Godaddy, a company that empowers entrepreneurs in their day to day, one more year presents the results of its observatory “Current state of digitization of small Spanish companies and freelancers 2021” in which the adaptability of the self-employed in this country stands out: most of the small Spanish companies surveyed (52%) have declared to have experienced significant growth (26%) or no type of change in it (26%) , compared to 47% of them who have claimed to have suffered a significant decline in their development during the pandemic. On the other hand, 26% of Spanish small and medium-sized companies reported a significant increase in their business growth, compared to 20% of small German companies, 22% of French companies and 24% of the self-employed. Italians surveyed.
Although these months have been tremendously complicated for this sector, it is clear that they have known how to adapt to the situation to overcome the difficulties of closures and restrictions derived from the pandemic, putting digitization and its tools at the center of their activity.
These businesses are open to innovation and improvement and, against all odds, have managed to cope with this unprecedented crisis, as many have benefited from digitization and the sale of their products and services online.
But, if until now the online world was being relevant for small businesses, for more than a year and as a result of the consequences of COVID-19, technology has become the protagonist and the only salvation for a significant number of small entrepreneurs Spanish people. So much so that 1 in 4 have expanded their business areas in these months and 12% have started or expanded their online store.
“This has been an unprecedented crisis, no one has seen or experienced anything like it and that is the main reason why this has been so complicated, because no one had a similar experience to draw on. But if something has managed to save the business of the vast majority of these small Spanish entrepreneurs, it has been digitization and its tools, since electronic commerce has become their main sales channel. At GoDaddy, we support small businesses and entrepreneurs by providing easy online tools to create and manage their digital presence. Having a professional website, integration with social media channels and having their own online store have clearly been the path that small businesses and entrepreneurs have taken to keep their businesses open ”, points out Gianluca Stamerra, GoDaddy Regional Director for Spain, Italy and France.
48% of small businesses expect to resurface stronger than before COVID-19
And although there are many difficulties that this type of business has been encountering since the restrictions began, the data shows the adaptability of Spanish self-employed workers, since more than 48% of small companies expect to re-emerge with more force than before COVID-19. In addition, it highlights the way in which they are acclimating to new digital channels to increase sales and continue: the physical store continues to be the main sales channel for 47%, 52% say they use their company’s website to 39% are social networks and 20% state that they use their own online store.
The small Spanish companies surveyed stated that the main challenges they faced during the COVID-19 pandemic were: maintaining business during the pandemic (32%), increasing the number of new customers (20%) and increasing loyalty. of customers (13%). And, to face these challenges, they highlight that they have dedicated part of their resources to accounting / finance and HR and IT (35%), sales and marketing (36%) and customer service (15%).
Regarding the main challenges for small companies globally, they are, firstly, for 90% of small Spanish companies the main challenge is to increase customer loyalty. Second, 89% of these considered their main challenges to be maintaining business during the COVID-19 pandemic and increasing the number of new customers. And, for 71% of small entrepreneurs it is important to expand technological knowledge / digital solutions.
On the other hand, it is relevant to say that, although the balance is being positive and digitization is helping countless freelancers, COVID-19 has taken a toll on some of them, slowing down the pace of the company. So much so that 18% of those surveyed were seen to lay off part or all of their employees.
“The data from our observatory show a spirit of renewal and resistance in all small Spanish companies, highlighting their great capacity to adapt to new digital tools to, thanks to them, overcome this crisis. For this reason, we want to be next to all of them that are taking the step of entering the online world, to make them take full advantage of all its advantages and manage to get out of this situation with all the possible advantages and with an improved company and updated”Stamerra concludes.
For all those little ones who are thinking of digitizing their business, GoDaddy has Web Pages + Marketing, a set of integrated online tools that combines the simple creation of web pages, with an online store and all-inclusive digital marketing tools. The use of these tools can help a small business to take its first steps on the web, reach new customers and open a new window to continue and grow its business, despite the exceptional situation we live in today.