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Spain’s Ten-Year Plan to Put Startups in the Economic Driving Seat

26/02/21

Spain is preparing to push forward with pro-startup legislation, having recently unveiled a big and bold transformation plan with the headline goal, by 2030, of turning the country into ‘Spain Entrepreneurial Nation’, as the slightly clumsy English translation has it.

Prime minister Pedro Sanchez took a turn on Web Summit’s stage in December to announce the introduction of the forthcoming Startup Act — and to trumpet a new role, a high commissioner, tasked with bringing off a nationwide entrepreneurial economic transformation by working with all the relevant government ministries.

The broad-brush goals for the strategy are to increase growth in startup investments; attract and retain talent; promote scalability; and inject innovation into the public sector so it can bolster and support Spain’s digital development.

The aforementioned Startup Act is the first piece of dedicated legislation for the sector — and is intended to simplify starting up in Spain, as well as bringing in tax concessions and incentives for foreign investments. So it will be something of a milestone.

Chat to local founders and there’s a litany of administrative, tax-based and fundraising pain-points they’ll quickly point to as frustrations. Wider issues seem more cultural; startups not thinking big enough, investors lacking the necessary appetite for risk, and even — among wider society — some latent suspicion of entrepreneurs. While Spain-based investors are champing at the bit for administrative reform and better stock options. Moving the needle on all that is the Spanish government’s self-appointed mission for the foreseeable future.

TechCrunch spoke to Francisco Polo, Spain’s high commissioner overseeing delivery of the entrepreneurial strategy, to get the inside track on the plan to grow the startup ecosystem and find out which bits entrepreneurs are likely to see in action first.

“The high commissioner for Spain entrepreneurial nation is a new body that’s within the presidency. So for the first time we have an institution that, from the presidency, is able to help coordinate the different ministries on one single thing: Creating the first national mission. In this case this nation mission has the goal to turn Spain into the entrepreneurial nation with the greatest social impact in history,” says Polo.

“What we do is that work of coordination with all the ministries. Basically we have a set of internal objectives. First is what we call impacts — different sets of measures that is contained in the Spain entrepreneurial nation strategy. We also work trying to get everyone together on this national mission so we work on different alliances.

“Finally, we are also very focused on helping let the people know that Spain has made a decision to become — by 2030 — this entrepreneurial nation that is going to leave no one behind. So that’s our job.”

Scaling up on the shoulders of giants

The southern European nation doesn’t attract the same level of startup investment as some of its near neighbors, including the U.K., France and Germany. But in some ways Spain punches above its regional weight — with major cities like Barcelona and Madrid routinely ranked as highly attractive locations for founders, owing to relatively low costs and the pull of a Mediterranean lifestyle.

Spanish cities’ urban density, high levels of youth unemployment and a sociable culture that’s eagerly embraced digital chatter makes an attractive test-bed for consumer-facing app-based businesses — one that’s demonstrated disruptive potential over the past decade+, in the wake of the 2008 financial crisis which hit the country hard.

Local startups that have gained global attention over this period — for velocity of growth and level of ambition, at the least — include the likes of Badi, Cabify, Glovo, Jobandtalent, Red Points, Sherpa.ai, TravelPerk, Typeform and Wallapop, to name a few.

Read the full article in TechCrunch.