Introduction
Business in Spain has national peculiarities connected with the country’s social, political, and cultural context. The company chosen for the research is Aiuken Cybersecurity, whose work can be described on its official website. Gartner named Aiuken Cybersecurity its TOP Vendor for MDR in 2020 (Aiuken Cybersecurity, 2023).
An MSSP develops into Managed Detection & Response, which includes threat surveillance, identification, and intervention solutions (Aiuken Cybersecurity, 2023). The company offers distantly provided Security Operations Center (SOC) tools to identify dangers and react to them quickly (Aiuken Cybersecurity, 2023). The company is an expert in cutting-edge controlled cybersecurity (Aiuken Cybersecurity, 2023). The current paper has three parts that discuss the information acquired from the class readings, the company visits and talks in Madrid, and the subsequent individual research on the topic. It is possible that paying attention to the issues related to national business is essential when working in the country.
Literature Review and Research
Background Information
Spain can be regarded as a promising environment for business development due to the connection of the national market with the economy of the European Union. However, this is not the only reason for launching a business in this state, and the investigation states that Spain has numerous advantages in business development. The vital detail is that Spain is an actively developing and highly populous economy, which means that business has growth potential (Charlton, 2019).
Another peculiar issue is the unified currency that all EU members use, the Euro (Charlton, 2019). The economic connections between European countries allow businesses to benefit from the unrestricted movement of people, capital, services, and goods (Charlton, 2019). National laws and regulations do not restrict business opportunities in this case.
Spain has a developed tourist industry, but this sphere does not limit its economy. It is among the most developed European countries in telecommunications, IT, and innovations (Charlton, 2019). In addition, taxes in the country are advantageous for businesses because the government tries to attract investors and provide local people with more jobs (Charlton, 2019).
Services account for 75% of all revenue generated in Spain’s contemporary economy, based on expertise business (Charlton, 2019). It emphasizes creativity and innovative technologies, and Spain’s young, competent workforce, with highly favorable prices and favorable employment environments within Western Europe, is another factor driving this trend. It is also necessary to emphasize that Spain is a member of the European Union, which implies that the EU supports its members when they have economic problems at the national level. For instance, Spain received millions of Euros from the EU recovery fund to restore its financial stability after the crisis caused by the pandemic (Euronews, 2022).
The state’s current economic situation is far from ideal because the country is still on its way to financial stabilization (VisualEconomik EN, 2023). For instance, some argue that the Spanish economy is similar to the bubble because it survived on donations from the European Union during the last decades (Economics AltSimplified, 2021). In all cases, the Spanish economic context is regarded as unstable due to the financial crises it experienced (CNBC International, 2019). These insights invest in the Spanish economy, a controversial issue that should be discussed from various perspectives.
The Digital Economy and Society Index, or the DESI, monitors the development of the digital viability of EU Member States. The methodology for the most recent version, released at the end of 2021, has changed to comply with the European Union’s Recovery and Resilience Plan and the government’s goals (“How is digital transformation progressing in Spain?” 2022). It has resulted in the measurement of four new variables, including human resources, internet connection, corporate adoption of technological innovations, and digital public services. Spain is ranked ninth in this context, moving up two spots from the prior year (“How is digital transformation progressing in Spain?” 2022). Therefore, Spain can be regarded as a country that effectively embraces technological innovations.
Risks and Advantages for Business
The Spanish economy is actively developing, and this trend has been preserved in recent years, allowing us to talk about stable growth. For instance, the International Monetary Fund reports a 5.9% increase in the GDP in 2021 and a 4.9% growth in 2022. It was a significant improvement after 2020, marked by the global recession due to the restrictions on business activity during the COVID-19 pandemic (De Cos, 2022). Therefore, this information shows that the economy of Spain can revive after the crisis successfully and continue its development.
The political support of business and foreign investment in the Spanish economy is a significant advantage in this country. Spain encourages investment from abroad, which is essential for the commercial ties between the United States and Europe (“Doing business in Spain: Advantages and risks,” 2023). To attract multinational enterprises and businesses at all levels, the Spanish authorities adopted a pro-free trade and pro-investment stance by simplifying business regulations (“Doing business in Spain: Advantages and risks,” 2023).
According to the UNCTAD World Investment Report, Spain has risen to ninth place worldwide when it comes to international investment owing to these strategies (“Doing business in Spain: Advantages and risks,” 2023). A reorganized banking sector, a thriving tourism industry, and a reliable and popular transportation system are also advantages of the country (“Doing business in Spain: Advantages and risks,” 2023). Moreover, there is an emphasis on international study and development of renewable energy sources and enduring cultural ties with Latin America (“Doing business in Spain: Advantages and risks,” 2023). These factors, strengthened by the involvement of many Spanish multinational corporations, are additional factors contributing to foreign capital funding.
At the same time, certain risks are connected with starting a business in Spain. The severity of any damage the recession may have caused to the labor market or the productive system adds another aspect of uncertainty (De Cos, 2022). By the beginning of 2021, most companies had returned to their prior crisis revenue levels (De Cos, 2022). It additionally contributed to solvency and liquidity and led to an overall rebound in revenue (De Cos, 2022).
