Spain

Institution: UCEIF Foundation-CISE / GEM Spain Network
Survey Vendor: Instituto Opinòmetre S.L.
Funders: Santander Bank

GEM Spain Network

Fundación Rafael Del Pino
Key Indicators
TEA: 5.5%
 
Total early-stage Entrepreneurial Activity: percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business
Established Business Ownership: 7.0%
 
Percentage of 18-64 population who are currently an owner-manager of an established business, i.e., owning and managing a running business that has paid salaries, wages, or any other payments to the owners for more than 42 months
Perceived Opportunities: 23%
 
Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who see good opportunities to start a firm in the area where they live
Perceived Capabilities: 48%
 
Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who believe they have the required skills and knowledge to start a business
Entrepreneurial Intention: 7.1%
 
Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who are latent entrepreneurs and who intend to start a business within three years
Fear of Failure: 38%
 
Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who indicate that fear of failure would prevent them from setting up a business

Stable levels of entrepreneurial activity - albeit lower than pre-crisis levels and the European average


Most recent data: 2014


A high unemployment rate continues to be a major problem for the Spanish economy. The results of GEM 2014 show that the percentage of entrepreneurs who launch businesses motivated by a lack of access to the labour market has been increasing in recent years. These new firms, in many cases, are not very competitive when it comes to extending their business beyond the critical first five years of existence. Their owners lack the ambition, and often the capacity/skills, to expand their businesses. 

Although firm size does not seem to increase much during the early stage of new ventures (averaging 1-3 employees), new businesses do tend to make it into the marketplace. Spain's business discontinuation rate is lower than that found in other advanced economies.

The average entrepreneur in Spain is around 39 years old, with 35.4% of the total falling between 35 and 44 years of age. Indeed, adult individuals in this age range are the most likely to be involved in entrepreneurial activity, which suggests that the average Spanish entrepreneur has some previous experience before starting up a business, especially during the economic recession. 

Most entrepreneurs are male, although the gender gap narrowed in 2014. About half have higher education and almost 50% have received specific training for entrepreneurship. Individuals with high income levels are more likely to start up than those with lower income levels.


Enablers and Constraints


According to the experts interviewed as part of the National Experts Survey, the major enablers of entrepreneurship in Spain are:

  • a positive valuation of innovation from the consumer’s point of view. In other words, Spanish consumers are interested in testing innovative products/services;
  • availability and access to physical and service infrastructures (i.e. ports, roads, renewable and sustainable energy, utilities, technology and communication), providing good support for new and growing enterprises.

However, entrepreneurship in Spain is also highly constrained by governmental policies and financing for entrepreneurs. In particular:

  • Onerous bureaucracy and a heavy tax burden (i.e. higher contributions to Social Security and corporate income tax) slow down the entrepreneurial process (i.e. start-up, growth and consolidation).
  • Problems raising funding was a major constraint and cause of failure for entrepreneurs. During recessions, financing for entrepreneurs is more difficult because there is limited access to credit and a lack of cash flow in companies.



Area of Focus: Entrepreneurship and Education 


In 2014, the Spanish GEM team took a closer look into the relationship between entrepreneurship and education.  It found that:

  • In Spain there is a growing number of initiatives which set out to promote the entrepreneurial spirit, from both public and private institutions;
  • The current Law on Education and the recently adopted Law for Improving the Quality of Education recognise the need to strengthen the entrepreneurial spirit of young people, fostering creativity, flexibility, initiative, teamwork and self confidence;
  • This progress is welcome; however, efforts need to be intensified if they are to produce real change in society.


Trends Over Time


Entrepreneurial activity in Spain has suffered the effects of the economic recession. The TEA rate decreased from 2008 to 2010, and after a slight increase it remains lower than the levels experienced just before the beginning of the recession (7% in 2007). The relative prevalence of nascent entrepreneurship has increased during the last five years.


Challenges for the Future


The big challenge is tackling the high unemployment rate, which is forcing people to start up businesses. Necessity-driven entrepreneurship can often mean the creation of new businesses which struggle to survive in the long run. 

It is important to reduce the costs of failure in order to encourage people to experiment. Compared to OECD countries, it takes more than twice the effort (in terms of time and the number of procedures to complete) to start up in Spain. Thereby, reducing bureaucratic barriers to start up is a major challenge. Lack of financing is also a barrier that must be overcome.


