More than half of SMEs wanted financing in 2023, nearly 20% greater than earlier than the pandemic | Economy | EUROtoday

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Almost two million SMEs wanted financing in 2023, 54.2% of small and medium-sized firms. This represents a drop of two proportion factors in comparison with the earlier 12 months, however the determine stays effectively above the degrees recorded earlier than the pandemic (34.8% in 2019). He XIII Report on SME Financing in Spain, ready by the Spanish Confederation of Guarantee Companies (GSR-Cesgar, an affiliation of this sort of entities that act as guarantors) factors out that the principle culprits for this example are the rise in rates of interest and the excessive value of the merchandise. Despite this, they point out a downward pattern within the short-term progress prospects of SMEs. At the start of 2023, Spain had nearly 3.5 million SMEs, in accordance with information from the National Statistics Institute included within the evaluation.

This factors out that financial instability and diminished firm income marked a troublesome 2023 for SMEs. “We are in a situation in which interest rates are not falling and this makes the situation of these companies increasingly complex,” José Pedro Salcedo, president of CESGAR, mentioned this Wednesday within the presentation of the research. In 2023, solely 17.8% of firms mentioned they have been in a scenario of progress and enchancment in comparison with 2022; in comparison with 32.2% in a secure place and 38.1% who assured that their financial scenario had worsened within the final 12 months.

However, the report gives some optimism when analyzing the competitiveness components of small and medium-sized firms. Last 12 months the share of SMEs that promote in overseas markets elevated, standing at 9.7%. And the doc highlights that this end result confirms the restoration of the export base after the pandemic (in 2019, 8.5% bought overseas). Another truth to focus on is the evolution of the share of SMEs that report having carried out innovation actions within the final 12 months, which stands at 15.8% (11% in 2022).

On the opposite hand, trying to the instant future, the report factors to a sure downward pattern in short-term progress prospects. 37.8% anticipate their turnover to extend within the subsequent 12 months, in comparison with 41.2% who noticed themselves in that place final 12 months. Likewise, the share of SMEs that imagine that this progress can be vital decreases significantly in comparison with the earlier research, from 8.3% to three.4%. Meanwhile, the share of those that assume that their turnover will lower will increase, from 15.9% to 19.2%. And 84.9% say that they don’t plan to broaden the variety of staff of their firm this 12 months.

Regarding monetary merchandise, financial institution loans (20%), ICO Lines (20.1%) and credit score traces (18.6%) have been the devices most utilized by small and medium-sized firms in 2023 to finance your self. But essentially the most notable change in comparison with the earlier 12 months has occurred with non-bank financing: 22.8% of SMEs used this useful resource, in comparison with 41.5% in 2022. The digitalization of the enterprise was the principle motive why firms requested financing (20.4% of SMEs in 2023, in comparison with 11.7% in 2022).

Regarding the enterprise material, the best progress within the variety of SMEs between 2022 and 2023 has occurred within the enterprise providers sector (12,239 extra SMEs); In second place, firms included in schooling, well being, social providers, tradition and sports activities seem (+7,220); and the subsequent actions with the very best firm creation have been development (+4,910) and data and communications (+2,073). In the alternative scenario, 4 sectors collectively misplaced nearly 30,000 firms, of which 18,000 belonged to the commerce and private providers sector.

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