Smes and Micro-Smes: Their importance and their disadvantages

12/02/2014 | Óscar Clemente Campo (Alumno UC)

SMEs and micro-SMEs are small and micro sized enterprises, which mean they have relatively few employees in the company (less than 50 employees) and they have less than 1 million euros in revenue. These enterprises have been the traditional Spanish companies throughout history, and many of them are family businesses. Family companies are usually inherited, and become a family business when the members of the family begin to help and support them.

Today, SMEs and micro-SMEs are the most important businesses in the Spanish economy and are contributing to the recovery from the crisis. They provide 98% of the employment in our economy and make up 99% of all Spanish companies.

During the last few years, many Spanish SMEs have had severe difficulties because the downturn in the national and international economy. These small companies have more disadvantages than bigger companies in many different areas and aspects of the economy.

Nowadays, SMEs and micro-SMEs provide more taxes than the big companies; the amount that big companies pay isn´t proportional with respect to SMEs. This means that SMEs are at a disadvantage in the market and their profits are reduced because of Spain´s fiscal structure.

Another aspect is that SMEs have a difficultly accessing finance from banks. The banks want guarantees to award loans to companies. Nowadays, banks have reduced their loans to small companies in general, and this means that these companies lose liquidity and the power to invest in the market (and in themselves).

In conclusion, now SMEs are suffering from a difficult situation, which is different than what large companies are going through. SMEs need the government and public administrations to enact different policies. I propose that politicians should support policies in benefit of SMEs and, furthermore, I recommend that tax rates should be similar between big and small companies so as to be proportional.

Nota: Este artículo ha sido elaborado por Óscar Clemente Campo, alumno de la Universidad de Cantabria, como una de las actividades enmarcadas dentro del programa de capacitación lingüística, dando su permiso para la publicación del mismo en FxM.

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