Quantitative risk analysis: Relationship between internationalization and socioeconomic growth for Spanish SMEs

Abstract

This article addresses the various socioeconomic changes that emanate from the internationalization process. The purpose is to demonstrate and argue the potential of small and medium-sized enterprises (SMEs), which have an inherent advantage of flexibility, intrinsic to their size. Through an empirical analysis supported by data provided by the Spanish Ministry of Industry, this paper offers a pragmatic view of the economic state of Spanish business entities. Globally, there are 3,000,000 companies that generate 11,000,000 jobs, while a group of 5,400 large companies (with more than 250 employees) alone provide more than 6,000,000 jobs. This translates into an average of 3.7 employees per SME, as opposed to 1,111.5 employees per large company. The research findings reveal that currently few companies have sought to mitigate their dependence on local markets. They also confirm that companies that experience economic growth have a significant impact both regionally and internationally. This effect is particularly noticeable in those companies that invest in market research and analysis. It is evident that as a company grows in size, its revenues also increase proportionally, highlighting that companies engaged in exporting have a significant impact at both the regional and international levels.