The SME employers insist on the urgency for the productive fabric to increase in order to be less vulnerable and to be able to raise wages
The average size of the Spanish company is one of the smallest in Europe and, particularly, that of Murcian SMEs within the national group. A fact that worries and keeps Cepyme busy when it comes to looking for solutions that counteract these differences. An endemic problem that has the negative consequences of lower wages, job instability and greater vulnerability in economic crises.
Therefore, the only realistic solution is to encourage larger, more productive and competitive companies. Thus, in a new report presented this month on business growth, which is being published for the second consecutive year, the SME employers’ association shows, for example, how the smaller size of our companies compared to those of other neighboring countries is a consequence of a broad set of regulations of a tax, accounting, labor and other nature, which discourage growth.
Cepyme warns that the productive fabric faces a total labor cost that is one of the highest in Europe and a minimum wage that is, in relation to the average wage, the highest on the continent. They also warn that the tax system blocks the growth of SMEs, which support the third highest social contributions in Europe, and Corporate Taxes and Personal Income Tax among the highest on the continent.
Of course, they are clear from the confederation that “there is not a problem of lack of entrepreneurship”, since the constitution of companies in Spain is one of the most vigorous in Europe. And, in this regard, the Region of Murcia is also one of the leading territories when it comes to starting businesses.
The problem, as pointed out by Cepyme, lies in the higher business mortality, since, each year, more than 9% of the active mercantile companies in Spain disappear; Therefore, only half of the companies are still alive three years after their creation.
In the same way, raising the average size of the Spanish company until it is equal to the average would allow, among other benefits, to increase GDP by 5.5%, create more than 1.3 million jobs and generate tax resources to reduce the fiscal deficit. without increasing the tax burden.
In this regard, they underline as keys to improving business growth that progress is made in three areas: cost reduction, removal of regulatory barriers and facilitating the capitalization of benefits.
lower productivity
An advance in the size of the companies would manage to mitigate the problem suffered by micro-SMEs, which are held back when it comes to being able to take advantage of economies of scale in a limited way and which tend to show lower productivity. Something that prevents paying higher wages.
Very small companies are also less resistant to overcome crisis situations, have a shorter average life, which adds instability to employment, and have less capacity to open markets and export.
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