Betting in Spain for being a self-employed worker is a risk that more and more people must take to seek a professional career. But the road is not easy and more than 50 percent of them leave their activity in just three years. The causes must be sought in the weaknesses of the economic model chosen by the entrepreneur, the management and constraints of the sector, the excessive tax burden, the enormous regulatory burden, the inefficiency and the differentiation of the procedures according to each autonomy and the complicated access to financing.
An investigation of the University of Alcalá de Henares (UAH), which is part of the doctoral thesis of Professor Francisco del Olmo and who has obtained the Queen María Cristina International Award in the Economics category, explores the socio-economic profile of this group, noting that the majority maintains a legal form of a natural person (not a commercial entity), more than 70% are dedicated to the service sector and a large part are between 40 and 59 years old. This paper also analyzes the business failure of the group and the results of the research are not satisfactory: around 60 percent of the Spanish self-employed entrepreneurs who start their business do not survive five years later.
"The strong competition in services derived from new technologies and changes in consumer habits are two very influential factors in the failure of self-employed entrepreneurs," explains the report. the highest rate of failure is observed in Navarra, Castilla la Mancha, Andalusia, the Balearic Islands and the Canary Islands, as well as in the two autonomous cities, Ceuta and Melilla, with rates of approximately 50 percent failure. In the rest of the regions, the rates also exceed 40 percent, although The País Vaco and La Rioja stand out with the lowest failure rate. The study indicates that the macroeconomic and institutional conditions of each of the autonomous communities influence the probability of failure of entrepreneurs. In this way, depending on the region in which you decide to develop your activity, your success or failure may depend.
Economic growth, the unemployment rate, the levels of regional public debt, the evolution of bank credit or the evolution of the fiscal pressure are fundamental scales that influence the development of the activity of the self-employed, a worker very vulnerable to any change in some of them. Likewise, the institutional constraints have a similar incidence, either due to the influence of the regulatory burden or the inefficiency in the processing of the affairs of the mercantile courts of each community.
More than half of the companies incorporated in Spain are made up of self-employed workers who do not have employees. Two million self-employed workers run a business project, of which 439,660 have salaried employees. By sectors, 73 percent of the self-employed are engaged in the Services sector, where the greatest propensity to failure occurs.
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