Publicador de contenidos

Back to Una España más competitiva y emprendedora

Ricardo Mateo, School of Economics and Business Administration, University of Navarra, Spain.

A more competitive and entrepreneurial Spain

Fri, 17 Jun 2011 10:47:38 +0000 Published in
Expansion (Madrid)

In 2011, the status of the labor market would allow companies to hire very well-trained people who are eager to work.

This is probably one of the best generations of the last ten years. The shortage of work, has led them to consider it as a treasure worth caring for and valuing.

Coupled with this great potential among young people, we have that asset prices are falling, which makes it easier to invest and grow. Therefore, we have valuable resources to start an era of growth and prosperity, which together with a privileged geopolitical status between Europe and Latin America, could make us hopeful and optimistic. However, to finish configuring an encouraging panorama, we should create the conditions so that more people want to start businesses from Spain.

Unfortunately, in the last days we have known that the Public Administrations have been the "most active entrepreneurs in Spain", having created during the last ten years, a total of 700,000 new jobs that are financed through more obligations and taxes for the citizens.

People want to start businesses when they see that they can be profitable. Spain is a very uncompetitive country in the area of entrepreneurship. To begin with, there are many direct and indirect taxes, excessively expensive social security costs, as well as rigidity in the labor market. In fact, in recent months we have seen how the State has been inventing new ways to raise more money to finance the jobs it has created. Many of these activities generate a very dubious added value or directly destroy it.

The State, the autonomous regions and the city councils, that is to say the power, have been transformed into agents of expense who believe that they are the ones who must dynamize the Economics. On the contrary, for Spain to be competitive, it is necessary to urgently reduce the public administration and power, to reduce the tax burden and promote more free individual initiative and the creation of profitable projects.

Millions of self-employed and several large entrepreneurs have seen their companies close and their projects cancelled. In addition, they currently have little desire to continue fighting. We have in our minds an image of Spain full of excellent people looking for work and lacking those who are capable of creating it. To change the entrepreneurial landscape, we need to make Spain attractive for entrepreneurship. How to become an entrepreneurial country?

We have a long way to go. Here are some of the measures that are vital: reducing the tax burden on new business projects, articulating an unemployment system that makes it easier for people to make their benefits compatible with partnership with entrepreneurial companies, transforming industrial estates into entrepreneurial hubs, developing entrepreneurial platforms in Spain for the Latin American and European markets, creating internationalization services focused on these markets, articulating awards for entrepreneurial projects and highlighting the figure of the entrepreneur as an important part of wealth creation and sustaining the welfare state, among others. I conclude: "there is nothing more important to sustain the welfare system than to create employment".

For this it is necessary to create companies and have entrepreneurs to promote them, and this is only possible if profitable business projects are created. Currently, with the existing high taxes and the difficulties imposed by the administration, it is better to develop project outside Spain. It is necessary, therefore, to have a competitive State that is efficient, austere and supports the creation of profitable business projects.