situation of entrepreneurship in spain due to the covid-19 ... › wp-content › uploads › 2020...

Situation of entrepreneurship in Spain due to the COVID-19 crisis Analysis and recommendations

Spanish Entrepreneurship Observatory

Situation of entrepreneurship in Spain due to the COVID-19 crisis Analysis and recommendations

Spanish Entrepreneurship Observatory

3

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1. Situation 50 days after the state of the alarm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

How business activity has been affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

How demand has been affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

How employment has been affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Howaccesstofinancinghasbeenaffected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Emergencymeasurestakenbycompaniesinthefinancialfield . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Emergencymeasurestakenbycompanieswithinthevaluechain . . . . . . . . . . . . . . . . . . . . . . . . .26

Requestingandreceivingpublicaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

2. Future prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Expected impact in the next 6 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Short-term private investment prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Thegreatestconcernassociatedwiththeimpactofthecrisis . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

Keydifficultiesinthefollowingmonths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

One-year business plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

One-year business plans: employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

3. Requested measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Measures requested from the public administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

4. Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

IndexSituation of entrepreneurship in Spain due to the COVID-19 crisis. Analysis and recommendations

ISBN 978-84-09-21285-9

© Spanish Entrepreneurship Observatory Association © The Authors

Authors:

Leading authors: María del Mar Fuentes Fuentes (Universidad de Granada) and Isabel NeiraGómez(UniversidaddeSantiagodeCompostela)

Team(inalphabeticalorder):RosaMaríaBatista-Canino(UniversidaddelasPalmasdeGranCanaria),JulioBatleLorente(UniversitatdelesIllesBalears),AnaFernández-Laviada(UniversidaddeCantabria),IgnacioMiraSolves(UniversidadMiguelHernándezdeElche),IñakiPeña-Legazkue(UniversidaddeDeusto)andMaríaSaizSantosUniversidaddelPaísVascoUPV/EHU.

Technical work:YagoAtrioLema,MartaPortelaMaseda(UniversidadeSantiagodeCompostela)andLidiaSantanaHernández(UniversidaddeLasPalmasdeGranCanaria).

Collaborators:Questionnairedesign:JesúsdelBríoGonzález(GEMAsturiasTeam),GEMAndalucíaTeam,GEMAragónTeam,GEMCanariasTeam,GEMCastilla-LeónTeam,GEMGaliciaTeam,GEMMadridTeam,GEMMelillaTeam,GEMMurciaTeamandGEMC.ValencianaTeam.

Collaborationindissemination:ENISA

Survey Collection: All GEM Spain Teams y Opinòmetre

Publishing: Spanish Entrepreneurship Observatory

Layout:IgorMarkaida

The survey of the Spanish Entrepreneurship Observatory on the impact of COVID-19 on entrepreneurial activity in Spain was carried out between 20th and 30th April, 2020, covering the entire national territory and the results are disaggregated at regional level.

The survey was aimed at any entrepreneur. The final sample is made up of 4,314 entrepreneurs, with a linear snowball sampling technique.

To correct the differences in the sample sizes of the different CCAA (Autonomous Communities), the option was to weigh according to the working age population (18-64) in each of them.

Spanish Entrepreneurship Observatory Association Avda.delosCastros,5439005 Santander

www.gem-spain.com [email protected]

4

Presentation

The Spanish Entrepreneurship Observatory1, also known as GEM Network Spain, submits this graphic report to analyse the effect of COVID-19 on entrepreneurship in Spain, with data from a survey of more than 4,000 entrepreneurs, conducted from 20th to 30th April, 2020.

The aspects addressed in this report include the impact on key activities and resources forentrepreneurs who are in different phases of their respective businesses, as well as theirexpectations,futureplansanddemandedmeasuresfromtheAdministration.Thelastpartofthedocument provides a set of recommendations that are formulated by the Observatory to deal with thenewscenariothatthehealthcrisishastriggeredandwhichwillaffectentrepreneurialactivityinthecomingyears.Theaimistocontributetothedefinitionofnewappropriatelinesofactioninthiscomplex and uncertain context .

The will and commitment of the Spanish Entrepreneurship Observatory, at this time of greatuncertainty, toundertakeother investigationsthatgivecontinuitytowhathasbeendone inthiswork(evolutionofentrepreneurs´opinions,recommendationsinsuccessivedeconfinementphasesandcomparisonsofappliedpolicies)andothermorespecificonesthatwehopewillbeofinterestandutilitytotheentiresocietytowhichweoweourselves(post-COVID-19socialentrepreneurship,social innovation and the new reality, circularity and entrepreneurship, ecosystem of impactentrepreneurship,perceptionofprivateinvestment,collaborationbetweenclusters,academiaandentrepreneurship in post-COVID-19, regional policies, visibility of female, regional andmunicipalrolemodelsofreactivation,reconfigurationandentrepreneurship,amongothers).

Finally,wewouldliketothankallthosepeoplewhohaveofferedtorespondtothesurvey,andalltheinstitutionsthathavesupportedusinitsdistributionatnational,regionalandprovinciallevels,allowingustohaveawiderepresentationandresponserateinthenationalterritory.

1 The Spanish Entrepreneurship Observatory is made up of more than 180 university researchers specialized

inentrepreneurship,organizedin19regionalteams,andtheydevelopannualGEMReportsontheevolutionofthe

entrepreneurialsituationinSpain.Moreinformationathttps://www.gem-spain.com/

7

PLANS AFTER THE STATE OF ALARM

New market opportunities

ACTIONS TAKEN BY ENTERPRISES• 24% Investingininfrastructuresand

technology• 47%Launchingnewproducts/services• 33%Enteringnewmarkets

• 47% Workingwithnewcustomers• 20% Seekingnewinvestorsforourbusiness• 29% Seekingexternalbankfinancing• 49% Applyingforaidandsubsidies

DEMANDS FROM THE ADMINISTRATION

30% 26% 14% 6%23%Exceptionally, butnotgenerally

Yes,forenterpriseswithsufficientanddiversifiedresources

Yes,foranyenterprise

NoYes,forenterpriseswithsufficientresourcesandaimed at activities directly related with the health crisis

Solicitud de Medidas a la Administración Publica

23,0 %

65,6 %

32,9 %

40,4 %

58,3 %55,9 %

73,2 %

Eliminatingthe

self-employed quota

Reducingsocial

security contributions

Freelong-term

credit lines

More aid to start a business

Traininginnew

technologies

Eliminatingbureaucratic

obstacles

Aid for international

expansion

SITUATION DURING THE STATE OF ALARM

Activity

Demand• 42% hasdecreasedsignificantly• 32% has no demand (closed) • 13% has remained constant• 9% has increased