Spain Reports

Name
Report information
pdf
  • Year of publication: 2015
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2016-04-25

  • This report discusses entrepreneurship in the EUROACE region i.e. the three European regions of Alentejo, Centro and Extremadura, in the period June 2014 to February 2015. 7.6% of the population between 18 and 64 years old has been involved in entrepreneurial activities in the EUROACE region. The Portuguese region of Centro obtained the highest rate of entrepreneurial activity (TEA) with 7.8% of entrepreneurs, whereas Alentejo has 7.1% and the Spanish region of Extremadura 7.4%.
  • URL: http://www.gemconsortium.org/report/49532
GEM Euroace 2014-2015 Report - Alentejo (Portugal), Centro (Portugal), Extremadura (Spain)
Report information
pdf
GEM Spain 2013 Report
Report information
pdf
  • Year of publication: 2014
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2015-03-27

  • A special report on the 'Euroace' region, composed of Alentejo (Portugal), Centro (Portugal) and Extremadura (Spain).

  • URL: http://www.gemconsortium.org/report/49069
GEM Euroace 2014 Report - Alentejo (Portugal), Centro (Portugal), Extremadura (Spain)
Report information
pdf
GEM Spain 2012 Report
Report information
pdf
  • Year of publication: 2013
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2015-03-27

