According to the report GEM Spain 2020-2021 that makes an analysis on the state and evolution of entrepreneurship in Spain, and compares it with those of other countries, the perception of opportunities of the Spanish respondents fell to 16.5%, quite far from the European average (40.5%), which places us in the last place of the high-income countries under study. On the contrary, we lead the ranking in terms of the fear of failure as an obstacle to undertake, with 64% of the population compared to 47% on average. These and other perceptions, values and attitudes along with the changes suffered in the different conditions of the environment, help explain the fall recorded in our Total Entrepreneurial Activity (TEA) to 5.2%, going back to the levels after the crisis of 2008.
In this context, it should be noted that, in addition, emerging companies have certain specific characteristics with respect to traditional companies:
- The high risk arising from its high innovative content - The uncertainty about the success of its business model, hinders financing in the initial phases by requiring capital to be able to mature and test its ideas before the company begins to generate income.
- The potential for exponential growth through economies of scale - Requires large capital investments to allow its rapid expansion in case of success.
- The dependence of the recruitment and retention of highly qualified and highly productive workers from the initial stages of the company - In them there is no flow of income to remunerate them through classic wage instruments.
- Exposure to strong international competition for attracting foreign capital and talent.
Thus, the bill to promote the ecosystem of emerging companies seeks to respond to the main challenges faced by this type of companies.
In this sense, with the aim of bringing the entrepreneurial initiative closer to the students, making it easier for them to experience the management and decision-making process of a company, in a practical and real way, through the creation and organization of the same, the fifth additional provision of the bill recognizes the student startup as a pedagogical tool, which must have the support of the entity promoting the curriculum for its constitution.
In this way, the regulation aims to help students to know the operation of companies, which together with the development of innovative capacities typical of startups and leadership or communication skills, contributes to increase innovative entrepreneurship in Spain.