The London Stock Exchange Group highlights 13 Catalan SMEs as the most inspiring in Europe

13 of the 1,000 most inspiring SMEs in all of Europe come from Catalonia, as selected by the London Stock Exchange Group (LSEG) in their “1000 Companies to Inspire Europe 2017” list. The Director of Government Relations at LSEG, Xavier Solano, explained that these small and medium-sized businesses have “high growth” but are often little known. Still, he insisted that “it’s important to understand that these companies have a way of doing things that positions them among those with the highest growth in Europe.” Being on the “1000 Companies to Inspire Europe 2017” list connects these SMEs to potential European investors and gives them “a lot of visibility” towards the global investment community.

3 of the selected Catalan SMEs attended the presentation ceremony in Brussels. The companies are based in the southern province of Tarragona (Fruselva), the western province of Lleida (Torrons Vicens), and from Barcelona (Kpsport), the latter earning this recognition for a second time.

For the second year in a row, the English entity has presented this select list of companies to the European Parliament. According to Solano, the goal is to “try to identify those with the highest growth,” qualifying them as “good enough” to receive alternative financing, as in some cases they may have structural difficulties accessing it locally. What’s more, gaining a spot on this prestigious list gives the SMEs visibility, leading to possible new investors.

What it takes to make the cut

To choose who makes it onto the list, the London Stock Exchange looks at the candidate’s annual growth margin, the amount of jobs they created in the last three years, and whether the company stands out in its sector. With this list, they want to show that small and medium-sized “little-known” companies can obtain investment capital even while “not relying solely” on bank financing.

13 Catalan companies also made it onto the previous edition of the list. “This year, Catalonia maintains its competitiveness. These are 13 spectacular and very powerful companies,” Solano said. What’s more, Barcelona-based company Kpsport is returning to the list for a second time. This is rare because “only 15% of companies re-appear on the list,” emphasized Solano.

A repeat success

Founded in 1997, Kpsport is a distributor dedicated to importing technology products with 65 employees. Arturo Roche, the company’s corporate director, said that it was “an honor” to be on the list again, as its proof that they’re doing “very good work.” Roche further deems it “a great reward” to have “the possibility to network, to meet other European companies, to have more exposure and to seek the institutional and financial support we need.”

Lleida and Tarragona make the list

Àngel Velasco, owner of Torrons Vicens in Lleida, explained that for his company – along with other family businesses - “it is a very important recognition” and “a great satisfaction.” Velasco himself is not seeking funding, he said, since the bank “is at his disposal.” Still, being on the list opens the door to partnerships with other countries and possible business opportunities abroad.

Go Fruselva from Tarragona is specialized in the production and manufacturing of fruit juice. Xavier Salvador from its general management confirmed that this distinction “is important,” showing recognition that “goes beyond borders.” Salvador hopes that this will allow them to find new clients abroad and their name come up when opening new markets.

An EU project for cheaper financing

MEP Ramon Tremosa was also in attendance at the presentation ceremony. For him, the list shows how “in Southern European Countries there are very few alternatives to bank financing.” According to Tremosa, bank credit in Southern Europe accounts for between 80% and 95% of total credit, compared to the minor 20% in the United States.

Tremosa, also an MP from the center-right PDeCAT party, asserts that this list should be used so that Catalan SMEs who don’t find financing at home can do so elsewhere. “These are successful companies, and we wouldn’t want their growth to be held down because of lack of credit.” “In the EU,” he concludes, “we want companies to be able to finance themselves in a cheaper way.”

Also at the ceremony were vice-president of the European Commission in charge of financial services Valdis Dombrovskis, the general director of the London Stock Group Xavier Rolet, and several MEPs, including Jordi Solé of the European Research Council. Alongside the three Catalan SMEs, companies from all around the EU were in attendance.