Microenterprises and SMEs are the economic engine of Spain, and of a large part of the European Union, according to the latest data from the Government and of the Parliamentary institutionHowever, the pandemic has shaken up their situation. Many of them have closed, others have drastically reduced their activity, and numerous jobs have been lost. In total, it is estimated that 90 percent were negatively affected during this period and 44 percent adjusted their business models to address an unprecedented health, economic and social crisis.
This is one of the main conclusions that emerges from the latest report prepared by Connected Commerce Council, in collaboration with Google. The impact was and continues to be extreme, although another interpretation can also be drawn that invites optimism: during 2020, a decade of digital transformation was consolidated, which has had a very positive effect on business. And that is 82 percent of small Spanish businesses (2% more than the European average) have implemented digital tools in their businesses., with the goal of reinventing the way it finds customers, sells products, and operates.
Spain shows a favorable diagnosis compared to its European partners. Digitally Driven: Spain, A study by the Connected Commerce Council and Google reveals that Spanish SMEs place a high value on the use of digital tools (44% compared to the European Union's 42%). The most innovative and resilient have not only adapted to the new context but have emerged strengthened and even more resilient in the face of an increasingly digital market. These already digitalized small businesses achieved 1.5 times better revenue results and created 2.7 times more jobs than less advanced ones.
Throughout this process, supporting small and medium-sized businesses in their digital transition has been essential. At Google, in addition to studying the impact of the pandemic on the business models of European small businesses, we have developed new free tools, training initiatives, and ongoing advice to support the more than 25 million small businesses operating across Europe so they can recover more quickly.
Behind each of them are inspiring stories of adaptation to circumstances, such as the artisan workshop of master guitar makers Ramírez Guitars or the restaurant Botín HouseBoth have resilience in their DNA; they are century-old companies that have had to transform over time to survive. They represent not only the economic value of small businesses in their community, but also their social and cultural influence in the region where they operate. Emblems of Madrid's history, they have also suffered the ravages of the pandemic and have seen the incorporation of digital tools as the solution to rethinking their businesses.
Google Ads, Google Meet and search engine optimization are some of the most used resources at Casa Botín restaurant, which has allowed for greater visibility and improved conversations with its customers and employees. Cristina Ramírez, owner and fifth-generation guitarist of Guitarras Ramírez, highlights the importance of her prior training with courses. Google Activate and that “having a Google Company Profile has marked a before and after in their business, since they currently have much more visibility in the online environment.”
For many entrepreneurs, online sales are the future and during the pandemic businesses like Studio Squina, a jewelry workshop school in Madrid, embraced this new way of understanding commerce. “Google's free tools have helped us. It has, without a doubt, been one of our best ways to reach our potential customers without running campaigns,” say Sandra Pampín and Gimena Caram, the workshop's entrepreneurs.
Digital skills, a matter for everyone
Without a doubt, digital skills have shown that in times of adversity they are essential to prosper and, at Google, we want to contribute to providing a 'Digital Security Network', which will reduce the effects of the pandemic on small and medium-sized businesses. That's why, a year ago, we launched 'Digital Impulse' with the aim of helping accelerate the economic recovery of the country's companies by improving and offering digital resources and tools that ensure no one is left behind. Now, we are also presenting a new initiative to encourage SMEs to digitalize
Equally important is establishing synergies with all stakeholders involved in economic recovery, both at the institutional level and across the entire business community. Today we want to highlight Google Spain's collaboration with Fundae, where we will soon expand our support for the Digitalize Yourself project, focusing on SMEs.
In the words of Antonio de Luis, General Director of Fundae, State Foundation for Employment Training: “Public-private collaboration is critical to helping transform our country's economy. We are convinced that the collaboration between Fundae and Google, especially through the platform Go digital, will help SMEs in our country to become more digital and competitive.”
New tools, training and inspiration
Recently, new and simplified integrations have also been created with Shopify and WooCommerceAs a result of this partnership with leading e-commerce platforms, we will help retailers quickly list their product inventory on Google, ensuring more customers know what they sell and where to find it. This way, with just a few clicks, millions of merchants will become more visible in search results on Google Shopping, YouTube, and Google Images.
These new possibilities are also part of the new online training'Sell online with e-commerce tools', driven by the Grow with Google area, to help businesses sell their products online thanks to the company's digital tools. Google Company Profile, Merchant Center either Grow My Store These will be some of the free resources explained in this training hosted on the Google Actívate YouTube channel. Also new to this course is the new tool 'Local Opportunity Finder', which provides personalized positioning suggestions on Google Search and Maps. With this, each business will know, based on a quick evaluation of its Google business profile, which features it should add to improve its online presence.
From all these initiatives, We expect millions of companies operating in the European Union to intensify their digitalization efforts and accelerate the recovery in the short, medium and long term.In the case of Spain, 60% of small Spanish businesses surveyed in the Connected Commerce Council and Google report have already indicated that they will increase their use of digital tools after the pandemic.