11
d'Octubre
de
2016
Act.
11
d'Octubre
de
2016
The Generalitat de Catalunya announced on Monday that it will renew, for another two years, Catalunya Emprèn, "an umbrella programme that brings together all government activity to foster entrepreneurship," according to Jordi Baiget, the Catalan business and knowledge minister. The announcement took place during the presentation of the results of the programme, which in 2015 provided support for more than 5,000 Catalan companies through 40 initiatives that mobilised more than 55 million euros. The Xarxa Emprèn, Acció and Start-up Catalonia, the Pla Embarca and the different lines of funding are some of the tools that make Baiget proud. "Many of the needs of entrepreneurs when they begin are served by all the organisations in the Xarxa Emprèn," he said.
The minister pointed out that when talking of entrepreneurship and its ecosystem "we only think about technology startups. But it is much more than that. It all needs defending and strengthening." He went on to say that in a country like Catalonia, without many natural resources "nor administrative structures that can progress, society's willingness to move forward has allowed this growth and development in entrepreneurship." It is an effort in business creation that "has a decisive influence on the competitiveness of countries." Therefore, insisted Baiget, "for the Catalan government it is one of the essential pillars of economic and social development."
As an example of the healthy state of Catalonia's entrepreneurial ecosystem he made reference to rankings like that of OmarMohout, 10 things you didn't know about Europe's tech scene, in which Barcelona took fifth place among European companies that raised a minimum investment of a million euros in 2016. Or the study Which European cities generate the biggest VC returns?, which places Catalonia as the ecosystem that generates the most return for investors.
A view from the outside
Scott Mackin is from Boston and has experience in the entrepreneurial ecosystems of the cities of Boulder (Colorado) and San Diego (Florida). He has lived in Barcelona for a few years, and in 2013 set up Barcinno to explain all the activity surrounding new businesses in English. "We moved to Barcelona thinking that not a lot was going on because no one talked about it in English," he recalls.
From his "objective" point of view, Mackin celebrates the fact that the Catalan entrepreneurial ecosystem is increasingly "opening up and welcoming everyone who comes. Moreover, the successful business people are reinvesting in the community and investors are coming from all over."
Every year, thousands of MBA students, engineers and other professionals come to the Catalan capital to make progress with their studies and projects. "The world economy is becoming decentralised; we can work where and when we want," says Mackin. Something that in his opinion favours Barcelona.
"You no longer need to be in London to work in fintech or in Silicon Valley to work in technology. That means, when choosing where to locate the business or family, quality of life is basic," he insists. To his miind, "as more people begin to realise they can work anywhere, more companies will locate to Barcelona".
Pending subjects
Despite the government's enthusiasm over the results of its programmes to support entrepreneurs and the well-known attractions of Barcelona, not everything is sweetness and light. Mackin points out that many entrepreneurs have appeared because "when the alternative is the dole, the risk of setting up a company is not so frightening." The Barcinno founder insists that "many young people continue to go without opportunities that match their level of training."
Apart from these problems, and referring directly to the entrepreneurial ecosystem, Scott Mackin laments that in Catalan startups "salaries are genuinely low." That, he says, "is good for founders at the start, because their money goes further and they can take on talent more cheaply." However, he warns that in the long term it is bad. "People with the most talent end up leaving no matter how much beach and sun there is. By paying low salaries you are offering your employees to other companies," he insists.
He gives the example of when the mobile videogame giant, King, opened an office in the Catalan capital, "it took the best developers from Scytl and Social Point. Imagine if Facebook opened an office in Barcelona!" For Mackin, there is no doubt that "salaries have to be higher."
Apart from remuneration, Mackin laments that "bureaucracy continues to be too problematic for creating businesses." Spain's position in the ranking, Doing Business (33rd place behind the Mauritius Islands and the United Arab Emirates) does not help to improve the ecosystem, and nor does the fact that "there are no relevant fiscal advantages for new companies." For Mackin, "there are unnecessary obstacles to attracting foreign talent and investment."
