ENISA loans create a multiplier effect in the economy of 3.2 times the amount borrowed
Enisa is a public company that depends on the Ministry of Economy, Industry and Competitiveness. Enisa finances innovation projects which are driven by SMEs and entrepreneurs. José Martí Pellón, Professor of Financial Economics at the UCM and an expert in Venture Capital, has carried out a report on the economic and social impact of investments made by Enisa between 2005 and 2013.
The report reveals that Participatory lending is a financial instrument with undeniable advantages for SMEs and entrepreneurs, which promotes innovation. In addition, it makes it possible to quantify which lines of financing have the greatest economic and social impact, in which sectors and in what phase of the company's development. This study was carried out on the basis of 2,138 companies in which Enisa had invested a total of 472 million euros.
During the period 2005-2013, very positive growth has been observed for the companies in which Enisa has participated:
- Sales have increased with an average of 917,000 euros per company.
- Gross margin increased at a rate of 368 thousand euros per company.
- The analyzed companies created 6185 net jobs by the end of 2014.
From the perspective of individual successes and failures:
- 32.2% of companies had no continuity at the end of 2017, a figure well below the 50-60% of failures that is common in early-stage companies.
- 51 companies showed outstanding performance and another 37 have very promising growth expectations.
In terms of cost-benefit to society, the overall impact of the loan programs analyzed can be considered to be very satisfactory. Sayings Loans create a multiplier effect on the economy of 3.2 times the amount borrowed. The indirect impact of loans is also very satisfying for the economy. A large part of the net employment created corresponds to people with high scientific or technical qualifications. In addition, Enisa contributes to strengthening the entrepreneurial ecosystem and extending innovation in the Spanish economy.
In short, the numbers presented by the study show that there is continue supporting Spanish SMEs and entrepreneurs, thus consolidating an ecosystem which has increasingly innovative, dynamic, competitive and internationally renowned companies.
