The study “Small Business, Great Opportunities,” conducted by Sage with the participation of nearly 12,000 SMEs from around the world, including 1,000 from Spain, highlights that SMEs in Spain are leading global growth. This performance aligns with the IMF’s projections, which forecast a 2.9% increase in the Spanish economy for 2024. More than half of Spanish SMEs (58%) managed to increase their revenue in the past year, surpassing both the global average of 45% and the 32% recorded in 2023. Additionally, 60% report having scaled their businesses with relative ease, compared to the global average of 50%.
Optimism among SMEs is at historic levels. Globally, 86% are confident in the success of their businesses, an improvement from 80% in 2023. In Spain, this figure is even higher: 88% of SMEs believe in their success, and 85% say they are very satisfied with their productivity, leading for the second consecutive year in both metrics among the surveyed countries.
Key factors drive this confidence: 52% of Spanish SMEs attribute their growth to improvements in operational efficiency, while 51% highlight increased consumer spending and the adoption of new technologies. Although 60% expect a rise in costs over the next year, 78% remain optimistic about continued growth in the next six months.
The Adoption of Digital Technologies Opens the Door to Significant Benefits for SMEs
The adoption of digital technologies has become a growth factor, providing significant benefits to SMEs. 9 out of 10 Spanish SMEs consider that investing in technology is an important factor for the growth of their businesses, and for 93%, it is one of the reasons for their revenue increase. This explains why Spanish SMEs are the most likely in the world to report benefits from investing in technology, including improved productivity (57%), driving innovation (46%), and a better experience for their customers (39%).
Investing in technology is already a priority for Spanish SMEs, with the majority (86%) expressing satisfaction with the current range of digital skills their businesses possess. Leading this digitalization is also enabling Spanish SMEs to become more aware that investing in technology allows them to spend more time on creative or higher-value business tasks, something confirmed by 78% of Spanish SMEs, compared to 71% globally.
Innovation in digitalization by Spanish SMEs in recent years, especially by domestic firms, is expected to continue to rise over the next 12 months, as 77% of Spanish SMEs expect to increase their investments in digital technologies, far exceeding the global average of 65%.
The Role of Public Administration is Crucial for Overcoming Barriers and Promoting Digitalization
Despite positive results and expectations, SMEs still face challenges in coping with rising costs. Financial pressures, including cash flow and liquidity issues, as well as increasing operational costs, are the main concerns for one in two Spanish SMEs (57%). Other worries include cybersecurity incidents (32%), the ability to hire and retain qualified workers (31%), and limited access to financing (29%).
Government intervention is essential to address these obstacles, improving access to affordable financing and simplifying billing processes through digitalization. 39% of Spanish companies that do not trust their performance cite the lack of public aid as the main cause for concern. Spanish SMEs are demanding more governmental support to advance their businesses than their global counterparts, believing that the government should prioritize tax incentives and deductions (51%), increase access to affordable financing (47%), and enhance training and skill development opportunities (43%).
Electronic invoicing is a critical area where governments can make a difference in their support for SMEs. 8 out of 10 Spanish SMEs support the introduction of national measures to adopt electronic invoicing, above the global figure of 77%. Only 5% of Spanish SMEs oppose this measure.
José Luis Martín Zabala, Managing Director of Sage Iberia, concludes: “SMEs are the backbone of our economy, fostering innovation, creating jobs, and unlocking economic growth. The confidence and growth we are witnessing among SMEs are a testament to their ingenuity, resilience, and adaptability. Governments have an important role to play in creating a conducive environment for their development through specific interventions to facilitate access to affordable financing and promote digital transformation.”