Business in Spain

Click here to access the press release from the INE (Spanish Statistial Institute) on the evolution of corporations in Spain. These figures serve me for explain briefly how to analyze the business of our country. Yes, you know: "The only thing that creates jobs."

In 2010 there were in Spain 3,291,263 companies, of which 1,202,055 had only one employee: the entrepreneur. Another point to consider is that there is a public limited company for every 10 limited liability company. The last ingredient to add to this salad is that data with figures for 2008, Spain was Europe's second largest number of non-financial companies, just below Italy (3905800), and a figure that exceeds almost one million as of Germany (2,712,400 versus 1,818,900).

Source: INE

There are two elements that define the Spanish Company:

1.       Is highly fragmented, there are many small businesses. 
2.       PLCs are poorly implemented.

What impact have these traits in the Spanish Economy ?

1.  Labour Market

 In companies with a small numbers of workers, the coercive power of the employer is much higher. In order to correct this situation there were introduced in our country  collective agreements ( is said, the documents where are marked hours, wages , holidays ... ) in sectorial and provincial level . The idea of ​​placing collective agreements on a scale greater than the company comes from the existence of these small businesses , in which is absurd to have a balanced negotiation between worker and owner. People who defending a labor reform who involving that enterprise agreements are the only ones to be counted, just looking to harness the power of the employer in the workplace. We must not forget to negotiate an agreement at a high level is a right of workers.

2. Financing companies.

The result of poor implementation of corporations is to prevent alternative and more flexible way of financing business. As we know, one PLC can acquire capital by selling shares, and thus do not have to borrow money from a bank. The excessive weight of banks and public savings in our economy is a fact that is backed because it is precisely the most important companies in the country. 

These two features are fed back as the company is a corporation organized in easy growth, which in turn encourages greater balance in labor relations within the company, helping (not guarantee) to achieve greater social peace .