The spanish medium-sized company  2014 annual report (Círculo de Empresarios)
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The spanish medium-sized company 2014 annual report (Círculo de Empresarios)

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The project of the Círculo de Empresarios for the Spanish medium-sized company1 seeks to evaluate and make these firms more visible by providing an accurate diagnosis. While they are essential for ...

The project of the Círculo de Empresarios for the Spanish medium-sized company1 seeks to evaluate and make these firms more visible by providing an accurate diagnosis. While they are essential for the growth of the Spanish economy, they have not received systematic analysis in the economic debate. The aim is to provide a platform and connector for available information and thus generate new analysis and policies.

The Círculo de Empresarios seeks substantial arguments that will contribute to a realistic economic-financial and social analysis of our companies: this will allow for connections with the news media, the Public Administrations, research centers and the business fabric. We seek a diagnosis that more closely reflects the reality and dynamism of the medium-sized companies in Spain, because we are convinced that they are the engines for a new model of economic growth.

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The spanish medium-sized company  2014 annual report (Círculo de Empresarios) The spanish medium-sized company 2014 annual report (Círculo de Empresarios) Document Transcript

  • The Spanish medium-sized company 2014 annual report
  • 2 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL REPORT
  • Part I: The Spanish medium-sized company• 3 PARTI:THESPANISHMEDIUM-SIZEDCOMPANY 1. Project activities 7 2. The Spanish medium-sized company: Trends in the European context, x-ray and development 10 2.1Trends in the medium-sized company in the European context (2008-2014) 10 2.2 X-ray of the Spanish medium-sized company 19 2.3 Development of the Spanish medium-sized company (2008-2012) 22 PART II: MONOGRAPHS Monograph 1. Analysis of real productivity in Spanish companies 27 Monograph 2. Factors of business competitiveness: exporting propensity and capacity for innovation 35 PART III: STATISTICAL SOURCES FOR BUSINESS ANALYSIS Updating of available information for the analysis of the business situation 43 Statistical sources 43 Synthesis of indicators 55 PART IV: CONTRIBUTIONS TO BUSINESS ANALYSIS AND PROPOSALS FOR REACTIVATING THE BUSINESS FABRIC 59
  • PART I The Spanish medium-sized company
  • 6 • Círculo de Empresarios. La empresa mediana española. INFORME ANUAL 2014
  • Part I: The Spanish medium-sized company • 7 Part I: The Spanish medium-sized company 1. Project activities The project of the Círculo de Empresarios for the Spanish medium-sized company1 seeks to evaluate and make these firms more visible by providing an accurate diagnosis. While they are essential for the growth of the Spanish economy, they have not received systematic analysis in the economic debate. The aim is to provide a platform and connector for available information and thus generate new analysis and policies. The Círculo de Empresarios seeks substantial arguments that will contribute to a realistic economic-financial and social analysis of our companies: this will allow for connections with the news media, the Public Administrations, research centers and the business fabric. We seek a diagnosis that more closely reflects the reality and dynamism of the medium-sized companies in Spain, because we are convinced that they are the engines for a new model of economic growth. For this project it is essential to have a database that will allow us to identify concrete companies, as opposed to official statistics that are very complete but often “anonymous.” For this reason, the departure point is the INFORMA database, once we have checked it with the ample coverage of companies provided by the Spanish Statistical Office (INE). The present study uses INFORMA (SABI) as the source for the microeconomic analysis of the Spanish business situation. The target of the study is the Spanish medium- sized company, with between 50 and 249 employees (as defined by the European Commission). However we have excluded companies from the real estate and financial sectors because of their special characteristics and because they are in a process of restructuring, just as we have excluded the Public Administrations. This project, which began at the end of 2012, seeks to be a long-term endeavor, and is structured around several axes that are complementary and reinforce each other. There will be an Annual Report about the Spanish medium-sized company that is produced in collaboration with the Studies Service of the BBVA bank, monographic analyses, a study of successful cases, and forums with experts from the fields of academic research, statistics, policies and the business world itself. 1 The Project Director is Elena Pisonero, President of Grupo Hispasat and a member of the Círculo de Empresarios, while Yolanda Fernández has taken part in the technical direction.
  • 8 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL DIAGRAM 1 Methodology SOURCES OF INFORMATION Forum of experts Monographic Studies Policy recommendations DATA BASE Círculo-BBVA Informa Annual Report ACADEMIC RESEARCH Forum of Experts Ranking TOP-50 CASE Studies Cre100do.es Annual Report on the Spanish medium-sized company In October of 2013 we published the first Annual Report on the Spanish medium-sized company2 and presented the project at a news conference. Now, in 2014, we are incorporating new monographic contents –detailed later on– and updating the analysis and development of the Spanish medium-sized company. We also update and amplify statistical information that makes it possible to analyze the real situation in our companies. Finally, there is a new section that summarizes some of the principal research that has been carried out in the field of business analysis as well as initiatives and measures to stimulate business. Forums with statistical sources To bring together and analyze available information we have held several individual work sessions with experts and with the organizations that publish statistics3. In addition, there was a working roundtable in May of 2014 aimed at comparing in the present report. As a result of these meetings, we have statistical information relative to the medium-sized company that has been provided by the INE and which is included in Diagram 3 of the present report, with information from the Spanish Institute for Foreign Trade (ICEX) relative to exporting firms. We have also analyzed the relevance and application of the principal international statistical sources with regard to European medium-sized companies. It is essential for this project to include these analyses and statistics, and we will thus continue to hold periodic work sessions that will also allow us to channel the demands for statistical information and analysis about the Spanish medium-sized company. Monographic analyses In addition to the Annual Report and the meetings with experts, we want to promote monographic analyses and sessions with individual companies that will explain their success. 2. http://circulodeempresarios.org/es/empresa-mediana-espa%C3%B1ola/documentacion 3. Bank of Spain (December 2013), INE (Januaryand February 2014), ICEX (December 2013, January 2014), BBVAResearch (December 2013, January 2014, May 2014).
  • Part I: The Spanish medium-sized company • 9 In this new edition of the Report we present monographic analyses produced in collaboration with the BBVA Studies Service and INE. The first of them is based on an analysis of the productivity of Spanish companies, and applies the shift-share methodology4, which makes it possible to break down real productivity into two factors: intersectoral effect and structural change. The second monograph analyzes the information provided by INE with regard to the exporting propensity and innovative activity of the Spanish medium-sized companies. Academic research All the information related to this project can be found on the webpage of the Círculo de Empresarios5: the principal reports, articles and analysis of the business scene, produced by different public and private organizations. In Part IV of the present report there is a summary of the principal conclusions of these reports. The project has also found it extremely useful to work with the business schools, whose principal aim is to train highly competent managers and thus professionalize our business fabric. To identify the keys to success in Spanish firms, we are working in two complementary areas: academic research and a study of “successful cases”. We have asked the leading business schools6 for an account of their academic research into the business world as well as company case studies that can be incorporated into the bibliography that we are drawing up. These bibliographical references will be the basis for later organizing forums for debate with the authors of the studies and with the companies themselves to analyze concrete cases. Annual ranking of the Spanish middle-sized company The aim of the study is to identify the most successful medium-sized companies from different industries and select the outstanding 50. In April of 2014 we presented the study: “The Top 50 medium-sized Spanish firms: A selection of successful cases”. It was carried out by A.T. Kearney, a member company of the Círculo de Empresarios, in collaboration with the work team of the project on the Spanish medium-sized company. This first ranking of the 50 most outstanding medium- sized Spanish companies is regularly included in the current project, and we want to include the second edition at the end of 2014. 4. The methodology has been implemented by the BBVA Research work team. 5. (http://circulodeempresarios.org/empresa-mediana-espa%C3%B1ola/acerca-del-proyecto). 6. In March of 2014 we had a meeting with ESADE Business School to determine their participation in the project, and we have contracted with AEEDE (Spanish Association of Business Management Schools) to channel the participation of the schools.
