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The business fabric formed by SMEs in Spain acts as a critical driver of the national economy. They employ a majority of workers, foster young talent, boost local markets and help transfer skills across borders. Formulas stands at the forefront of highly specialized industries in this environment.
Recent studies show that starting a business is rarely easy. Across Europe, a significant share of small and medium enterprises do not survive beyond the first five years. This snapshot, drawn from Cepyme and Eurostat data between 2014 and 2019, highlights the hurdles identified by Spain compared with other European nations.
Still, many enterprises succeed. There is no single formula for success, but a wealth of experiences from leaders across various sectors provides meaningful lessons for anyone willing to build a resilient business.
Leverage competitive advantages
In 2012 Greenkeeper Iberia launched a mission to extend the shelf life of fresh produce. The company began by producing ethylene absorbing granules designed to preserve fruits and vegetables longer. The venture faced financial obstacles in its early stages, illustrating how capital considerations can represent a major challenge for a growing business.
Jacob Vidal, commercial director of a company recognized as Madrid’s SME of the Year in the latest SME Awards, notes that a key barrier was maintaining rigorous oversight of expenses, eligibility of commitments, and the personal effort required from partners in travel, manufacturing, and administration. His approach focused on consistent market entry through products with a clear competitive edge. He asserts a pragmatic rule: if a product cannot meet a defined standard, it should not reach the market.
Efforts to expand included seeking new distributors in leading fruit-producing regions, underscoring the importance of a well-timed distribution strategy to unlock growth opportunities.
Vidal emphasizes the essential role of small and medium-sized firms as the real engine behind the Spanish economy. He describes their presence as vital for creating jobs and supporting larger corporations, a dynamic that resonates with small business ecosystems in other countries too. This perspective reflects how SMEs drive innovation, supply chain resilience, and regional development, especially in sectors centered on food, manufacturing, and value-added services.