Telework• 5 out of 10 initiativesoperatethrough

telework• 6 out of 10 ofteleworkinitiativeshave

decreased their demand

Normal operations • 54% have maintained their demand• 22% have increased their demand

Measures taken

• 1 in 4 haschangeditsbusinessmodeland/or cancelled orders from suppliers

• 17% have reduced prices • 12% havehadtogiveuppartoftheirmarket• 14% havereachedagreementswiththeir

suppliers

Employment measures • 21% Hour reduction • 17% Employee reduction• 10% Wagecuts

Financial measures • 9% Renegotiation• 28%Extrafunding• 32%Postponement

FUTURE PROSPECTSConcerns • “How long will I able to withstand the current

situation derived from the pandemic” 49%• “Maintaining employment” 23%

Private investment forecast after the state of alarm

10%

37%Nobody knows

23%The same

21%More

19%Less

48%

40% 2%Continuesoperatingnormally

Continuesoperatingteleworking

Has closed temporarily Closeddownortransferred

1 OUT OF 3COMPANIESHASSEENITSFINANCINGAFFECTED

9% ARE PLANNING TO CLOSE DOWN OR TRANSFER THEIR BUSINESS

42,0%

36,8 %

9,6 %

8,9 %

2,7 %

Muy positivo Algo positivo Neutro Algo negativoMuy positivo

Verypositive

Slightlypositive

Neutral

Slightlynegative

Verynegative

98

SECTORS

SERVICES TO THE FINAL CONSUMER

Situation during the state of alarm • 66% paralysed their activity

Future • 2% have already decided not to reopen

(most affected sector) • 35%plantoreducepersonnel,only7%to

recruit • 76% request to eliminate the self-employed

quota and 62% to reduce bureaucratic obstacles

SERVICES TO ENTERPRISES

Situation during the state of alarm

• 75% operatebyteleworking

Future • 71%requesteliminatingtheself-employed

quotaand66%reducingbureaucraticobstacles

INDUSTRIA

Situation during the state of alarm • 72% haveremainedactive,morethanhalf

consider that private investment will be constant or increase

Future • Intheabsenceofgreatercertainty,about

25% consideritdifficulttotakeriskstoovercome the crisis

• 48% have postponed their investment plans,16%arerenegotiatingfinancingconditions

• 32%thinkthatprivateinvestmentwillincrease,21%thatitwillremainthesame

• 33% consider the creation of lines of support for internationalization

COMPANIES DOING TELEWORK

• Significantreductionindemandincompaniesthatoperatebyteleworking(60%)

• Duringthese4weekstheyhaveoptedfor:reducingthenumberofemployees(31%),workinghours(45%)andwagecuts(50%)

• 57% ofthosethatcontinueteleworkingplantoseeknewcustomers

EMPLEO

• Intheindustry,thosecompaniesthathavecontinuedoperatinginthisperiod:35% have reduced staff hours and 26% jobs

• 41% of companies have initiated ERTEs (temporary lay-off plans): 80% in non-essentialsectors,62%infinalconsumerservices

PRIMARY SECTOR

• Almost 1 in 4 emphasises that there are insufficientpublicfundsandareneglectedbyinstitutions . These are the activities that have made alliances in the supply chain which they belongto(23%)

• 70% demandfreelong-termlinesofcredit

START-UPS

Situation during the state of alarm • 35%haveparalysedtheirplansand4%have

abandoned the idea • More than 65% have not requested aid in

thefirst5weeks

Future • 41% have decided to reorient their business

model • 38% donotseeanegativeimpactontheir

projectinthenext6monthsand18%believethat it will be positive for their project

• 75% demand measures to support business creation

SELF-EMPLOYMENT

Situation during the state of alarm • 48% paralysed activity• 60%withoutanticipatedfunding

Future• 44% highfundinguncertainty• 1 in 4 considers that public funds are

insufficienttoovercometheCOVD-19• 78% demand to eliminate the self-employed

quota • 36% demandtraininginnewtechnologies

LESS THAN 50 EMPLOYEES

Situation during the state of alarm Their financing has been affected: • Activities of less than 10 employees: 41% • Activitiesbetween10and50workers:28%

FuturoPrediction of negative impact in the next 6 months: • Activities of less than 10 employees: 47% • Activitiesbetween10and50workers: 39% • 64% demand soft credits

MORE THAN 50 EMPLOYEES

Situation during the state of alarm • 77%teleworking

• 36% havereducedworkinghoursduringthese5weeks

Future• 65% plan to reorient their business model • 12% areconsideringincreasingshort-term

resources • 45% requestextrafunding• 54% see private investment the same or

better in the immediate future • 15% thinkthattheinternationalization

barriersarehigh• 72%demandeliminatingbureaucratic

obstacles

10 11

thegrounds forbusiness regeneration.During thepost-crisisperiodsof2008, theirstagnationwas one of the most important problems of entrepreneurial activity .

The vast majority of people surveyed (96%) see opportunities, for any enterprise (14%), eitherexceptionally(30%),orforthosewhichhaveresourcesorarediversified(26%).Thelatterwouldbethosethatarealreadyoperational,butitseemsevidentthattheSpanishbusinesssectorseesopportunities,whichwithoutadoubtisthemostpositivenoteoftheentireanalysisandtheonethat shouldguide thesenewcompanies.Only4%haveabandoned theirplans,45%will changetheirbusinessmodel,buttherearestill35%thathaveparalysedtheirplans,whosemaindemand(75%)ismeasurestosupportbusinesscreation.

This generalized ability to identify opportunities that the study has collected, in these timesofunprecedenteduncertaintyand fear inour lives, togetherwith the rebound in thedegreeofinnovationanddynamism-reflectionof intelligence inaction-thatweobserveeverywhere,aretheseedsofourfutureprosperity.Therefore,andevenbeingawareofthecurrentdevastationthatthestudyitselfreflects,itsresultsalsoencourageustoacalmoptimismaboutthefutureandfaithin our ability to reactivate the activity and carry out the transformations required to create a less vulnerable and more articulate society .