  • 10 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL 2. The Spanish medium-sized company: Trends in the European context, x-ray and development In the first part of this heading we analyze the development of Spanish companies in the European context, using data and estimates by Eurostat. Based on comparative company structures, an estimate is made of their contribution to employment, to the GVA and to the productivity of the companies ranked by size, as determined by the number of their salaried employees, according to criteria used by Eurostat. In this edition of the report, we complement the comparison of Spanish companies in the EU with an analysis of their productive structure. The second part is centered on the situation in Spain, with a focus on the medium- sized companies: the source for the data are the 2012 annual accounts presented in the Business Register and compiled by INFORMA for SABI. This database allows us to analyze the development of the principal financial-economic indicators of the Spanish medium-sized company during the period of 2008-2012. 2.1.Trendsinthemedium-sized companyintheEuropeancontext(2008- 2014) Comparison of the average company size According to estimates by Eurostat, in Spain the number of workers per company is 4.7 in 2014, less than half the average in the United Kingdom and Germany, and one of the lowest among the principal EU countries. This smaller company size can be explained by the lesser relative presence in Spain of large and medium-sized companies, which account for 0.8% of the total number of companies, according to the most recent Eurostat figures from 2014. 5.1 4.7 12.4 11.7 5.6 5.7 4.1 4 10.7 11 0 2 4 6 8 10 12 14 2008 2009 2010 2011 2012 2013 (est.) 2014 (p) Developmentofthe average numberof employees percompany Germany United Kingdom France Spain Italy Source: Círculo de Empresarios according to Eurostat
  • Parte I: Part I: The Spanish medium-sized company • 11 During the 2008-2014 period the average company size in Spain has been reduced due to a greater presence of companies with fewer than 10 salaried workers: it rose to 93.8% of the total number of Spanish companies in 2014 (from 93.1% in 2008). By contrast, there was a reduction in the relative weight of the small and medium-sized companies, while the weight of the large companies –one of every 1,000 compoanies– was maintained. This tendency toward greater Medium-sized Spanish companies have an average ratio of employees per company (95) that is very similar to Germany, Italy and Portugal. In these four cases the medium-sized companies have reduced their size during the period analyzed, in contrast with trends among medium-sized companies in France and the United Kingdom, which have grown during the years of crisis and now average around 110 workers per company. Distribution of companies by size. % of total. Source: Círculo de Empresarios according to Eurostat concentration in smaller companies is also seen in Portugal, while in the rest of the economies analyzed the micro-companies lose weight, as in the case of Germany, or remain very stable in the 2008-2014 period. In the analysis of the average business size, in addition to the participation of the companies by size, it is necessary to consider the average number of employees in the different sized firms. Thus the smaller average size of Spanish companies is also explained by a moderate reduction in the number of employees in all kinds of companies. This tendency is also evident in Germany, where the average company size fell from 12.4 employees in 2008 to 11.7 in 2014. As for the large companies, the average size of those in Spain (976 employees per company) surpasses those in Germany, Italy and Portugal. Among the EU countries analyzed, the large British companies are the ones with the highest number of employees per company, a figure that increased during the 2008-2014 period. Development of employment As for employment in Spain, Eurostat estimates that the number of salaried workers has declined by 2.6 million persons between 2008 and 2014, which represents an accumulated drop of 19%. The companies that have reduced their staff the most have been the small and medium-sized ones, by around 25%, while in the large companies the decrease in jobs has been around 13%, below Micro (0-9) Small (10-49) Medium- sized (50-249) Large (more than 250) T O T A L Micro (0-9) Small (10-49) Medium- sized (50- 249) Large (more than 250) Spain 93.1% 6.0% 0.8% 0.1% # 93.8% 5.4% 0.7% 0.1% Germany 82.9% 14.2% 2.5% 0.5% # 81.9% 15.1% 2.6% 0.5% France 93.7% 5.3% 0.9% 0.2% # 94.0% 5.1% 0.8% 0.2% Italy 94.3% 5.1% 0.5% 0.1% # 94.4% 5.0% 0.5% 0.1% Portugal 94.0% 5.1% 0.7% 0.1% # 94.8% 4.5% 0.7% 0.1% United of Kingdom 89.3% 8.8% 1.5% 0.4% # 89.4% 8.7% 1.5% 0.4% Source: Círculo de Empresarios according to Eurostat 2014 (est. Eurostat)2008
  • 12 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL Development of employment and number of companies by size. (Accumulated variation 2008-2014) Source: CírculodeEmpresarios according to Eurostat 0% -5% -10% -15% -20% -25% -30% SMALL (10-49) -25.6% MEDIUM-SIZED (50-249) -24.5% LARGE (More than 250) -12.6% EMPLOYMENT NUMBER OF COMPANIES the average figure for companies as a whole. As can thus be seen in the accompanying graph, it is the large companies (those with more than 250 employees) that have been most resistant during these crisis years. Contribution to employment by companies according to size The contribution to employment by companies of all sizes in the principal EU countries has remained relatively stable in recent years. Although variations are not significant, in Spain we can observe a more important role in providing employment among both large companies and those with fewer than 10 employees in 2014, as compared with the start of the period, according to estimates by Eurostat. • In 2014, according to Eurostat, the Spanish micro-companies provided employment for 40% of the country’s active workers, a percentage surpassed only by Italy (46%) where this kind of company represents 94.4% of the total number of companies, greater than the 93.8% in Spain. • The small companies provide 21% of the jobs in Spain, similar to the small Italian companies but below the 23% of Germany, where this kind of company accounts for 15.1% of the total number of companies, the greatest percentage among the countries studied. Micro (0-9) Small (10-49) Medium- sized (50-249) Large (more than 250) T O T A L Micro (0-9) Small (10-49) Medium- sized (50-249) Large (more than 250) Spain 93.1% 6.0% 0.8% 0.1% # 93.8% 5.4% 0.7% 0.1% Germany 82.9% 14.2% 2.5% 0.5% # 81.9% 15.1% 2.6% 0.5% France 93.7% 5.3% 0.9% 0.2% # 94.0% 5.1% 0.8% 0.2% Italy 94.3% 5.1% 0.5% 0.1% # 94.4% 5.0% 0.5% 0.1% Portugal 94.0% 5.1% 0.7% 0.1% # 94.8% 4.5% 0.7% 0.1% United of Kingdom 89.3% 8.8% 1.5% 0.4% # 89.4% 8.7% 1.5% 0.4% 2014 (est. Eurostat)2008 Average number of employees by company size Source Círculo de Empresarios according to Eurostat
  • Part I: The Spanish medium-sized company • 13 • Thus in Spain, companies with fewer than 50 employees account for more than 60% of all salaried workers, which means that business is very vulnerable during times of crisis because the smallest firms are the ones that make the biggest cuts in their staff. • The medium-sized Spanish companies provide 14% of total employment, a contribution similar to companies of this size in France. For firms of this size, Germany is the country with greater participation in the business fabric (2.6% of the total number of companies) and employment (21% of the total). • The big British firms are larger in size than the average of those in the countries considered, and provide 48% of total employment, as against the 26% in Spain. In Spain the large companies are fairly big, but are less important in providing employment than other EU countries. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 25.6% 13.8% 21.0% 39.5% 37.7% 20.6% 32.2% 18.6% 36.2% 15,2% 19.2% 29.4% 20.2% 12.4% 21.5% 46.0% 21.0% 16.9% 22.4% 39.7% 4.7% 16.0% 18.0% 18.3% Aportación al empleo por tamaños de empresa. Estimaciones 2014 Source: Círculo de Empresarios according to Eurostat 0% SPAIN GERMANY FRANCE ITALY PORTUGAL UK MICRO SMALL MEDIUM-SIZED LARGE Contribution to employment by company size % of total Source: Círculo de Empresarios according to Eurostat Micro (0-9) Small (10-49) Medium- sized (50-249) Large (more than 250) T O T A Micro (0-9) Small (10-49) Medium- sized (50-249) Large (more than 250) Spain 39% 23% 15% 24% 40% 21% 14% 26% Germany 19% 22% 20% 40% 19% 23% 21% 38% France 28% 19% 16% 37% 29% 19% 15% 36% Italy 46% 22% 13% 19% 46% 21% 12% 20% Portugal 39% 23% 17% 21% 40% 22% 17% 21% United of Kingdom 20% 16% 15% 49% 18% 18% 16% 48% Source: Círculo de Empresarios according to Eurostat 2014 (est. Eurostat)2008 Contribution to employment by company size. Estimates 2014
  • 14 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL • If there were more workers in the large Spanish companies, the impact of the crisis in the labor market would have been less severe. If in Spain the distribution of employment in companies by size were similar to that of the United Kingdom – where four of each 1,000 companies are large ones– during the crisis, all other things being the same, more than 500,000 jobs would have been saved. Contribution to the GVA of companies by size In Spain the big companies are increasingly important in contributing to the GVA: their share rose from 33% of the total in 2008 to 35% in 2014. A similar increase has also come about in the big companies in Italy and France, which has made it possible to narrow the gap with Contribution to the GVA by company size % of total. Source: CírculodeEmpresarios according to Eurostat Contribution to the GVA by company size. Estimates for 2014 Source: CírculodeEmpresarios according to Eurostat 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 35.2% 16.7% 20.6% 27.5% 45.8% 20.1% 18.6% 15.5% 41.6% 14.7% 17.3% 26.4% 31.7% 16.4% 22.0% 29.9% 31.7% 22.8% 22.7% 22.8% 50.2% 16.3% 14.9% 18.6% 0% SPAIN GERMANY FRANCE ITALY PORTUGAL UK MICRO SMALL MEDIUM-SIZED LARGE Micro (0-9) Small (10-49) Medium- sized (50-249) Large (more than 250) T O T A Micro (0-9) Small (10-49) Medium- sized (50- 249) Large (more than 250) Spain 28% 22% 17% 33% 27% 21% 17% 35% Germany 15% 17% 20% 48% 15% 19% 20% 46% France 26% 18% 15% 40% 26% 17% 15% 42% Italy 32% 22% 16% 29% 30% 22% 16% 32% Portugal 23% 23% 22% 32% 23% 23% 23% 32% United of Kingdom 18% 15% 16% 50% 19% 15% 16% 50% 2014 (est. Eurostat)2008
  • Part I: The Spanish medium-sized company • 15 GVA/employeeinthousandsofeuros regard to countries with a great concentration of employment in the companies of more than 250 employees. For their part, the medium-sized Spanish companies maintain their participation in the GVA while both the small companies and those with fewer than worker in the firms with fewer then 10 employees. • The small companies have a more balanced participation in employment (21%) and in the GVA (21%) than the micro 70 AVERAGE OF EU COUNTRIES * 60 SPAIN 50 40 30 20 10 0 Comparative productivity by company size. (GVA per employee in thousands of euros). Eurostat 2014 estimates * Median productivity of Germany, France, Italy, United Kingdom and Portugal MICRO (0-9) SMALL (10-49) MEDIUM- SIZED (50-249) LARGE (More than 250) Source: Círculo de Empresarios according to Eurostat 10 employees reduce by one percentage point their weight in the total GVA generated. • In spite of the high contribution to employment by the micro companies in Spain (40%), their participation in the GVA is around 27% in 2014, which implies a drop in productivity per companies, with greater weight in employment. • The contribution to the GVA of the medium-sized companies is 17% of the total in 2014, above that of countries like the United Kingdom and France. 90 80 LUXEMBURG 70 GERMANY 50 UNITED KINGDOM 40 30 BELGIUM SPAIN GREECE pRODUCTIVI TY empresarial.UE-15 Source: Círculo de Empresarios according to Eurostat 20 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% % employees in companies with fewer than 10 workers Productivity and company size. EU-15.
