Policy to Support SMEs through Knowledge

The Ministry of Economy, specifically the Directorate General for SME Policy, has prepared the report "SMEs in Spain 1996-2000." This study aims to address the social and economic importance of Spanish businesses and organize the most relevant data in this regard. Maria Isabel Barreiro, Director General of the DGPYME, explains this.

What is the DGPYME?

The Directorate General for Small and Medium-Sized Enterprise Policy is attached to the State Secretariat for the Economy, Energy, and SMEs of the Ministry of Economy. Its functions encompass several actions, and it also includes the Deputy Directorate General for SME Support; the Deputy Directorate General for SME Financing; the Deputy Directorate General for Business Creation and Information; and the Deputy Directorate General for SME Coordination and External Cooperation. To implement its SME policy plans, it utilizes several instrumental companies such as CERSA (Spanish Reinsurance Company); ENISA (National Innovation Company); and DDI (State Society for the Development of Design and Innovation).

Functions of the Directorate General for SME Policy.

:: The design, coordination and monitoring of the state policy for the promotion, support and development of the activity of small and medium-sized enterprises and, in particular, of self-employed entrepreneurs.

:: Preparation of studies and statistics on small and medium-sized enterprises.

:: Design, coordination and execution, where appropriate, of public policies on financing of small and medium-sized enterprises.

:: Development of actions and, where appropriate, management of public aid that promotes SME initiatives in the areas of quality, design, innovation, information society, environment, new technologies and access to new markets and, in general, all those aimed at improving competitiveness, in coordination with the other competent bodies of the General State Administration in these matters.

The data from the report prepared by the DGPYME (Directorate General for SME Policy) presents a clear overview of the dataset related to SMEs in Spain. To illustrate the evolution of the main variables that characterize them during the period of 1996-2000, it is important to note that 99% of Spanish companies are classified as SMEs, making them the sector of the Spanish economy that contributes most significantly to job creation and wealth generation. María Isabel Barreiro, Director General of SME Policy, explains the main conclusions drawn from this study.

:: The exercise of bilateral and multilateral relations with other countries and international organizations on matters related to small and medium-sized enterprises. In particular, with the European Union, for the coordination and management of EU financial resources allocated to SMEs.

:: Implementation and monitoring of business cooperation policies to promote access to new markets for small and medium-sized enterprises.

:: Implementation of Government policies on business creation and simplification of the Administration's relations with SMEs, as well as the preparation and development of legal regulations, management of the administrative register, one-stop shops and advice to SME entrepreneurs.

:: The provision of services supported by telematics networks and the development of information programs aimed at small and medium-sized enterprises

:: Communication and dissemination of information that is of interest to SMEs.




For more information:
María de Molina, 50, 2nd Floor, 28006 Madrid, Spain. Tel.: +34 91 545 08 20 – +34 91 545 08 02
Economic policy decisions must be based on a thorough understanding of the realities in which businesses operate in our country. This principle is especially relevant for small and medium-sized enterprises (SMEs), given that they represent 99,84% of the country's business fabric, generate 79,8% of employment and 62% of national sales, and account for 60% of exports. However, the social and economic importance of SMEs in Spain was not sufficiently reflected or structured in the available statistical data, forcing those interested to consult various sources that compiled the data using disparate methodologies.

Therefore, with the aim of responding to this demand as much as possible, at the General Directorate of SME Policy we undertook the work of selecting and organizing the most relevant data that were scattered about the reality of this business fabric.

Maria Isabel Barreiro, Director General of SME Policy.


Thus Panorama PYME was born, a collection of publications that will deepen the knowledge of small and medium-sized enterprises, and whose first book, SMEs in Spain 1996-2000, corresponding to the series of structure reports, is already available.



The indicators in this study were selected for their relevance in providing the most comprehensive diagnosis possible of the situation of small and medium-sized enterprises (SMEs) in Spain. These indicators range from innovation and R&D spending to the integration of SMEs into information and communication technologies and business dynamism, among others. The report generally demonstrates the positive impact of the government's support policies for SMEs.



The report concludes with an analysis of the situation of Spanish SMEs compared to the rest of the member states of the European Union.
The time period analyzed from 1996 to 2000 is marked by the economic policy that allowed Spain's participation, as a founding member of the euro, in the beginning of the third phase of the Economic and Monetary Union.

The report shows, in general terms, the favorable impact that the support policies implemented by the Government have had on this type of company, aware of their importance to the rest of the economic fabric, which has allowed, in this period, the reduction of the net financial burden of SMEs, the renewal of productive assets and the financing of new business projects.



Spanish SMEs have a greater impact than their European counterparts in terms of job creation.
In this sense, and according to the data on the evolution of the report, we can affirm that Spanish SMEs "have grown": there are 8,8% more active companies than in 1996.
By sector, more SMEs have been created in construction, transport, communications, and services. The gross profit of the smallest companies in Spain increased by 10% annually, and ordinary business income by 11%, according to the average for the period analyzed. Similarly, wages, measured as total wage cost per person, increased at an average annual rate of 3% during the period. Compared to other European Union countries, the report indicates that Spanish SMEs have a greater impact on job creation (13,8% more) and participate 8,3% more in sales. Regarding technological effort, our SMEs need to accelerate their adaptation to new technologies, given that, in relation to Europe, the percentage of small business units with internal innovation is half the European average (21,6% in Spain versus 44% in Europe). However, statistical indicators also show that R&D spending increased by 21%, contributing 51,68% to the national R&D effort (1996-1999). The reflection that should accompany the data included in this first structural report is that progress in support policies is only possible through an understanding of the reality, both its positive and negative aspects. This has a very positive impact on the development of increasingly effective measures for our small and medium-sized enterprises.





Coexia®

AI in the foreign trade

Hi! I'm Coexia. How can I help you today with your internationalization strategy?
Coexia IA