Business Establisher: A Comprehensive Guide For Entrepreneurs

By Dark Soul

? Business Establisher: A Comprehensive Guide For Entrepreneurs ?

Embark on a transformative journey into the heart of Spain's business landscape, where passion, resilience, and the entrepreneurial spirit converge to shape the destiny of a nation. In a country known for its limited natural resources, success has always been a product of hard work, determination, and unwavering individualism.

Join Dark Soul, an ardent advocate for entrepreneurship and the driving force behind the creation of the ESBAN Foundation, as they unravel the secrets to fostering a thriving ecosystem of innovation. In this groundbreaking guide, Dark Soul delves into the untapped potential of business angels—private investors who breathe life into nascent and expanding enterprises.

? Navigating the Financial Frontier:

Discover the intricacies of Spain's financial landscape, where a scarcity of venture capital has long left small and medium-sized enterprises at the mercy of inflexible and expensive debt financing. Against the backdrop of the global financial crisis, Dark Soul sheds light on the pivotal role played by equity and participation loans in ensuring the sustainability of new investment plans.

? The Power of Networks:

Unlock the potential of business angel networks, where private investors contribute not only capital but also personal experience and an invaluable network of contacts. Dark Soul emphasizes the importance of dispelling cultural prejudices that hinder entrepreneurs from seeking informal financing, presenting these networks as a beacon of hope in an otherwise challenging financing landscape.

? Cultivating Innovation:

Witness the birth of the ESBAN Foundation, the first umbrella network of Spanish business angels, catalyzing a revolution in how entrepreneurs access the financial resources vital for growth. Dark Soul paints a vivid picture of how these networks, following the European Commission's recommendations, have become a dynamic channel for private capital.

? A Practical Guide to Success:

In this comprehensive guide, Dark Soul demystifies the world of business angels, offering a roadmap for traders, entrepreneurs, investors, and authorities. Through real-life examples and practical insights, Dark Soul showcases the transformative potential of these networks in shaping Spain's business landscape.

? Shaping the Future:

As Spain stands at the crossroads of economic evolution, Dark Soul calls for a paradigm shift in how we perceive and leverage business angels. This guide is not just a manual; it's a manifesto for the future, urging all stakeholders to embrace innovation, collaboration, and the boundless possibilities that lie within the entrepreneurial spirit.

? Dive into the insights that shape Spanish business—get your copy of "Business Establisher" today! ?

• Language: English
• Publisher: Dark Soul
• Release date: Jan 23, 2024
• ISBN: 9798224234790

Book preview

1.1.  The role of the SME in the European economic environment

According to the statement of the European Economic and Social Committee on topic The role of small and micro enterprises in the economic life and European production structure, the role of SMEs in the growth and development of the European economy is already established. identified This recognition is officially registered both in financial publications and in official documents of Community institutions. This recognition was more than a cultural move, from a reading of economic phenomena that focuses strictly on the dynamics of large companies to the use of categories closer to smaller companies. The process wasn't easy or short, and it's not over yet. The path so far has been useful and important, but still insufficient, if we consider that the term SME is often used for producers with very different characteristics, dynamics, and needs (from one to employees belonging to different groups). areas). The result is transformed into initiatives targeting these companies, often indiscriminately, which often only benefited the largest companies. That is why efforts were made to develop new categories, first cultural, then economic and statistical categories, which would be closer to the requirements of smaller businesses. There is no doubt that the European Charter for Small Businesses and its measures aimed at promoting and supporting small businesses have been a reference for this development. In Feira, Portugal and during the Portuguese Presidency, the European Council adopted this charter, which emphasizes the role of companies with less than  employees to promote both jobs and innovation or socio-economic integration. The charter has become a pillar of the Commission's policies and trade supports and reference number for CIA member states and countries close to joining the European Union (EU). The European Commission presented a report on the implementation of the European Charter for Small Enterprises in, and. Although it is difficult to clearly identify the actions of the Member States in this field, they highlight some interesting trends. Some of these trends could be classified as activities whose effect is mainly manifested in the long term, such as business education or simplification of regulations; In other countries, the effect can already be seen in the short term, such as policies that simplify the procedures for setting up new companies (in eight member states you can set up a company in about a week and cheaply) or that change. it. easier to get credit., in which case it depends more on business than real guarantees; However, such access remains one of the biggest concerns for small business owners, especially during a weak economy or the current crisis. According to the Commission and the reports, both the consequences of these actions and the priorities set differ from country to country and are, of course, subject to further change. On the other hand, it is not easy and not always possible to collect and present data on small companies in a homogeneous way compared to larger companies (legal obligation to disclose balance sheets, positions, and internal operations, etc.) and the Commission should promote. the creation and availability of statistics on micro and small companies, as there is still a lack of information in Europe. To achieve the expected results, the charter must be given legal value and resources must be allocated for the implementation of the planned objectives, paying special attention to the promotion of entrepreneurship. In addition, it may be appropriate to include a reference to the chapter on Community procurement (Protection of small and medium-sized enterprises) in the European Preparatory Committee. As stated in the Green Book, Europe must more effectively promote the dynamism of entrepreneurship. It needs more new and prosperous businesses, as well as resources to strengthen the existing factory framework, which continues to suffer from large bankruptcies, especially in the first years of small businesses, which are difficult to grow in Europe, unlike in the United States. In addition, in the framework of the planned policy in the expansion process, firm support must be given to small businesses in the candidate countries, which are mainly oriented towards business culture and education. The aim is therefore to emphasize the contribution of small businesses to the growth of the EU economy (part in the establishment of new businesses, GDP production, employment, etc.), emphasizing their role in development. Promotion of economic democracy, paying attention to some strategic issues that can be very useful to find specific fields of action. These areas could be included in European development programs aimed at the growth of small businesses, if this has not already been done.