  • 16 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL • In the United Kingdom half of the GVA is generated by the large companies, and in Germany the figure is 46%, as against the 35% in Spain. Comparative productivity of the companies Work productivity increases in proportion to company size, so that the medium-sized and large companies are the ones that have the highest ratios of GVA per employee among the countries studied. The productivity of Spanish companies is similar to the average of EU countries studied, with the exception of those with fewer than 10 employees. This may be explained in part by the fact that there are more Spanish companies in the service sector, as analyzed in the following point. To compare the positive correlation between company size and work productivity, we have calculated for the 28 EU countries the percentage of salaried workers in micro companies and the GVA per employee in thousands of euros. As shown in the accompanying graph, the countries in the euro zone with the largest companies, such as Germany and the United Kingdom, are the ones that achieve the highest levels of productivity. At the other end is Spain, one of the countries in this area with the highest proportion of employees in companies with fewer than 10 workers, which lowers the ratio of productivity. As a consequence, those countries with larger companies achieve, in general terms, higher work productivity. Productive structure of the medium-sized company in the European context Companies in the service sector account for 79% of the Spanish business fabric, the highest percentage among the leading EU countries. They are predominantly small and specialized micro companies that work in retail trade, restaurants, professional services (including legal, consultancy and engineering firms, among others). As a whole, this services branch accounted for 50% of the total Spanish companies in 2013, according to Eurostat estimates. Productive structure of the business fabric. 2013 Source: CírculodeEmpresarios according to Eurostat 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 79% 13% 67% 23% 71% 17% 76% 13% 76% 16% 76% 15% 8% 9% 12% 10% 8% 10% 0% SPAIN FRANCE ITALY GERMANY UK PORTUGAL ENERGY INDUSTRY CONSTRUCTION SERVICES
  • Part I: The Spanish medium-sized company • 17 46% 14% 38% 100% 90% 80% 70% 60% 50% 40% 30% 57% 13% 57% 11% 44% 7% 46% 63% 6% 65% 9% Productive specialization in the medium- sized company. 2013 Source: Círculo de Empresarios according to Eurostat 20% 10% 29% 30% 30% 26% 0% SPAIN FRANCE ITALY GERMANY UK PORTUGAL ENERGY INDUSTRY CONSTRUCTION SERVICES With regard to medium-sized Spanish companies, while 28.5% of the total are in the industrial sector reaches –a percentage similar to that in German and French medium-sized companies– only 57% are in the services sector, below the percentages in Germany or the United Kingdom. The reduced participation of Spanish medium- sized companies in the service sector reflects the high atomization of this sector: it is the smaller companies that are more important and which demonstrate less productivity with regard to EU countries. Germany and the United Kingdom have the greatest importance in the medium-sized company service sector, which allows them to position themselves in the more productive branches of services, such as professional activities, which require companies of as certain size.
  • 18 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL In conclusion, During the 2008-2014 period the average size of companies has declined slightly in Spain, due to a greater presence of companies with fewer than 10 employees, and to the moderate reduction in the average number of employees at all kinds of companies. Spanish companies have an average size of 4.7 employees, which is lower than that of companies in the EU, due to the lack of medium-sized and large companies in Spain. The medium-sized companies represent just 0.7% of the total number of companies, and one of every thousand Spanish companies is a large one. The contribution to employment of the small and micro companies is greater than 60% in Spain, as against the 50% average in the principal EU countries. The medium- sized Spanish companies account for 14% of the employment, a contribution similar to that of French companies of this size. The Spanish business fabric, where the smaller companies are predominant, is thus very vulnerable during phases of crisis, because it is the large companies (more than 250 employees) that best resist these crisis years. The large Spanish companies increased their participation in the GVA and in employment by two percentage points from 2008 to 2014. If employment in Spain were distributed by company size the way it is in the United Kingdom (where four of every 1,000 companies are large ones) more than 500,000 Spanish jobs would have been saved during the crisis. The productivity of Spanish companies is similar to the average in the EU countries under study, with the exception of Spanish firms with fewer than 10 employees, where the negative gap is higher than in other categories. In general terms, the countries with the largest companies achieve higher productivity. Companies in the service sector account for 79% of the Spanish business fabric, the highest percentage among the principal countries of the EU. But the weight of the service sector drops to 57% in the medium-sized companies, a participation similar to that of French medium-sized companies and lower than the percentages for Germany or the United Kingdom. The reduced participation of medium-sized companies in the service sector reflects the high atomization of this sector in Spain, with a clear preponderance of the smaller companies: the ones that demonstrate greater negative productivity with regard to the EU countries. Thus if companies in the service sector were larger, this would increase overall productivity in the Spanish economy. To improve the levels of productivity in Spain and achieve sustainable growth, it is necessary to have a greater “supply” of middle-sized companies, which are also more important in the more productive sectors, which allows them to compete in international markets and to innovate.
  • Part I: The Spanish medium-sized company • 19 2.2. X-ray of the Spanish medium- sized company In this section we focus on the Spanish middle-sized company, basing data the annual accounts presented in the Business Register and collected by INFORMA for SABI. The INFORMA database allows us to analyze the development of the principal economic-financial ratios of the Spanish companies in a homogenous way and with a high degree of accuracy that has been checked with the DIRCE (Central Directory of Companies). It should be remembered that the kind of company we are studying has between 50 and 249 employees, and that firms in the real estate and financial sectors have been excluded because of their special characteristics and because they are going through a restructuring process. According to the INFORMA database, in 2012 there were some 11,000 medium-sized companies that employed more than one million people. Business situation Before analyzing the economic-financial situation of the Spanish medium-sized company in 2012 (the last year for which we have complete information about the balance sheets and profit and loss accounts of the companies), we want to give a preview of the trends revealed by the latest published indicators. Following the period of crisis, when companies went under and jobs were lost, the latest data from 2014 seems to indicate that things are changing in the business fabric. Thus the net creation of commercial companies has been on the rise since the start of 2013, and in the first months of 2014 there was also an increase in the number of salaried workers registered with the Social Security system. In the first four months of 2014, exactly 14,607 companies were created (497 of them medium–sized firms), and the number of Social Security affiliates grew by 148,800 employees (39,200 of them in medium-sized firms). 85,000 80,000 75,000 70,000 65,000 60,000 55,000 Net creation of commercial companies (sum of 12 months) Source: Business Register.INE. 50,000 2009 2010 2011 2012 2013 2014
  • 20 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL A table of indicators for analysis To analyze the middle-sized company we have identified the most significant variables that characterize the “typical” company: this table of indicators and ratios presents the most pertinent information about these firms, the kind that would be used by any company analyst. This data deals with averages, and thus there will be considerable differences between the different sectors and company sizes, but it can be safely said that these averages provide the closest approximation to the real situation of this sector, given the accuracy of the INFORMA database. The principal ratios included in the analysis are: • Average number of employees per company. This ratio is representative of company size. • Average assets per company. This is another measure of the average size of a company, and quantifies in economic terms the means necessary to generate business. • Turnover per employee. This ratio can be considered an indicator of productivity. • Average cost per salaried worker. This figure makes it possible to know the cost of the workforce. It can help estimate the competitiveness of different groups of companies. • Current assets/current liabilities. This is an indicator of liquidity, because it indicates if a company has sufficient short-term resources to meet its obligations. It is important to stress that certain sectors have a ratio of less than 1 and yet are perfectly solvent. • Own funds/balance. This measures the weight of own funds against the total assets and offers information about the level of company debt. • Debt with cost/own funds. This is a ratio of solvency. It allows for analysis of whether different kinds of companies are financed more through indebtedness or by their own resources; in other words, if the size of the company has an influence on capital structure. • Debt/EBITDA. This ratio provides an indicator of the capacity of the issuer to take on additional debt and to refinance existing debt. It includes all those concepts subject to mandatory payments upon maturity of debt. • Coverage of indebtedness (EBITDA/Financial expenses). This is another ratio of solvency. It makes it possible to measure financial risk, since it shows the impact on the income statement of the fluctuations in interest rates, the company’s credit risk and the volume of investments financed by debt. • Profitability of own resources (EBIT/Own funds). This measures the profitability of the company’s own funds and is one of the ratios followed by investors. • Economic profitability (EBIT/Assets). This measures the profitability of the company with regard to total assets. This ratio should be analyzed with caution, because the numerator (profit) corresponds in its totality to the stockholder, while the denominator (assets) is financed in part by the stockholders and in part by the debt. • Financial profitability (Net profits/Own resources). This measures the profitability of a company with regard to its total assets. For the stockholder, it reflects the profitability of his investment la rentabilidad de la inversión para el accionista.
  • Part I: The Spanish medium-sized company • 21 X-ray of the Spanish medium-sized company 2012 • According to the latest data from INFORMA, the average number of workers in the medium-sized company was 100, and the average annual salary cost in 2012 was 37,000 euros. • Company size as measured by average assets was 39.2 million euros, thus placing Spanish medium-sized companies in the upper part of the range established by the European Commission for these firms (from 10 to 43 million euros). • In any case, average billing is 25.1 million euros, in the lower part of the EU medium- sized company range (from 10 to 50 million euros). According DIRCE data, in 2012 some 30% of these companies with 50 to 249 workers had billings of between 10 and 50 million euros, 7% of them billed more than 50 million, and 64% had less than 10 million euros in billings. • The medium-sized companies have a ratio of own resources over balance of 32.7%; the level of indebtedness measured by the weight of debt over own resources is at an elevated ratio of 76%; and the levels of coverage are reduced to minimums in the period analyzed because of the breakdown in results. • The intensity of the economic crisis is amply reflected in company results, measured both through economic profitability over assets –with an average of 1.3% in 2012– and, especially, through the financial profitability, with a negative ratio of –4.7%, the reflection of a net companies result that was also negative. It must be stressed that the decline in the construction sector during this period was an important burden in overall company results. 2012 Average number of employees per company 100.0 Average assets per company (millions of euros) 39.2 Turnover per company (millions of euros) 25.1 Turnover per employee (thousands of euros) 250.8 Average cost per salaried worker (thousands of euros) 37.0 Current assets/current liabilities 1.16 Own funds/Balance 32.7% Debt with cost /Own funds 76.0% Coverage of indebtedness (EBITDA/Financial expenses) 1.55 Debt/EBITDA 7.80 Profitability of own resources (EBIT/Own funds) 3.8% Economic profitability (EBIT/Assets) 1.3% Financial profitability (Net benefit/Own funds) -4.7% Principal economic-financial ratios. Medium-sized companies * Source: Círculo de Empresarios according to data from INFORMA * The real estate and financing sectors are excluded.