“Paralysis”(in40%ofbusinessactivity)and“uncertainty”(58%ofcompaniesexpressthisfact)aretheadjectivesthatcouldsummarisethesefirst50daysoftheCOVID-19crisis;whichareaspectsthathaveledto“maintainingemploymentandsurvivingthissituation”beingconsideredthemostimportant concerns of Spanish entrepreneurs . Almost half of the enterprises consulted continued toworkbyteleworking,whichhasundoubtedlybeenthemostrelevantchangeintheworkplaceinSpanishsociety,40%havebeentemporarilyclosed,andonly10%continuedoperating.Althoughdemandhas fallenbyanaverageof80%,whenexploring thefigures inmoredetail, significantdifferences are shown. The crisis has produced the bitter side in the final consumer servicessector,where66%haveremainedinactive,2%areconsideringnotreopening,35%areplanningto reducestaffandonly7%tomakenewcontracts.Theotherpartofservices, thoseprovidedtocompanies,havecontinued teleworking,butwitha60%reduction indemand,whichhas led35%toconsiderreducingtheirnumberofemployees,45%arethinkingofreducingworkinghoursand50%ofpossiblesalarycuts.Asasolution to thiscrisis,asearch fornewmarketsandnewcustomers (57%) has been proposed by the sector. In general, already during these first days,oneinfourcompanieshas“reinventeditself”,giventhetypologyofourproductivefabricandthecompaniestheyarecreating,whichaccordingtothedataofthelastGEMReportare75%servicesprovidedeithertoenterprisesortothefinalconsumer.

Ontheotherhand, there is the industry,withthosecompaniesthathaveremainedmoreactive(70%); although the fall in demandanduncertainty have led to reductions in staff andworkinghours;48%havepostponedtheir investmentplans, 16%arerenegotiatingthemandabout25%pointoutthedifficultyoftakingriskstoovercomethissituation.Thesectorandsizeofthecompanygohandinhand.Thus,theself-employedhaveseentheiractivityparalysedin48%ofcases,andexpressconcernaboutitsfinancing,70%hadnoplannedfinancing,44%observeuncertaintyInthisareaand,therefore,theirmaindemand(78%)istoasktheAdministrationtoeliminatetheself-employedquota,andformorepublicfunds,giventhat1in4considersthattheyarenotenoughtoface the crisis .

Thosecompanieswithmorethan50employees,whichhavesurvivedintheformoftelework,arethinkingofreorientingtheirbusinessmodel(65%),andincreasingresources(12%),orrequestingextrafunding(45%).Theiradditionalconcernaboutuncertaintyandemploymentisderivedfromtheclosingofbordersandcurrent internalizationbarriers,which iswhythecreationof linesofsupportfor internationalization(mainly in industry,33%)andeliminatingbureaucraticobstacles(72%)areAdministrationmeasuresthatwouldhelptheirrecovery.

Thosecompaniesthatwereinthecreationphase(start-ups)deservespecialmention(about10%of the Spanish population express their intention to start a business in the GEM reports) . They are

Key issues

1312

1.

SITUATION AFTER 50 DAYS OF THE STATE OF ALARM

14

Almost50%oftheself-employed,andwithlessthan10employees,haveparalysedtheiractivity.The decision not to reopen their business has been greater (2%). Larger activities haveresisted better to closing down, operating byteleworkingat77%.

35% of the entrepreneurs who were startingnew activities have paralysed their plans, and4% have already abandoned the idea. On apositivenote,itishighlightedthat61%oftheseinitiatives continue their development process .

Actividades sin empleados2,1%

41,4 %

47,9 %

8,7 %

Continúa operando presencialmenteContinúa operando en teletrabajoCerrada temporalmente Cierre definitivo o traspaso

Actividades con hasta 9 empleados

2,1 %

42,3%

44,5%

11,1 %

Continúa operando presencialmenteContinúa operando en teletrabajoCerrada temporalmente Cierre definitivo o traspasoActividades con entre 10 y 49

empleados2,1 %

42,3%

44,5 %

11,1 %


Actividades con 50 o más empleados

15,8 %

77,2 %

7,1 %


No employees

Between 10 and 49 employees 50 or more employees

Less than 10 employees

Continuesoperating on-site

Continuesoperating byteleworking

Closedtemporarily

Closedpermanently or transferred

1. SITUATION AFTER 50 DAYS OF THE STATE OF ALARM1. SITUATION AFTER 50 DAYS OF THE STATE OF ALARM

How business activity has been affected

Continuesoperating on-site

Continuesoperating byteleworking

Closedtemporarily

Closedpermanently or transferred

During the first 50 days of the state of alarm,on-site activity decreased by 90%. 50% wenton to telework and another 40% had to closetemporarily, either by administrative decisionorof theirownaccord.With immediateeffect,atthestartofthecrisis,2%havenointentionofreopeningtheirbusinessafterthestateofalarm.

The activities most affected by a permanent closure are those aimed at thefinal consumer

(2%).Ontheotherhand,66%havebeenforcedto paralyse their operations .

The least affected activities are those in the areaofservicestoenterprises,althoughmostofthemhavebeencarriedoutviatelework (75%),andprimaryactivities,whichare theones thathavemostresistedon-site(51%).Theindustrialsectorhasremained72%active.

Situación de la actividad1,9%

39,1%

48,2%

10,8%


Situación sector consumo2,4%

65,6 %

23,8 %

8,2 %


Situación sector servicios a empresas

1,1%

15,2 %

74,6 %

9,1 %


Situación sector industrial1,8 %

26,2%

44,0%

28,0%


Situación sector primario

8,5 %

20,3%

20,3 %

50,8%


Primary sector

Services to enterprises sector

Services to the final consumer sector

Situation of activity

Industrial sector

1716

0 %

10 %

20 %

30 %

40 %

50 %

60 %

Sin demanda por cierreSe ha reducido Se ha mantenido Ha aumentado

Se ha reducido Se ha mantenido Ha aumentado

15,6 %

21,0 %

58,4 %

22,3 %

32,1 %

44,8 %

Continúa operando normalmenteContinúa operando con teletrabajo

Services to the finalconsumer

It has decreased

Services to other enterprises

It has remained constant

PrimarysectorIndustry

It has increased

Continuesoperatingnormally

Continuesoperatingbyteleworking

Nodemandduetoclosing

It has decreased


It has increased


How demand has been affectedA third of the companies have had no demand in theperiodoftheanalysedstateofalarm,astheiractivity remains closed. On the contrary, 10%have seen their demand increase considerably . Changesindemandhaveaffectedallcompaniesequally,regardlessofsize.

54%ofthecompaniesthathavecontinuedwiththeiractivitynormallyhavemanagedtomaintainthe demand for their goods and services, andeven22%haveexperiencedanincrease.

However, thosethatcontinueoperatingthanks

to teleworking have seen, by almost 60%, howtheirdemandhasdecreasedsignificantly.

