Spanish SMEs face crucial challenges for their competitiveness and growth.

Spanish small and medium-sized enterprises (SMEs) are at a crucial point in their evolution, facing a series of challenges that affect their competitiveness and, consequently, their ability to grow and remain in the market. During a recent meeting organized by EXPANSIÓN and El Mundo, in collaboration with BBVA, essential topics were discussed that set the tone for the present and future of these companies, highlighting both the opportunities and difficulties in the current business environment. Andrés Pereda, Director of Corporate Development at the Chamber of Commerce of Spain, emphasized that among the most pressing concerns for SMEs are high labor costs, difficult access to financing, and often overwhelming bureaucracy. These barriers not only limit companies’ ability to hire talent but also place them in a vulnerable position against international competition, especially in sectors such as technology, energy, and industry, where profit margins are slim. One of the critical points emerging from this discussion is the average size of SMEs in Spain, which, according to Pereda, represents a structural weakness in the national economy. This limitation in scale affects profitability and, consequently, the potential for investment in vital areas such as innovation and digitalization. Although Spain positions itself as a country of SMEs, its ability to compete with other European economies is compromised by this lack of adequacy in size and resources. Investment in innovation is another key aspect discussed in the context of SMEs. The reality is that Spain’s investment in innovation is below the average of other European Union countries, which translates into an inability to drive growth and modernization of these enterprises. The Chamber of Commerce recognizes this issue and is implementing guidelines and resources to facilitate access to financing, thus enhancing the capacity of SMEs to innovate. Moreover, the role of public administrations is fundamental in this process. Efforts are being made to reduce the administrative burden faced by SMEs by 25%-30%, which could free up resources and time that companies can reinvest in their operations. The Ministry of Economy has also committed to unifying the market so that SMEs can regain their productivity and competitiveness. José Luis Serrano, Director of SMEs at BBVA, expressed the dual concern of SMEs regarding financing. Often, solutions are needed for both long-term projects and daily operations. BBVA has responded to this need by creating companies that facilitate account openings and business formations, providing essential support for entrepreneurs who, despite having solid ideas, face complicated bureaucratic and financial rights. In this context, sustainability, digitalization, talent, and internationalization emerge as essential pillars for the future of SMEs. Serrano highlighted that it is not about digitalizing every aspect of the business, but rather providing specific advice that allows SMEs to adapt to these changes without losing sight of their business focus. The integration of human talent in these processes is crucial to avoid digitalization becoming an end in itself. The transition to a more sustainable model is often perceived as a monumental challenge, but Serrano argues that it should be seen as a growth opportunity. SMEs must adapt and evolve to complete their ecological transition, which will not only benefit the company but also the environment and society as a whole. Regarding internationalization, SMEs often experience fear and uncertainty. Factors such as currency fluctuations and cultural differences can paralyze expansion intentions. Therefore, BBVA has developed a team of specialized managers who help SMEs navigate these challenges, providing solutions tailored to their needs and ensuring they have adequate financing. The growth of SMEs is vital not only for their own survival but also for strengthening the business fabric in Spain. With the right support, it is possible for more SMEs to not only thrive but also contribute significantly to employment and the retention of young talent in the country. Ultimately, as Serrano concluded, success in the growth of SMEs is not just a financial goal but a necessity for the social and economic development of Spain as a whole.