Spanish SMEs face financial and digitalization challenges in their growth.

Small and medium-sized enterprises (SMEs) have emerged as the true engine of the Spanish economy, representing a significant part of the business fabric and employment in the country. However, in an environment marked by geopolitical uncertainty and macroeconomic tensions, SMEs face an increasing challenge in terms of financing. A recent meeting titled "Challenges and Solutions for the Current Spanish SME," organized by EXPANSIÓN in collaboration with Banco Sabadell in Barcelona, highlighted that more than 50% of these companies have financing needs, a considerable increase from the 30% just four years ago. Marga Valcarce, commercial director of the Catalonia territorial branch of Banco Sabadell, emphasized during her speech the relevance of SMEs to the institution. According to Valcarce, two out of three small and medium-sized enterprises in Catalonia already rely on the services of Banco Sabadell. However, she also pointed out that these companies face a series of challenges that require urgent attention. Among the most prominent are digitalization, internationalization, customer relations, and, of course, financing. Mireia Cammany, vice president of Pimec and deputy general director of EPI Industries, addressed the recent tax reform approved by the government on November 21, which is expected to benefit companies with less than one million euros in revenue. However, Cammany also warned about the concerning increase in absenteeism, which has doubled in the last decade, potentially affecting the productivity and stability of SMEs. The discussion panel on the common financial challenges facing SMEs revealed that the cost of debt and access to guarantees are significant obstacles. Elisa Sánchez Barrena, director of corporate financing at Banco Sabadell, mentioned that the increase in financing needs has risen to 50% in the past year due to digitalization and the search for new growth opportunities. "Banks must adapt to these new needs, and SMEs must understand that access to financing is increasingly conditioned on the presentation of guarantees," Sánchez Barrena stated. Pere Cots, director of strategic consulting and financing at Pimec, emphasized that small companies face even more difficulties in accessing financing. He highlighted two crucial trends: the end of ICO loans, which have been an important resource during the pandemic, and the evolution of banking towards an artificial intelligence-based model. "The scoring and rating of SMEs will be based on automated processes, which can be a challenge for those that have not yet adopted digitalization," he added. Olaya Martínez, head of business services at Barcelona Activa, identified the lack of financial planning as one of the most common weaknesses among SMEs. This assertion was supported by Noemí Gálvez, risk director of the Catalan Finance Institute (ICF), who highlighted the importance of public services in financing. Martínez and Gálvez agreed that advisory services, microloans, and financing lines with subsidized rates are essential tools to support SMEs on their path to financial sustainability. On the other hand, Gálvez also highlighted the recent takeover bid for Banco Sabadell, emphasizing that banking concentration is usually not beneficial for small and medium-sized enterprises. "Historically, after mergers, the availability of financial options for SMEs tends to decrease," she commented, stressing that greater diversity in financing options is crucial for the development of these companies. The meeting concluded with a strong call to action to improve the financing of SMEs in Spain. Collaboration between the public and private sectors presents a key opportunity, with the possibility of leveraging the 20 billion euros of Next Generation funds available. These initiatives not only have the potential to facilitate access to financing but also to promote innovation and sustainability in the business fabric. As SMEs continue to face these challenges, the path to better financing seems tied to adaptation and resilience. Companies that manage to integrate financial planning, digitalization, and collaboration with banking entities and public organizations will be better positioned to thrive in a constantly changing economic environment. The ability of SMEs to navigate these obstacles will not only impact their individual success but will also be fundamental to the economic health of the entire country.