Spanish Businesses Close Their Doors at Record Rate

[angie]

45% more Companies filed for bankruptcy in Q1 2013 than Q1 2012, exacerbating the rising unemployment problem 🙄

http://www.businessinsider.com/spanish-unemplo … sis-2013-4

[DBMarcos99]

Ha – Poor Angie (and her side kick) still reduced to using Q1 figures to talk down Spain.

Creation of new companies reaches highest level for 5 years in April
[url]http://www.euribor.com.es/2013/05/20/la-creacion-de-empresas-alcanza-en-abril-su-nivel-mas-alto-en-cinco-anos/
[/url]

And btw, unemployment is not rising. It’s far too high yes, but it fell by 46,050 in April which was 7 times that of April the previous year.

Why are you desperately re-hashing the Q1 figures now the tide has turned?

[katy]

Of course she quotes Q1 figures…Q2 are April may and June 🙄

[DBMarcos99]

@katy wrote:

Of course she quotes Q1 figures…Q2 are April may and June 🙄

and so far Q2 figures have been exceptionally good. I’m sure you will quote any that aren’t… 😆

[angie]

Marcus, I can’t find later figures but will when they’re ready, however the article clearly says ‘Spanish businesses ARE closing their doors at a record rate’ so talking in the NOW I think. Still the Russians will save you no doubt 😆

[Anonymous]

I know a minimarket business that struggles. It does most of its trade when Spar is closed -very difficult to compete with the big chains. Also there is too much restriction on what small businesses can do – they cannot buy other shops own brands and sell them on. Most difficult is that Hacienda deem them to be making a minimum level of profit that is unrealistic and charge them taxes on this amount. They say if you are not earning that you should not be in business- close down ! Admittedly some try it on-but its not right to start with the assumption that everybody is dishonest.

[DBMarcos99]

@Ptr wrote:

I know a minimarket business that struggles. It does most of its trade when Spar is closed -very difficult to compete with the big chains. Also there is too much restriction on what small businesses can do – they cannot buy other shops own brands and sell them on. Most difficult is that Hacienda deem them to be making a minimum level of profit that is unrealistic and charge them taxes on this amount. They say if you are not earning that you should not be in business- close down ! Admittedly some try it on-but its not right to start with the assumption that everybody is dishonest.

That’s a good point. Regardless of general economic conditions, chains appear to be getting the upper hand (they’ve done so for a long time in the UK and a lot of independent pubs and shops were wiped out). You can see the likes of Lizarran and 100 Montaditos expanding not just in Spain, but abroad too. Of course it’s possible to take part in that success by buying a franchise, but that involves serious money.

[Chopera]

@mgspain wrote:

@DBMarcos99 wrote:

You can see the likes of Lizarran and 100 Montaditos expanding not just in Spain, but abroad too. Of course it’s possible to take part in that success by buying a franchise, but that involves serious money.

Ah yes, Lizarran, a good success story, I remember this as a good little eatery in my town 10 years ago, always full because it was good quality at a good price (I don’t work for them) I didn’t realise at that time it was the first one and there were only a few of them at that time, ten years later they are global. Sitges also gave us Bacardi. So the moral is, if they are good enough, they will do well. I wish there was more of this type of thinking in Spain, but the government only puts obstacles in the way of those who want to think bigger than working for the local council.

Exactly. In Spain business in run for the benefit of government, not the other way round.

[Author]

Posts