  • 1.- The level of female entrepreneurial activity has been, on
    average lower tan that of men in the last nine years (5.11%
    vs. 7.57%), but after the onset of the economic crisis, there
    is less of a gap between the two numbers. Developments
    in Spain conrm this trend (4.43% vs. 7.73%), although on
    the national level the numbers have not grown closer
    together due to the economic crisis.
    2.- The number of women who have been involved in
    entrepreneurial activities in Extremadura during this time
    period has been 151,659, compared to 227,268 men, which
    means that for every man who has been involved in
    entrepreneurial activities, there have been 0.73 women
    doing the same.
    3.- The highest percentage of female entrepreneurial
    activity in Extremadura is in rural areas (5.43% vs.
    4.66%) in the province of Cáceres (5.43% vs. 4.44%). The
    areas of northern Cáceres (5.73%) and Barros in Badajoz
    (5.24%) are those that have had greater female
    entrepreneurial activity.
    4.- Although the number of potential entrepreneurs is still
    lower than that of male entrepreneurs (6.70% vs. 9.40%),
    this number has grown by 67.5% in the last nine years. The
    same applies to the consolidated companies, which grew
    42.30%, but still not at the same level as that of male
    entrepreneurs. On the contrary, the percentage of closures
    of both sexes (1.8% vs. 1.7%) is now similar due to an 260%
    increase in women who closed their businesses in the last
    nine years.
    5.- The main reasons given by women entrepreneurs for
    closing a business in Extremadura between 2005 and 2011
    were the lack of protability, funding problems and
    personal reasons. After the start of the economic crisis,
    certain reasons, such as the lack of protability or the
    retirement of women entrepreneurs, are mentioned more,
    while problems for nancing, which were previously
    regarded as the leading cause of closure, are the reasons
    now less cited.
    6.- The businesswoman in Extremadura has started a
    business more frequently to take advantage of
    opportunities than out of necessity, although to a lesser
    extent than men (3.06% vs. 1.93%). However, when the
    business was started for reasons of necessity, their
    percentages did not dier much from that of men (0.55%
    vs. 0.41%). The quality of entrepreneurship (the ratio of
    companies created by chance and necessity) between
    2003 and 2011 is somewhat irregular, with signicant
    increases and decreases for both men and women.
    7.- Women entrepreneurs in Extremadura are of Spanish
    origin, 39.91 years old, educated at the high school level or
    higher, have an income level of between 1,200€ and
    1,800€, and live in a household of 3 people. Most have
    created their business in an urban area of the province of
    Badajoz in the geographical area of Vegas de Guadiana and
    have worked full or part time before starting a business.
    8.- The average number of entrepreneurs who start a new
    business with a single owner is 53.74%. 29.59% start a
    business with two owners and the remaining 16.67% have
    more than three.
    9.- In the new businesses created by women, the
    consumer-oriented sector is the largest (54.63%), followed
    by the sector of transformation (24.31%), business services
    (19.12%), and the remaining percentage in the primary
    industry. In consolidated companies, the sectoral
    distribution is similar, but the primary sector exceeds that
    of business services (13.99% vs. 11.59%).
    10.- The average capital that female entrepreneurs from
    Extremadura have invested to start a business is around
    32,717€, of which they have provided about 52%, or
    16,937€. Before the start of the economic crisis, they
    needed an average capital of 40,492.50€, of which
    19,489.34€, or about 48%, was provided by entrepreneurs.
    However, once the economic crisis started, the average
    capital in that time period was 18,333.33€, of which
    entrepreneurs contributed almost the totality of that sum,
    or 14,583.33€.
    The private investor Extremadura is generally a casual,
    female investor who acts in an unprofessional manner, is
    about 43 years old, and invests on average 14,925€,
    compared to 13,350€ of a casual male investor.
    11.- Women are at a disadvantage compared to men when
    it comes to attitudes and perceptions regarding
    entrepreneurs. There is a smaller percentage of women
    who personally know other entrepreneurs (14.13% vs.
    19.15%), perceive good business opportunities (10.21% vs.
    12.48%) or believe that they have the knowledge and skills
    to start an entrepreneurial activity (21.79% vs. 25.98%).
    Moreover, starting in the year 2005, both men and women
    started to believe they possess more abilities. In addition,
    EXECUTIVE REPORT women also show the greatest fear when starting a
    business compared to men in the period studied (22.06%
    vs. 27.35%), with an increase in the fear of failure in recent
    years in both sexes.
    12.- There is considerable similarity between men and
    women with regard to the perceptions of
    entrepreneurship as a desirable career (59.85% vs. 58.73%),
    the status of successful entrepreneurs (54.63% vs. 54.86%),
    the attention the media gives to businessmen and women
    (42.13% vs. 39.60%) and the preference for a similar
    standard of living around the world (57.71% vs. 60.80%).
    However, in the latter, the lack of competitive spirit is
    slightly higher in females than in males.
    13.- In terms of jobs created in the initial companies, we
    can see slight dierences in both genders, since more
    women lead more initiatives with no employees (29.7% vs.
    22.6%), while there are now fewer initiatives with between
    1 and 5 employees (61.4% vs. 68.3%). In the case of the
    consolidated business, the personnel structure is similar.
    14.- Approximately 17% of women's initial initiatives do
    not have plans to increase their workforce after ve years.
    13.9% expect to have between 6 and 19 employees, while
    more than 67% said they expected to employ between 1
    and 5 employees, compared to 61% of male initiatives.
    Moreover, their expectations are more ambitious with
    respect to having a larger sta than men (2.2% vs. 0.7%).