Nevertheless, there has been a decline in credit quality and an upsurge in the number of businesses facing bankruptcy proceedings in the epidemic’s most severely affected industries; consequently, the recovery process is still only partially complete (De Cos, 2022). However, the most recent statistics indicate that the situation is improving, and positive employment trends should lessen the chances of a sharp increase in persistent unemployment (De Cos, 2022). In other words, the economic sphere recovered after the crisis, even though it was challenging for Spain.
The financial health of a nation’s public sector, private sector, and individual households significantly impacts its capacity to withstand the pandemic. Regarding Spain’s preceding economic downturn roughly a decade ago, enterprises displayed considerably lower levels of debt than in 2007, bringing them closer to the European rate (Del Mar Martínez et al., 2020). Spanish families also reduced their debt loads (Del Mar Martínez et al., 2020). The state, on the other hand, took an alternate path, and from the year 2007 to 2018, the public sector’s ratio of debt to GDP grew by over fifty percent, surpassing the typical amount of national debt across Europe by practically twenty percent (Del Mar Martínez et al., 2020). Therefore, insight into Spain’s economic development shows that the country has had a positive experience in overcoming financial crises in the past.
Moreover, as the COVID-19 pandemic showed, its abilities improved with time. At the same time, some spheres of business suffered significantly more compared to others in Spain. For example, Spain is known as a tourist attraction for people from different parts of the world due to its cultural and architectural heritage, nature, and warm climate. The crisis connected with the lockdown during the pandemic and the inability of people to visit the country for tourist purposes led to the sphere’s impairment (Binggeli et al., 2021).
Tourism-related jobs constitute 14.6% of all employment positions in Spain, meaning that millions have lost their income recently (Binggeli et al., 2021). Even though the tourist sphere is not developing, many controversial issues are still connected with it. Among them is the likelihood of another crisis due to the epidemic and the sudden massive loss of opportunities to travel. It is a risk factor in starting a business in Spain in the tourist sphere, but at the same time, this domain is promising due to the attractive image of the country.
There are some recommendations for business development in Spain regarding the context surrounding the national economy. The first issue is the need to act proactively, especially in the context of the financial crisis, in order to survive (Arbeo et al., 2021). The historical experience in Spanish business shows that the company must develop increased vitality to retain its market position (Arbeo et al., 2021).
Resilience is critical to enhancing the company’s position (Arbeo et al., 2021). Top-performing business executives know disruptions are inevitable (Arbeo et al., 2021). Instead, they strengthen organizations’ capacity to resist and foresee those disruptions. For instance, most of them operate with vital planning for situations that enable these individuals to watch for new trends and possible challenges (Arbeo et al., 2021). Additionally, they employ talent from various experiences, providing them access to a broad spectrum of abilities and viewpoints. Due to their universal character, these recommendations apply to all spheres of business.
Consumer Behavior and COVID-19
It is vital to consider the factors influencing consumer behavior in the country to understand how to develop a business. For instance, the consumer behavior of most individuals in Spain changed during the COVID-19 pandemic, which is consistent with global trends (“The consumer buying behavior in Spain-2022,” 2022). Like many other European states, especially those in the Mediterranean region, Spanish companies typically advertised and sold the goods and provided primarily offline services (“The consumer buying behavior in Spain-2022,” 2022).
Before 2020, the typical Spanish consumer was usually exceptionally impatient and exigent, so they highly valued good customer service, corporate image, and affordable prices (“The consumer buying behavior in Spain-2022,” 2022). They preferred to make buying decisions according to suggestions from others and by going to physical stores to browse through all the options and get help deciding which items they required. While certain companies were steadily and gradually advancing to improved and more thorough digital transformation, most still maintained in-person consumer interactions through actual store sales. It is possible to describe the Spanish consumer using such characteristics as impatience, confidence in technologies, forward-thinking, receptiveness, and suspicion (“The consumer buying behavior in Spain-2022,” 2022). These characteristics might seem opposite at first sight, but the point is that they describe different generations of clients (Antoñanzas, 2022).
There is a significant distinction in the consumer behavior of young and older people who prefer offline shopping. Therefore, it is essential to consider these peculiarities before starting a business in Spain because the understanding of the target audience’s consumer habits determines the company’s format.
The changes in consumer behavior are not similar in all spheres due to the specific details connected with these domains. For instance, buying food has not become entirely online during the pandemic, and people still prefer to visit physical shops to purchase products (Nieuwsbericht, 2020). Restaurants, in turn, suffered significantly due to the country’s lockdown, and they could only deliver food to homes (Nieuwsbericht, 2020). During this period, buying apparel and consumer electronics became entirely online (Nieuwsbericht, 2020). These distinctions show that the tendency towards digitization is not characteristic of all spheres of business activity in Spain.
