83% of the companies created in Spain 30 years ago no longer exist

Eight out of ten companies created in Spain in the last three decades have ceased their activity. In total, since 1992 they have been established in our country 3.2 million companies, of which only 17% survive, according to a study that analyzes business demography prepared by the financial consultancy Informa D&B. The evolution of the number of constitutions is linked, logically, as the study underlines, to the prevailing economic situation at all times.

It reflects a growth phase that spans from 1992 to 2006 where the number of company creations exceeded, in 11 of the 14 years, lto the figure of 100,000. The period of economic crisis, between 2007 and 2009, led to a sharp drop in constitutions, the outcome of which was a 47% cut from the 2006 peak to 79,642 creations in 2009.

In the post-crisis period, from 2010 to 2019, a slow data recovery of business creation, reaching more than 100,000 in 2016, something that only happened that year, so the previous numbers were not recovered.

The creation of companies, as Informa points out, fell again in 2020 as a consequence of the economic crisis derived from the coronavirus pandemic. It is only year they were created 79,779 companiesthe lowest figure since 2010 and almost 16% less than in 2019.

In 2021 the constitutions reached the figure of 102,022, which represented an increase of almost 28% compared to 2020. However, last year the creation of companies was again below 100,000 with a total of 99,502.

If of the 71,195 companies created in 1992 only commercially active 12,040the already mentioned 17%, the analysis also indicates that among those established in 2002, a total of 118,499, only 21% remain in the market, while of those that began their journey in 2012, up to 88,722, continue to operate a 3. 4%.

Up to 65% of companies cease their activity without duly notifying it

Among those that have ceased their activity, of those created in 1992 85% have done so following processes officers. This figure is reduced to 79% among those born in 2002 and 65% in 2012, which, according to the consultant, “proves that there are many companies that stop operating without properly communicating it.”

It also explains that, as a whole, strictly bankruptcy processes, such as suspension of payments, bankruptcies and contests, do not exceed 0.17 of the total inactivity in these three years, which shows its low employment in Spain compared to other types of closures.

The year in which the most companies were created was 2006, with 150,000, while 2011 was the one in which the most capital was disbursed: 21,454 million euros. Of course, Informa specifies, “it was an atypical year due to the creation of the SME State Lottery and Betting Society.” The consultancy also reveals that the investment closed 2022 slightly above the previous year, up to 5,172 million euros.

Last month the capital invested in the constitutions reached 345 million euros

The report indicates that the capital invested in the creation of companies since 1992 amounts to 245,000 million and that in 2008 and 2009 It is when investment fell the most, as is the case with creations, and when the levels of paid-in capital have not returned to what they were before the crisis, going from 14,669 million in 2007 to 5,172 in 2022, 65% less despite which has grown in recent years.

On the other hand, after three consecutive months of increase in the constitution of the number of companies, specifically 11% since January; with a total of 40,678, in April the situation was reversed until reaching the lowest levels of the year. Thus, last month 9,193 companies were created, 23.1% less than in March, but 6% more in relation to the same month in 2022. Likewise, last month the capital invested in the constitutions reached 345 million euros. euro, 30.4% more than the previous year, despite having decreased by 26.5% compared to March.

In the first four-month period, the constitutions were raised in all the communities except Extremadura and the autonomous city of Melilla. Two regions promoted them: Catalonia, with 209 more in relation to the same period last year; and Valenciana, with 171 more. On the contrary, Madrid registered a drop of 17 companies compared to 2022.