Real devastation. At first glance, that is what the harsh COVID-19 pandemic has left us with in many areas. In terms of health and human life, we are talking about an extremely difficult period that will go down in history. But the damage to the business fabric has also been significant, with many companies having to close down both in Spain and around the world.
However, now it is time to get back on our feet, and governments have already set to work. To this end, for example, in our country, aid is already being distributed to boost businesses within the new business landscape in which we are now immersed: the online world. Subsidies for the digitization of companies that you should know about and that you could perhaps take advantage of if you are looking for how to digitize an SME in Spain or a larger company, either because it is newly created or because you want to take the definitive (and almost mandatory if you want to survive) leap into the online world.
Subsidies for the digitization of companies within the SME Digitization Plan
According to data from the INE (National Statistics Institute) at the beginning of the year, specifically in February 2021, COVID-19 had wiped out more than 207,000 companies. This figure is even more striking when it comes to the self-employed, as 10% of the total number in Spain (323,000) have had to close down. In fact, of the more than 207,000 businesses destroyed, 92% were micro-SMEs, which shows that the damage to the productive fabric affects small and medium-sized enterprises and self-employed workers much more.
Aware of the importance of this type of company for the Spanish economy, which has a much greater impact in our country than in other EU countries, aid to the self-employed and small and medium-sized enterprises is vital. European funds, national subsidies, regional aid... Governments are already granting this type of financial support, although they are taking advantage of the current sociocultural and economic moment: the digital age.
That is why they are focusing, especially within the SME Digitalization Plan, is to grant 'financial lifelines' in the form of subsidies for the digitization of companies that want to exist and play within the new online scenario. So, whether you are self-employed or a manager of an SME, you should know what digitalization aid available to you at this time.
The SME Digitalization Plan (2021–2025)
The SME Digitalization Plan, drawn up by the Spanish government, seeks to promote and encourage, through grants the digital transformation of small and medium-sized enterprises. And not only in our country, but also with a view to achieving greater productivity and commercial weight at an international level. To this end, these subsidies for digital transformation are endowed with €5 billion until 2023 and could ultimately facilitate the digitization of up to 1.5 million SMEs in Spain.
Given that SMEs account for 98.9% of Spanish companies and generate almost 50% of national employment, they are extremely important. That is why subsidies for the digitization of companies of this type are so important. Furthermore, we are still a country within the EU where SMEs and the self-employed are not very well adapted to the online world.
SME Connectivity Bonds
These SME connectivity vouchers are being launched to drive the digital transformation of small and medium-sized enterprises that incorporate basic digitization packages. But what do these packages consist of? They consist of programs and/or solutions that:
- Encourage remote working by using modern computer equipment.
- Promote online communication both with customers and suppliers and internally.
- The implementation of professional digital tools digital tools that help with the performance of work functions and tasks (this is where we come in, easyap, with an ideal and fully digitized electronic invoicing solution).
This subsidy for the digitization of SMEs and self-employed workers, promoted by the central government, has a budget of around €50 million for the period 2021-2023.
The SME Acceleration Plan, for the first steps
Another subsidy for the digital transformation of SMEs is the SME Acceleration Plan, which focuses on three areas where small and medium-sized enterprises, as well as the self-employed, can generate synergies within the new labor and digital ecosystem:
- An extensive network of offices will be set up with professional associations, business associations, chambers of commerce and technology centers.
- A platform for sharing various types of content (strategies, plans, work, codes of good professional practice, etc.).
- Organization of seminars and workshops on issues surrounding transformation throughout the country.
In turn, the SME Acceleration Plan has an approximate investment of €26.4 million between 2021 and 2023.
Protect your business with cybersecurity
The third specific program to promote the digital transformation of SMEs is known as Protect Your Business. Launched by INCIBE (National Cybersecurity Institute), it seeks to raise awareness and educate on aspects related to the online world (mainly cybersecurity). In turn, the Protect Your Business plan has an investment of around €42 million, also for the period 2021-2023.
Digital Toolkit
This program has a budget of €3 billion. Its aim is to provide support for the digitization of companies by helping them to adopt and manage various digital tools, such as the solution for electronic invoicing solution from easyap. Platforms such as ours enable SMEs and the self-employed to achieve digital maturity through enterprise resource planning (ERP) systems and applications for the digitization and automation of business processes.
The Digital Toolkit, which we discuss below in relation to the Create and Grow Act, also promotes other technical aspects of the online world, such as the digital presence of brands, the development of websites and apps, positioning, and e-commerce, among others. This can also be found in the manual for digitizing an SME, which provides help on how to carry out the process.
The Create and Grow Law as an aid to the digitization of companies
For its part, as part of the Spanish government's business recovery plan, the draft of the Create and Grow Law. This bill includes several of the programs listed above, as its main objectives are the creation of businesses, helping SMEs to digitize and, consequently, to grow, as well as preventing tax arrears.
Likewise, if we focus on what this law says, we see that it focuses mainly on promoting the use of electronic invoices in transactions between companies of all sizes and self-employed individuals. And at the legal level, it is worth highlighting Article 12 of this same regulation, which has been modified with this draft bill and which states that:
- All Spanish companies and self-employed individuals must issue and send electronic invoices in their commercial dealings with other companies and self-employed individuals. This is already is already mandatory in dealings with and between government agencies, but will now become mandatory between private companies.
- SMEs and self-employed individuals will facilitate access to the invoicing programs they use so that invoice recipients can read, download, and print the electronic invoice free of charge and without the need to resort to external services to do so.
- Recipients of invoices may consult them electronically for at least the last four years. This right shall not be affected by the fact that the contract has been terminated or when the recipient has expressed their desire not to receive electronic invoices.
- Failure to offer customers the option of receiving electronic invoices will constitute an administrative offense. Restricting access to invoices to those who are no longer customers will also be considered an offense, punishable by a warning or a fine of up to €10,000. This penalty may be imposed by the Secretary of State for Digitalization and Artificial Intelligence.
Ultimately, the aim of the Create and Grow Act is to promote and establish measures to digitize SMEs and their business operations with freelancers, save on transaction costs, and facilitate transparency in commercial traffic in order to reduce late payments and increase liquidity among companies.
Various regional grants for the digitization of companies
However, given how decentralized Spain is in certain legal matters, the aid available to companies and self-employed workers is not limited to what we have discussed at the state level. regional governments have also got down to work with different programs and aid for the digitization of SMEs.
These programs obviously have less financial volume, but they can still be very useful. Without going any further, we would highlight the Connected Industry 4.0 of the Principality of Asturias, which was launched between 2017 and 2019 with the participation of 23 beneficiary companies and has now been relaunched.
Another example is the Community of Madrid, which has several initiatives to help companies, including the Innovation Check. This is a subsidy that aims to promote the use of R&D services in small and medium-sized enterprises and to encourage teleworking.
As a final example, we cite the Basque Country. Through its Industria Digitala 2021 program, it promotes the incorporation of Electronic, Information, and Communication Technologies (EICTs) in industrial companies (given their importance in its economy). To this end, the program plans to invest €18,000 per year per company. This aid is in addition to other policies such as the well-known TicketBAIsystem, which is perfect for the control and traceability of commercial operations at the fiscal level.
What is clear, in conclusion, is that SMEs and the self-employed, who are key players in our economy, must continue to grow. But to do so, they must do so within the new ecosystem: the digital one. And in that context, what could be better than a solution like easyap, adapted to global policies and featuring state-of-the-art technology?
