Pimec calls for a law to boost business growth and increase the size of SMEs

Barcelona"Today, Pimec urges political parties to create a law promoting business development to eliminate the obstacles to company growth." This was stated on Wednesday by Pimec President Antoni Cañete and the President of the SME Observatory, Oriol Amat, during the presentation of the study. Business dimension: Diagnosis and proposalsThe study, based on a survey of 348 responses, begins with the observation that larger businesses lead to greater innovation, greater internationalization, higher productivity, and consequently, greater access to financing and resilience. "There are obstacles that act as brakes," warned Cañete, noting that 99.8 percent of businesses are SMEs, and 94 percent of these are micro-enterprises. "We need to legislate with small businesses in mind first, and there are three levels at which we have to work; we're starting here in Catalonia, but next week we'll present it in Madrid because there are decisions that also need to be made at the national level," explained Cañete, while also mentioning his position within the European employers' federation, holding the seat of SEME. "A legislative commitment to growth, investment, fair taxation, and a more agile administration is key," summarized the president of Pimec. "We're talking about a national issue," he asserted.

Regarding the budgets, "Pimec demands that there be accounts both in Catalonia and in Spain," said the president of the employers' association, and called for "politicians to overcome partisan issues" when it comes to passing proposals.

Overview and proposals

"99.8% of our companies are SMEs, and 94% of these are micro-enterprises, with fewer than 10 employees," explained Oriol Amat, which, he warns, "affects productivity per worker." According to the study, seven out of ten companies are willing to grow and, therefore, "these barriers must be eliminated to create more jobs and improve the business fabric." In fact, in Catalonia only 0.2% of companies are large corporations, which contrasts sharply with countries like Germany, where large companies represent 0.5%. Catalonia has, on average, an added value per worker—the difference per employee between what a company invoices and what it purchases from other companies—of €47,720, well below the European Union average of €51,718, but above the Spanish average of €42,841. According to the survey, 74.8% of companies want to increase their size, but only 35.2% have successfully done so in the last five years. Nearly half report that they have not received any support for growth and innovation. In this regard, the main barriers to growth cited by SMEs are bureaucracy and administrative burdens, a lack of qualified personnel, and taxation. The Observatory's 112 proposals to improve the situation are based, in part, on strengthening internal factors, such as management training in strategy and finance, a dual university education model, tax incentives for companies that professionalize their governance, and support for innovation and internationalization.

On the other hand, to strengthen external factors, the study focuses on the public sector and proposes administrative simplification, reduced notary and registry costs, tax reform to promote growth, tax incentives for SMEs that reinvest profits, and so on. They also call for enhancing the public perception of entrepreneurship and entrepreneurial culture, with campaigns to improve its image and disseminate best practices. Finally, the study also proposes some specific measures for the self-employed, such as tax incentives for savings, microcredit funds, and training, among others.