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WORKING IN SPAIN

Which startups succeed in Spain (and which ones fail)?

Foreigners thinking of setting up a startup in Spain should keep in mind that one in five new companies here doesn't last longer than 12 months. Here's what the data available says about the businesses that find success and those that don't.

spain success startups
When it comes to startups specifically, nine out ten startups don’t make it past the three-year mark in Spain. Photo: Justin Sullivan/Getty Images via AFP

There are various interpretations about the differences between a startup and a company but, broadly speaking, a startup is a company in its early stages that’s looking for an attractive and innovative business model, whereas a company already has a pre-existing business model and is focused on executing it successfully.

According to a study by the Spanish Tech Ecosystem, Spain has 10,500 startups and more than 300 scaleups, innovative and more established companies that are already growing.

The introduction of Spain’s new Startups Law in early 2023 promises to make the country far more attractive for foreign entrepreneurs, investors and digital nomads.

READ MORE: Spain’s new law for startups and digital nomads – 15 things you need to know

But the road to success isn’t just guaranteed by less bureaucracy, tax cuts and special visas.

Twenty-three percent of new companies set up in Spain don’t survive past a year, according to the country’s National Statistics Institute (INE). 

Of those that do make it past the first 12 months, 45 percent are not in business after five years. 

When it comes to startups specifically, nine out ten startups don’t make it past the three-year mark, according to the Map of Entrepreneurship drafted by Spain Startups, but they do grow at faster rates than SMEs. 

Although these figures may not seem very promising for anyone considering setting up shop in Spain, the Iberian nation isn’t last on the list when it comes to the longevity of startups in the EU.

Lithuania, Denmark, Latvia, Estonia, Malta and Portugal all have lower rates of success than Spain, according to Eurostat data. 

Spain also lost 311,000 SMEs in 2020 as a result of the Covid-19 pandemic, so authorities are now keen to breathe new life into all types of sectors with foreign talent drawn in by the new startups legislation. 

Spain is also the fifth country with the most so-called ‘unicorns’ companies with a market value above €1 billion.

READ ALSO: What do the experts think of Spain’ new startups law?

Which startups and companies find the most success in Spain?

Insurance companies, reinsurance groups and pension funds are those with the companies with the highest survival rate, as 82.6 percent are still operational in Spain five years after their creation, INE data reveals. 

They’re followed by new companies involved in the supply of electricity, gas and air conditioning (80 percent survival) and those in the tobacco industry (75 percent).

Companies that offer financial services, assistance in residential matters, legal and accounting companies, pharmaceutical manufacturers and those that deal with the extraction of metals and minerals also have a good life expectancy in Spain.

That’s not to say that if you have a business idea in a different sector or that your startup is completely innovative you should get discouraged. 

According to industry specialists Meetwork, among the 50 biggest growing startups in Spain in 2022 are a travel management company, a copyright protection business, a language app for kids, a digital platform for freight transport, a vegetable-based meat manufacturer and other businesses from a wide variety of sectors.

The same applies to most highly valued startups in recent years in Spain; many are companies focused on innovation or the improvement of pre-existing ideas.

Self-employment and entrepreneurship website autonomosyemprendedor.es reported that the ten Spanish startups which have found the most success in Spain and abroad are Brooklyn Fitboxing International (gyms), Freepik (image downloads), Bigbuy (dropshipping), El Tenedor (restaurant bookings), Heura Foods (vegan food), eDreams (flight and holiday bookings), Clicars (online vehicle sales), Mr. Wonderful (an ‘online store for happy products’), Cabify (e-hailing) and Glovo (food delivery). 

And it’s not as if a startup that’s set up in Spain should necessarily have to cater to a Spain-specific market – fintech, tourism, logistics, mobility, cybersecurity, education, foodtech, energy, cryptocurrencies, gaming, employment, retail or health are all sectors with signs of growth potential in Spain and around the world.

Which companies and startups find less success in Spain?

According to INE, among the companies that struggle to survive past the five-year mark in Spain are leather and shoe manufacturers (20 percent success rate), maritime industry businesses (29.8 percent success rate) clothing companies (33.2 percent) and entertainment and artistic businesses (33.7 percent). 

Civil engineering companies are the ones that struggle the most to make it past the first year (30.2 percent survival rate), followed by those involved in arts and entertainment.  