1.2.  Statistical evaluation in the European environment

In its recommendation on the definition of small and medium-sized enterprises, the Commission defines SMEs as enterprises with less than employees, classified as medium-sized (employees), small (employees) and micro-enterprises (up to employees).  employees). employees). Later, in its recommendation //EC of May , the Commission changed the definition of micro, small and medium-sized enterprises, leaving the restrictions on the number of employees unchanged, but changing the annual turnover. The CESE (European Economic and Social Committee), on the other hand, examines here the small and micro enterprises defined by the Commission, emphasizes their economic and social role in the member states and compares everything that it presented and clearly approved numerous; statements like those issued in both and# ; SMEs and crafts Europe#; According to the report, European SMEs are being investigated. Key results of the European SME Observatory, SMEs are the real giants of the European economy, because all European companies have less than ten employees There are. million companies in the European Economic Area (EEA) and Switzerland and employ one million people. Of these companies, micro (employees), small (employees), smaller than average (up to), and only correspond to large companies (or more). About twenty million of all these companies are in the European Union. Two thirds of all existing jobs are created in SMEs, so the remaining third of jobs are in large companies. Companies. In SMEs, total employment is evenly distributed between micro-enterprises (less than ten employees) on the one hand, and small and medium-sized enterprises on the other. However, the division of labor varies from country to country. For example, the share of micro-enterprises in total employment is in Italy and no less than in Greece. On the contrary, the share of large companies in total employment is higher than in Iceland and Great Britain. A European company – including the European companies of such big giants as Royal Shell, Siemens, Nokia, or PSA Peugeot Citroën – employs an average of six people, while in SMEs it is only four people on average. However, these figures vary between two employees in micro-enterprises and more than a thousand employees in large enterprises. There are also big differences between countries. On average, one company employs two people in Greece, three in Italy and Liechtenstein, and ten in Ireland, Luxembourg and the Netherlands. Overall, large firms lost jobs between  and , while employment increased in the SME sector. While at the beginning of the s growth was concentrated in micro and small enterprises, the employment growth in medium and large enterprises started only in in, employment growth slowed. Recent estimates show that this slowdown has occurred both among SMEs and large companies, although it has slowed for the latter. Over the years, micro-enterprises have created the most jobs, while large enterprises have lost jobs. European companies are relatively small, with an average of six people: Japanese companies have an average of  people and American companies have  people. Thus, in Japan and the United States, SMEs provide all employment, while in Europe they are responsible for SME employment. In Europe, differences in firm size can be due to structural, institutional, and historical conditions. Furthermore, countries with higher GDP per capita, such as Germany, Luxembourg, and the Netherlands, tend to have larger average firm sizes, while countries with lower GDP per capita (such as Greece, Portugal, and the Netherlands) have the opposite.). Spain) the average size of companies is usually small. In any case, differences in GDP per capita do not fully explain the differences between Europe, Japan, and the United States. Thus, these differences can be explained by structural factors, such as the existence of a large internal market in the case of America, where cultural and social diversity is also much less than in Europe. In addition, the European market appears to be more fragmented than the American or Japanese markets. In Europe, on the other hand, there are greater barriers to mergers and acquisitions, so companies in many European countries have different ways and procedures to protect themselves from hostile takeovers by other companies. A little more than half of SMEs have ambitious goals: their goal is to grow, achieve higher profits, aim for innovation and higher quality. Other companies are either concerned about survival () or trying to consolidate their business (). The difference in terms of firm size shows that there seem to be more micro-enterprises trying to survive and relatively larger enterprises immersed in a growth strategy. There are also notable differences between countries. In Italy, Greece, Ireland and the UK, a relatively large number of SMEs want to grow (between and), while in Austria, Finland, and Germany only a fraction of companies want to do so. Seethe process of establishing a business and the possibilities of survival after starting operations depend largely on the profile of the entrepreneur. The average age of a new entrepreneur is one year, reflecting that the decision to start their own business is usually made after completing training and after acquiring specific skills as an employee or manager. Entrepreneurs in the service sector (especially business services and high technology) have obtained a higher education than in industry, while construction, transport and the hotel and restaurant sector still have a higher level. little training. New entrepreneurs usually continue the same activities as before they started their business.

All EU member states have established measures to stimulate the entrepreneurial spirit. These measures are varied and consist, on the one hand, of the provision of loans and grants and, on the other hand, of the provision of various support services such as technical, legal and business advice, information centers for new businesses, training for potential entrepreneurs or new entrepreneurs and, finally, market studies.

Apart from specific cases (generally linked to specific economic activities such as high technology and crafts), studies show that subsidies are still relevant as a source of external financing in business creation, although support services are considered to be They also tend to have a positive effect on business creation.

However, the use of these services is determined, among other reasons, by the skills of the entrepreneur, so that the greater the training of the new entrepreneur, the greater the use he makes of the support services.

More than of entrepreneurs are women, who are mainly dedicated to retail trade and business and personal services (between and). Only one in ten companies in the transport and communication sector belongs to a woman.

Between countries, there are large differences: in France, Luxembourg, the Netherlands,