This guest post is by Aysha Griffin.
When New York City-based online marketing firm, Greater Than One, an Entrepreneur “Hot 500″ fastest growing company, decided to expand into the European Market in 2007, the principles chose Madrid, Spain for its headquarters.
The government of Spain, and particularly the capital city of Madrid, has positioned itself as a vibrant base for entry into European and Latin American markets and is actively courting U.S. entrepreneurs with tax incentives, subsidies and agencies designed to support and streamline the process of setting up and operating business in Madrid.
Since Spain entered the European Union in 1986, the Madrid Region, with a population of 6 million, has capitalized on its strategic geographic location, mild four-season climate, financial services and diverse human resources to aggressively improve its education, business-support services, and transportation and communication infrastructures, in order to attract foreign business and increase tourism.
In 2006, Madrid’s economy represented 17.7% of Spain’s GDP, with economic growth and employment creation at 4.5%, among the highest in Europe, according to PromoMadrid, a publicly-funded company established in 2004 to internationally promote and economically develop the Region of Madrid. Its keen professional staff specializes in strategic marketing to attract and support foreign investment and international trade.
There are several business-development agencies like PromoMadrid, and Greater Than One Europe director Marc Michel, used the services of Interes. Says Michel, 33, “I was impressed with the level of service we received. We’re a tiny company getting all this free attention which fast tracked our set up and saved us tens of thousands in legal fees.”
Michel, a former director of e-business for Johnson & Johnson’s Europe, Middle East and Africa Medical Device sector, holds dual citizenship in the U.S. and France. Hiring an E.U. citizen to head-up its Spain operations made it easy for the U.S. company to establish legal presence in the E.U., with its principles, both U.S. citizens, serving on a newly-created Madrid-based board of directors.
As in the U.S., businesses can choose a variety of legal structures depending on the type of investment and nature of the enterprise and, of course, there is much for newcomers to learn. Free advice and resources for U.S. entrepreneurs are available through the public agencies, but among the first stops should be the Chamber of Commerce of Madrid, or Cámara.
Unlike U.S. chambers of commerce, Cámara Madrid is an involuntary governmental organization with more than 500,000 members. Revenues generated from a small percentage of each member’s profits endow the well-funded Chamber’s services, such as business incubators, technology parks and a “one-stop shop” for assisting small business owners, who account for 95% of Madrid’s business.
The Cámara is also a 31% partner in the mega-trade fair organization IFEMA, which offers 150,000 m² of exhibition space and a 10,000 m² convention center, hosting more than 80 trade fairs a year and making it among the top three convention centers in the European Union. According to IFEMA’s Department of Communications, the facility attracted more than 4.5 million visitors in 2006, generated 1,800 million euros and sustained 39,000 permanent jobs. The various year-round trade fairs offer opportunities for U.S. businesses to exhibit and/or network.
For Greater Than One Europe, Michel says the choice of headquartering in Madrid was easy. “You have an energetic, positive ‘can-do’ business environment, reasonable salaries, a large number of ex-pats, great tax incentives, a great talent pool from which to recruit, sophisticated telecommunications networks, convenience of the international airport just 15 minutes from the city center, and a reasonable cost of living compared to other European capitals.”
This is precisely what the pro-business Madrid government is hoping will attract American entrepreneurs.
Aysha Griffin is a Santa Fe, NM-based freelance business/travel writer, consultant and corporate coach who would love to revisit Madrid in a professional capacity. She is also owner of a boutique real estate brokerage and can be reached via www.AyshaGriffin.com or www.GoRealtySantaFe.com.
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