    However, in consolidated companies, the expectations are
    the same (2.7% vs. 2.6 %).
    15.- In new businesses, there is a greater (albeit moderate)
    innovative, productive capacity of the initiatives
    undertaken by women compared to that of men. This can
    be seen in relation to new products/services which are
    perceived as new to potential consumers (40.2% vs. 33.3%),
    in regards to the level of competition expected in the
    market (84.6% vs. 91.2%), and the expected expansion of
    business carried out with or without new technologies
    (44.1% vs. 32.3%). However, in the latter case, when
    companies are consolidated, both sexes have the same
    expectations of expansion (50% vs. 50.5%).
    With regard to the use of production technologies, both
    sexes have very similar percentages (24.8% vs. 21.4%).
    However, it seems that women stopped using the latest
    technology when they begin to consolidate their
    businesses (9.9% vs. 0%), while men increased their use of
    technology (6.9% vs. 24.3%).
    16.- When analyzing the specic environmental
    conditions to start a business from 2003 to 2011 and from
    the point of view of gender, we see that female experts
    have a more positive view of environmental conditions
    than male experts. The female experts more positively
    evaluated the interest in innovation, either by consumers
    or businesses, governmental policies and programs,
    support for business growth and social and cultural norms
    for entrepreneurship, although they did not actually
    endorse them in the latter case.
    As for the factors that hinder entrepreneurial activity, the
    opinion of women and men is quite similar. However, while
    female experts give more importance to social and cultural
    norms, male experts put a greater emphasis on
    government policies, access to physical infrastructure or
    the political, institutional and social context.
    Among the factors that have favored entrepreneurship, the
    female experts that are driving entrepreneurship value
    government programs, nancial support or professional
    and business infrastructure. Male experts emphasize the
    impact of public policy, access to physical infrastructure,
    education and entrepreneurial training, market openness,
    social and cultural norms, or the political, institutional and
    social context in which the entrepreneur develops.
    In terms of recommendations for increasing
    entrepreneurial activity, both men and women opt for
    education and entrepreneurial training, policy and
    government programs, nancial support, social and
    cultural norms or access to physical infrastructure.
    However, female experts seem to lean more to the
    inuence that the entrepreneurial support programs have,
    or to the change in cultural and social values towards
    entrepreneurship. On the other hand, male experts, in
    addition to those already mentioned, emphasize the
    promotion of technology transfer to companies or the
    openness of a market for goods and services.
    1.- The level of female entrepreneurial activity has been, on
    average lower tan that of men in the last nine years (5.11%
    vs. 7.57%), but after the onset of the economic crisis, there
    is less of a gap between the two numbers. Developments
    in Spain conrm this trend (4.43% vs. 7.73%), although on
    the national level the numbers have not grown closer
    together due to the economic crisis.
    2.- The number of women who have been involved in
    entrepreneurial activities in Extremadura during this time
    period has been 151,659, compared to 227,268 men, which
    means that for every man who has been involved in
    entrepreneurial activities, there have been 0.73 women
    doing the same.
    3.- The highest percentage of female entrepreneurial
    activity in Extremadura is in rural areas (5.43% vs.
    4.66%) in the province of Cáceres (5.43% vs. 4.44%). The
    areas of northern Cáceres (5.73%) and Barros in Badajoz
    (5.24%) are those that have had greater female
    entrepreneurial activity.
    4.- Although the number of potential entrepreneurs is still
    lower than that of male entrepreneurs (6.70% vs. 9.40%),
    this number has grown by 67.5% in the last nine years. The
    same applies to the consolidated companies, which grew
    42.30%, but still not at the same level as that of male
    entrepreneurs. On the contrary, the percentage of closures
    of both sexes (1.8% vs. 1.7%) is now similar due to an 260%
    increase in women who closed their businesses in the last
    nine years.
    5.- The main reasons given by women entrepreneurs for
    closing a business in Extremadura between 2005 and 2011
    were the lack of protability, funding problems and
    personal reasons. After the start of the economic crisis,
    certain reasons, such as the lack of protability or the
    retirement of women entrepreneurs, are mentioned more,
    while problems for nancing, which were previously
    regarded as the leading cause of closure, are the reasons
    now less cited.
    6.- The businesswoman in Extremadura has started a
    business more frequently to take advantage of
    opportunities than out of necessity, although to a lesser
    extent than men (3.06% vs. 1.93%). However, when the
    business was started for reasons of necessity, their
    percentages did not dier much from that of men (0.55%
    vs. 0.41%). The quality of entrepreneurship (the ratio of
    companies created by chance and necessity) between
    2003 and 2011 is somewhat irregular, with signicant
    increases and decreases for both men and women.
    7.- Women entrepreneurs in Extremadura are of Spanish
    origin, 39.91 years old, educated at the high school level or
    higher, have an income level of between 1,200€ and
    1,800€, and live in a household of 3 people. Most have
    created their business in an urban area of the province of
    Badajoz in the geographical area of Vegas de Guadiana and
    have worked full or part time before starting a business.
    8.- The average number of entrepreneurs who start a new
    business with a single owner is 53.74%. 29.59% start a
    business with two owners and the remaining 16.67% have
    more than three.
    9.- In the new businesses created by women, the
    consumer-oriented sector is the largest (54.63%), followed
