Mallorca firms eye growth but red tape gets in the way

Mallorca’s business group Pimem points to a gap between firms’ plans and their results: 74.6% of the 348 companies it surveyed expect to grow over the next five years, but only 35.2% say they grew successfully in the previous five. On Wednesday, 28 October, the group called on PP, PSIB, MÉS per Mallorca and Vox to push for a Spanish law that would make it easier for small and medium-sized firms to expand.

What holds firms back

Among companies that have tried to grow, 21.5% name red tape and too many rules as their biggest obstacle. Taxes that discourage expansion come next at 20.2%, followed by thin profit margins at 18.2%. Another 45.3% of firms surveyed say they received no specific help to grow.

Pimem president Jordi Mora says firms that want to invest, hire and expand abroad too often face another obligation, more paperwork or higher costs when they take that step.

Pimem calls for a law

Pimem says 99.9% of Spanish businesses are small or medium-sized, and around 94% are microbusinesses. It wants the Balearic parties to argue in Madrid for simpler rules and procedures, tax measures that encourage investment, better access to finance and support for doing business abroad.

Topics: Economy

Source: Europa Press / Mallorca.com