Laura Gorbacheva, Master’s student majoring in “Management”, Ukrainian-American Concordia University, Kyiv, Ukraine

ORCID ID: 0009-0001-7595-4568
e-mail: laura.gorbacheva@uacu.edu.ua

Lesya Leshchii, PhD in Economics, Associate Professor of the Department of International Economic Relations, Business and Management, Ukrainian-American Concordia University, Kyiv, Ukraine

ORCID ID: 0000-0003-2520-0589
e-mail: lesya.leshchiy@uacu.edu.ua

The Impact of Policy on the Development of SMEs in Spain

Abstract. Introduction. Time is changing, but the status of political stability in countries still has a strong influence on the situation of domestic processes and, in particular, businesses. This article examines the impact of political polarization of the Spanish state apparatus and the periods of its aggravation from 2008 to 2025 and its impact on the situation of small and medium-sized enterprises (SMEs) in Spain. 

Purpose. This article aims to assess the impact of political stability on business prospects. The methodology used is a systematic analysis of the available literature and statistical data on the subject.

Results. The results show that political instability is an inhibiting factor in the pace of SME development, and the aggressive promotion of political ideologies leads to skepticism among entrepreneurs. These findings underscore the need for stabilization in the political sphere to unleash the full potential of critical units to sustain the economy and source of employment.

Conclusions. In the context of global crises, such as the 2008 global crisis and the 2020 coronavirus pandemic, as well as local crises, such as the 2017 Catalan crisis, in the absence of consistent approaches and the rigid promotion of political ideologies, SMEs become very vulnerable and require additional support from the state.

The results may also have practical benefits for Ukraine, which has been in a state of crisis since February 2022, caused by the invasion of a foreign aggressor state. As in Spain, the Ukrainian state apparatus should pay due attention to the development of measures to effectively support SMEs.

Keywords: Small and Medium Enterprises (SMEs); Political Polarization; Spain; Economic Crises; Government Support.

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