The life expectancy of companies created in Spain does not reach 11 years

These are not very motivating data, but it seems that the life expectancy of companies created in Spain does not reach 11 years, or what is the same, that 60% of Spanish companies do not even reach 5 years of existence, according to data extracted from a report carried out by Cepyme, called "Situation of SMEs in Spain".

1/23/2023

This high business mortality rate in Spain is a very important problem, especially when compared to other European countries, according to Eurostat data, which studies the evolution of the mortality rate of companies created from 2014 to 2019.

Some sources from Cepyme, consulted by the digital media elEconomista, consider that the problem with the Spanish industrial fabric is that it is smaller than that of other European countries, and that it is also atomized, since 94% are micro companies with less than 10 workers, and this makes them less productive and competitive, and therefore, drags the country's productivity down.

Looking at European countries, only Finland and Denmark have a higher percentage of business mortality during the first five years of life, the rest of the large countries of the old continent, as well as the European average, have a greater permeability in their business fabric.

Specifically, the European country in which the most companies survive during the first 5 years is Belgium, with 52% of the total, followed by Portugal with 51.4%, the Czech Republic with 51%, and France with 48.1%.

Companies created in Spain

Cepyme also finds another explanation for this high mortality rate of recently created Spanish companies, and that the bureaucracy in Spain does not accompany this entire process, a situation that is completely different from many other European countries.

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