More and more companies are deciding to internationalize their operations with the aim of growth. However, the truth is that not all have the capacity to undertake a process that can take between three and five years to establish themselves in a foreign country. When a company expands beyond its national borders, it must consider crucial aspects such as language, the country's legal regulations, cultural factors, and so on. Therefore, when considering entering other markets, it is advisable to start with countries that feel psychologically similar, where the differences are smaller, or with countries that are geographically close. Combining both approaches is even better.
The Spanish market
In recent years, Spain has become one of the preferred destinations for foreign companies to establish themselves. According to a study by PwC Consulting, 7% of all companies that set up operations in the European market each year choose Spain. Furthermore, Spain ranks fifth in terms of foreign direct investment (FDI) flows among key European Union countries such as France, Germany, and the United Kingdom.
Spain is a very attractive country for foreign companies for several reasons. First, its location within the Eurozone provides a stable and successful environment for corporate investors. It also has a strategic position with respect to other markets, such as Latin America. Second, it boasts a strong industrial and technological base, as well as a highly developed service sector. Added to this are excellent infrastructure, with superb transport and telecommunications systems, and a highly skilled workforce with labor costs below the EU average. Finally, it offers extensive incentive programs. According to Dirinver ACBB, a consultancy that has supported more than twelve projects introducing European and American companies to Spain since its founding in 1992, "Companies of a certain industrial scale demonstrate a very high level of interest in entering the Spanish market, especially through their own subsidiaries for the sale and distribution of products. However, they must be aware of the market's high standards and the demanding nature of its requirements, and therefore, many are unsuccessful during feasibility studies." At Dirinver ACBB, before recommending an implementation effort, we are very strict in analyzing its possibilities."
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