The impact of financial crisis on profitability, asset turnover and state aid in SMEs

Abstract

The role of small and medium companies (SMEs) in Spain in terms of economics and job creation is highly relevant in order to escape from the global financial crisis in which the world is immersed. This paper seeks to examine and quantify the impact of this crisis in the Spanish SMEs, analyzing the results of a survey in a representative sample of that particular business sector. The survey was conducted to discover various economic and financial issues, and draws results such as the high impact of the crisis in terms of profitability, fall in demand and assets turnover, and the need to increase State aids to SME.