Entrepreneurship and business survival in times of crisis: The case of Barcelona

Abstract

Purpose: This article analyses the financial characteristics of the companies created and surviving in Barcelona during the times of the financial and economic crisis. This study compares the financial characteristics of the companies analyzed with the actions and strategies taken by companies to maintain or increase business performance since start of 2008 and determine if there are different patterns of behavior among enterprises created in industrial and non-industrial sectors.

Design/methodology/approach: Descriptive analysis of the medium and changes in financial and human resource indicators that measure the strategies and actions taken by companies in times of crisis. The database used was the SABI and the reference period 2008-2013.

Findings: Companies created in Barcelona at the beginning of the crisis and surviving in Barcelona show a positive EBITDA, own resources are used to self-financing, to cancel debt or decrease investment. The financial profitability ratios are very low because the equity of the company is high and debt is low. Regarding indicators of human resources, we indicate the importance of start-ups in generating employment and their productivity rates are high.

Originality/value: Define the financial characteristics of firms created and surviving in Barcelona in times of crisis to determine if these new companies follow the actions taken by companies to maintain or increase business performance since start of 2008. The existence of a statistically significant set of measures can guide future entrepreneurs.