Galicia is gaining strength among large companies, and entrepreneurship is fading

The success of a business is influenced by many more aspects than the vocation and desire of the person who opens it. Demography, for example, is a factor the availability of labor and the presence of potential consumers in the territory where there will be better conditions for the expansion of the activity, if it has good infrastructure and connections, including technological ones, to pass the wave of digitalization. Environmental impacts are increasing in parts of the world such as Galicia. It’s easy to lose count of how many times the Xunta has changed over the years. laws on reducing the administrative burden and face huge ccompetencies of northern Portugal in attracting new projects and an all-time low level of foreign investment. Without going further, the law that accompanies the regional budgets this year includes, among other changes, the possibility for the regional executive to assume municipal jurisdiction over urban planning licenses in cases of repeated delays without explanation, the preparation of master plans specific to each branch of production industry and the administration’s own advice to companies that need expedited processing.

As of January 1 of this year. 2022 year was 205,452 companies after a 1.4% drop from the start of 2021according to the balance of business demographics just published by the Galician Institute of Statistics (IGE). In one year alone, 2,957 companies were lost, even higher than the closings recorded during 2020 due to the pandemic: 2,380. The emergence of COVID-19 has ended five consecutive years of positive balances, with the regional manufacturing structure still unable to surpass the figure of more than 215,000 active companies in 2007 and in 2008. Construction and the service sector had higher birth rates than death rates. business in 2022, unlike mining, manufacturing and energy.

Las micro enterprises (those with 0 to 9 employees) – the vast majority. Nails 196.1 thousand, 95.5% of the total number. But they are also the protagonists of the accumulated decline of the last 15 years.

From the peaks in active companies reached before the real estate bubble burst, Galicia was left without 3,700 micro-enterprises. The decline is concentrated among firms with 3 to 5 employees, with 3,100 fewer; and in those with 6 to 9 troops, with the disappearance of another 1400. However, there are still about 800 enterprises where there is not enough staff or, at most, two people. Small companies (from 10 to 49 employees) were left without 1,834 operators and number about 7,800; Among the medium (50 to 249 workers), 116 are missing and 1,282 remain.

On the other side of the coin Big company. In 2022, there were 245 groups with 250 or more employees, after adding fifty since 2008. constant increase, which is due to the insistence of experts as well as administrations to increase the size in order to obtain financing on better terms, to take advantage of the advantages of scale and to gain muscle for internationalization. Those with 250 to 499 workers increased by 26, to 144; 500 or more topped 100 for the first time, up 24 from 2008.

demographics of W companies Hugo Barreiro

With the expansion of the largest companies the average size of companies in Galicia is increasing: 3.88 employees, the highest figure in the statistical series. In 2021, they were 3.75. In the case of SMEs, the average size reaches 2.84, compared to 2.75 in 2021 and still lower than 3.08 in 2008.

Now the question is what will happen in the future. In parallel with the decline of small businesses, the level of entrepreneurship barely improves by five hundredths compared to 2021, moving from 5.34% (the percentage of the population involved in entrepreneurial initiatives less than 42 months of activity) to 5.39%. A decade and a half ago, it was close to 9%. And how many enterprises created then are still working? 24%

The four-year survival rate is 45%. Of all the companies created between 2006 and 2018 in Galicia, those present higher survival rate after the first four years those that started in 2007before the obsessive call for self-employment of the population, especially the youth.

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