The sector most affected by cessation of activity has been the services to the final consumersector. 57% were without demand due totemporary or permanent closure .

Amongthosethathavemaintainedtheiractivity,the industrial sector and the services to other enterprises sector have seen their demand mostaffectedduringthepandemic,havingbeenreducedby60%and55%respectively.

4,3 %5,3 %

13,2 %

43,9 %

33,3 %

No tengo demanda porque mi negocio permanece completamente cerradoSe ha reducido notablementeSe ha mantenido constanteHa aumentado ligeramenteHa aumentado considerablemente

I have no demand because my business remains completely closed

It has decreased significantly


Ithasincreasedslightly

It has increased considerably

1918

Reducción de las horas de trabajo del personal

Reducción del número de empleados

Recortes salariales

8,8 %

20,0 %

22,4 %

10,2 %

13,5 %

18,0 %

11,5 %

26,5 %

35,5 %

7,2 %

6,4 %

24,1 %

Emergency measured adopted on employment for those that continue operating normally

ERTEERTE

0,8 %

9,2 %

28,4 %

61,6 %

Servicios al consumidor finalServicios a otras empresasIndustriaSector primario (agricultura, ganadería, pesca, etc)

Servicestothefinalconsumer


Industry

Primarysector



Wagecuts

Reduction in the number of employees

Reduction in staff workinghours

Medidas de urgencia adoptadas sobre el empleo de las que

continuan operando

Recortes salariales

Reducción de las horas de trabajo del personal

Reducción del número de empleados9,3 %

15,0 %

7,2 %

31,0 %

45,1 %

50,1 %

Continúa operando con teletrabajoContinúa operando normalmente


How employment has been affectedNote: 40% of the companies were temporarily closed. The measures are for those that have continued operating in the period analysed.

TheimpactoftheCOVID-19crisisonemploymentand working conditions in the companies ofthe sample indicates that: in activities of the industrial field (where most activity has beensustained), it is where emergency labourmeasureshavebeenadoptedtoagreaterextent(reduction in working hours, reduction in thenumberofemployeesandwagecuts),with theconsumer services sector being the secondmost affected. In general, larger companieshavemaintained their jobs themost,mainlybyreducinghours.

41% of companies have initiated ERTEs(Temporary Lay-off Plans), with almost 80%of these produced in non-essential sectors,with special emphasis on services to the finalconsumer (62%) or in companies with feweremployees .

Among the companies that have been able tomaintain their activity through telework, therehasbeenahighincidenceofareductioninthenumberofemployees(31%),workinghours(45%)andwagecuts(50%).

Emergency measures adopted on employment by sector

Reduction in staff workinghours

Reduction in the number of employees

Wagecuts Primarysector

Industrial sector

Services to enterprises

Consumersector

2120

1. SITUATION AFTER 50 DAYS OF THE STATE OF ALARM

How has access to financing been affectedOne in three companies has reported that its access to financing has been affected, 41% inthe case of those with less than 10 employees . 11% stated that they continue receiving theforecastedfunding:19%forthosewith10to49employeesand23%formorethan50employees.

6%ofcompanieshaveincreasedtheirfinancialresources:1%inthecaseofself-employeesand12%inthosewithbetween10and49employees.Almost50%ofcompaniesdidnothaveanytypeofforecastedfunding,apercentagethatrisesto60%inthecaseoftheself-employed.

Autoempleado

58,9 %

1,2%

8,7 %

31,3 %

Acceso a financiación

48,9 %

5,4 %

11,4 %

34,4 %

Menos de 10

41,4 %

7,7 % 10,0 %

40,9 %

Entre 10 y 49

40,1 %

12,4 %19,4 %

28,1 %

Más de 50

37,0%

12,3 %22,4%

28,2%It has been affected

Wecontinuereceiving theforecastedfunding

Financial resources have increased

Wehavenoforecastedfunding

Access to financing No employees

Between 10 and 49

Less than 10

More than 50

2322

Más de 50 empleados Menos de 10 empleados

27,3 %

35,9 %

42,1 %

34,7 %

Aplazamiento de los planes de inversión


15,5 %

37,7 %38,5 %

44,6 %

Solicitud de financiación extra


5,2 %

11,2 %12,9 %

23,3 %

Renegociación condiciones de financiación previas a la crisis

Request for extra funding

Renegotiation of pre-crisis financing conditions

Postponement of investment plans

More than 50 employees



Between 10 and 49 employees



No employees

No employees

No employees

Lessthan10employees

Lessthan10employees

Lessthan10employees


Emergency measures taken by companies in the financial fieldPostponementofinvestmentplansisthemostfrequently adopted immediate measure. 32%haveparalysedtheirinvestmentplansand28%haverequestedextrafunding.

In those activities of the industrial field,where generally greater investments arerequired,practicallyhalfhavepostponed theirinvestmentplans,andthisisthesectorinwhichit is increasingly recognised that financingconditionsarebeingrenegotiated.

Activities aimed at thefinal consumer are theones that have least requested extra funding.Oneinfourhaschosentofocusonpostponinginvestment plans, renegotiating financialconditions and debt with suppliers .

By activity dimension, the largest companies(45%)havecometorequestextrafundingandtorenegotiate their loan conditions (24%). Greaterlimitationsofactionareclearlyshownamongtheself-employedandthosewithlessthan10workers.

Medidas de urgencia tomadas en el ámbito financiero

1

32,2 %

28,3 %

8,8 %

Medidas de urgencia tomadas en el ámbito financiero

Renegotiationofpre-crisisfinancingconditions

Requestforextrafunding

Postponementofinvestmentplans

2524

Actividades de servicios a empresas

17,9 %

25,3 %

15,1 %17,2 %

11,4 %

Series1 Series2 Series3 Series4 Series5

Actividades del ámbito industrial

20,1 %18,7 %

11,2 %14,1 %13,2 %

Series1 Series2 Series3 Series4 Series5

Actividades dirigidas al consumidor final

32,9 %

24,2 %

20,4 %

10,3 %12,9 %

Abandono de algunos mercadosAlianzas en la cadena de suministroDisminución de preciosCambio de modelo de negocioCancelación de pedidos a proveedores

Actividades del sector primario

17,3 %14,3 %

12,2 %

23,4 %

18,0 %

Services to enterprises activities

Activities in the industrial area

Activities aimed at the final consumer

Primary sector activities

Abandonment ofsomemarkets

Alliances in the supply chain

Decreaseinprices

Changeof business model

Cancellationof orders from suppliers


Emergency measures taken by companies within the value chainOneinfouractivitiesadmitshavinghadtochangetheir business model and cancel orders from suppliers. In addition, 17% have reduced prices,12%havehadtogiveuppartoftheirmarkets,and14%have reached agreementswith suppliers tomanagethesupplychain.

