6. Results by areas
6.6. Finance
Finance generally obtains a low rating as a result of the international financial crisis, although it is worth pointing out that the aspects
covered in this section, broadly speaking, are less important for investors.
The main problems lie in commercial bank finance, as well as in access to investment incentives and subsidies. As regards alternative forms of
finance, such as ICO finance lines, risk capital, mutual guarantee companies or the alternative equity market, although ratings are low, they
are clearly above the importance that investors ascribe to them, hence are not deemed priority areas of action.
Figure 16
Finance
Availability of investment incentives and subsidies
Availability of commercial bank finance
Costs of commercial bank finance
Availability of other forms of finance
ICO finance lines
Mutual Guarantee Companies
Barometer of the Business Climate in Spain, 2010 results
Results by areas
24
Risk Capital
Business Angels
Alternative Equity Market
0
1 2 3 4 5
Entrepreneurship and the resulting applications for finance for new projects, have dropped in Spain in 2009 with regard to 2007,
reaching an Entrepreneurship Activity Rate of 5.10% as opposed to 7.62% in 2007. (GEM 2009)
Business Angels: There is a Spanish network of Business Angels (ESBAN). In addition, the Madrid and Catalonia governments promote
investment in new projects by applying up to 20% tax relief for personal income tax. Besides, there are several different private
initiatives to foster business angel investment, such as the IESE Business Angels Network.
ICO Finance Lines: During 2009 the Official Credit Institute (Instituto Oficial de Crédito-ICO) carried out 360,000 operations in which it
lent 15 billion euros to various different sectors, out of which 200 million were channeled into company internationalization.
Risk capital: In 2009 risk capital companies’ investment in Spain has decreased by 46% with regard to 2008, with total investment
amounting to 1.669 billion euros in 2009. This investment has gone to companies in expansion.
Mutual Guarantee Companies: Finance associated with Mutual Guarantee Companies during 2008 generated approximately
700,000 associated jobs. Guarantees amounting to 21 billion euros were given.
Alternative Equity Market: The national innovation agency (ENISA) runs a program to promote the entry of companies into the
alternative equity market by defraying flotation costs. In Madrid, Catalonia, Galicia and Murcia there are a range of incentives to help
SMEs enter the alternative equity market.
Rating
Importance
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