  • 22 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL 2.3. Development of the Spanish middle-sized company 2008-2012 Developments during the financial crisis reveal that 2012 can be considered the year of company survival: it brought the greatest shrinkage of the business fabric, with a drop of 7.2% in the total number of companies (more than 173,000 companies disappeared). This was greater than the 3.9% drop in companies of 2009, according to data from Eurostat. In any case, the medium-sized of the period under analysis, which demonstrates growth in productivity at the Spanish medium-sized companies. Indeed, in 2012 the turnover per employee surpassed 250,000 euros, as against the 221,000 in 2009, the lowest level in the crisis phase. This development reveals that the companies that do survive, independent of their number, find themselves in a more competitive situation. Economic profitability (EBIT/Assets) 2008-2012 Source: Círculo de Empresarios according to INFORMA data 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0% 2.5% 2008 2012 0.5% 3.6% 1.3% 4.5% 3.7% SMALL (10-49) MEDIUM-SIZED (50-249) LARGE (250 or more) companies that have survived are now larger and more productive. In particular, among the medium-sized companies the average number of employees per company has grown slightly to 100 employees, from 98 in 2008. The average assets per medium-sized company have also grown: from 27.5 million euros in 2008 to 39 million, a position above the average for EU- 28 medium-sized companies. The turnover per company has also undergone a notable increase over the course The ratios of profitability have plunged in recent years, to minimal levels in 2012. Economic profitability, measured through the ratio Results Before Interest and taxes/Assets, shows a brusque decline to a minimum of 1.3% in 2012 for the medium-sized companies as a whole. When compared by size of company, it is seen that the larger firms have higher rates of profitability over assets. The debt to own funds ratio has declined by more than 8 percentage points since the high reached in 2008.
  • Part I: The Spanish medium-sized company • 23 2008 2009 2010 2011 2012 Average number of employees per company 98.1 98.8 98.7 99.4 100.0 Average assets per company (millions of euros) 27.5 30.1 33.0 34.3 39.2 Turnover per company (millions of euros) 23.6 21.8 23.7 23.8 25.1 Turnover per employee (thousands of euros) 240.8 221.0 240.2 239.2 250.8 principales ratios. Average cost per salaried worker (thousand of euros) 34.0 34.9 35.6 36.4 37.0 Empresas medianas* Current assets/ Current liabilities 1.27 1.30 1.34 1.30 1.16 Source: Own funds/Balance 34.0% 33.9% 33.0% 33.2% 32.7% CírculodeEmpresarios,according Debt with cost/Own funds 84.6% 80.8% 82.7% 79.4% 76.0% to INFORMAdata Debt coverage (EBITDA/Financial expenses) 1.75 2.86 3.28 2.87 0.77 Debt/EBITDA 4.86 5.50 5.19 5.16 7.80 * Excludes the real estate and Profitability of own resources (EBIT/Own resources) 10.7% 7.9% 9.4% 9.1% 3.8% financial services sectors. Economic profitability (EBIT/Assets) 3.6% 2.7% 3.1% 3.0% 1.3% Financial profitability (Net benefit/Own funds) 5.3% 4.6% 5.5% 4.3% -4.7% In any case the coverage ratio is worsening as a consequence of a steeper fall in EBITDA than in financing costs during the period and the debt to EBITDA ratio has picked up, reflecting companies’ declining ability to service their debt through profit generation. In conclusion, The latest available data reveals that 2012 can be considered as the year of company survival because it produced the greatest damage to the business fabric and the most notable drop in company results. In any case, the medium- sized companies that have survived are larger and more productive. Thus, during this crisis phase the Spanish middle-sized company has been strengthened in terms of size, as measured by the average number of employees, average assets per company and average business volume. The middle-sized company has increased its productivity in recent years, as reflected in the accumulated increase in the turnover per employee: 4.2% during the 2008-2012 period, when it surpassed 250,000 euros. The largest companies were the most profitable ones: in spite of the setbacks of the crisis years they had an EBIT/Assets ratio of 3.7%. For the medium-sized companies the ratio was 1.3%, and for the small ones it was 0.5%. In spite of the volatility of the ratios used in recent years, they demonstrate some hard facts: the strengthening of the middle-sized company in terms of size, the increase in productivity, and the deterioration of results during the crisis years. Companies of 50 to 249 employees. Development of the principal ratios. Medium-sized companies*
  • 24 • Círculo de Empresarios. La empresa mediana española. INFORME ANUAL 2014
  • PART II Analysis Monographs
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  • Part II: Analysis Monographs• 27 Part II: Analysis Monographs MONOGRAPH 1. Analysis of real productivity in Spanish companies 2009- 2012* 1. Methodology In the Annual Report on the Spanish medium-sized company that we published in October of 2013, we estimated the impact on productivity that might come about through a restructuring of the business fabric by size. The aim of this present report is to examine this effect sector by sector. To do so, we have applied the shift-share method7, which makes it possible to break down growth in real productivity as the sum of two factors (see the annex for more details): • The intersectoral effect measures the variation in aggregate productivity that is explained by the variation in productivity of the companies in each sector. • Structural change measures the variation in aggregate productivity caused by the the recomposition of production factors among the different economic sectors. In other words, if the composition of employment does not vary over the course of the period being analyzed, this effect would be null. Likewise, this structural effect can be broken down into a static part (that measures the variation in productivity explained exclusively by the change in sectorial employment) and a dynamic part, which will have a positive effect if the production factors have been reassigned to those sectors with greater gains in productivity, and a negative one if the weight of employment has increased in the sectors with lower gains in productivity. Variation in productivity = Intersectoral effect + Structural change (static + dynamic) * Drawn up by Mónica Correa (economist for the Spain Unit of BBVA Research) and Yolanda Fernández (Technical Director of the Project for the Spanish Middle-sized Company of the Círculo de Empresarios and a professor at the eFEF). 7. The methodology has been implemented by the work team of BBVA Research.
  • 28 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL productividad por tamaño empresarial In short, if the Spanish economy has increased its overall productivity, this methodology allows us to distinguish just what part the productivity of our companies is the result of an advance in the productivity in its different sectors, and what has been the effect on the changes in employment among the different economic sectors. 2. Development of real productivity of the companies by size and sectors To measure productivity in real terms, eliminating the effect of inflation, we have used the figures for GVA (Gross Value Added) published by Eurostat and we have calculated the corresponding deflators on a sectorial level from information published by the INE8. In this way it is possible to obtain an approximate average of total productivity and of productivity by size groups of Spanish companies. The results of this analysis again equate increased productivity with company size: the GVA per employee in the medium-sized and large companies is notably greater than the average productivity, calculated at 40,000 euros for the total business fabric in 2012. As can be seen in the chart, the greatest increase in productivity over the 2009-2012 period came in the medium-sized company segment, which registered an accumulated growth of 6.3%, followed by the large companies, which increased their GVA ratio per employee by slightly more than 4% during the period that was analyzed. Based on available information, the sectors analyzed were: industry, construction, energy and different branches of the service sector. By breaking down productivity in these sectors we can see that –independent of company size– the firms in the energy, industry and information and communications sectors had higher-than-average profits during the 2009-2012 period. By contrast, variations in productivity in the hostelry, trade and professional services branches were below the average. Evolución de la GVA/employee (1) Accumulated Var. Annual Var. 2009 2012 % % (1) miles de euros en términos Micro-companies (0-9 employees) 26.21 26.65 1.7% 0.56% reales (año base 2008) Small companies (10-49 employees) 38.16 39.05 2.3% 0.78% Medium-sized companies (50-249 employees) 45.33 48.18 6.3% 2.10% Large companies (more than250 employees) 54.55 56.79 4.1% 1.37% Total companies 38.41 40.05 4.3% 1.42% 8. The deflators have been calculated by the BBVA Research work team. Development of productivity by company size (1) thousands of euros in real terms (base year 2008) Source: Círculo de Empresarios and BBVA Research according to INE and Eurostat data
  • Part II: Analysis Monographs• 29 Energy and waste management Information and communications Industry Construction Transport and storage Professional activities Commerce Other services Hostelry 0 20 40 60 80 100 120 140 160 180 Productividad real por sectores (miles de Euros) Total empresas. Año 2012 Source: Círculo de Empresarios and BBVA Research according INE and Eurostat data -4% -2% 0 2% 4% 6% 8% 10% 12% 14% 16% Variación acumulada Energy and waste management Information and communications Industry Transport and storage Construction de la productividad por sectores. Total empresas. (2009-2012) Source: Círculo de Empresarios and BBVA Research according to INE and Eurostat data Professional activities Commerce Hostelry Other servicies Variación media total sectores Cumulative variation of productivity by sectors. Total companies (2009-2012) Average productivity all sectors Total average variation sectors Real productivity by sectors (thousands of euros) Total companies. Year 2012
  • 30 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL 3. Breakdown of productivity gains Descomposicióndel The analysis of the companies as a whole reveals an annual increase of real GVA per employee of 1.42%: there is a high increase in productivity among medium-sized companies (greater than 2% annual) and, to a lesser degree, among the large ones. For their part, the smaller companies lost were less productive during the 2009-2012 period, which has widened the productivity gap between companies of different sizes. This increase in productivity was led in all the company groupings by the intersectoral effect: in other words, by the increase in internal productivity in each sector. In the medium-sized companies, if employment by sector had not varied during the period under analysis, the annual increase in productivity The remodeling of the sectors of industry, and especially construction, explain in part the negative nature of the structural change, since in these sectors the drop in employment has been greater than in other sectors with lower levels of productivity such as commerce and hostelry. In this way, the weight of employment in the commerce sector has risen almost 2 percentage points during the 2009-2012 period, to 28% of total employment, and in hostelry the rise was almost 1 percentage point, to 11% of the total number of salaried workers of all companies in 2012. Based on the available breakdown by sectors, the most productive medium-sized companies are in the following sectors: energy, information and communications, and profe- crecimiento de la productividad: Total empresas, 2009-2012 (in annual % ) Notes: Productivity is calculated as real GVA per employee. Increase in Intersectoral Structural Static Dynamic productivity sector change effect effect Micro companies (0-9 employees) 0.56 1.17 -0.62 -0.67 0.05 Small companies (10-49 employees) 0.78 1.13 -0.35 -0.38 0.03 Medium-sized companies (50-249 employees) 2.10 2.44 -0.34 -0.29 -0.05 Large companies (more than 250 employees) 1.37 1.69 -0.33 -0.26 -0.07 The data for nominal GVA and employment are provided by the European Commission (2014). The implicit deflators of the GVA have been obtained from National Accountancy (2008 base) published by the INE. Source: Círculo de Empresarios and BBVA Research according to INEand Eurostat data –all other things being equal– would be 2.44%, as a reflection of the productivity gains in each of the sectors analyzed. The analysis by company size reveals that the firms with fewer than 10 employees are the ones that suffer the most from structural change. This negative impact is explained basically by the recomposition of employment in the less productive sectors (static effect), since the dynamic effect is practically null in all typologies. In other words, employment has not been redirected toward those sectors with the greatest increases in productivity. ssional activities, which register levels of real GVA per employee of more than 60,000 euros in 2012. The companies in industry, construction and transport also were able to raise their productivity above the total average. At the opposite extreme are the companies dedicated to commerce, hostelry and other services, with the smallest advances in productivity. Statistical breakdown of the increase in productivity: Total companies, 2009-2012