Considering business size, companies withless than 10 workers and self-employment arethe activities that have had to change theirbusiness model the most in order to adapt to the circumstances .

In particular, those activities aimed at the finalconsumer are the ones that have most clearly had tocancelordersfromsuppliers(33%)andoptforadecreaseinprices(20%).Inadditiontoservicestoenterprisesactivities,theyarealsotheonesthathave changed their businessmodel in a greaterpercentage(24-25%).Ontheotherhand,primarysector activities have most resorted to alliances inthesupplychainwhichtheybelongto(23%).

Medidas de urgencia tomadas en la cadena de valor

24,8 %24,1 %

17,2 %14,0 %

12,4 %

Abandono de algunos mercadosAlianzas en la cadena de suministroDisminución de preciosCambio de modelo de negocioCancelación de pedidos a proveedores

Urgent measures taken in the value chain

Abandonment ofsomemarkets

Alliances in the supply chain

Decreaseinprices

Changeof business model

Cancellationof orders from suppliers

2726

Estoy creándola

5,5 %

24,1 %

5,0 % 65,5 %

Más de 3,5 años

16,0 %

32,2 %

6,1 %

45,6 %

Hasta 3,5 años

23,3 %

29,1 %10,1 %

37,6 %

Starting-up

More than 3.5 years

Up to 3.5 years

I have not applied for public aid

I have been denied public aid

I have applied for public aid and I am awaitingaresponse

Iamreceivingpublicaid


Requesting and receiving public aidAlmost50%ofcompaniesdonotreceivepublicaiddirectly.In43%ofcasestheyhavenotbeenrequested and 7% state that they have beendenied. Furthermore, 30% of companies arewaitingforaresponsetotheirrequest.

• Business start-up phase:Morethan65%ofentrepreneurs in the initial start-up phase have not applied for aid . Entrepreneurs in thedevelopmentphase,upto3.5yearsold,is thegroup, inpercentage terms, thathasreceived the most public aid .

• Current situation of the activity: Those businesses that have decided not to continue with the activity show a denial rate thattriplestherestofthegroups.

Recepción de Ayudas Públicas

No he solicitado ayudas públicas Estoy recibiendo ayudas públicas

17,0 %

29,4 %

7,0 %

42,5 %



I have applied for public aidandIamawaitinga

response

Iamreceivingpublic aid

Reception of public aid

2928

2.

FUTURE PROSPECTS

By company size: Self-employment and businesses with 50 ormoreworkers(thesmallestandlargestones) request less public aid than medium ones . The highest percentage of denial to the self-employedandmicro-businessesishighlighted.

By activity sector: The primary sector is in percentagetermstheonethatlessaidrequestsand less aid receives . At the other extreme are services to the final consumer, which are themostdemandingofpublicaid.

Reception of aid by company size

Reception of aid by sector

Primarysector

More than 50

Industry

Between 10 and 49


No employees


Between 1 and 9



I have applied for public aid and I am awaitingaresponse

Iamreceivingpublicaid

Recepción de ayudas por tamaño de la empresa

Más de 50

Entre 10 y 49

Entre 1 y 9

Sin empleados 18 %

17 %

16 %

15 %

25 %

36 %

35 %

29 %

6 %

10 %

3%

4%

50 %

36 %

46 %

52 %

No he solicitado ayudas públicasMe han denegado ayudas públicasHe solicitado ayudas públicas y estoy pendiente de respuestaEstoy recibiendo ayudas públicas

Recepción de ayudas por sector

Sector primario

Industria

Servicios a otras empresas

Servicios al consumidor final 24 %

14 %

13 %

8 %

35 %

27 %

30 %

30 %

8 %

6 %

9 %

6 %

33 %

52 %

48 %

56 %

No he solicitado ayudas públicasMe han denegado ayudas públicasHe solicitado ayudas públicas y estoy pendiente de respuestaEstoy recibiendo ayudas públicas

1. SITUATION AFTER 50 DAYS OF THE STATE OF ALARM

30

Muy positivo Algo positivo Neutro Algo negativo Muy negativo

64,6%

24,7%

5,9%3,6%

1,2%

26,6%

45,5%

11,1%12,8%

4,1%

19,9%

45,6%

15,9%15,6%

2,9%

Continúa operando normalmenteContinúa operando con teletrabajoHa cerrado (total o temporal)

Muy positivo Algo positivo Neutro Algo negativo Muy negativo

17,5 %

46,0 %

19,0 %15,9 %

1,6 %

44,3 %

36,8 %

6,1 %10,8 %

1,9 %

32,6 %

42,3 %

11,6 %10,7 %2,8 %

52,7 %

31,5 %

6,7 %6,8 %

2,3 %

Servicios al consumidor finalServicios a otras empresasIndustriaSector primario (agricultura, ganadería, pesca, etc)



Has closed (completely or temporarily)



Industry

Primarysector

Verypositive

Verypositive

Slightlypositive

Slightlypositive

Slightlynegative

Algonegativo

Verynegative

Verynegative

Neutral

Neutral

2. FUTURE PROSPECTS2. FUTURE PROSPECTS

Expected impact in the next 6 months

• Ingeneral,prospectsforthenearfutureare not very positive, especially amongthose that have had to close during thelockdown period. Almost 7 out of 10believe that the impact on their business willbeverynegativeinthenext6months.

• Despite continuing with their activity,thosethatcontinuethankstoteleworkingare slightly less optimistic, with 27%believing that their impact will be verynegative.

• 47% of companies with less than 10employeesexpectaverynegativeimpactin the next 6 months .

• 83% of companies over 3.5 years oldperceive a negative or very negativeimpact on their activity .

• The youngest companies perceive lessimpact.37%of those thatarestartingabusiness do not believe that they will have anegative impact in the next 6months,and even 18% are confident that it mayhave some positive impact .

• Thesectorthatexpectstohaveastrongernegative impact is the final consumerservicessector,followedbytheindustrialsector.53%and44%,respectively,believethat the impact in the next 6 months will beverynegative.

• Onthecontrary,theprimarysectorisnotthe most pessimistic in its short-term predictions, only 17% believe that it willbeverynegative.

