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Spain – Does high unemployment motivate people to set up businesses?

03 July 2012

The EU’s statistics office Eurostat reported this week that EU unemployment was the highest in Spain in May at 24.6% and the majority of Spaniards are willing to open up their own business to escape joblessness, a new survey by Randstad Spain claims.

Overall, 57% of those questioned were prepared to become self-employed in a country where job mobility is growing as more and more people are ready to leave their homeland behind in order to find a job elsewhere.

But not all are willing to emigrate as particularly working professionals (57%) are eager to set up their own business should they fail to find a job while motivation levels are much lower amongst the unemployed (43%), the study found.

According to the National Statistics Office (INE) over 8,730 new companies were founded in March this year, seeing a monthly increase of +6.3% with commercial as well as construction firms making up a large amount of these small to medium-sized businesses.

The findings also indicate that those most likely to set up their own business are male and young professionals aged between 25 and 34 years. Those approaching retirement age are, on the other hand, less likely to take on the task founding their own business.

Education also plays an important role when trying to identify those entrepreneurs as it is mainly professionals with a university education (65%) who seem happy to start their own if unable to get work. But 90% of those surveyed criticised that the Spanish Government is not providing enough funds to do so. This is despite the Government having recently introduced new labour reforms which are aimed to promote stable employment for SMEs.


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