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Entrepreneurs plan to raise prices

The medium business Catalan shows her concern for the geopolitical situation and for the effects of inflationtwo of the main risks and challenges that the Spanish mid-marketaccording to the last Pulse of the Spanish Medium-sized Company from Grant Thornton of 2022.

With the latest data from inflation located in the 9.8% year-on-yearboosted by the rise in energy prices and a general increase in costs, Catalan middle-market businessmen propose immediate measures to deal with the new situation. Specifically, 49% plan to increase their prices in the coming months in response to this inflationary pressure, a figure that increases by 11 points compared to the beginning of 2021.

Only 7% of managers recognize that they have room to reduce their prices

This is a general trend among the bulk of Catalan managers, in which only 7% recognize that they have room to reduce their prices in the coming months.

Compared to the other communities, Catalonia is, behind Basque Countryin which fewer entrepreneurs recognize that they will increase their prices, slightly below Andalusia (fifty%), Madrid (52%), Galicia (57%) or Valencian Community (67%), which heads the ranking.

business health

In general, the health of medium-sized companies in Spain it still remains in the positive territory it reached during the first half of last year (0.3 points on a scale between -50 and 50) after registering negative numbers for three consecutive years. Although the index drops one point compared to the first half of last year and is below the European (2.3) and global (1.2) averages, the health of the Spanish mid-market is still on the positive side of the table.

For Ramón Galceran, President of Grant Thornton, «Just when the indicators predicted the beginning of a recovery cycle, Catalan medium-sized companies are facing a new unexpected setback. Managers a few months ago acknowledged feeling confident in what seemed like the definitive end of the pandemic cycle. However, in our latest wave, the expectations of medium-sized companies regarding the pace of the recovery are slowing down, mainly as a result of the swings on the international board and, above all, due to concerns about inflation.

58% of Catalan companies plan to increase their investment in cybersecurity

Concern about rising energy prices in an inflationary context appears to be the main problem faced by businessmen in the short term. Specifically, 67% of Catalan businessmen consider it one of the main factors that will limit the ability of companies to grow. It represents a 16% increase with respect to the previous semester and 5 points more than the average for the country as a whole. Even so, concern about the price of energy in Catalonia is at a distance from other communities such as the Basque Country (76%), Valencian Community (79%) and Galicia (86%).

As a solution to the challenging environment, medium-sized Catalan companies still rely on the foreign market, despite the fact that the report reveals that Catalan executives are the most pessimistic in relation to boosting exports. Thus, while at the beginning of last year 46% expected the level of exports to increase, this figure is now down to 40%. Despite the drop of 6 points, Catalonia remains in line with the global average (45%) and above the European average (38%).

cybersecurity

The cyber security and the digital transformation are positioned in this wave of Grant Thornton’s Pulse as important areas of investment by Catalan medium-sized companies. 58% of Catalan organizations consider it necessary increase investment in cybersecurity in the coming months, two points less than the Spanish average. This community is at the same level as Madrid (58%) and exceeds Galicia (43%), the only one that is below 50% in this variable. For its part, Andalusia (66%), the Valencian Community (67%) and the Basque Country (76%) are the communities that foresee the most efforts in terms of cybersecurity for this year.

In general, there is concern and greater interest from Catalan managers for digital transformation, being the main area to which they plan to distribute the budget of medium-sized companies. An effort that is shown above other actions related to the climate changethe equality and the labor diversity Hello internationalization of the company. Thus, 44% of the entrepreneurs of this autonomous community will allocate part of the available funds to the digital transformation of their company, a figure slightly below the state average, which stands at 46%.

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