Unfortunate year for Spanish companies. The closure of 129,000 businesses in 2024 adds to the fact that around 480,000 companies plan to close 2024 with lossesaccording to the latest barometer published by the General Council of the Colleges of Administrative Managers. Furthermore, 67,000 companies are on the verge of bankruptcy, which certifies the lack of profitability of businesses in Spain.
The study reflects that 16.7% of businesses plan to close the year with losses, compared to 61.9% who believe that they will be able to end the year with profits. Regarding billing, 26.5% of companies are going to close the year with lower billing than the previous year, compared to 39.2% who expect to bill more this year than last.
Another fact that stands out from the report is that 18.3% of businesses invoice less than before the pandemicwhile 46.8% claim to have recovered the level of billing prior to the pre-covid era.
Corporate debt
Regarding the financial data, 17% of businesses have increased their debt in 2024compared to 22% who have decreased it. Of all of them, 15.7% also stand out that continue to have serious liquidity problems, which results in 67,000 businesses being on the verge of bankruptcy. “In March of this same year our Barometer indicated that 150,000 businesses were on the verge of suspension of payments,” said the president of the Administrative Managers, Fernando Jesús Santiago. “If we add to the 67,000 businesses that are in this situation at this moment the 129,000 that have disappeared, we find that there are 196,000 companies with serious liquidity problems in 2024, that is, 46,000 more than those we indicated at the beginning of the year,” Santiago has detailed.
On the other hand, In February 2024, the report already indicated that 12% of small and medium-sized companies were already operating partially or completely outside the system. In the current barometer, the figure reaches 11%. “These data have been obtained before DANA, so it is more than likely that at the end of the year they will be seriously modified as a result of the damage that tens of thousands of businesses have suffered, directly or indirectly,” he explained. the president of the Administrative Managers, who has put the Government’s aid in focus: “We will see how the aid arrives, when it arrives and under what conditions, because that will be essential so that the impact is minimized,” Santiago stated. “There are many companies that will be greatly affected indirectly, and these will not receive aid, even though they will lose sales to affected companies; they may even have difficulties collecting debts they had with directly affected companies,” he said. added the president, alluding to companies that do not have their tax residence in ‘ground zero’ and that also saw their business assets affected.
“The administration does not improve the treatment”
The report states that 83.6% of managers consider that the Administration has not improved its treatment of citizens in 2024, compared to 14% who consider that they have done so. Even so, 52.7% consider that today it is more difficult to carry out procedures with the administrations, compared to 27.6% who consider the opposite.
Also An assessment of the functioning of the Administration has been collected, which is 4.7 (out of 10)where 43% of administrative managers suspend the Administration and 34% rate it with a 5 or 6. “Our administrative managers are the professionals who carry out the most processing on behalf of the citizen before the Administration, and they continue to suffer the difficulties of collapse of this. Today it is still impossible to make prior appointments for many procedures,” Santiago detailed.
To try to improve bureaucracy, the barometer has collected a solution that the respondents have provided, which involves the promulgation of a Law of Administrative Social Collaborationas pointed out by 86% of those questioned.
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