SECRET LIFE OF DAYDREAMS
Doing Business in Barcelona - 11/30/17
ASSIGNMENT 3
1. The top 10 reasons why a US-based company may consider doing business in Barcelona are:
It’s geographic location in southern Europe that acts as a gateway to the rest of the European union
An extensive high-speed train system, international airports, and highways that make Barcelona a central location
Barcelona drives the economic growth of industry in the area
The majority of foreign investors in the Catalonia area are based in Barcelona,
Although in Europe, Barcelona provides links to Latin American
The 8 public and private universities in Barcelona provide ample opportunity to hire an educated and specialized workforce
Barcelona has a population of more than 1.5 million, and 5 million people live in the metropolitan area.
The city receives an average of 7 million tourists each year.
Urban projects that are underway to continue developing the city
According to the European Cities Monitor, Barcelona has had the best quality of life for workers for the last 14 years.
These factors make Barcelona an attractive city to do business as it is developing infrastructure in order to build a bustling consumer market. There are many opportunities for businesses to start and grow.
2. According to the World Bank Group’s Doing Business 2016 report, Spain was the 86th of 189 countries to do business. Countries are ranked according to their business regulations, including the ease of starting a business, paying taxes and trading across borders. The ease of starting and doing business in Spain is relatively low compared to other developed nations. While Spain is considered better for its tax reforms to reduce rates on corporate income and environmental taxes, entrepreneurs face many levels of bureaucracy and regulations.
A part from the business difficulties, Barcelona has been in the midst of some political turmoil as the Catalonia region has been protesting for their independence from Spain. Although tensions have always been high, the recent negative media attention from the violence most likely hurt tourism.
Source: Govan, Fiona, “Spain ranks among worst nations to start a business despite reforms,” The Local es, October 28, 2015, https://www.thelocal.es/20151028/spain-ranks-among-worst-nations-for-starting-a-business, accessed November 29, 2017.
3. Executive Summary Against Expanding to Barcelona:
Uber riding services are not currently available in Barcelona, and in the current situation it would be unwise to do so. Barcelona is one of the only major citifies in the world that still does not have the accessibility of Uber. Spain has some of the most restrictive transportation laws in Europe, which places strict barriers for Uber and stunts economic growth. Other European countries such as England and France are better opportunities for expansion, where Uber already employs over 30,000 drivers.
Although the Spanish Competition Authority supports the removal of some restrictions around private hire drivers, the Spanish government is not focused on improving the ease of business. Barcelona may be regarded as a hub of tourism in Spain, but it has not caught up with the modern convenience that other major international cities have.
The growing political tensions all over Spain, and particularly in Barcelona, are additional reasons to hesitate when considering expansion. Taxi drivers throughout the country have staged two major 24-hour strikes in the last year, protesting the expansion of Uber.
Due to the particular nature of the Uber business and the current restrictions throughout Spain, it would not be advisable to expand their at this time.