Updated on Saturday, 4 September 2021 – 02:25
Three out of four companies in bankruptcy have fewer than 10 employees. Catalonia accumulates one of every 3 contests during this year in Spain
Chairs on the terrace of a closed bar in BarcelonaQuique GarcaEFE
If you have a business or a restaurant with less than 10 employees, a turnover of less than 2 million euros and you are based in Catalonia, your business has more possibilities of entering the competition than any other sector, size and located in another community autonomous. This is the robot portrait of the companies that entered the competition in the first eight months of 2021, according to data from the Informa D&B consultancy. It is a simplification, but also a sample of the structure of the Spanish business model: very small companies in the service sector. In Catalonia, almost one out of every three competitions has been registered -1,117 out of 3,941 in the national total-; If the 802 of the Community of Madrid are added, these two regions concentrate half of the bankruptcy situations in Spain.
Commerce, hotels and restaurants continue to be the big losers in the crisis caused by Covid in Spain in the last two years. And specifically in hospitality and catering, 2021 is being much worse than 2020, according to D&B reports, business tenders in this sector have grown by 225% in the first eight months of the year compared to the same time last year.
It is logical that the sector most affected by the restrictive measures caused by the pandemic – closures, capacity limitations, travel bans … – is assuming a large part of the destruction of the business fabric, but the large increase in cases in this year about 2020 because despite the different waves, the measures decreed by the Government and the autonomous communities were tougher last year than this.
However, August has represented a certain turning point in the evolution of the so-called corporate mortality, despite even the so-called fifth wave of Covid. Thus, if the accumulated increase in the first eight months of the year is 225%, in August the tenders barely grew by 4.35%
Contests August 2021
This inflection in the evolution of the contests in the past month occurs in most of the activities. In the accumulated of 2021, total bankruptcy situations have grown by 57%, to 3,941, while last month they fell by 37.6% compared to August 2020. August has been the month of year in which there have been fewer contests: just 139, compared to 630 in March or 619 in July.
Although the hospitality industry is the sector in which tenders grew the most in the year, it is surpassed by construction and real estate activities and trade if we look at the number of companies involved: 726 and 794, respectively, compared to 657 for the company. hotelier.
Regarding the size of the company entering the bankruptcy situation, the study indicates that three out of every four are micro-enterprises, which have less than ten employees and have a turnover of less than 2 million euros. 22% are produced in companies with less than 50 employees and a turnover of less than 10 million euros.
The territorial distribution of bankruptcy activity places Catalonia in first place among the autonomous communities, with 1,117 cases, followed by Madrid and the Valencian Community, in correspondence with the weight of each region in the national GDP, although business weakness is more noticeable. in Catalonia, where this year 0.17% of its 630,000 companies presented a tender, compared to 0.14% of the 552,000 companies located in the Community. The evolution of bankruptcy situations accelerates in all the autonomous regions in 2021, with special incidence in the Canary Islands, which registers an annual growth of 95%, and Castilla y Len, with 92.7%. In Madrid, the growth is 70% and in Catalonia, 74%.
Company dissolutions increased 29% in the year, from 14,512 to 18,720. As happens in competitions, in August there is also a significant slowdown, with a 37% drop over the same month in 2020.
The photograph of this business mortality shows that, although the economic recovery is underway, a slowdown or an increase in uncertainty will notably increase the problems of Spanish companies. The smallest companies and those in the sectors that require the least qualifications are the first to suffer the crises and those are precisely the ones that are already experiencing the worst. As this newspaper reported last week, the increase in the energy bill for a business, or an excessive increase in the International Minimum Wage (SMI) for a small businessman who has to do many numbers before considering a new hiring, suppose new suits in the wheels of your business.
The rising cost of electricity is having a brutal impact on SMEs. There are businesses that are even closing from noon to avoid the afternoon rises. If to that is added an increase in the SMI, with the parallel increase in social contributions that it entails, small companies are left in a very compromised situation, Antonio Pedraza, president of the Financial Commission of the General Council of Economists, told EL MUNDO .
According to the criteria of
The Trust ProjectLearn moreSee links of interest Stage 19, live: Tapia – Monforte de Lemos Girona – Sporting de Gijn