Nevertheless, some of the problems are beginning to be rectified. Yet "there is a low density of private investors compared with other ecosystems" but that is improving "at least in the initial stages." Mackin is optimistic about the success that the Catalan ecosystem is beginning to experience, as seen with Privalia or Trip4real. In fact, these successes have generated 750 million euros in the past few years. "The new companies are beginning to have a real impact, and for a company like Scytl to go on to the Nasdaq in 2017 will be a cause for celebration," he concludes.
The minister pointed out that when talking of entrepreneurship and its ecosystem "we only think about technology startups. But it is much more than that. It all needs defending and strengthening." He went on to say that in a country like Catalonia, without many natural resources "nor administrative structures that can progress, society's willingness to move forward has allowed this growth and development in entrepreneurship." It is an effort in business creation that "has a decisive influence on the competitiveness of countries." Therefore, insisted Baiget, "for the Catalan government it is one of the essential pillars of economic and social development."
As an example of the healthy state of Catalonia's entrepreneurial ecosystem he made reference to rankings like that of OmarMohout, 10 things you didn't know about Europe's tech scene, in which Barcelona took fifth place among European companies that raised a minimum investment of a million euros in 2016. Or the study Which European cities generate the biggest VC returns?, which places Catalonia as the ecosystem that generates the most return for investors.
 |
| The minister of business, Jordi Baiget. PGF |
A view from the outside
Scott Mackin is from Boston and has experience in the entrepreneurial ecosystems of the cities of Boulder (Colorado) and San Diego (Florida). He has lived in Barcelona for a few years, and in 2013 set up Barcinno to explain all the activity surrounding new businesses in English. "We moved to Barcelona thinking that not a lot was going on because no one talked about it in English," he recalls.
From his "objective" point of view, Mackin celebrates the fact that the Catalan entrepreneurial ecosystem is increasingly "opening up and welcoming everyone who comes. Moreover, the successful business people are reinvesting in the community and investors are coming from all over."
Every year, thousands of MBA students, engineers and other professionals come to the Catalan capital to make progress with their studies and projects. "The world economy is becoming decentralised; we can work where and when we want," says Mackin. Something that in his opinion favours Barcelona.
"You no longer need to be in London to work in fintech or in Silicon Valley to work in technology. That means, when choosing where to locate the business or family, quality of life is basic," he insists. To his miind, "as more people begin to realise they can work anywhere, more companies will locate to Barcelona".
Pending subjects
Despite the government's enthusiasm over the results of its programmes to support entrepreneurs and the well-known attractions of Barcelona, not everything is sweetness and light. Mackin points out that many entrepreneurs have appeared because "when the alternative is the dole, the risk of setting up a company is not so frightening." The Barcinno founder insists that "many young people continue to go without opportunities that match their level of training."
Apart from these problems, and referring directly to the entrepreneurial ecosystem, Scott Mackin laments that in Catalan startups "salaries are genuinely low." That, he says, "is good for founders at the start, because their money goes further and they can take on talent more cheaply." However, he warns that in the long term it is bad. "People with the most talent end up leaving no matter how much beach and sun there is. By paying low salaries you are offering your employees to other companies," he insists.
He gives the example of when the mobile videogame giant, King, opened an office in the Catalan capital, "it took the best developers from Scytl and Social Point. Imagine if Facebook opened an office in Barcelona!" For Mackin, there is no doubt that "salaries have to be higher."
 |
| Scott Mackin gave his view of entrepreneurship in Catalonia. PGF |
Apart from remuneration, Mackin laments that "bureaucracy continues to be too problematic for creating businesses." Spain's position in the ranking, Doing Business (33rd place behind the Mauritius Islands and the United Arab Emirates) does not help to improve the ecosystem, and nor does the fact that "there are no relevant fiscal advantages for new companies." For Mackin, "there are unnecessary obstacles to attracting foreign talent and investment."
Nevertheless, some of the problems are beginning to be rectified. Yet "there is a low density of private investors compared with other ecosystems" but that is improving "at least in the initial stages." Mackin is optimistic about the success that the Catalan ecosystem is beginning to experience, as seen with Privalia or Trip4real. In fact, these successes have generated 750 million euros in the past few years. "The new companies are beginning to have a real impact, and for a company like Scytl to go on to the Nasdaq in 2017 will be a cause for celebration," he concludes.