Spain’s Small and Medium-Sized Enterprises (SMEs) faced a significant challenge in 2023 as they struggled to obtain financing, despite a slight decrease in the need for financing compared to the previous year. The rise in interest rates and high product prices were identified as the primary reasons for this challenge. Despite these obstacles, there was a downward trend in the growth prospects of SMEs in the short term.
According to data from the National Statistics Institute, Spain had almost 3.5 million SMEs at the beginning of 2023. Economic instability and reduced company profits made it difficult for many of them to navigate the year ahead. However, there were positive factors that emerged from this challenging situation. The percentage of SMEs selling in foreign markets increased, and more companies engaged in innovation activities than before.
Looking ahead, there was a slight downward trend in short-term growth prospects for SMEs, with fewer companies expecting an increase in turnover and more anticipating a decrease. The most common financial products used by SMEs in 2023 were bank loans, ICO lines, and credit lines, with a notable increase in non-bank financing due to digitalization needs.
In terms of business fabric, growth was observed across various sectors such as business services, education, health, social services, culture, sports, construction
