial management strategies.
The survey also highlighted liquidity challenges faced by nearly 600,000 small businesses, with approximately 12% operating “outside” the established financial system due to severe liquidity problems. This situation poses a threat to the sustainability of these businesses and raises concerns about potential job losses.
It is important to note that SMEs represent more than 90% of the total and account for more than 60% of Spain’s private employment. Commenting on the findings, the president of the General Council of the Associations of Administrative Managers expressed apprehension about the fate of struggling SMEs, noting that their potential closure could lead to widespread unemployment.
As SMEs grapple with these challenges, proactive measures and strategic decision-making are essential for navigating the complex economic landscape. By leveraging insights from the 2023 Barometer and implementing robust business strategies, SMEs can enhance resilience and position themselves for long-term success.
