Seven out of ten medium-sized companies will make redundancies in 2021



It is not trivial, the blow that can mean 2021 for employment in Spain. So at least the latest barometer #LaPymeHabla indicates that the employers’ association of small and medium-sized companies, (Cepyme) has been carried out among medium-sized firms with about seven out of ten companies that think they will have to decrease their number of employees in the next twelve months. The pandemic has made a dent in some firms in which only one in ten attests to having seen their income increase this year, while half claim to have seen them fall by up to 25%.

This is why among those surveyed there is dissatisfaction with the crisis management of the pandemic by the Government. Thus, seven out of ten are against the measures taken by the Executive of Sánchez and Iglesias in recent months, with 20% of them valuing them as very negative.

In this sense, medium-sized companies are committed to a drastic tax cut, with 67% of them demanding as the main measure if the virus crisis is extended a reduction in public spending and the transformation of public administrations. While as a second condition, six out of ten entrepreneurs believe that direct aid to SMEs belonging to the most affected sectors would help calm the waters.

The medium ones, better than the smallest

Medium-sized companies have managed to weather the Covid-19 storm better than the smallest with 23% of them witnessing the blow that the pandemic has left on the viability of their companies, in contrast to the sum of all SMEs (small + medians) that raises this figure to more than 50%.

This is due to the characteristics of micro and small companies, with a large presence of both street-level shops and hospitality businesses, both hit hard throughout the year by the lockdown, the fall in tourism and the two states of alarm, which have ended up destroying the latter above all. In fact, according to the employer Hospitality of Spain, 30% of the establishments belonging to the sector could disappear during the next year if a stimulus package does not arrive adapted to the needs of the entrepreneurs.

In the case of medium-sized companies, the story is different both because of the diversity of sectors in which they are strong, and because of the strength of their accounts. Because many of the micro and smaller ones have had to depend exclusively on public financing with the ICO Given the difficult access that their balance sheets give to private financing at this time, something that the larger SMEs have been able to count on. As for ICOs, medium-sized companies have also had greater ease of arrival and conditions for state endorsements, with 69.80% of respondents stating that they have obtained in the amount and requirements requested, compared to 48.84% of the set of SMEs.

A factor that can also be seen in the loss of income obtained in each category. Thus, in the set of SMEs one in four say they have lost 50% of their income this yearIn the case of counting only the medians, this data falls to 17%.

Regarding personnel, the barometer shows that medium-sized companies have redistributed and reduced hours and have used more the ERTE than the average (53.10% versus 43.26%). In addition, they also show a lower degree of non-payment to suppliers. Only 3.5% of the medium-sized company, compared to 11% of the global

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