Abstract

Sociological and Economic Problems of Small and Medium Businesses in Spain

The average size of Spanish industrial firms is fairly small, to no slight extent as a consequence of the low population density of large areas with a relatively low income level. The large number of small firms, on the other hand, results from the infrastructural conditions in rural areas, as a consequence of which there are, generally speaking, no large farms in Spain. The Spanish middle-class entrepreneur - in the industrial field, and in the fishing and agricultural sectors - is mostly inadequately trained; there is a shortage of qualified management personnel. The tax and credit system in Spain does not provide small and medium businesses the desired equality of opportunity and competition conditions. Certain types and forms of financing are still underdeveloped in Spain. It is necessary to create institutions which devote themselves to management and technological consultation (forecasts, market research, etc.). The existing advantages which have hitherto been limited exclusively to export firms with an “exporter’s card” must be extended to smaller firms. A policy is required for medium and small firms, which fosters competitive mediumsized firms in the light of the European market and restricts the advance of foreign firms in Spain, above all with regard to the development demands made on the Spanish economy