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Background To Business in Spain

Spain

Spain, probably more than any other European country, is going through a very far-reaching period of structural and organisational change

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Describing approaches to business in Spain at the beginning of the twenty- first century is not an easy task. Spain, probably more than any other European country, is going through a very far-reaching period of structural and organisational change.

After the Franco era, Spanish industry has seen radical restructuring with the dismantling of many of the state-run businesses which fell under the umbrella of the INI (Instituto Nacional de Indistria). INI ran many of the traditional industries in Spain and was characterised by inefficiency and over-bureaucracy. Indeed, many of the misconceptions currently held about Spain in northern Europe and the States stem from an acquaintance with INI subsidiaries.

However, recent years have seen the emergence of new indigenous Spanish organisations, managed by a new, younger breed of management - many of who were partly educated outside of Spain. These new companies have brought different attitudes and approaches to Spanish industry, which are often at odds with more traditional Spanish work styles. This clash is often described as a generational issue but can also be seen as a result of the movement from a nationalised economy to a more modern economy.

Despite these tensions, it is still possible to draw some conclusions with regard to what the non-Spaniard can expect to encounter when conducting business in Spain or with Spaniards and this country overview attempts to pull together some of those commonalities.

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