Foreign Companies Keep their Positive Rating of Spain’s Business Climate

• Spain’s rating for 2011 is identical to last year's, with 2.9 out of 5

• Investment prospects of foreign entrepreneurs for next year are very positive and improve compared to the previous year´s

Madrid, 15 September 2011. Spain’s Business Climate Barometer score for 2011, 2.9 out of 5, is identical to last year’s. This is one of the findings of the “Spanish Business Climate Barometer. From a foreign investor perspective" report, prepared for the fifth consecutive year by INVEST IN SPAIN, in collaboration with the IESE Business School’s International Centre for Competitiveness (ICC). The barometer provides an overview on evolution of foreign entrepreneur prospects over the course of the last five years.

The barometer gathers the opinion of 300 foreign companies on Spain’s business climate, identifying the strengths that need to be maintained, and fostered, as well as the key areas for improvement worthy of continued efforts.

Infrastructures stand out among the key strengths of Spain’s business climate Entrepreneurs have a high-regard for Spain’s high-speed rails, airports, and highways. They also point out the high quality of Spain’s business schools, the competitive cost of transport and the quality of life. These are areas that also improve their rating compared to last year.

On the other hand, the Barometer also allows identifying the fields on which, according to investors, more efforts need to be put on. As key areas for improvement, foreign entrepreneurs highlighted the speed and efficiency of mercantile courts, work schedule flexibility and redundancy costs, as well as Spanish workers’ language skills.

Within the context of the current economic climate, entrepreneurs also pointed out the need to improve the access both to public and private funding, and the need to implement new investment incentives and subsidies, especially in connection with R&D+I related activities.

Investment Prospects for 2012
Investment prospects of foreign entrepreneurs for next year are very positive, and improve as compared to the previous one. If in 2010, 27% of the companies stated their intention to boost their investments in Spain, this percentage increased to 37.2% in 2011. Likewise, the percentage of companies that intend to cut their workforce decreased and 60% of respondents expected to see their turnover increase the following year.

Foreign companies play a crucial role in the Spanish economy. There are currently 12,000 foreign businesses operating in Spain, employing 1.3 million people. Also, due to their exporting profile, they are essential to our trade balance, and help to modernize and streamline the Spanish business fabric, as they engage in high added-value activities and bring in cutting-edge technologies.

The Spanish Business Climate Barometer was presented by María Paz Ramos, CEO at INVEST IN SPAIN, and Juan Antonio, IESE Associate Director. Report findings were analyzed by Ignacio Mezquita, Executive Director of Strategy and Development at INVEST IN SPAIN, and María Luisa Blázquez researcher at IESE’s International Centre for Competitiveness (ICC).

About IESE

IESE, University of Navarra’s Business School, is one of the top ten business schools, and has been a pioneer in executive training in Europe ever since its inception in 1958, in Barcelona. One of the defining features of IESE is its self-managing approach, the widespread use of case studies, its international reach and the emphasis it places on assigning key roles to people in the corporate decision making process. With a global outlook and campuses in Madrid and Barcelona, a centre in New York and offices in Munich and Sao Paolo, IESE organises and directs programmes in four continents.

INVEST IN SPAIN is an agency dedicated to promoting and attracting foreign investment, part of the State Department for Tourism and Trade of the Ministry of Industry, Tourism and Trade. Its mission is to promote, attract and maintain foreign investment in Spain, serving as the reference point for foreign investors and the point of contact for all state, regional and local institutions engaged in promoting and attracting investment.