The family company warns of the economic slowdown

The family company warns of the economic slowdown

The businessmen gathered in Valencia consider fiscal policy one of the risks to be solved and ask for a reform of education | Family businesses such as Mercadona or Inditex are more innovative than other large companies linked to the public sector related to construction or oil

    The new economic policy of the Government of Sanchez does not fully convince Spanish businessmen. According to the interactive survey carried out this Monday at the XXI National Congress of Family Business that takes place in Valencia before more than 600 businessmen, professionals approve the economic situation of Spain but with a score of 5.48 out of nine , almost a point below the 6.22 that they gave him last year.

   This perception is in line with the macroeconomic data provided by the Government a few days ago. Although the growth of Spain will be at 2.6% this year, even above the average for Europe, it slows down compared to last year and the previous one, when it was around 3%. Of course, confidence in the economic evolution is still high among employers belonging to this group and 67% say they will reinvest the profits in the company rather than in the distribution of dividends or in the reduction of debt.

During his speech, King Felipe VI has recognized the value of family businesses, which in economic terms account for 90% of companies in Spain and more than 60% of private employment . "But they are more relevant for the values. In a digital society, where transparency is one of the elements that define the world in which we move, institutions, people, companies, we must understand that decisions about life, consumption, leisure, work, etc. must always be determined by the best values, "he stressed.

Currently in Spain there are more than 1,200 family businesses , including those belonging to the Institute of Family Business (IEF), which generate an annual turnover equivalent to 28% of GDP and employ 1.2 million people. Therefore, the president of the IEF, Francisco J. Rays, has advocated during his speech to reverse the negative image of companies, both SMEs or emerging companies as medium and large, to be an active part and a positive element in construction of the future of Spain.

For its part, the Minister of Industry, Reyes Maroto, recalled that Spain ranks 14th in the European Union in digital competitions, below the average. Therefore, it needs employment strategies that "favor the acquisition" of these capabilities. In addition, investment in active employment policies must be increased, currently only 0.6% of GDP.

Juan Roig; «Entrepreneurs must show their faces»
In the survey carried out among the family businessmen, they were also asked about their satisfaction of being one, an option that received a score of 8.19 out of 9. On that 'Pride of being an entrepreneur', Juan Roig, president of Mercadona, spoke. who has asked the professionals of the sector to "come out of the closet . " "Entrepreneurs do not have a good image because we do not come out to face, and that we are the ones who create wealth in this country," lamented the president of the leading company in the supermarket sector in Spain, with more than 21,000 million of billing euros in 2017.

Roig has explained that a country is richer if it has more entrepreneurs . "Catalonia is a richer region than Andalusia because its ecosystem favors more business," he said after defining entrepreneurs as those "who go against the tide" and believe "in equal opportunities." Thus, the president of Mercadona recalled that the so-called now 'entrepreneurs' are those who then become entrepreneurs to do something "that others have not seen, but then you copy."

Spain, 36th in the competitiveness ranking
During the first day of the congress the concept of competitiveness has also been important, which the economist Arturo Bris has described as "erroneous". And he has explained that since the crisis, this concept is based on cost competitiveness and is improved as soon as it is able to export. "This is a concept of the 70s and 80s by Michael Porter that is now obsolete." Thus, a competitive economy is for productivity and the level of wages has much to do.

During the conference 'Spain in the world ranking of competitiveness', the director of the World Competitiveness Center of IMD Lausanne, which measures the competitive level of 63 world economies, has revealed that Spain is in the 36th position in the table , together with countries such as Chile or Saudi Arabia. "We are in the second half of the table, like the countries of Eastern Europe and below Portugal, for example." The expert explained that our country has reduced its competitiveness in the last 15-20 years, and the minimum marked it in 2013.

In fact, the economist has stressed that Spain is a more productive country than Germany in terms of productivity per hour worked, but this does not become the prosperity of society. "The lack of productivity is a myth that must be banished," said Bris, who has highlighted the lack of prosperity especially in the last ten years.

In addition, in terms of innovation, has stressed that according to their studies the most innovative companies are the companies of the periphery, which tend to be family. This is the case of Mercadona (Valencia) and Inditex (Galicia ), which surpass those of the center of the Peninsula, more in contact with the public sector such as the construction or oil sectors.

The expert has stressed that education is the fundamental problem and reforming it is "extremely difficult" since it requires "essential consensus" and it is also necessary to invest more in education. Another weakness of Spanish competitiveness is the lack of attraction of foreign talent to have a global economy, especially of great added value.