Europe is in crisis, no one can deny it. Spain, in this delicate situation, does not serve as an example.
You should know that a period of economic crisis has two main drawbacks :
- the purchasing power of consumers is quite low and funding frozen,
- but many economists justify these times of crisis like the best times to take and create businesses.
The same is true concerning the crisis in Spain.
First, it is the most logical reason, “after rain comes fair weather”. It is obvious that after a period of crisis comes a strong growth and a period of high prosperity. Thus, if we manage to undertake and successfully during the crisis, our results will be better than during periods of growth. Spain, now in crisis, displays indicators better than the previous year. GDP grew by 0.7% in 2011, and forecasts of 1.3% in 2012. The tourism sector, which had declined since 2008, rose sharply in 2011, and will reach record levels in 2012 and 2013. Spain seems to find solutions to the crisis.
Moreover, in times of crisis, everything is cheaper: labor, projects, facilities, etc. In addition, facing high unemployment in Spain, it is very easy to find the hand of unskilled as skilled and highly motivated.
Then, in times of crisis, competition is weakened. The crisis in Spain is the perfect example. Given that this is a difficult period, when competition is weak or in trouble. Entry barriers are more affordable, particularly in the highly competitive market as the low-cost. Indeed, during crises, the tendency is given to products with high quality / price ratio. This creates new patterns of consumption and opens markets that did not exist before the crisis in Spain.
On the other hand, in crisis, the state promotes general business creation. Thus, to counter the crisis in Spain, the new government announced it would reduce the corporate tax to encourage business creation. Taxation is often relaxed and substantial aid.
All these explanations show that periods of crisis are good times to start a business, especially compared to the crisis in Spain. Since 2008, and the flow of the crisis in Spain, many SMEs have closed. The place is free now, and especially for companies with headquarters in Spain, but with an activity beyond the Spanish borders.
Rather than wait and be patient until the end of the storm, the best solution seems to face to come out more.