The Spanish market has been buzzing with a heartful Bienvenido(welcome) for new and aspiring business owners. Not to mention the attractive facts that point towards Spain being one of the most flourishing industrial regions in the European Union as we speak. Even the linguistic backwardness of the pure Spanish language used for doing business is also being sidelined for the sake of cultural diversity due to which communication in English and neighbouring languages such as French, Italian and German are also being welcomed.
With Madrid as its capital and businesses pegging their investments against the Euro, aspiring business owners wishing to raise funds through their promising offerings cannot wait to get their operations kick-started and set up business in Spain. Backing this furious revolution is an enthusiastic roster of decorated investors flaunting dynamic portfolios preparing to fuel the businesses and guide them in the right path to continuous growth and creation of stable revenue streams.
Why do business in Spain?
Ever since the enormous shift in the political situation of the European Union and the internal state scenario of Spain, the country has been planning to bounce back with policies in support of economic recovery. Currently, the country is experiencing annual growth at the rate of 3.1% and boasts a healthy GDP of 1.3 trillion USD before the first quarter of 2019. Due to the emergence of the popular trend of investing, earning profits and reinvesting capital in more promising ventures, the approach towards doing business is gaining acclaim as a profession especially from the young entrepreneurial minds braving the barriers of business entry in Spain.
Being considerate of the business scenario in Spain, it can be claimed that the frontline advantages of planning to start a business in Spain are –
- Flexibility in the legal and administrative process for business incorporation in Spain.
- A healthy network of investor entities inclusive of – venture capital firms, angel investors and incubator organizations; all in support of boosting the start-up culture.
- Ease of operations due to strategic advantages associated with the location of Spain. The country is surrounded by water bodies with vast availability of ports established on the east and west coasts of Spain for carrying out trade and export-related operations via the marine trade routes. The western trade route helps the export of goods to parts of the African continent and the eastern coast allows export to regions of the EU and Gulf nations for businesses in the UAE.
- Fixed costs for resources such as office spaces, warehouses, electricity and labour are cheaper in Spain compared to industrial areas in neighbouring member states of the European Union.
- Various opportunities in diverse industries.
- Cross Culture friendly consumer market that is accepting towards all kinds of businesses whether indigenous or foreign.
- Government policies are framed for improving the working conditions of businesses in order to create employment opportunities.
- Spain has recently signed a bilateral treaty. An agreement with 50 states to develop legal corporate framework to welcome more foreign investments in the country and create opportunities for promising and passionate entrepreneurial minds.
Best Performing Sectors -
In order to present a more vivid understanding of the industrial scenario in Spain, it is important to know the most revenue earning sectors in the region which are –
- Manufacturing Sector
- Logistics Sector
- Tourism Sector
- Import and Exports
- Power Generation and Supply
- Agriculture Sector
Why Invest in Spain?
Apart from the clear scope of future growth, the investor community is eyeing their cashflows in Spain for more than just mere corporate bragging rights. The hype behind Spanish business culture can be justified with the following reasons –
- Spain is the third-largest investment market in the entire European Union and had consistently been climbing the economic graph even before the Brexit crisis shocked the system.
- As a member state of the EU, the country hosts policies in place for helping businesses expand their reach to nearing member states of the EU such as Sweden, France and Italy.
- Spain is ranked 9th in the global jurisdiction index on the openness to FDIs.
- It is also worth mentioning that Spain is a Hub for research and development (R&D), hosting 90 of the top 100 foreign companies operating here through a subsidiary within the corporate ecosystem.
- Employment of labour in Spain is 29% lower currently compared to the Eurozone industrial region.
The journey towards establishing a strong corporate foothold in the Spanish market is endearing and challenging but promises to be equally rewarding and fruitful. Though the above article provides a basic understanding of how the market and its elements could treat a new business, it is also professional advice to gain more knowledge about the industry and market before taking the next step towards setting up business in Spain.
We at Business Setup Worldwide pride ourselves on being professionals in the field of helping businesses set up in various global locations through our lucrative tailor-made solutions and existing network of corporate advisors. Contact us, to know more on how to start your entrepreneurial journey in Spain.