More than half of SMEs in Spain do not survive beyond their fifth year. This is a worrying figure, considering that they also account for almost half of all employment. Therefore, taking measures to strengthen Spanish SMEs has become urgent.
To do this, we cannot ignore the influence of the ecosystem. There are external factors affecting SMEs, such as political decisions and economic conditions, which they cannot control. But there are also “internal” measures that can strengthen an SME, allowing not only its survival but also its competitive improvement and sustainable growth.
1. Be Clear About the Objective
As Seneca said: “No wind is favorable to the sailor who doesn’t know where he is going.” Knowing the main objective of the company or project is the first step to achieving success. Whatever happens, that fundamental objective must be preserved and pursued so that in any situation we can distinguish the important from the trivial.
How do you set a business objective? On one hand, by establishing the company’s priorities, such as the classic Mission, Vision, and Values. On the other hand, by fostering a culture of continuous analysis of both the company and its environment. Tools like studies, SWOT analyses, and data analysis are particularly useful.
Once a destination is established to strengthen an SME, it must be communicated to the rest of the team: all leaders in the organization must row in the same direction, passing secondary objectives to their teams. The ultimate leader must have a global vision, with all departments and operations interconnected.
2. Data Analysis and Knowledge Generation
As mentioned earlier, analyzing information about the company and its environment is essential. Often, however, data may be poor, inconsistent, or unclear in purpose. Therefore, clean data must be gathered, connected, and studied to reveal reality. Generating this knowledge supports continuous improvement and informed decision-making.
In line with the objectives analogy, having good information makes the path straighter and smoother. With it, you can analyze the cost, risk, and return of each action, deciding whether it’s worth pursuing before taking the decision.
3. Strategy to Achieve Objectives
Strategic planning is complex and never-ending: as secondary objectives are met, new ones must be formulated to pursue the primary goal, while the situation constantly changes.
Strategic planning has a before (definition), during (development), and after (evaluation) that directly impact success and the ability to strengthen an SME.
4. Marketing Actions to Generate Opportunities
Marketing is the fundamental leg of business strategy, defining the target audience, satisfying their needs, and communicating effectively. Today, marketing offers a wide range of possibilities, allowing each company to find the best fit for its situation.
Within marketing, tools that help manage customers throughout the process—from lead generation to after-sales service, including communication and sales—can be very valuable.
5. Sell More and Better: The Key to Growth
Sustained growth depends on this battle. While other factors (product, distribution, finance, etc.) are necessary, sales are key to generating profit.
SMEs often have fixed sales methods that are difficult to change, only adapting when problems arise—which can be too late. Therefore, sales processes should be continuously reviewed, new possibilities explored, and market changes monitored to improve continuously.
6. Integrated Value Chain Management
As mentioned, a company is more than the sum of its departments; it’s the union of them. All processes are interconnected and must be managed as part of the whole. How? By using ERP software tailored to the organization’s needs.
Such tools allow connected management of all processes and areas, for example in industry—from raw material reception to client delivery, including manufacturing, storage, sales, and accounting.
7. Know Your Customer to Nurture Them
The better you know your customer, the easier it is to help them—and the more likely they are to remain a client. Selling repeatedly to an existing customer is easier and more profitable than acquiring new clients, so a solid customer base should be prioritized.
Understanding customers comes from personal contact, direct communication, periodic visits, and putting them at the center of strategy. This allows offering discounts, contract improvements, new products, or support on issues critical to their business. Maximizing sales strengthens the SME itself, making it a task for all employees.
8. Continuous Improvement to Strengthen the SME
In a constantly changing market, the only way to keep pace is continuous improvement of the company—always for the better.
Depending on the company’s needs and possibilities, improvement can take many forms. Today, three key areas are essential for any organization:
- Continuous Improvement: Seeking maximum efficiency in products, services, and processes, fostering quality and environmental protection.
- Innovation: Offering new solutions that improve products, services, or processes for consumers, creating a competitive leadership position.
- Digital Transformation: Adapting traditional business to digital channels, reaching new markets and customers more cost-effectively, while generating savings and internal improvements.
9. Attitude Is (Almost) Everything
Maintaining a positive attitude helps, especially when problems arise. Positivity is not naivety, but proactivity. For teams, the principle is the same, though implementation is more complex.
Keeping team motivation high improves productivity and strengthens profitability. How?
- Invest in training, learning, and skill development.
- Encourage creativity and individual passion.
- Foster interpersonal relationships, recognition, and support.
- Hire, retain, and develop talent.
- Delegate, challenge, promote, and involve collaborators.
10. Promote Company Productivity
Compared to European levels, Spanish SMEs often lag in productivity. While some attribute this to culture, measures can improve productivity with minimal friction:
- Organize work into small projects.
- Monitor productivity in real time and correct deviations quickly.
- Automate repetitive or low-value tasks.
- Share knowledge and distribute information effectively.
- Accept criticism and evaluate improvement proposals, regardless of source.
Are you ready to face the future? Strengthening an SME is in your hands. Let’s get to work!
CbC Reporting 
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