Spain Lost 16% Of Its Businesses And 10% Of Its Self-Employed In The First Nine Months Of 2020

2021-02-04   |   by CusiGO

The National Bureau of Statistics (INE) announced the impact of the epidemic in the first few months on Spain’s business structure. Between January and October 2020, 194000 employment units (16% of the total) were destroyed and 327000 self-employed (10%) were dismissed in Spain. According to the business demographic study, as previous studies have shown, the most affected are micro businesses, young employees and women (slightly more than men). On the positive side, the ine report shows how ETS has provided lifebuoys for thousands of Companies: of all the companies that use ETS, only 3.7% have closed their shutters before June, while 8.3% have closed their shutters without subscribing to ETS.

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The biggest blow to society took place within a few days. In the first quarter, 140000 of Spain’s 1190870 companies went bankrupt, mainly between the announcement of the alert on March 14 and the 31st of that month. In the second quarter, the closure rate fell to 43360, and the economic recovery brought about the reopening of 26% of the companies closed between January and March. But in the third quarter, the failure of tourism activities once again left blood on the enterprises: 56000 enterprises closed down and 8900 enterprises recovered. As of October 1, there were still 996729 companies in Spain.

Autonomous

At the beginning of 2020, there were 2997941 self-employed people, and the first quarter was again their most difficult quarter. In late March, 190080 self-employed people were fired. Like businesses, the decline of 40% was restored in the second quarter, but it soared again in the summer: 102235 businesses closed down and 5465 self-employed businesses became active again. As of October 1, Spain still had 2.67 million self-employed people.

The smallest company, the most punished company

The smaller companies have been most affected by the crisis. As of October, the Spanish economy lost 21.5% of the enterprises with 1-5 employees, no less than 190600 enterprises. “We note a high correlation between the number of employees and the probability of survival,” ine explained in the report. In fact, the proportion of companies that successfully survived the crisis increased with the increase of the number of employees. Among the companies with 100 to 250 employees, less than 2% of them went bankrupt.

Youth and women suffer the most

With the increase of self-employed age, their survival rate in the economic crisis is also higher and higher, only when they are over 60 years old will decline. 20.7% of the self-employed people under the age of 30 quit from January to September, 10 percentage points higher than the average survival rate of the sector. People aged 30-39 performed better (13.2%). On the other hand, the self-employed, who are 50-59 years old, are, in the words of statisticians, “the best evolutionary group in these quarters,” with a survival rate of 92%.

In terms of gender, self-employed women are slightly more affected than men. On October 1, the survival rate of women run businesses was 87.8%, compared with 90% for men.

Andalusia lost 33600 companies in nine months

Andalusia is the most punished community, absolute or relative. During the period from January to September, its business growth rate (high and low difference compared with the total business) was – 11.8%. In the first nine months of this year, it lost 33600 companies, followed by Canary Islands (- 9.4%), Castilla Raman (- 9.2%), Murcia (- 7.9%) and Valencia (- 7.3%). The other extreme is the Balearic Islands, with a growth rate of – 2.3% in the three quarters, followed by Basque (- 3.6%), Ceuta (- 3.8%), Galicia (- 5.1%) and Aragon (- 5.7%).