In 2020, specifically between the first and third quarters of the year, Spain lost just over 200,000 companies. The most badly affected were SMEs with between one and five staff, accounting for 21.5% of total losses. This is a huge figure to which, in addition, we must add the 327,000 freelancers who also had to wind up their activities in the same period.
A lesson in tough times
However, despite the fact that the coronavirus crisis suffocated many businesses, the truth is that it couldn’t dampen the entrepreneurial spirit of our country: according to the Global Entrepreneurship Monitor (GEM) 2020-2021 Report, Spanish entrepreneurship was above the world average. In fact, many businesses were created in record time to try to respond to the unprecedented needs that the health crisis was generating. A valuable lesson during a very tough time.
It is true that the spirit of Spanish entrepreneurs grows in the face of adversity, but it is also true that, before the pandemic, SMEs have been forced to cope with some serious difficulties, including: access to credit, high levels of bureaucracy, non-payment by clients, and a tax rate much higher than the European average.
Thus, the insurance sector has provided a safety net for years to cover difficulties and unforeseen events that put the continuity of 99% of the Spanish business fabric at risk. It is vital to protect a group that employs two out of every three salaried workers in Spain. Indeed, there are already specific insurance policies designed for SMEs which can also be configured à la carte depending on the type of business, its size, facilities, etc. A whole range of customized solutions that share one objective: to protect every business so its operations can continue.
Insurance for every SME
There is a policy for every need, from insurance that covers unforeseen events such as floods, fires, electrical failures or theft, through to accident insurance for workers, civil liability and credit insurance, and finally cyber risk insurance, which covers SMEs from the growing threat of cyber attacks due to the increased use of remote work devices. The insurance industry has designed a world of solutions to bring peace of mind to the true economic locomotive of our country.The goal? To make sure the entrepreneurial spirit that we so badly need keeps on going.