News
Over 100 executives from companies in Catalonia propose ways to prevent further damage to the economy
Eighty percent of the executives surveyed said their degree of economic concern regarding political events in Catalonia and for economic and business prospects was high or very high; indeed, the respondents expressed more concern about the political situation than about business matters per se (such as competitors). In fact, more respondents expressed personal concern (91%) than professional concern.
Impact on sales
Forty-three percent of the executives surveyed said that their company’s sales have not been affected, while 56% said sales have fallen. The average change in sales reported by the executives between September and November was a decrease of 9.5%, with most of the drop taking place in October. In the opinion of the respondents, the reasons for this drop in sales were discouragement or apathy towards consumption; a reduction in tourism or retail traffic; external distrust and insecurity; cancellation or delay of events and purchases; and boycotts of Catalan products. These are clearly reasons that can be redirected.
The survey identified major problems related to commercial relationships and the loss of customers. Nineteen percent of the executives surveyed said that their company had experienced some type of commercial boycott, mainly from outside of Catalonia. Among executives of large or multinational companies, one in three reported experiencing some sort of commercial rejection. It is clear that commercial relations need to be rebuilt, a process that will require time and institutional support.
Barcelona’s brand and Catalonia’s image have lost some of their international appeal, according to the executives surveyed. Ninety-eight percent of the executives surveyed said that the current situation and the political prospects have affected the internationality of the Catalan economy. The factors of most concern to the respondents include foreign direct investment, Barcelona’s brand, mergers and acquisitions and other corporate operations, and the Fira de Barcelona. The respondents called for an international image campaign to be carried out as soon as possible in order to counteract these issues.
Transfer of headquarters and legal security
Fifty-eight percent of the executives surveyed said that at least one of the more than 2,000 companies that moved their headquarters out of Catalonia is either a client or a supplier. Regarding the possibility of the respondents’ own companies moving their headquarters, the responses show that, by and large, no decisions have been taken regarding further changes. Most of the companies that moved their headquarters did so essentially for legal reasons (30%) or in response to uncertainty (21%); in other cases, the companies wished to remain under regulatory protection (19%). In a minority of cases, the move was prompted by commercial pressure from customers (15%).
If Catalonia were to make a unilateral declaration of independence or once again embark on an independence process without the agreement of the Spanish state, 42% of the executives said they would totally or partially transfer their companies, while 31% would reduce their investments in Catalonia either totally or partially. Only one in four executives said that their business would not be affected. The surveyed executives openly called for the abandonment of unilateral measures and for assurances of EU protection.
Technical details of the study
Over a two-week period, Refem Empresa, Refem Catalunya brought together more than a hundred professionals and executives who freely and voluntarily offered to share business and economic information on the conflict in Catalonia. Professionals of all political persuasions were involved in the project. What unites them is an interest in preserving jobs, investment, turnover, ensuring that Catalonia continues along the path of economic growth, and avoiding a recession and the destruction of the Catalan business community. The initiative was not political but rather purely economic and business-related. The sample is representative of Catalan executives across all sectors and at companies of various sizes, as well as the full range of political opinion. The size of the sample and the representation of all sectors of activity endows the study with sufficient statistical validity.