    by the sector of transformation (24.31%), business services
    (19.12%), and the remaining percentage in the primary
    industry. In consolidated companies, the sectoral
    distribution is similar, but the primary sector exceeds that
    of business services (13.99% vs. 11.59%).
    10.- The average capital that female entrepreneurs from
    Extremadura have invested to start a business is around
    32,717€, of which they have provided about 52%, or
    16,937€. Before the start of the economic crisis, they
    needed an average capital of 40,492.50€, of which
    19,489.34€, or about 48%, was provided by entrepreneurs.
    However, once the economic crisis started, the average
    capital in that time period was 18,333.33€, of which
    entrepreneurs contributed almost the totality of that sum,
    or 14,583.33€.
    The private investor Extremadura is generally a casual,
    female investor who acts in an unprofessional manner, is
    about 43 years old, and invests on average 14,925€,
    compared to 13,350€ of a casual male investor.
    11.- Women are at a disadvantage compared to men when
    it comes to attitudes and perceptions regarding
    entrepreneurs. There is a smaller percentage of women
    who personally know other entrepreneurs (14.13% vs.
    19.15%), perceive good business opportunities (10.21% vs.
    12.48%) or believe that they have the knowledge and skills
    to start an entrepreneurial activity (21.79% vs. 25.98%).
    Moreover, starting in the year 2005, both men and women
    started to believe they possess more abilities. In addition,
    Fundación Xavier de Salas 11
    Global Entrepreneurship Monitor. Informe Monográco sobre Género
    women also show the greatest fear when starting a
    business compared to men in the period studied (22.06%
    vs. 27.35%), with an increase in the fear of failure in recent
    years in both sexes.
    12.- There is considerable similarity between men and
    women with regard to the perceptions of
    entrepreneurship as a desirable career (59.85% vs. 58.73%),
    the status of successful entrepreneurs (54.63% vs. 54.86%),
    the attention the media gives to businessmen and women
    (42.13% vs. 39.60%) and the preference for a similar
    standard of living around the world (57.71% vs. 60.80%).
    However, in the latter, the lack of competitive spirit is
    slightly higher in females than in males.
    13.- In terms of jobs created in the initial companies, we
    can see slight dierences in both genders, since more
    women lead more initiatives with no employees (29.7% vs.
    22.6%), while there are now fewer initiatives with between
    1 and 5 employees (61.4% vs. 68.3%). In the case of the
    consolidated business, the personnel structure is similar.
    14.- Approximately 17% of women's initial initiatives do
    not have plans to increase their workforce after ve years.
    13.9% expect to have between 6 and 19 employees, while
    more than 67% said they expected to employ between 1
    and 5 employees, compared to 61% of male initiatives.
    Moreover, their expectations are more ambitious with
    respect to having a larger sta than men (2.2% vs. 0.7%).
    However, in consolidated companies, the expectations are
    the same (2.7% vs. 2.6 %).
    15.- In new businesses, there is a greater (albeit moderate)
    innovative, productive capacity of the initiatives
    undertaken by women compared to that of men. This can
    be seen in relation to new products/services which are
    perceived as new to potential consumers (40.2% vs. 33.3%),
    in regards to the level of competition expected in the
    market (84.6% vs. 91.2%), and the expected expansion of
    business carried out with or without new technologies
    (44.1% vs. 32.3%). However, in the latter case, when
    companies are consolidated, both sexes have the same
    expectations of expansion (50% vs. 50.5%).
    With regard to the use of production technologies, both
    sexes have very similar percentages (24.8% vs. 21.4%).
    However, it seems that women stopped using the latest
    technology when they begin to consolidate their
    businesses (9.9% vs. 0%), while men increased their use of
    technology (6.9% vs. 24.3%).
    16.- When analyzing the specic environmental
    conditions to start a business from 2003 to 2011 and from
    the point of view of gender, we see that female experts
    have a more positive view of environmental conditions
    than male experts. The female experts more positively
    evaluated the interest in innovation, either by consumers
    or businesses, governmental policies and programs,
    support for business growth and social and cultural norms
    for entrepreneurship, although they did not actually
    endorse them in the latter case.
    As for the factors that hinder entrepreneurial activity, the
    opinion of women and men is quite similar. However, while
    female experts give more importance to social and cultural
    norms, male experts put a greater emphasis on
    government policies, access to physical infrastructure or
    the political, institutional and social context.
    Among the factors that have favored entrepreneurship, the
    female experts that are driving entrepreneurship value
    government programs, nancial support or professional
    and business infrastructure. Male experts emphasize the
    impact of public policy, access to physical infrastructure,
    education and entrepreneurial training, market openness,
    social and cultural norms, or the political, institutional and
    social context in which the entrepreneur develops.
    In terms of recommendations for increasing
    entrepreneurial activity, both men and women opt for
    education and entrepreneurial training, policy and
    government programs, nancial support, social and
    cultural norms or access to physical infrastructure.
    However, female experts seem to lean more to the
    inuence that the entrepreneurial support programs have,
    or to the change in cultural and social values towards
    entrepreneurship. On the other hand, male experts, in
    addition to those already mentioned, emphasize the
    promotion of technology transfer to companies or the
    openness of a market for goods and services.

  • URL: http://www.gemconsortium.org/report/48786
GEM Spain 2003 - 2011 - Extremaudra: Monográfico sobre Género
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