42,0 %

36,7 %

9,6 %

8,9 %

2,7 %

Muy positivoAlgo positivoNeutroAlgo negativoMuy negativo

Verypositive

Slightlypositive

Neutral

Slightlynegative

Verynegative

3332

Previsión de la inversión privada. Por tamaño

Más de 49 empleados

De 10 a 49 empleados

De 1 a 9 empleados

Autónomos

0 % 25 % 50 % 75 % 100 %

44,0 %

33,5 %

27,5 %

18,9 %

19,1 %

19,1 %

17,5 %

27,6 %

20,1 %

23,3 %

28,6 %

28,1 %

16,8 %

24,1 %

26,4 %

25,5 %

Más Lo mismo Menos No se sabe

Private investment forecast by sizePrevisión de la inversión privada. Por sector

Sector primario (agricultura, ganadería, pesca, etc)

Industria


Servicios al consumidor final

0 % 25 % 50 % 75 % 100 %

43,0 %

33,2 %

27,4 %

40,6 %

16,8 %

20,5 %

19,8 %

20,3 %

20,9 %

26,2 %

21,2 %

29,7 %

19,2 %

20,2 %

31,6 %

9,4 %

MásLo mismoMenosNo se sabe

Private investment forecast by size

Largercompanies(thosewithmorethan49employees)andsmallcompanies(upto49employees)haveamoreoptimisticviewregardingthefutureroleofprivateinvestment.Microenterprises(upto10employees)arelessoptimisticaboutprivateinvestmentincreasingandtheself-employedgroupisthemostscepticalregardingtherolethatprivateinvestmentwillplaytoovercomeCOVID-19.



No employees


It will invest more

The same

It will invest less

Donotknow

2. FUTURE PROSPECTS2. FUTURE PROSPECTS

Short-term private investment prospectsTheindustrysectorhasthemostoptimisticviewregardingthefutureroleofprivateinvestment.The opinion of more than half is that private investment will be maintained or will increase . On the otherhand,intheprimarysectorandinthesectorofservicestothefinalconsumeriswherethemostuncertaintyisperceivedorthatprivateinvestmentwillgetworse.Oneinfiveentrepreneurialpeople who operate in the sector of services to enterprises maintains some hope for an upward trend in private investment .

Primarysector

Industry



It will invest more

The same

It will invest less

Donotknow

3534

Difficulties

Immediate concerns

2. FUTURE PROSPECTS

Key difficulties in the following monthsCompanies with no more than 50 employeesare particularly concerned about the fear of risktaking,lowpublicresourceforecastingandmarket apathy. Specifically, one in four self-employed people considers that public funds areinsufficienttodealwithCOVID-19.

Largecompanies(morethan50employees)areconcernedaboutthecurrenthighbarrierstothedevelopment of their international activities .

Servicecompaniesareconcerned, likesmallercompanies, about the fear of taking risks, theforecastofscarcepublicresourcesandmarketapathy.Industrialcompaniesalsohighlightbeingneglected by institutions and the presumeddamage that the closing down of borderswill cause them. Primary sector companiesemphasisetheinsufficiencyofpublicfundsandbeingneglectedbyinstitutions.

Closingofborders

Neglectbyinstitutions

60%

50%

40%

30%

20%

10%

0%

MarketapathyInsufficiencyofpublic funds

Highuncertainty

2. FUTURE PROSPECTS

The greatest concern associated with the impact of the crisisIngeneralterms,regardlessofthesectorandsizeofthecompany,themajorconcernofcompaniesdue to the effects of the crisis has been related totheirabilitytowithstandthelockdownperiod(this is pointed out by 1 in 2 businesses) .

Inadditiontosurvival,thesecondmajorconcernisbeingabletokeepstaff(23%ofthecompaniessurveyed) .

10,0 %

23,0 %

10,0 %

8,0 %

49,0 %

Muy positivo Algo positivo Neutro Algo negativoMuy positivo

That my activity cannot overcome such a longperiodofisolation

That the health crisis prevents me from continuingtocarryoutmyactivityonline

Nothavinginsurancethatcoversmeandprotects me from its consequences

Notbeingabletokeepmyemployees

Notbeingabletorecruitnewemployees

3736

Difficulties depending on company size

Dificultades según el sector

2. FUTURE PROSPECTS

One-year business plansStaff reduction Those companies that have closed temporarily pointoutthatthereisahighprobabilityofplanningtoreducestaff(43%).

On the contrary, no more than 20% of thosewhich have continued operating normally or byteleworkingexpresstheseplans.

Business expansion Those companies that have continued operatingby teleworking have a higher percentage of highpredictionsoflaunchingnewproductsandservices(58%),aswellaslookingfornewcustomers(57%).

Requesting aid and subsidies Morethan50%ofthecompaniesthathaveclosedtemporarily anticipate that they will most likelyrequestsubsidies,aswellas46%of thosewhichhavebeenoperatingbyteleworking.

Changes in activity/transfers/closing down 11%ofcompanieswhichareclosedtemporarilyseethatitisquiteorveryprobabletochangeactivity,15%toclosedownortransfertheirbusiness.

Thosecompaniesthathavecontinuedoperatingbyteleworkingornormallydonotreach5%ofthesepredictions .

60%

50%

40%

30%

20%

10%

0%

Wearegoingtoreduce staff

Wearegoingtorecruit staff

Wearegoingto launch new

products/services

Wearegoingtoenternewmarkets

Wearegoingtoworkwithnew

customers

Wearegoingtolookforinvestors for our business

Wearegoingtoseekexternalbankfinancing

Wearegoingtorequestaid and subsidies

Wearegoingtochangetheactivity

Wearegoingtoclosedownortransfer the activity

Wearegoingtoinvestininfrastructures/technology/

other investments


Has closed temporarily


Alta incertidumbre

Insuficiencia de fondos públicos

Apatía de mercado

Desatención de instituciones

Cierre de fronteras

Sector primario (agricultura, ganadería, pesca, etc)IndustriaServicios a otras empresasServicios al consumidor final

Alta incertidumbre

Insuficiencia de fondos públicos

Apatía de mercado

Desatención de instituciones

Cierre de fronteras

Más de 50 empleadosEntre 10 y 50 empleadosEntre 1 y 9 empleadosAutónomo




No employees

Primarysector

Industry



Highuncertainty

Highuncertainty

Insufficiencyofpublic funds

Insufficiencyofpublic funds



Closingofborders

Closingofborders

Marketapathy

Marketapathy

2. FUTURE PROSPECTS

0

0

10%

10%

20%

20%

30%

30%

40%

40%

50%

50%

60%

60%

70%

3938

Employment plans by company size

Employment plans by sector

3.

