2023: Spanish SMEs Faced Economic Uncertainty But Showed Resilience Amidst Challenges

In 2023, the Spanish small and medium-sized enterprises (SMEs) faced a challenging year due to economic instability and reduced profits. Despite this, only 17.8% of companies reported growth and improvement, while 38.1% stated that their economic situation had worsened compared to the previous year. However, there were some positive signs such as an increase in the number of SMEs selling in foreign markets and engaging in innovation activities.

Looking ahead, the report indicated a decrease in short-term growth prospects for SMEs. The percentage of companies expecting their turnover to increase in the next 12 months declined, while the number of SMEs planning to expand their workforce decreased. The most commonly used financial products by SMEs in 2023 were bank loans, ICO Lines, and credit lines.

The rise in interest rates and product prices had a significant impact on the funding needs of SMEs. The report highlighted that despite this, only 45% of SMEs received financing from banks or other traditional sources compared to pre-pandemic levels.

In terms of sector growth, the business services sector saw the largest increase in the number of SMEs in 2023, followed by education, health, and construction industries. However, the commerce and personal services sector experienced a decline in the number of companies.

Overall, despite facing challenges such as economic instability and reduced profits