es flag go to the original language article
This article has been translated by Artificial Intelligence (AI). The news agency is not responsible for the content of the translated article. The original was published by Europa Press.

Spanish SMEs, among those growing the most in the EU in 2023

by AI | 04.Jul 2024 | Europe in brief AI

Spanish SMEs recorded a growth of 4.9% in 2023 and ranked second in the ranking of all EU countries, according to a report by the European Commission

20-euro banknotes in Brussels, Belgium, on December 30, 2021. Photo: Zheng Huansong / Xinhua News / ContactPhoto

Brussels – Small and medium-sized enterprises (SMEs) in Spain grew by 4.9% in 2023, recording the second highest growth among the countries of the European Union in 2023, behind Malta’s corporations, according to the 2024 SME performance assessment by the European Commission.

This edition of the report shows that 2023 was characterized by historically high inflation that affected all businesses, particularly SMEs. Inflation rates were higher than growth rates in 2023, resulting in a 1.6% decline in real value added for non-financial sector SMEs in 2023, with a further decline of 1.0% forecast for 2024.

However, SMEs in Malta, Spain, Greece, Portugal, Belgium, Denmark, and Cyprus recorded real growth despite high inflation rates also recorded in these countries, which achieved real growth in 2023, and two of them exceeded 4%: Malta (6.8%) and Spain (4.9%). For 2024, SMEs in six Member States (Malta, Greece, Ireland, Denmark, Cyprus, and Belgium) are expected to achieve real value added growth.

The report published this Thursday notes that SMEs have driven job creation despite high inflation, outperforming large companies in employment growth in 11 of the 14 industrial ecosystems.

The highest growth rates were recorded in the “tourism” and “digital” ecosystems (4.5% and 3.8% respectively), and for the third consecutive year, employment growth is expected to continue in 2024, with a forecast increase of 0.8%.

However, this rapid employment growth has also led to a sharp increase in skills shortages for many SMEs, as highlighted by the latest Commission survey on businesses’ access to finance.

Micro-enterprises, i.e., those with fewer than 10 employees, performed well, with the smallest decline in real growth (-0.4%) and a 2.3% increase in employment, confirming the trend observed in previous SME performance reports.

In the medium term, the assessment also notes that SMEs are on an upward path, as between 2021 and 2023, they recorded real value-added growth of 4.5%, employment growth of 4.8%, and an increase in the number of firms of 5.4%. (July 4)