Saturday, May 18, 2013

Small businesses in Spain and the economic crisis

It is ironic, after the so-called “Second Conquest” of Latin America by Spain during the years leading up to the current economic crisis, that the Spanish government is now courting Latin American businesses and asking them to invest in Spain, to save Spain’s economy. 

This may seem even stranger in light of the fact that the backbone of Spain’s economy is not big, multi-national  businesses, but the small mom and pop shops that abound in every neighborhood of the large cities, in every small town.  Some sources have claimed, in obvious exaggeration but with a grain of truth, that these small businesses make up 95% of Spain’s economy.

A stall in the Mercado de Abastos, in the city´s center.
 (Jerez does have supermarkets, but many people prefer to shop in the Mercado de Abastos, open six days a week.  Each stall is run by a different small business and each has its own specialties.)

And why should you, the reader of this article, who does not live in Spain and may never go there, be interested in the situation and problems faced by these small businesses?  You should be interested partly because Spain’s economic problems have an effect on Europe, and Europe affects the rest of the world.  In addition, these small businesses are not all that different from small businesses the world over, and we can learn much from looking at their plight. 

Instead of doing a scientific study, I decided to interview the owners of four small businesses in the southern Spanish city of Jerez de la Frontera, where I was staying, with the idea that this more human look at the situation would be of greater interest.  The four shops I chose are a small clothing/jewelry/cosmetics store owned and operated by Malena, a beauty shop owned by Francis, a paper goods/copy shop/school & office supply store owned by José Luis Delgado Herrerapicazo and his wife, and a bar/restaurant owned by Antonia Balao.

Plaza Plateros, a popular plaza with many bar/restaurants and lots of small shops.
Over the next four weeks, I'll publish each of these stories, one by one, allowing us to see their reactions to the economic crisis and their vision of the future…not a very positive vision.  They are all hurting.

We'll start next week with Butikalé, the clothing/jewelry/cosmetics store owned and operated by Malena.

OUR NEXT POST will be Malena´s story.

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