  • Part II: Analysis Monographs• 31 Energy and waste management Information and communications Professional activities Construction Industry 0 20 40 60 80 100 120 Productividad real por sectores de la empresa mediana. (miles de Euros). Año 2012 Source: Círculo de Empresarios and BBVA Research according to INE and Eurostat data Transport and storage Comercio Hostelry Other services Productividad media total sectores The medium-sized companies achieved increased productivity of 6.3% in the 2009-2012 period, led by the energy and information and communications sectors. As he have stated, during the 2009-2012 period the structural change in the medium-sized companies has had a negative, though very moderate, effect. -4% -2% 0 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Variación acumulada de la productividad Energy and waste management Information and communications Construction Industry Proffesional activities Commerce por sectores. Empresas medianas (2009-2012). Source: Círculo de Empresarios and BBVA Research accordingto INE and Eurostat data Transport and storage Hostelry Other Services Variación media total sectores Real productivity by sectors in the medium- sized company (thousands of euros). Year 2012 Average productivity all sectors Total average variation sectors Distribution of employment in medium-sized companies
  • 32 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL Distribución del empleo en las empresas medianas Source: Círculo de Empresarios and BBVA Research according INE and Eurosta datat Energy and waste management Industry Construction Commerce 0 5% 10% 15% 20% 25% 30% 1.5% 2.2% 28.2% 27.3% 14.8% 9.7% 18.2% 19.7% Hostelry Transport and storage Information and communications Professional activities Other services 7.7% 8.5% 6.6% 7.0% 4.8% 5.4% 6.4% 7.0% 11.8% 13.2% YEAR2009 YEAR 2012 In synthesis, the results of the analysis demonstrate that the growth in real productivity, measured as the GVA per employee, was very high and was led by the internal gains within each sector. In addition, as might have been expected, the results confirm that structural change has a negative effect as a result of the remodeling of sectors like construction. In any case, the negative impact on productivity is very moderate, and was not able to erode intersectoral gains. This negative situation is explained by the loss in relative weight of the industrial and construction sectors, and to greater employment in the less productive service activities such as hostelry and commerce. Specifically, in 2009 the weight of employment in medium-sized companies in the industrial and construction sectors was 43%, a figure that dropped to 37% in 2012. In 2009 the commerce, hostelry and other services sectors accounted for 38% of total employment, a figure that grew to 41% three years later. ANNEX: Descomposición del crecimiento de la productividad en efectos intrasectorial, estático y dinámico: Donde es la productividad del sector i (i=1,…, n sectores) en el año inicial t en relación con la productividad agregada, es el peso del empleo del sector i en el total y T hace referencia al año final del período analizado. Distribution of employment in medium-sized companies Where 𝑌𝑖𝑇 𝑌𝑇 is the productivity of the sector i (i=1,…, n sectors) in the initial year t in relation to aggregate productivity, 𝒔𝒊𝒕 is the weight of employment of sector i in the total and T refers to the final year of the period analyzed.
  • Part II: Analysis Monographs• 33 In conclusion, Spanish companies as a whole increased their productivity in the 2009-2012 period by a yearly 1.4%, and the medium-sized companies were the ones with the greatest gains, some 2.1% annually. The increase in real productivity, measured as the GVA per employee, was very high and was led by internal gains within each sector. The Spanish medium-sized companies are the ones that registered the greatest increases in intersectoral productivity, especially in the sectors of energy and information and communications. The breakdown of productivity figures shows that the increase in productivity was led by the intersectoral effect, whereas structural change has a very moderate negative impact on all kinds of companies. The most productive sectors lose weight in employment among companies as a whole due to the remodeling of sectors such as construction. During the period under analysis, Spanish companies have combined gains in intersectoral productivity with a negative structural change, with the medium-sized companies registering the greatest advances.
  • 34 • Círculo de Empresarios. La empresa mediana española. INFORME ANUAL 2014
  • Part II: Analysis Monographs• 35 MONOGRAPH 2. Factors of business competitiveness: exporting propensity and capacity for innovation * 1. Introduction The present edition of this Report brings something new: an analysis of information from the INE about exporting and innovation in Spanish medium-sized companies. This analysis indicates that company size is an important factor when opening or consolidating overseas markets and in having a capacity for innovation. To carry it out we have used detailed information about the companies, based on their respective numbers of salaried workers, which has been provided by the INE: the Industrial Poll, the Annual Poll on Services, and the Poll on Company Innovation. According to the DIRCE (Central Directory of Companies), in 2008 there were around 26,000 Spanish medium-sized firms, a figure that dropped to 19,000 in 2013. The changes in billing of the medium-sized companies demonstrates during the crisis years the increasing importance of those firms that had the highest billings. Companies with billings of more than 10 million euros had a participation of 37% in the 2013 total, as against the 32% at the start of this period (2008). 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 5% 28 % 37% 31% 7% 30% 33% 29% MORE THAN 50 M LESS THAN 2 M Distribution of medium-sized companies by billing. Differences between 2008 and 2013 Source: Círculo de Empresarios accordingto DIRCEdatafrom INE 0% 2008 2013 * Prepared by Yolanda Fernández with information provided by the INE. 2-10 M 10-50 M
  • 36 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL 2. Exporting development of companies in the industrial sector To compare exporting capacity9 by company size, we have calculated the figure for overseas sales as a part of total sales of firms ranked by their numbers of salaried workers. The results show that the largest companies are the ones that achieve a larger percentage of their billings thanks to exports. Thus overseas sales figures for the middle-sized and large companies are greater than 30% of their total sales, whereas in the companies with fewer than 50 employees this percentage is 14%. As for export development in recent years, there is a notable advance among medium-sized companies: in 2008 a quarter of their total sales were overseas, and in 2012 a third of these total sales were exports, a proportion similar to that of the big companies. It should also be noted that, while the total turnover in the period 2008-2012 has dropped, for both the medium-sized companies and the large ones (-8.5% and -7.8%, respectively) the figure for overseas sale has significantly increased during this period. Specifically, the medium- sized companies have increased these overseas sales by 13,8% during the five-year period 2008-2012, and the large companies by 6.6%. Overseassalesas apartoftotalsales. Industrial companiesrankedby sizeaccordingto numberof employees. Source: Círculo de Empresarios accordingto data from the INE 35% 30% 25% 20% 15% 10% 5% 0% 10% 2008 2012 14% 25% 32% 29% 33% FEWER THAN 50 EMPLOYEES FROM50 TO 249 250 OR MORE 9. Exporting propensity refers to variations in the ratio of overseas sales as a part of total sales.
  • Part II: Analysis Monographs• 37 3. Exporting development of service companies 20% 18% 16% 14% 12% 10% 8% 6% 4% 0% 4.9% 2008 2012 8.4% 12.1% 17.5% 14.1% 16.2% Overseas sales as a percentage of total business. Service companies ranked by number of salaried workers. Source: Círculode Empresariosaccording to datafrom theINE FEWER THAN 50 EMPLOYEES FROM 50 TO 249 250 OR MORE In the services sector, the companies that have a greater ratio of their total sales overseas and a greater tendency to export are the medium-sized ones (excluding the commerce sector, which will be analyzed later). In 2012 this export ratio was not only greater in the medium-sized companies than in the large ones, but practically doubled that of companies with fewer than 50 employees. What’s more, since 2008 it has grown by more than 5 percentage points in these medium-sized firms. In the commerce sector, it is also the medium-sized companies that have the most billings overseas. In 2012 companies with fewer than 50 employees had 10% of their total sales overseas, while for the medium- sized firms the figure was 13%, and for the large companies just 7.4%. 16% 14% 12% 10% 8% 6% 4% 0% 6.7% 2008 2012 10.0% 9.3% 13.3% 6.3% 7.4% Overseas sales as a percentage of total business. Commerce companies ranked by number of salaried workers. Source: Círculo de Empresarios according to data from the Annual Services Poll of INE FEWER THAN 50 EMPLOYEES FROM 50 TO 249 250 OR MORE
  • 38 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL 4. Technological innovation in the countries Innovation is considered to be all kinds of activities of a scientific, technological, organizational, financial and commercial nature, including investment in new knowledge, that are applied or could be applied. Based on this definition, two kinds of innovations can be identified: technological and non- technological. Technological innovations include the new products (goods or services) and technologically new processes as well as their technological improvements. Something is considered an innovation when it has been marketed (product innovation) or has been used in producing goods or providing services (process innovation). They include the seven following activities: • Scientific research and technological development (internal R+D). • Acquisition of R+D (external R+D). • Acquisition of machinery, equipment, advanced hardware or software to be used in new or significantly improved products or processes • Acquisition of other outside knowledge for innovation. • Training for innovative activities. • Introduction of innovation in the market. • Design and other preparations for production and/or distribution. Non-technological innovations include new methods for the marketing of products (goods or services) or new methods of organizing company business practices, as well as significant improvements in already existing methods. From the point of view of technological innovations (in products or processes) and non- technological ones (in organization or trade), 25.9% of Spanish firms with 10 or more salaried workers were innovators in the 2010-2012 period. In any case, the percentage of innovative firms increased significantly in proportion to company size, more so than in the area of exports. Thus fully half of the large companies can be considered to be innovative in either products and processes (387% of the total) or Percentage of innovative companies according to size. Average percentage during 2010-2012 Source: Círculode Empresarios accordingto the INE Pollon Company Innovation 60% 50% 40% 30% 20% 10% 0% 23.6% INNOVATORS INNOVATION TECHNOLOGICAL NON-TECNOLOGICAL INNOVATION 35.3% 50.0% SMALL MEDIUM-SIZED LARGE
  • Part II: Analysis Monographs• 39 in non-technological applications (39.5%). As for medium-sized companies, 35.3% are innovators, and the percentage of firms that apply technological innovations is around 22%, some 16 percentage points less than in the companies with more than 250 employees. In conclusion, The medium-sized companies in the industrial sector are the ones that show the greatest growth in overseas sales as a proportion of total sales. In 2008, a quarter of their total billings were overseas, and in 2012 the figure had risen to one-third, a proportion similar to that of the big companies. The industrial firms achieve a larger percentage of their billings overseas than do the services companies, of any size. In the services sector, the medium-sized companies are the ones that demonstrate the greatest ratio of foreign sales as a share of total sales, one that is higher than that of the large companies. In the commerce sector, it is again the medium-sized companies that get a larger part of their billings overseas. In 2012 they had a ratio of overseas sales to total sales of 13%, while for the large companies the figure was 7.4%. The percentage of innovative companies increases significantly in proportion to size, even more so than in the case of exports. Half of the large companies can be considered innovators, as against 35.5% of the medium- sized companies and 23.6% of the small ones.