The life expectancy of new companies in Spain has worsened since the pandemic, according to the latest report by Spanish business database Iberinform, who wrote: “The critical moment for any business project usually occurs after the third year, since the initial injection of capital allows the vast majority to complete the first 24 months of life without problems.”

Interestingly, during the pandemic, the sectors which saw the biggest increase in earnings in Spain but also the most businesses closing down were hospitality and retail, which together with tourism are the pillars of Spain’s service-based economy.

Iberinform’s general director Ignacio Jiménez told El Mundo newspaper that “the incomplete and uneven recovery that we are going through, marked by new challenges such as price escalations and supply problems” directly affect business survival in Spain.

“Companies, especially SMEs, which have less capacity to transfer these cost increases to prices are suffering a reduction in margins and loss of profitability,” Spain’s confederation of SMEs reported. 

READ ALSO: What will Spain’s income requirement for the new digital nomad visa be?

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WORKING IN SPAIN

The best paid jobs in Spain which don’t require a university degree

Traditional academic qualifications are no longer a guarantee of work or good pay. In fact, there are numerous jobs in Spain which don't require a university degree that pay handsomely.

The best paid jobs in Spain which don't require a university degree

While it’s true that for the majority of well-paid jobs in Spain, you do need a university degree, there are still several lucrative professions here that do not require any type of higher qualification. Here are the top 10 highest-paid jobs in Spain, according to a study by Spanish news site La Información.

Commercial airline pilot
A job as a pilot is a well-sought-after position, which is not only great for its earning potential, but also allows you to travel internationally too. You can earn anywhere from €60,000-100,000 per year and don’t need a degree, but you do need to take several courses and complete hours and hours of rigorous training and pass exams. 

READ ALSO: Which foreign nationals in Spain have the highest salaries? 

Air traffic controller
Air traffic controllers in Spain can earn anywhere from €33,000 to €100,000 a year and oversee air traffic at major airports across the country. All that is required is to complete an 18-month training course to obtain a licence. It’s also helpful to have excellent concentration skills, effective communication skills and quick decision-making abilities.

Events planner
Events planners obviously need to be highly organised, but can work in any type of environment from planning weddings to conferences and meetings for large corporations. For this type of career, you can earn anywhere up to €100,000 per year depending on what sector you work in. You don’t need an official degree but may need to take a course.

Estate agent
Whether you want to sell to other foreigners or work for a local company, selling property can be a very lucrative business, earning you between €25,000 and €70,000 annually, depending on commissions. You will need to take a real estate course to get your real estate agent licence. It’s helpful to be good at negotiating and have excellent people and sales skills.

Professional make-up artist
If you have a creative streak and love working with people, a career in the high-flying world of fashion and editorial shoots could be right up your street as a make-up artist. Your career could also take you to the worlds of theatre, films or even music. You will need to undertake a professional make-up course to get ahead but can earn anywhere from €18,000-50,000.

READ ALSO – Not English: The languages linked to high-paying jobs in Spain 

Airline cabin crew
Those who have the travel bug, are good with people and can speak multiple languages could become an air steward or stewardess for one of Spain’s big airlines. You must undertake a specific training course for cabin crew and can earn €20,000 – €46,000 per year.

Executive Assistant
Executive assistants for managers, CEOs and COOs can earn on average €31.718 per year in Spain. A degree isn’t necessary but you will need some type of administrative training or experience.

Oil rig workers
Oil rig workers perform a variety of tasks in oil and gas extraction. If you want to make this your career, yearly salaries are anywhere between €25,000 and €33,000. You don’t need a specific qualification, but you will need technical training provided by your employer. It’s important to have good physical fitness, be able to work in a team and have mechanical skills.

Vertical work technician

If you suffer from vertigo or are afraid of heights, this definitely isn’t the job for you. Vertical work technicians work at great heights, whether that’s fixing electricity lines and cables or washing windows of huge skyscrapers. Doing this type of job can earn you between €20-60 per hour in Spain. You don’t need a qualification but can work up to different levels depending on your experience. Level three technicians are paid the most.

SEO experts

If you have good computer and research skills, you may want to consider becoming an expert in Search Engine Optimisation, in order to help clients move their websites higher up the Google rankings or make sure that they’re found online by their desired customers. You can earn anywhere between €20,000-€30,000 a year and will need to have completed some type of course in SEO and digital marketing. It’s important that you have a deep understanding of internet algorithms.

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