Consumer behavior also changed in other aspects related to how people choose products they plan to buy. Spanish consumers will continue to adjust their spending habits to the current circumstances (Medina, 2021). For instance, they will save money and purchase private-label products that are less expensive, although they are nevertheless ready to spend more for items of superior quality (Medina, 2021). The Spanish consumer of 2021 is different from that of 2020, which is the dilemma that businesses have to solve (Medina, 2021). It states that a company that plans to develop its business activity in Spain should have detailed insight into the products the local population prefers and the existing market competition.
Cultural Issues
Cultural peculiarities influence business in Spain, including the views on work-life balance and the perception of the work environment. An entire ritual is connected with the work-life balance in this country (“The collection of Madrid immersion tour student impressions,” 2023). For instance, the lunch breaks are significantly longer than in the United States, and the dinner time lasting for 120 minutes is the culturally acceptable norm (“The collection of Madrid immersion tour student impressions,” 2023). People in Spain emphasize the importance of rest and happiness instead of achieving business success, which significantly impacts their productivity. Foreigners need to pay attention to these details and avoid criticizing them.
The vital detail is the technological education in Spain, which provides the country with multiple IT specialists. It is crucial for implementing high-tech innovations and launching a business in this sphere. For example, Spain has the second place in the European Union in terms of the number of professionals employed in IT and high-tech industries (“Madrid business community,” 2023). They constitute more than 27% of the total number of specialists in Europe (“Madrid business community,” 2023). It allows the effective development of the company that focuses on technologies and innovations in this country because there is no shortage of qualified employees.
Even though the country’s number of professionals is high, there are specific problems with employment at the moment. Despite these encouraging signs, Spain’s employment percentage of 61.1% continues to be less than the OECD norm in Europe, which is 66.6% (“Business Culture in Spain,” 2023). The following had begun to decrease before the pandemic and increased when the nation’s hospitality and tourist industry stopped (“Business Culture in Spain,” 2023).
Additionally, Spain has a higher rate of income disparity than other OECD nations (“Business Culture in Spain,” 2023). In 2018, the average yearly salary for a full-time employee in Spain was about €29,994, which was considerably less than in many other EU nations (“Business Culture in Spain,” 2023). Nevertheless, Spain has a lower cost of living, which is a vital factor that businesses should consider (“Business Culture in Spain,” 2023). Lower costs of living are typically connected with decreased employment in the state.
Company Visits and Talks in Madrid
My visit to Madrid was an exceptional experience, and they were mainly connected to the cultural differences that can be found between the United States and Europe. In this case, it is possible to talk about global immersion because the visit to Madrid shows me how people live in another country. They have views opposite to mine and perceive reality in a distinct way, which is enriching. First, I will never forget that global immersion was one of my most memorable experiences. I thoroughly enjoyed the visit to Madrid and cannot wait to return someday.
My first impression was the hotel’s light switch, which took a few minutes to learn how it worked compared to home. It noticed the card slot with a red light and placed the hotel key to illuminate the room. I found it to be an exciting concept. The second thing that stood out to me was the bathroom, which had less water pressure and a lower water temperature in the shower. In addition, not being able to close the shower area made me more mindful not to shower for so long and make a mess. Another impression was the restaurant’s no-tipping culture, which felt awkward compared to what I was accustomed to, and seeing a comma in the price instead of a period.
One exciting concept the U.S. should adopt is crosswalk placement. The crosswalk was away from the corner, which wassafer for pedestrians than those we have in New York. One of my favorite things I learned is the amount of time given to employees for lunch. They spend much time eating at restaurants, with Spanish dinner time at around 9 pm. We should adopt this in New York. One last impression was the official residence of the Spanish Royal Family, the Royal Palace of Madrid, which is a beautiful royal residence that was a fantastic sight to see.
Even though these insights from visiting Madrid do not relate directly to a business, they allow me to apply the knowledge I gained during the research to practice. For instance, the idea that Spain embraces technological changes and has a culture that emphasizes the importance of work-life balance is accurate. The visit allowed me to see that these issues significantly affect the lives of people in this country. Their vision differs from that of Americans in numerous aspects, and it is essential to consider these details when starting a business in this country. Therefore, the trip to Spain was practical for my understanding of the subject being discussed.
Conclusion
The literature review, personal research, and personal impressions from visiting Madrid show that Spain is the optimal place for developing a technological business. Aiuken Cybersecurity focuses on innovations and threat detection, and cybersecurity is essential in contemporary Spanish business. As the report shows, most companies have increased their online presence after the COVID-19 pandemic, and Spain supports business innovations. It foregrounds the economic need to expand business in this country because the format is optimal. There is a demand for the cybersecurity solutions that Aiuken proposes.
The investigation shows that Spain has had a positive experience in recovering from the economic crisis. It is part of the European market, which is profitable for potential business development. In addition, the state welcomes investments into its economy, which means the company can expect nothing to prevent it from growing. The cultural peculiarities of the region do not cause problems for business development. Even though there are certain aspects connected with the national mentality and traditions, there is nothing that can make a business launch complicated.
References
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