REQUESTED MEASURES

2. FUTURE PROSPECTS

One-year business plans: employmentApproximately one in three companies predicts thatthereisahighprobabilityofreducingstaffone year after the crisis .

A high percentage of companies consider thatrecruiting staff in one year is unlikely, althoughthelargerthecompany,thehigherthepredictionof recruitingstaff in thatperiod. In this regard,24% of companies with more than 50 workersconsider it quite or highly probable to recruitstaff. In the case of the self-employed, thesepredictionsdropto8%andinmicro-SMEsto12%.

By activity sectors, the most pessimisticpredictionsregardingrecruitingstaffareforthefinalconsumerservicessector,sinceonly7%ofcompaniessee thisashighlyprobable, that is,halfof thecompaniesof that inothersectors,whichareabout14%.Regardingreducingstaff,it is also the services to the final consumersector where there are a higher percentageof companies that see a great probability ofreducingstaff (35%),compared to theprimarysector,whereonly4%ofcompaniesbelievethatthisishighlylikelytohappen.

Planes sobre empleo por tamaño de la empresa

24,1%

19,6%

11,8%

8,0%

36,0%36,1%34,0%

20,7%

Reducir Personal Contratar personal

Between 1 and 9

employees

No employees


Between 10 and 49

employees

Staff reduction

Recruitingstaff

Planes sobre el empleo por sector

14,7%13,9%14,2%

6,9%4,2%

31,1%

23,7%

35,4%

Reducir Personal Contratar personal


Services to other

enterprises

Primarysector

Industry

40

3. REQUESTED MEASURES

Requested measures from the public administrationThe most requested measures by the business community are to eliminate both the self-employedquotafor1year(73%),andbureaucraticobstacles(65%).58%demandsoftfinancingand56%reducingSocialSecuritycontributions.

Programmes that support new companies(40%), training in new technologies (33%) andaid for internationalization (23%) are given lessimportance .

Solicitud de Medidas a la Administración Publica

23,0 %

65,6 %

32,9 %

40,4 %

58,3 %55,9 %

73,2 %

Eliminatingthe

self-employed quota

Reducingsocial

security contributions

Freelong-term

lines of credit

More aid for business creation

Traininginnew

technologies

Eliminatingbureaucratic

obstacles

Aid for international

expansion

Requested measures from the public administration

4342

Sector

Gender

Start-up phase

Situation of the activity

Aid for international expansion

Eliminatingbureaucraticobstacles

Traininginnewtechnologies


Freelong-termlinesofcredit

Reducingsocialsecuritycontributions

Eliminatingtheself-employed quota

Sector: The services sector mainly requests a temporary elimination of the self-employed quota . The industry and the primary sector essentially require the elimination of bureaucraticobstaclesandsoftfinancing.Theindustrial sector is the one that gives morecomparative importance to business creation andinternationalizationprogrammes.

Gender: Both men and women basically request a temporary elimination of the self-employed quota and the elimination of bureaucratic obstacles .

Women give more importance to support forentrepreneurship and men value support for internationalization more .

Sector

Sector primario

Industria


Servicios al consumidor final

0 0,2 0,4 0,6 0,8

Ayudas para la expansión internacional Eliminar trabas burocráticasFormación en nuevas tecnologías Más ayudas para crear empresasLíneas de crédito sin coste y a L/P Reducir cuotas seguridad social Eliminar cuotas de autónomos

Género

Hombre

Mujer

0 0,2 0,4 0,6 0,8

Ayudas para la expansión internacionalEliminar trabas burocráticasFormación en nuevas tecnologíasMás ayudas para crear empresasLíneas de crédito sin coste y a L/PReducir cuotas seguridad social Eliminar cuotas de autónomos

Primarysector

Men

Industry

Women



0

0

20%

20%

40%

40%

60%

60%

80%

80%

Situation of the activity:Thegroupthatgivesthe most importance to aid for business start-ups is precisely the one that has closed . Those that have temporarily closed request lower social contributions . Businesses that continue workingdemandlessbureaucraticobstaclesandeliminatingtheself-employedquota.

Business phase:Thegroupofentrepreneursin the initial phase requests more aid for business creation . Entrepreneurs with businesses of up 3 .5 years old and consolidated demandeliminatingtheself-employedquotatemporarily and bureaucratic obstacles .

Situación de la actividad

He cerrado definitivamente

He cerrado temporalmente

Continúa operando con teletrabajo

Continúa operando normalmente

0 0,2 0,4 0,6 0,8

Fase de creación empresarial

Más de 3,5 años

Hasta 3,5 años

Estoy creándola

0 0,225 0,45 0,675 0,9

Ayudas para la expansión internacionalEliminar trabas burocráticasFormación en nuevas tecnologíasMás ayudas para crear empresasLíneas de crédito sin coste y a L/PReducir cuotas seguridad social Eliminar cuotas de autónomos

More than 3 .5 years

It has closed permanently

Up to 3 .5 years

It has closed temporarily

Iamcreatingit

It continues operatingbyteleworking

It continues workingnormally

Aid for international expansion

Eliminatingbureaucraticobstacles

Traininginnewtechnologies


Freelong-termlinesofcredit

Reducingsocialsecuritycontributions

Eliminatingtheself-employed quota

3. REQUESTED MEASURES 3. REQUESTED MEASURES

0

0

20%

20%

40%

40%

60%

60%

80%

80%

4544

4.

RECOMMENDATIONS

46

(publicaidandpaperworkrequested).Therealempowermentofe-administration,inallareas,andtheunificationofdigitalstandardsinalladministrations,mustbeaprioritythatcannotbepostponed .

4. INTRA-ENTREPRENEURSHIP, RE-ENTREPRENEURSHIP AND NEW SYNERGIES: The recovery will demand more entrepreneurs with organizational and innovative capacity to generatecollaborative and open innovation within a framework of social innovation. New synergiesare required between the entrepreneurial, corporate and academia ecosystems, promotingmore spin-offs and spin-ins. COVID-19 has caused the closure of companies, forcing manyto reinvent themselves.Thisencouragesabetteruseof (intra)entrepreneurial skillsand re-entrepreneurship .

5. DEMAND AND BUSINESS OPPORTUNITIES:Thelackofaclearhorizonhascreatedahugegapinexpectations,bothatasocialandbusinesslevel.Thelossofincomeinfamiliesandtheresultingdecreaseinconsumption,togetherwithanincreasedriskofdefault,requirenewfinancialandfiscalmeasuresthatfavourthereactivationofdemand(socialinsuranceplansanddebtrelief).Companieswillhavetorebuildtheirbusinessmodel-iftheyhavenotalreadydoneso-andforthistheywillneed,especiallythesmallerones,guidanceinshowingnewopportunitiesandnewbusiness models .

