As we have already mentioned above, the COVID-19 pandemic generated a series of consequences in the entrepreneurial sector worldwide. And today, two years later, we want to show you the results of the GEM Spain 2021-2022 report, which show a recovery in entrepreneurial activity. Are you ready to discover the main news? Read on!
What is the GEM Spain report?
The Global Entrepreneurship Monitor, better known as GEM, is an international consortium coordinated worldwide by the Global Entrepreneurship Research Association, made up of researchers from more than 60 countries who are responsible for studying the state of entrepreneurship worldwide.
They also focus on describing in detail the profile of the entrepreneur, the environment in which they operate, as well as on identifying the factors that increase the levels of entrepreneurship and the associated economic development.
In this sense, we can say that the GEM Spain report is an annual report that collects relevant data concerning the entrepreneurial environment in Spain.
2021-2022 edition: interesting facts
Recently the Observatory of Entrepreneurship in Spain (RED GEM Spain) and the National Innovation Company (ENISA) have presented their new edition 2021-2022. Here are the most relevant data:
During 2021, entrepreneurial activity reached a recovery of 5.5% of the population; thus obtaining a percentage similar to that which existed before the outbreak of the pandemic. Moreover, it is considered a timely data to mention, since this fact has occurred despite an existing rate of 2.2% of entrepreneurial abandonment.
Likewise, for the first time, there is an increase in the number of women involved in entrepreneurial initiatives of less than three and a half years of life, compared to the male population, which is 5.6% vs. 5.4%.
This increase in the female audience occurred in all phases of the entrepreneurial process; however, the most technologically advanced projects are the least popular.
In 2021, there was also a specific growth in the number of young women (18 to 44 years old) who are in the initial stage of their entrepreneurship, which was 63% compared to 52% in 2020.
On the other hand, the profile of women entrepreneurs is more likely to be university-educated, as 38% of them confirm this, compared to 32% who define male entrepreneurs in Spain.
The GEM Spain Report shows an increase of 10% of the population, in terms of the percentage of people who wish to become entrepreneurs in the next 3 years. Therefore, taking into account the latent opportunities in the country, a greater growth of entrepreneurial activity is foreseen for the coming years.
In this way, Spain is also positioned as a country that has withstood the health crisis in the best way in the entrepreneurial sector.
What does this mean? Simply put, for the most part, both established companies and entrepreneurial initiatives have been able to avoid closure as a result of the COVID-19 pandemic. However, it should be noted that this is not in line with the 15% average estimated by the European Union.
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Current changes in the entrepreneurial movement
As we have already mentioned, the GEM Spain Report explains that, as a result of the pandemic in 2020, the entrepreneurial movement witnessed a turnaround in the country involving aspects such as:
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Profile of the Spanish entrepreneur
The average entrepreneur in Spain is defined as being between 35 and 54 years of age, with a medium or higher level of education, and specific training at the time of starting and managing their business.
If you ask yourself what usually motivates Spaniards to become entrepreneurs, the data is quite clear: 70% of them say that the lack of employment is the main reason for starting their own business.
Fear of failure
On the other hand, the main limiting factor when it comes to entrepreneurship is the fear of failure for 42% of people, and 61% consider it an inhibiting factor.
Around 70% of Spaniards today set up their businesses with a capital of 30,000 euros or less, and tend to use their personal savings to get started.
Regarding entrepreneurial initiatives, 28% of people focus on innovating products or processes at a local level.
At this point, it can be observed that most of the enterprises are microenterprises with a maximum of 5 employees.
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The GEM Report forecasts a reduction in the number of family entrepreneurship projects in the future.
It is estimated that around 10% of the ventures include a medium-high technological level, such as business services proposals.
By 2021, an increased number of entrepreneurial initiatives in Spain were related to an international clientele, representing 35% of the total.
In Spain, the Autonomous Communities currently considered the most entrepreneurial are: Madrid, Catalonia and Cantabria, as they stand out 5.5% above the rest of the national territory.
Digitalization and sustainability
Digitalization and sustainable ventures have taken off in the last year, with 21% of recent initiatives and 27% of established companies relying on digital transformation and showing concern for social and environmental impact.
If you want to create your own business in Spain, probably the data collected in the GEM Spain Report 2021-2022 will give you the push you need to start your venture. And if you have doubts about tax or legal management, our experts at TAS Consultancy will advise you on every step you need. }