No talent, no SMEs: the great challenge that threatens 99% of the Spanish business fabric

World SME Day: A Moment for Reflection

• World SME Day invites us to reflect on small businesses’ economic and social impact.
• The main obstacle to their growth is the lack of trained and skilled talent to innovate and adapt to change.s
• There is an urgent need to educate new entrepreneurs with leadership skills, sustainability, and transversal vision.

According to the UN, small and medium-sized companies in Spain make up 99.9% of the business fabric and create 66% of total employment. Despite their great weight in the Spanish economy, many small and medium-sized companies do not have the resources or talent necessary to face current global changes and, consequently, to be able to adapt. It is precisely for this reason that World SME Day is celebrated on June 27, a date to reflect on their relevance in the sustainable development of society.

Key Barriers to SME Growth in Spain

Despite their structural importance, Spanish small and medium-sized enterprises have limitations that hinder their ability to expand, innovate and resist constant changes in the sector. Some of the challenges are:

● Low productivity, placing Spain below the European average.
● Dependence on the European market, since 98% of small and medium-sized companies consider it essential to access the single market. However, they encounter regulatory barriers that limit their expansion.
● Bureaucracy and accessing sources of financing. For this reason, the European Union promotes policies such as “The Competitiveness Compass” to reduce the volume of red tape and thus facilitate access to capital to innovate and scale.
● The constant digital transition, such as introducing artificial intelligence in its business activity.
● The integration of sustainable ESG policies is stagnating, as only 44% of European small and medium-sized companies have implemented or are about to implement ESG plans.
● Crisis management and resilience. Smaller business organizations are vulnerable in such changing environments, so they struggle to survive for more than seven years.

The qualified talent gap

Most of the shortages are due to the lack of qualified talent; in just a decade, it has gone from 3% to 62% of SMEs that do not find suitable personnel. Not only do they need technical or specialized profiles, but also professionals with a global business perspective. In this context, business schools such as TBS-Education Barcelona offer transversal courses to analyze, lead, manage teams, communicate, strategically manage the company, find solutions in crises, and digital skills and knowledge in sustainability.

Thanks to the training offered by business centers such as TBS Education, new entrepreneurs know how to promote innovation and maintain the company’s continuity.

The most sought-after profiles currently are in the fields of:
● Strategic financial management
● Digital marketing and sales
● Technological change
Data analysis
● Project management with a sustainable perspective.

As Yancy Vaillant, Professor of Strategy and Innovation at TBS Education, explains:

“In an increasingly complex global environment, the future of small and medium-sized companies will be based not only on financial resources, but also on the ability to generate and retain skilled talent. Therefore, investing in continuous training for new entrepreneurs is investing in the future of the business system.”