  • 40 • Círculo de Empresarios. La empresa mediana española. INFORME ANUAL 2014
  • PART III Statistical sources for business analysis
  • 42 • Círculo de Empresarios. La empresa mediana española. INFORME ANUAL 2014
  • Part III: Statistical sources for business analysis• 43 Part III Statistical sources for business analysis Updating available information for the analysis of the business situation Statistical sources INE (National Institute of Statistics) • DIRCE (Central Directory of Companies). • Statistics on Trading companies. • Harmonized data in business demography. • Industrial Poll of Companies. • Poll on Services. • Poll on Commerce. • Poll on Company Innovation. • Poll on company use of ICT and electronic commerce. • Statistics on Subsidiaries of Foreign Companies in Spain. • Statistics on Subsidiaries of Spanish Companies overseas. The Central Directory of Companies (DIRCE) groups in a single informatics system all the Spanish companies and their local units in Spain. The basic aim is to carry out economic polls. It is updated once a year and presented on January 1. A statistical summary is published of the results for companies and their local units, classified by Autonomous Communities, and by the firms’ legal status, main economic activity, and number of workers. The DIRCE also generates information with regard to: new companies and others that cease activities, which are also grouped by legal status, main economic activity, and number of workers.
  • 44 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL DIRCEDATAFOR 1JANUARY2013 Distribuciónpor tamaño y facturación de las empresas españolas Nota:ElDIRCErecogeademás 1,68 millones de empresas sin asalariados. Fuente: DIRCE 2013 (INE) The latest data published by the INE corresponds to January 1, 2013, and reveal that there are 3.14 million active companies, of which 1.68 do not have salaried workers. In the distribution by size of companies with salaried workers –which has remained very stable with respect to the previous year– it can be seen that the companies with fewer than 10 employees make up 90% of the total number. Likewise, in 2013 some 95% of Spanish companies with salaried workers had income of less than 2 million euros. Statistics of Trading Companies These statistics offer monthly information about trading companies that have been created, firms that have been dissolved, and those where there has been a change in capital. Data is obtained by provinces, by Autonomous Comm and on the overall national level –including Ceuta and Melilla- from the Central Business Register. The INE statistics for trading companies show an increase of 7.1% in the number of firms created in 2013, the largest gain since the start of the crisis. The number of companies that were dissolved rose to 24,735 (8% of them due to mergers), which represents an increase of 9.1%. Thus the net creation was 68,628 new firms, 6.4% more than in 2012. Harmonized data in business demography The general aim of the harmonized data in business demography is to provide aggregate information about the population of companies in Spain, taking into account those aspects having to do with company dynamism and applying a methodology that has been agreed upon in the European Union. Spanish companies ranked by size and billings Note: The DIRCEalsorecords 1.68 million companies without salaried workers Source: DIRCE 2013 (INE) STATISTICS ON TRADING COMPANIES. Companies created and dissolved Source: Trading Companies Micro (with salaried workers) Small Medium-sized Large From 1 to 9 From 10 to 49 From 50 to 249 More than 249 TOTAL Nº of companies 1,326,618 113,148 18,979 3,822 1,462,567 % of total 90.70% 7.70% 1.30% 0.30% 100.00% Billing (millions of euros) Less than 2 mill. 1,303,834 77,967 5,568 510 1,387,879 From 2 to 10 mill. 20,582 29,695 6,353 473 57,103 From 10 to 50 mill. 1,972 5,009 5,689 1,179 13,849 More than 50 mill. 230 477 1,369 1,660 3,736 2012 2013 Variation Nº trading companies created 87,182 93,363 7.10% Nº trading companies dissolved 22,666 24,735 9.10% Voluntary 15,920 17198 8.00% Merger 2,045 2,004 -2.00% Other causes 4,701 5.533 17.70%
  • Part III: Statistical sources for business analysis• 45 According to the latest report published by the INE, the stock of companies operating in Spain during 2011 was 3,514,894. Stock is understood as the total number of companies active during all or part of a year. Some 53.9% of this stock consists of companies in the Other Services sector, 24.4% in Commerce, 15.1% in Construction and the remaining 6.6% in Industry. In 2011 the number of companies that disappeared was greater than the number of new ones by 44,334. some 40,000 firms that are selected from among a population of 145,000, and makes it possible to obtain results that are representative and are broken down by Autonomous Community and size of company as measured by number of employees. In 2012, some 3.8% of the companies were middle-sized, and accounted for 24.2% of employment and 22.5% of the turnover. 80 74.5% 70 60 50 40 30 20 16,9% Nº OF COMPANIES EMPLOYEES TURNOVER 26.9% 21.1% 24.2% 22.5% 32% 53.3% Distribution by number of companies, employees and turnover. Year 2012 Source: 10 9.2% 0 15% 3.8% 0.7% INE Industrial Poll MICRO (0-9) SMALL (10-49) MEDIUM-SIZED (50-249) LARGE (More than 250) Industrial Poll of Companies The Industrial Poll of Companies is an annual structural survey aimed at companies with at least one salaried worker and whose principal activity is in the manufacturing industries; the extractive industries; the supplying of energy, gas and water; and decontamination and the cleanup and management of waste matter. These statistics make it possible to determine the structural characteristics of the companies that are principally dedicated to each of these activities: their size, the most important accounting data (business volume, purchases, personnel expenses, etc.) and their structure of employment and investment. The Industrial Poll of Companies is based on a sampling of Poll on Services The Annual Poll on Services is a structural survey of all companies engaged in Transport and Storage; Hostelry; Information and Communications; Real Estate Activities; Professional, Scientific and Technical Activities; Administrative Activities and Auxiliary Services; Artistic, Recreational and Entertainment Activities; and Other Services (repair of computers, personal effects and articles for domestic use, and other personal services). This Poll does not include the Commerce sector, whose results are presented in the Annual Commerce Poll. The Annual Poll on Services is a sampling of some 80,000 companies selected from among a total population of around 1,300,000, 16.9%
  • 46 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL Distribución del 35 personal ocupado y 30 cifra de negocios. Año 2012 25 Source: 20 EncuestaAnualde Servicios del INE 15 14 10 7 5 0 EMPLOYEES 33 28 TURNOVER 28 23 17 19 18 13 NO SALARIED WORKERS MICRO (0-9) SMALL (10-49) MEDIUM-SIZED (50-249) LARGE (More than 250) and makes it possible to obtain results that are broken down by Autonomous Community and size of company as measured by number of employees. Poll on Commerce The Annual Commerce Poll studies companies engaged in the sale and repair of motors vehicles and motorcycles, retail trade, wholesale trade, and business intermediaries. In 2012, all medium-sized and large companies dedicated to this commerce represented only 0.5% of the total number of companies, although they accounted for 32.6% of employment and more than 46% of the total billings in this sector. Poll on Company Innovation The Poll on Company Innovation offers indicators on different aspects of this process. The study was directed to a sampling of more than 39,000 companies with 10 or more salaried workers in the industrial, construction and services sectors. Since 2006 the study has included the agricultural, Distribution of the number of companies, employees and turnover. Year 2012 Source: INE Annual Commerce Poll 60 49.6 50 40 30 20 12 10 0 5.2 45.5 36.5 24.9 4.2 NUMBER OF COMPANIES EMPLOYEES TURNOVER 23.5 18.9 16.3 9.7 0.4 0.1 22.9 30.1 FEWER THAN 2 WORKERS FROM 2 TO 9 WORKERS SMALL (10-49) MEDIUM-SIZED (50-249) LARGE (More than 250) Distribution of employees and turnover. Year 2012 Source: INE Annual Poll on Services
  • Part III: Statistical sources for business analysis• 47 livestock, hunting fishing and forestry areas. Poll on company use of ICT and electronic commerce This Poll presents information to measure the use of ICT and electronic commerce at companies in the European Union. Following the methodology recommended by Eurostat, the poll considers a twofold time scope: the variables on the use of ICT refer to January of 2013, while the period of reference for general company information, electronic commerce and ICT training is from 2012. The study surveyed 15,423 companies of 10 or more employees and 10,667 firms of fewer than 10 workers located in Spain. Statistics on Subsidiaries of Foreign Companies in Spain The Statistics on Subsidiaries of Foreign Companies in Spain (FILINT) comes out each year with the aim of providing information about the principal characteristics, economic indicators, structure and activity of the subsidiaries of foreign companies operating in Spain, in both the industrial and services sector. According to the most recent report published by the INE, in 2011 there were 8,986 subsidiaries of foreign companies in the sectors of Industry, Commerce and Other Services not involving the financial markets. These companies generated a turnover of 422,347 million euros and employed 1,235,250 persons. The subsidiaries of foreign firms in Spain in these sectors represented 0.5% of the total number of companies. The turnover and employment they generated were, respectively, 26.0% and 12.4% of the total. Statistics on Subsidiaries of Spanish Companies Overseas The Statistics on Subsidiaries of Spanish Companies Overseas (FILEXT) comes out each year with the aim of providing information about the principal variables that determine the structure and activity of these subsidiaries of Spanish companies. It includes subsidiaries whose principal activities are in the fields of Construction, Commerce, and Non-financial Services. This information is broken down by activity, size and country or geographic area of the subsidiary firm. In 2011 there were 4,183 Spanish subsidiaries overseas in the sectors of Industry, Construction, Commerce and Other Services. They generated a turnover of 198,330 million euros. With regard to employment, they provided 788,356 jobs. The Services sector was the largest one among these overseas firms (32.2%), generating 39.0% of the total turnover and employing one of every two people working in all these subsidiaries.
