MWCC is the only Spanish entity to participate in the report “study outlining how high inflation impacts Europe’s SMEs” of the European Commission
MWCC is the only Spanish entity to participate in the report “study outlining how high inflation impacts Europe’s SMEs” of the European Commission
MWCC and specifically its president David Garcia Nuñez, constitute the only Spanish entity to participate in the report “study outlining how high inflation impacts Europe’s SMEs” of the European Commission. In the report we analyze how current inflation levels are affecting SMEs in terms of bad debts, bankruptcies, investments, adoption of digital and green technologies, participation in public procurement, access to skilled labor and, ultimately, profitability. . We see how high inflation played a certain role in causing bankruptcies, reducing participation in public procurement and hindering access to qualified labor.
Furthermore, stronger adverse effects are expected in the short term in relation to SME payment practices, although the impact remains heterogeneous across industrial ecosystems, depending on SMEs’ access to finance, ability to pass on costs higher rates to customers and other factors. We analyze how high inflation may have accelerated investment for the digital and green transition.
From a policy point of view, this has a number of important implications: firstly, as inflation remains a significant additional threat to SMEs, national governments should monitor ongoing economic developments with regard to inflationary effects. with the help of a central monitoring unit. Secondly, measures that open up alternative supply options for energy and raw materials can be very effective even in the short term. Finally, given that SMEs are affected so differently by the high price environment, the study strongly suggests that authorities should refrain from broad-based policy support measures that do not sufficiently distinguish between SMEs, such as subsidies to energy prices.
At MWCC we have contributed to the European inflationary macroeconomic analysis. MWCC is a key entity and leader in public-private collaboration, an entity promoted by the Madrid City Council and the Community of Madrid that in just three years has brought together a business ecosystem made up of more than 187 companies.
More information in the report here.