6. NEW FINANCING FORMULAS:Asacomplementtothefinancialformulasdesignedbythegroupofmutualguaranteesocieties(guaranteesandendorsements),traditionalfinancialinstitutions(facilities for credit lines) and public administrations (subsidy programmes), the use of newpractices (crowdfunding, advance consumption bonds, social impact contracts, etc.) shouldbeencouraged.Thesemeasuresshouldbetailoredtothecircumstancesofdifferentbusinesssizes,urgentlyinjectingliquidityintothesystemandfacilitatinginvestmentandrestructuringplans,especiallyrelevantinactivitiesthathavebeenparalysedthelongest.

To follow the six reactivation recommendations, speed,moreexperimentation in administrationandmoresignificantnetworkingareimportant,allinordertogenerateagreatersenseofcertaintyand control of the future .

TRANSFORMATION

7. NEW HYBRID FORMULAS AND CO-INVESTMENT:Thereareavarietyofexpectations-dependingonthesizeandsector-ontheavailabilityofprivateinvestmentandonfinancial,labourandfiscalsupportpolicies.Co-investmentwithotheragentsshouldbepromoted (businessangelsandventurecapitalnetworks,hybridsofpublicpurchaseofinnovation,newmodalitiesofinnovationincentives -tax relief for innovation) .

8. NEW SOLUTIONS TO NEW PROBLEMS: New solutions to new problems that the crisis has produced arerequiredandalso,acontinuitytonewinnovativeroutinesthathavearisenandthatareworthsustainingandprotecting.Itisrecommendedtofocusoncertaincurrentstrategicareas,whichcangeneratenewbusinessesandemploymentintheimmediatefuture:creationofcollaborationnetworks;innovativedigitalservices;onlineservicesandexperiences;collaborativeworktools;

The final recommendations in this section derive from the results of the survey carried out by the Spanish Entrepreneurship Observatory, aimed at entrepreneurs at an exceptional, critical and unprecedented moment, with permanent consequences still to be determined.

SincethestateofalarmbeganonMarch14,wehaveallhadtoadapttothecurrentsituation,andcompanieshavenotremainedunaffectedbythiscircumstance.Uncertainty,the impossibilityofplanning for thecomingmonths, the regulatorychangeswith immediateapplication, thealmostweekly scenario changes and the short reaction time to adapt to these scenarios, have madeentrepreneursandtheircompaniesdealwithasituationwhichcouldnevereverhavebeenimagined.Itisfairtoacknowledgetheeffortandcommitmentofalloftheminordertomoveonandcontinuegeneratingemploymentandofferingtheirservicestosociety.

Currently, the great challenge is to reactivate demand and supply so as to return to a path ofnormalityassoonaspossible(reactivation)andatthesametime,tore-createanentrepreneurialecosystem,withnewpillarsanddynamics,lessvulnerable,morearticulated,moreinnovative,moreresilient and responsive to new social needs (transformation) .

In conclusion,wehighlighta setoffinal recommendationsandpriority challenges,which inouropinion,areessentialtotackle.

REACTIVATION

1. BUSINESS DEMOGRAPHY: COVID-19 has affected all sectors and companies of all sizes, butespecially all of the youngest and smallest ones. It is obvious that exceptional and ad hocmeasureswill continue tobenecessary tostop thedrainofcompaniesclosingdown (whichunder normal conditions have proven to be competitive), but this should not be done at theexpenseofceasingtostimulatethecreationofnewones(especiallythosethatbestfitintoanewnormality,withmoresocialimpact).

2. EMPLOYMENT: The negative impact of the reduction of employment, ERTEs andwage cutshavebeengeneralized,butextremelyhigherinmicro-enterprises.Futurescenarioswillmostcertainlyinvolveorganizationalchangesandchangesinwaysofworking,whichwillcontinuetoaffectemployment.Thepredictionofunemploymentfiguresthathasbeenmadebydifferentorganizationswillrequireshockmeasures.Allthiscallsforagreatdebateonthefutureofworkandaprofoundadaptationofsupportprogrammesforentrepreneurs.

3. CERTAINTY ENVIRONMENT AND ADMINISTRATIVE AGILITY:Thecurrentcrisishasgeneratedanunderstandableenvironmentofuncertaintyandregulatorychanges,withoutaclearhorizon,inwhichcompanieshavehadtomakedecisionswithlittlereactiontime.Inthisnewstageofre-activation, it is essential for administrations to redouble their efforts to create a stableenvironment and speed up the process that companies follow in order to adapt to the situation

4. RECOMMENDATIONS4. RECOMMENDATIONS

4948

offlinetoonlineretailservices;remoteworkandeducationandinnovativesocialentrepreneurship. Itwouldbeadvisabletodevelopnewinnovationhubsfocusedontheseandotherfields.Atthesametime,theSustainableDevelopmentGoals,whicharejustasrelevantormorethanbeforethecurrentcrisis,mustbepresentinthenewscenario,definingupdatedprioritiesandschedules.

9. DIGITIZATION:Thecrisishasmadedigitizationaprioritytomeetthechallengesandopportunitiesderived from the new economic reality. Infrastructure development and training in newtechnologiesisanurgentneed:wemustentertheadvancedandurgentphaseofdigitization.

10. ENTREPRENEURIAL STATE AND ENTREPRENEURIAL UNIVERSITY: The current challengesmakepublicadministrations,togetherwithentrepreneursandcompaniesassumeanactiveroleinlong-termstrategicprojectsforregions,suchasinemergingsectorsinneedofcriticalmassandtechnologyasthosementionedaboveandotherssuchasmutualaidandcrowdsourcing,aswellasopeninnovation.Businessriskmustbeclaimedfrompublicadministrations.Similarly,the COVID-19 crisis has shown the ability of the academia to offer solutions through newrelationship models with the productive fabric . In line with the Entrepreneurial Universities model,agreaterinvolvementintheroleofpolicyproponentsisnecessaryandtheirparticipationasco-promotersinstrategicregionalprojects.

In the four transformation points indicated, a permanent feature should be greater self-empowerment(deployingnewfunctions)and,atthesametime,networkingofalltheagentsoftheentrepreneurialecosystem,whichshouldbemoreeffectiveandfree-flowing.

4. RECOMMENDATIONS

50 51

www.gem-spain.com

situation of entrepreneurship in spain due to the covid-19 ... › wp-content › uploads › 2020...

Documents