Business

The challenges of Spanish entrepreneurship in a scenario marked by COVID-19

Startups and small and medium enterprises (SMEs) are a very important ingredient in a country’s economy and its business ecosystem. They contribute to financial health, promote employment and complement the proper functioning of large companies.

“For any country, it is essential that its startups and SMEs function and develop”, explains Mireia Canut, deputy director of the CEO of UpBizor, who underlines that “this last quarter of 2020, as well as next year, is coming with challenges to promote the creation of this type of business and for the continuity of existing businesses, given the scenario that Spain has been experiencing lately ”.

From the financial consultancy firm specializing in promoting the financial growth of startups and SMEs, they explain that some of the main challenges for the ecosystem are obtaining financing, finding talent suited to the project and the possibility of making progress. their sales and the scale they have. your marketing actions.

On the other hand, Mireia Canut underlines that “due to the situation generated by the emergency derived from Covid-19, to these three challenges which, of course, have become more pronounced, we must add the drop in their billing figures”. The deputy director of UpBizor explains “in this scenario it will be necessary to put in place strategies to recover the usual levels”.

Another of the hndicaps that will directly affect startups will be related to private investment. “In the second quarter of 2020, there was a very strong impact on investments in this type of business. Given the uncertainty that reigned, many funds took a step back and decided to put investments on hold to see the evolution of the pandemic, ”they argue from the consulting firm.

However, the reality is that the startup sector is one of those that, unlike the general economic crisis, continues to show a growing trend and optimistic outlook. “It is thanks to the disruptions presented by many startups, which are ultimately agents and drivers of change for traditional sectors,” explains Mireia Canut.

In addition to optimism in terms of investments, the Government, for its part, wanted to support companies with financing instruments, some customary and others intended to boost them in a pandemic period. For example, ENISA, which continues to be a leader in supporting startups (in 2020, it invested 98.5 million to support the growth of startups); the Industrial Technological Development Center (CDTI), which eliminated the need for guarantees during the state of emergency and launched a grant for companies that launch a product or service for the treatment or prevention of Covid-19; or the Neotec line, which kept its line open for two months to support the start-up of innovative technological projects.

For its part, the Ministry of Culture has launched a grant program to support cultural enterprises that are digitizing certain processes, while Reindus has opened its appeal earlier than usual to support investments in the industrial sector and that RED .ES has launched its call for funding digital content and enabling technology projects.

At UpBizor, the funds of the Official Credit Institute (ICO) stand out as a big novelty, starting to support companies in this sector. “With all this, there is an obvious predisposition in the banking sector to open its doors to Startups”, underlines Mireia Canut, who specifies that “with all this, it is clear that the projects which present innovations on the market are very supported. The more disruptive the project, the more opportunities it has to secure funding to be successful. “

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