  • 48 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL Bank of Spain Annual Central Balance Sheet The Annual Report presents information about the balances and profit and loss accounts of non-financial companies in 2012, based on a sample of more than 7,300 companies (30% of them middle-sized) that voluntarily take part and that represent 27% of the GVA generated by all Spain’s non-financial firms. CENTRAL DE BALANCES ANUAL Small Medium-sized Large TOTAL (CBA). 2012 Fewer than 50 empl. From 50 to 249 Mmore than 250 Distribuciónpor tamaño de las Nº companies 3,743 2,233 1,399 7,375 empresas españolas % of total 50.8% 30.3% 19.0% Fuente: Nº employees 66,000 209,000 1,914,000 2,189,000 CentraldeBalancesdelBanco % of total 3.0% 9.5% 87.4% de España This information is complemented by an analysis of the results of the small and medium-sized Spanish non-financial companies. It was drawn up based on the annual accounts deposited at business registers (CBB). Regarding the CBB database, it has information about 470,000 companies with employees, of which some 10.000 firms are medium-sized, or 2.2% of the total. ANNUAL CENTRAL BALANCE SHEET. 2012 Breakdown by size of Spanish companies Source: CentralBalance Sheet ofthe Bank of Spain CBB INFORMATION ON PYMES (*). 2011 Distribution of Spanish companies by size Source: Central Balance Sheetof theBankof Spain (*) Integra la información de lascuentasdepositadasen los RegistrosMercantiles Micro Small Medium-sized Large TOTAL Up to 9 empl. From 10 to 49 From 50 to 249 More than 250 Nº of companies 373,804 85,569 10,205 1,399 470,977 % of total 79.4% 18.2% 2.2% 0.3% Nº employees 1,072,000 1,276,000 633,800 1,914,000 4,895,800 % of total 21.9% 26.1% 12.9% 39.1%
  • Part III: Statistical sources for business analysis• 49 Directorate-General of Industry and the Small and Medium-sized Company (Pyme) Pyme Figures Each month the Directorate-General of Industry and Pyme releases a report, titled “Pyme Figures”. (Pyme is the acronym in Spanish for ‘Small and medium-sized companies’). It is based on data provided by the Ministry of Employment and Social Security about companies registered in the Social Security system. In addition to the number of companies ranked by size, there is information about the workers in companies with employees. Portrait of the Pyme Each year the Directorate-General of Industry and Pyme also releases a comparison of the data that is published annually in the DIRCE (Central Directory of Companies), which makes it possible to analyze the situation among companies depending on their size, sector or geographical location. The latest report analyzing this DIRCE information dates from January 1, 2013. SEPI Foundation The Poll on Business Strategies (ESEE) Each year the SEPI Foundation carries out a poll aimed at industrial and manufacturing companies located in Spain, and called the Poll on Business Strategies (ESEE, in Spanish). The origin of the ESEE is the agreement signed in 1990 between the Ministry of Industry and the SEPI Foundation, which took responsibility for designing, controlling and carrying out the poll. It surveys companies with 10 or more workers in what is usually known as the manufacturing industry. It includes all of Spain and appears annually. Summary of the ESEE questionnaire: • Activity, Products and Processes. • Clients and Suppliers. • Costs and Prices. • Markets served. • Technological activities: questions about R+D activities, patent registration, innovations in product and price, and payments for –and income from– licenses and technical assistance. • Overseas Business. • Employment. • Accounting data. Micro Small Medium-sized Large TOTAL Up to 9 empl. From 10 to 49 From 50 to 249 More than 250 Nº of companies 1,025 122,638 20,972 4,227 1,172,945 % of total 87.4% 10.5% 1.8% 0.4% 100% Nº employees 2,595,200 2,385,700 2,069,300 5,013,200 12,063,400 % of total 21.5% 19.8% 17.2% 41.6% 100% Companies and salaried workers registered at Social Security. April 2014 Source: Pyme figures
  • 50 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL Tax Agency Data on overseas business by company characteristics As of June of 2014, the Department of Customs and Special Taxation has published the statistics on overseas business according to the principal characteristics of the companies: the volume of this trade and the number of export and import firms according to their economic activity –as determined by the National Classification of Economic Activities (CNAE). Also the number of employees, the number of companies with which there are exchanges, the volume of exports and imports, etc. To obtain the additional information necessary to draw up these statistics, the procedure has been to compare the information foreign trade with that provided by DIRCE. The latest published data, from 2011, when compared with that from the previous year, highlights the increasing importance of the medium-sized companies in the overseas sector. Thus the number of medium-sized exporting companies increased by 1.7% and their overseas turnover rose by 18%: the participation of these firms in the total export figure rose to 24%. In other words, a quarter of the value of Spanish exports in 2011 corresponded to medium-sized companies. Number de companies and volume of exports by company size. STABLE EXPORTING COMPANIES (*) Source: Tax Agency (*) Stablecompanies: those that during thereferenced year, and inthe three previousones,presented the Intrastat or the Single AdministrationDocument (SAD). Annual var. % of all companies 2011 2010 2011 Micro (0-9 employees) 15,624 16,086 3.0% 45% Small (10-49 employees) 13,116 13,127 0.1% 36% Medium-sized (50-249 employees) 5,195 5,283 1.7% 15% Large (250 and more employees) 1,493 1,487 -0.4% 4% TOTAL 35,428 35,983 1.6% 100% Annual var. % of all companies 2011 2010 2011 Micro (0-9 employees) 15,354 17,073 11% 9% Small (10-49 employees) 22,858 26,114 14% 14% Medium-sized (50-249 employees) 38,057 44,971 18% 24% Large (250 and more employees) 84,022 97,654 16% 53% TOTAL 35,428 35,983 1.6% 100% Number of companies Value exports (Mill €)
  • Part III: Statistical sources for business analysis • 51 ICEX The base of exporting companies Based on information from the Customs Department, ICEX (the Spanish Institute for Foreign Trade) compiles a ‘Profile of Exporting Companies’ as a whole and the so-called “regular exporters” group: those firms that have consistently exported over the past four years. The Profile includes export figures, the geographic destination of exports, the products exported and the different exporting sectors. In 2013 the number of exporting firms rose to 150,992 from the 137,528 of the previous year. The number of regular exporting companies also grew: from 38,373 in 2012 to 41,163 in 2013, while more than 6,600 companies initiated or reinitiated exporting activity. European Commission Observatory of European Small and Medium-sized companies Based on information from Eurostat (provided by the different National Statistics Institutes) an annual report is published about small and medium-sized companies in the European Union. It analyzes their contribution to growth and employment in the 27 EU countries. We analyze these statistics in the second part of the present study so as to be able to place Spanish companies in the European context. The most recent report includes estimates for 2014 about the number of companies, employees and GVA for the companies as a whole and as ranked by size. For the EU-27 as a whole, it is estimated that there are 21.4 million companies, of which 1.1% are medium-sized, and that they provide 17.4% of employment and 18.2% of the GVA. Eurostat data for EU- 27 companies. Estimates 2014 Source: Eurostat Micro Small Medium-sized Large TOTAL Up to 9 empl. From 10 to 49 From 50 to 249 More than 250 Nº of companies 19,676,714 1,403,820 233,051 45,457 21,359,042 % of total 92.1% 6.6% 1.1% 0.2% Nº employees 38,369,835 27,134,078 23,125,668 44,394,691 133,024,272 % of total 28.80% 20.40% 17.40% 33.40% GVA(mill. euros) 1,304,396 1,116,462 1,115,659 2,578,162 6.114.679 % of total 21.3% 18.3% 18.2% 42.2%
  • 52 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL EFIGE Project EFIGE (European Firms In a Global Economy) is a research project financed by the Seventh Framework Programme of the European Commission. The project began in 2008 and the surveys have been carried out since 2010 among companies in seven European countries (Germany, France, Italy, Spain, United Kingdom, Austria and Hungary). The project includes some 16,000 companies in the manufacturing sector with more than 10 employees. (Large countries like Spain have 3,000 companies in the survey.) The project studies the international competitiveness of European firms through comparative company analysis in these seven countries. The reports center on competitiveness and innovation, although they also deal with aspects related to the internationalization of the companies and their structure (employment, organization, financial strategies…). This information can thus serve to complement the analysis of Spanish firms in an international comparison, but it does not allow for a systematic monitoring of the business fabric. Base de datos EFIGE. Datos 2011 Countries Nº companies Nº companies % of total % of total TOTAL 10-49 employees 50-249 empl. More than 250 empl. SPAIN 2,832 80% 15% 5% GERMANY 2,935 62% 27% 11% FRANCE 2,973 71% 21% 8% ITALY 3,021 81% 15% 5% UNITED KINGDOM 2,067 70% 25% 5% AUSTRIA 443 66% 23% 11% HUNGARY 488 65% 25% 10% TOTAL 14,759 EFIGE database. 2011
