Financial skills, digitalization, and expert advice are essential for successful financial management in SMEs. These are some of the conclusions drawn from the Observatory’s report, “The Financial Behavior of SMEs in the Context of the Spanish Economy: Determinant Factors.”
Madrid, February 27, 2025 – This afternoon at IE University, the Observatory of Household and SME Finances at IE Foundation, in collaboration with NTT DATA, presented a report on the financial behavior of SMEs. The purpose of this research is to thoroughly analyze the financial behavior of SMEs in two key areas crucial for their competitiveness and growth: financing decisions and risk management.
The study provides an assessment of the financial training of SMEs in Spain, also examining their planning habits and financial attitudes—factors such as risk aversion, confidence in their financial skills, and the incorporation of environmental, social, and governance (ESG) criteria in decision-making. Based on a sample of 1,120 companies, the research investigates how the financial training of the entrepreneur and the management environment in which decisions are made impact the financial behavior of Spanish SMEs with up to 50 employees.
The results reveal that small business owners generally possess better overall financial knowledge compared to the broader population. However, they show weaknesses in key areas for business management, such as understanding financial statements and the ratios derived from them, which are fundamental tools for ensuring business profitability. According to Laura Núñez, Director of the Observatory of Household and SME Finances and co-author of the study, “these data—as well as the fact that 40% of SMEs do not implement a formal financial planning process—underscore the urgent need to develop specific financial education programs for small and medium-sized enterprises.”
The research also evaluates the management environment in which entrepreneurs make financial decisions, taking into account both the level of digitalization within companies and the use of external professional advice. The quality of this environment is crucial for SMEs to optimize their processes, increase efficiency, and make sound financial decisions.
Regarding digitalization, 50% of SMEs have a website, and nearly 70% of these are enabled for e-commerce. However, only 30% of all SMEs use social media as a marketing tool, with a negative correlation observed between this usage and the age of the entrepreneur. When it comes to the digitalization of financial processes, payments to suppliers and collections from customers are fairly advanced, but the same does not apply to the online contracting of more complex financial products, such as insurance or financing.
Gonzalo Garland, Executive Vice President of IE Foundation, welcomed the event and highlighted the dominant role of SMEs in the economy and society, emphasizing the relevance of this research: “SMEs account for 99% of the productive fabric in Spain and generate 62% of business employment, making it essential to reduce the high failure rate of entrepreneurial ventures. In this context, identifying the factors that influence the financial behavior of small business owners is key to pinpointing areas for improvement and strengthening their development.”
María Jesús Jiménez, Director of the Financial Services Foundation Cluster at NTT DATA EMEAL, explained some of the factors behind this situation: “The lack of technical knowledge among small business owners and the short-term economic cost of digital transformation explain the immature digital processes in SMEs, including those related to financial management. Thus, initiatives like the digital kit are fundamental—not only to provide financial support to small companies but also to help them overcome their fear of technology.” Meanwhile, Brindusa Anghel, Senior Economist at the Bank of Spain, emphasized that “digitalization is a key factor in enhancing company productivity, noting that the way it is implemented can be decisive.”
Despite 22% of SMEs receiving advice from the financial institutions with which they work, and 60% of all entrepreneurs claiming to hire external professional managers for financial matters, a significant percentage still rely on family and friends for financial information. Furthermore, only 1% of small companies report having used advice from official bodies such as chambers of commerce or business associations.
The study also explores how SMEs perceive the integration of ESG (Environmental, Social, and Governance) criteria into their business strategies. In this regard, Eva Belinchón, CEO of Grupo Maser, stated, “We understand that it is important to consider these criteria in business processes, but current regulations impose a disproportionate burden on SMEs, which do not have the resources to dedicate someone exclusively to this issue. It is necessary to rethink how these requirements can be adapted to the scale of an SME.”
Additionally, the study examines two fundamental financial behaviors crucial for the competitiveness and growth of SMEs: financing and risk management. The most popular financing instrument among SMEs is bank loans, both short-term and long-term, taken out by approximately 40% and 50% of SMEs, respectively. However, it is important to note that diversification of financing sources is limited: only 25% have more than one long-term financing instrument, and a slightly higher—but still less than one-third—percentage have more than one short-term instrument. Regarding business insurance, property damage and liability insurance are the most widespread (subscribed by half of the companies in the former case and by two-thirds in the latter), compared to business interruption insurance, which is held by only 16% of SMEs. It is noteworthy that nearly one-third of SMEs do not have any of the analyzed insurance policies, indicating a concerning level of underprotection.
The study concludes that the entrepreneur’s financial skills—particularly their financial planning abilities—the level of digitalization within the company, and the use of external professional advice (especially from financial institutions) have a positive impact on SME financing and risk management. Ricardo Sanz-Ramos, Senior Public Policy Advisor at the Spanish Banking Association, highlighted “the crucial role played by the banking sector in supporting SMEs, not only by providing the best financial products but also by offering qualified advice at the right time. He also emphasized the sector’s efforts to maintain continuous training for all its employees and to adapt its product and service offerings to an omnichannel format in a changing and complex environment.”
Read the report here (ESP)
