The 25% increase in costs threatens the viability of Spanish SMEs

 

Spanish small and medium-sized enterprises are going through one of the most complex moments of the last years. The cumulative increase in operating and labor costs, together with economic slowdown and international uncertainty, is jeopardizing the profitability and continuity of thousands of businesses.

According to the Cepyme Indicator on the SME Situation for the second half of 2025, business activity continues to lose momentum and reflects a progressive deterioration of the productive fabric, especially among microenterprises and self-employed workers.

An accumulated increase of 25% in costs since 2019

One of the main factors explaining this situation is the sharp rise in business costs. Since 2019, SMEs' operating costs have increased by 25%, directly affecting their profit margins and growth capacity.

In addition, the volatility of energy prices and basic supplies such as gas or oil, continues to impact sectors that are particularly dependent on energy consumption.

In the labor field, the pressure has also been significant. Between 2021 and 2025, labor costs grew at an average annual rate of 4.3%, well above the 0.8% recorded before the pandemic. In the case of microenterprises, the accumulated increase reaches 29%.

The impact of the Minimum Interprofessional Salary

Another element putting pressure on small businesses is the continuous increase in the Minimum Interprofessional Salary (MIS).

Between 2016 and 2026, the MIS has increased by 86%, with an accumulated annual growth of 6.4%. Although this measure aims to improve workers' purchasing power, many SMEs struggle to absorb this cost increase without affecting their profitability or hiring capacity.

Smaller companies are the most vulnerable, as they have fewer financial resources and less room to pass on costs to the end consumer.

Increase in bankruptcies and loss of solvency

Financial pressure is already being reflected in business solvency indicators. By the end of 2025, more than 3,200 self-employed workers and SMEs entered bankruptcy proceedings, representing a 15% increase compared to the previous year.

In addition, the number of microenterprises has decreased by 0.9% compared to pre-pandemic levels, implying the disappearance of more than 10,000 small businesses.

This scenario highlights the progressive wear and tear of the business fabric and the need to adopt measures that promote the stability and competitiveness of SMEs.

Sales and employment: an uneven recovery

Although sales show a slight nominal recovery, the real volume has not yet reached pre-2019 levels.

Small businesses have increased their sales by 12.4%, while medium-sized companies show a more solid growth of 20.9%, reflecting a clear difference in recovery capacity according to business size.

In terms of employment, SMEs also show signs of exhaustion. During the last quarter of 2025, they only generated 33% of new wage employment, while large companies concentrated the remaining 67%.

Public employment growth versus private sector

Another relevant data point is the difference between the evolution of public and private employment.

Between 2019 and 2025, public employment increased by 21.9%, almost doubling the growth recorded in the private sector, which was 10.8%.

At the beginning of 2026, the number of public employees reached 3.66 million people, while private employment lost more than 191,000 jobs in the first quarter of the year.

This situation reflects how public administrations are acting as a buffer for employment in a context where private companies, especially SMEs and self-employed individuals, face increasing difficulties in hiring and maintaining activity.

The increase in operating, labor, and energy costs is seriously compromising the viability of Spanish SMEs. The loss of solvency, the slowdown in hiring, and the disappearance of small businesses reflect the need to promote measures that favor competitiveness and reduce economic pressure on the business fabric.