  • Part III: Statistical sources for business analysis • 53 European Central Bank BACH (Bank for the Accounts of Companies Harmonised) database The BACH project collects annual historical series (balances, income statements and significant ratios) of non-financial companies in 11 European Union countries: Germany, Austria, Belgium, Spain, Slovakia, France, Holland, Italy, Poland, Portugal and the Czech Republic. The data is presented in percentages and absolute values (assets, net turnover, added value and employment figure) and a statistical distribution of ratios and structures (quartiles). This data has been available since 2000 for the combination of 104 aggregates of activity and five size categories as defined by net turnover. Countries Nº companies Small and medium-sized Nº companies Large Nº companies TOTAL BACH Database. 2011 SPAIN 353,722 1,709 355,431 AUSTRIA 63,047 1,730 64,777 BELGIUM 351,243 1,873 353,116 CZECH REP. 32,817 968 33,785 GERMANY 30,278 4,619 34,897 FRANCE 219,770 6,222 225,992 ITALY 33,613 4,727 38,340 POLAND 52,002 1,601 53,603 PORTUGAL 361,220 727 361,947 TOTAL 1,497,712 24,176 1,521,888 CompNet (Competitiveness Research Network) Database In February of 2014 the European Central Bank (ECB) published a document about the new database called CompNet. It contains information about the business balance sheet of companies in 11 EU countries, broken down into 58 sectors, for the 1995-2011 period. Using this information, it was possible to devise some homogeneous indicators about business productivity and competitiveness, ranked by company size. Nº companies Nº companies Nº companies % Total More than 20 employees More than 20 employees SPAIN 245,121 22,770 9% BELGIUM 66,842 7,757 12% CZECH REP. 21,156 11,470 54% SLOVAKIA 3,954 3,446 87% SLOVENIA 16,676 2,123 13% ESTONIA 12,186 1,849 15% GERMANY 30,688 22,401 73% FRANCE 348,179 55,004 16% ITALY 53,054 21,476 40% POLAND 6,250 6,250 100% TOTAL 804,106 154,546 19% Countries CompNet Database. 2011
  • 54 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL INFORMA Iberian Balance Sheet Analysis System (SABI) This is an economic-financial database drawn up by INFORMA D&B in conjunction with Bureau Van Dijk. It includes information about 1,247,469 Spanish companies (674,295 of them with balance sheets at the end of 2011). Among its principal advantages: it has ample coverage of the DIRCE population and disaggregated data about each individual company, which makes it possible to identify specific firms and compare them with “official” statistics, which are very complete but anonymous. It also provides periodically updated information the companies deposit with the Business Registers. For that reason we use this database in section two of the present report, which analyzes the economic-financial developmentofSpanishmedium-sizedcompaniesduringthe2008-2012period. AMADEUS database This is a database of economic-financial information about some 20.6 million European companies in 43 countries. In the case of Spain, it is fed by INFORMA D&B. ORBIS database ORBIS is a financial database, in a standardized format that makes it compatible, about more than 123 million companies all over the world (including banks and insurance firms). ORBIS includes information about: • 66 million companies in Europe. • 23 million companies in North America. • 13.2 million companies in South and Central America. • 19.1 million companies in Asia, the Middle East and Oceania. • 1.3 million companies in Africa.
  • Part III: Statistical sources for business analysis • 55 2011 2012 2013 Var. 13/12 Source Nº of companies created 84,812 87,182 93,363 7.1% Bus. Registers Nº of companies dissolved 19,784 22,666 24,735 9.1% Bus. Registers Net companies created 65,028 64,516 68,628 6.4% Bus. Registers Nº companies (w. salaried workers) 1,453,108 1,432,090 1,462,567 2.1% DIRCE- INE Micro (1-9 employees) 1,297,971 1,286,587 1,326,618 3.1% DIRCE- INE Small (10-49 employees) 130,448 121,601 113,148 -7.0% DIRCE- INE Medium-sized (50-249 employees) 20,888 20,108 18,979 -5.6% DIRCE- INE Large (more than 250 employees) 3,801 3,794 3,822 0.7% DIRCE- INE Nº of companies in S. Secur. 1,210,527 1,171,844 1,158,338 -1.2% Min. Employment Micro (1-9 employees) 1,053,987 1,025,848 1,014,940 -1.1% Min. Employment Small (10-49 employees) 130,039 121,111 118,732 -2.0% Min. Employment Medium-sized (50-249 employees) 22,097 20,698 20,475 -1.1% Min. Employment Large (more than 250 employees) 4,404 4,187 4,191 0.1% Min. Employment Nº of workers in S. Secur. 14,362,154 11,998,300 11,914,600 -0.7% Min. Employment Micro (1-9 employees) 2,669,500 2,571,000 2,549,200 -0.8% Min. Employment Small (10-49 employees) 2,535,800 2,360,300 2,312,200 -2.0% Min. Employment Medium-sized (50-249 employees) 2,181,700 2,051,700 2,030,100 -1.1% Min. Employment Large (more than 250 employees) 5,262,200 5,015,300 5,023,100 0.2% Min. Employment MIDDLE-SIZED COMPANIES (50-249 employees) Nº companies 16,561 15,484 15,502 0.1% EUROSTAT Nº employees (persons) 1,614,403 1,513,350 1,488,133 -1.7% EUROSTAT Average Nº employees/company 97 98 96 -1.8% EUROSTAT GVA (millions euros) 79,497 73,358 73,433 0.1% EUROSTAT Productivity (thousands euros) 49 48 49 1.8% EUROSTAT Economic-financial ratios Turnover per company (millions euros) 23.8 25.1 INFORMA Average assets per company (millions euros) 34.3 39.2 INFORMA Turnover per employee (thousands euros) 239.2 250.8 INFORMA Average cost per worker (thousands euros) 36.4 37 INFORMA Own assets/Balance 33.2% 32.7% INFORMA Economic profitability 3.0% 1.3% INFORMA Annual variation in employment (EPA) -1.6% -4.3% -2.8% INE Annual variation of real GDP 0.1% -1.6% -1.2% INE Synthesis of indicators of the Spanish medium-sized company Source: Círculo de Empresarios
  • PART IV Contributions to company analysis and proposals for reactivating the business fabric
  • 58 • Círculo de Empresarios. La empresa mediana española. INFORME ANUAL 2014
  • Part IV: Contributions to company analysis and proposals for reactivating the business fabric• 59 Part IV: Contributions to company analysis and proposals for reactivating the business fabric In this new section of the Annual Report on the Spanish medium-sized company we include a list of the principal reports, articles and analyses drawn up by different public and private organizations from the company sphere. Through the webpage of the Círculo de Empresarios (10) it is possible to gain access to the complete documents that are summarized on this list. This list also includes a series of documents that describe the principal initiatives and proposals that are being drawn up to favor the growth and professionalization of Spanish business. These initiatives are basically expressed in four areas of action: • Making the business sector larger. • Favoring the use of new sources of financing. • Promoting internationalization. • Supporting innovation. 10. http://circulodeempresarios.org/es/empresa-mediana-espa%C3%B1ola/otros-documentos
  • 60 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL Economic Policy Internationalization and innovation of firms: evidence and policy 57 Panel Meeting (April 2013) PwC / SIEMENS Keys to competitiveness in Spanish industry (September 2013) Círculo de Empresarios The Spanish medium-sized company, 2013 (October 2013) World Bank Report on Doing Business 2014: Understanding the regulations for small and medium-sized companies (October 2013) BANK OF SPAIN Economic bulletin Juan Ayuso: “An analysis of the credit situation in Spain” (October 2013) European Commission 2013 annual report about the small and medium-sized companies (November 2013) Chambers of Commerce Business perspectives 2014 (December 2013)
  • Part IV: Contributions to company analysis and proposals for reactivating the business fabric • 61 BANK OF SPAIN Economic bulletin Carmen Martínez y Maristela Mulino: “The development of banking credit for companies according to their size” (January 2014) BANK OF SPAIN Economic bulletin Antonio Rodríguez y Patry Tello: “The impact of direct investment on productivity and employment in the Spanish manufacturing sector” (January 2014) Real Instituto Elcano “Spanish commerce and added value: the hidden face of the exterior sector” (January 2014) KPMG European barometer of family-run businesses (January 2014) CEOE Proposal for actions to increase the average size of industrial companies in Spain (January 2014) Deloitte-EL PAIS Barometer of Companies (February2014) Business Europe/CEOE Industry matters: Recommendations for an industrial pact (Marzo 2014)
  • 62 • Círculo de Empresarios. The Spanish medium-sized company. 2014 ANNUAL AED (Spanish Association of Managers) Observatory of the management function (First trimester 2014) PwC 7th survey of top management in Spain. Proposals for reactivating the economy (March 2014) Central European Bank Semester poll on access to financing of small and medium-sized companies in the Euro Area (April 2014) Círculo de Empresarios The top 50 middle-sized Spanish companies. Successful cases (April 2014) INFORMA Gazelle’ companies and high-growth companies (April 2014) Directorate-General of Industry and the Small and Medium-sized Company (Pyme) Pyme statistics (May 2014) Tax Agency Quarterly report on sales, employment and salaries in the large companies (May 2014)
  • Part IV: Contributions to company analysis and proposals for reactivating the business fabric • 63 IMF (International Monetary Fund) Article IV Consultation with Spain: Concluding Statement of the Mission (May 27, 2014) BBVA-Research Santiago Fernández de Lis: “Internationalization and financing of Spanish companies” (May 2014) Cre100do.es Initiative by the Fundación Innovación Bankinter in conjunction with ICEX and the Círculo de Empresarios (May 2014) Círculo de Empresarios/ Círculo de Economía/ Círculo de Empresarios Vascos The Barometer of the Círculos (June 2014) Government of Spain Plan of measures for growth, competitiveness and efficiency (June de 2014)
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