In 2023, the business services sector saw the largest increase in the number of SMEs, followed by education, health, and construction industries. This was despite the fact that only 17.8% of companies reported growth and improvement while 38.1% stated that their economic situation had worsened compared to the previous year.
The report also highlighted some positive signs such as an increase in the number of SMEs selling in foreign markets and engaging in innovation activities. However, looking ahead, there was a downward trend in short-term growth prospects for SMEs with a decrease in the percentage of companies expecting their turnover to increase in the next 12 months and a decline in the number of SMEs planning to expand their workforce.
The most commonly used financial products by SMEs in 2023 were bank loans, ICO Lines, and credit lines although there was a notable decrease in non-bank financing compared to the previous year. The rising interest rates and product prices had a significant impact on funding needs of SMEs which showed a decrease of two percentage points compared to the previous year but remained significantly higher than pre-pandemic levels. Overall, despite facing challenges such as economic instability and reduced profits, Spain’s SME sector remains resilient with opportunities for growth and innovation.