Starting a business in the Basque Country costs an average of 24,500 euros, according to the latest data presented by the Basque Observatory of Entrepreneurship in its GEM 2023 Report. This report, which includes an analysis of the entrepreneurial ecosystem in the Basque Country, states that the Entrepreneurship rate remains stable, at 5.5% in the community, in line with 2022 data.

The initial investment required to start a business varies considerably, and although the average is 24,500 euros, the report has revealed significant differences in financing needs. 20% of entrepreneurs exceeded the investment of 150,000 euros, a figure that marks a historical record, and 21.5% started the project with less than 10,000 euros. These data highlight the diverse approaches and resources that the Basque business fabric requires, depending on the sector and the size of the projects.

Profile of the Basque entrepreneur and their sources of financing

The average age of the Basque entrepreneur is 44 years, slightly higher than that registered in previous years, and more than half of those who took the step of creating their own company in 2023 had a university degree. This data suggests that entrepreneurship in the Basque Country is driven by people with a high level of education, which may explain the interest in more specialized projects, such as knowledge-intensive services, which represent 20% of the total.

One of the most notable conclusions of the report is that project financing continues to be largely of personal origin. Eight out of ten entrepreneurs use their own savings to finance their business, and they stressed the importance of prior financial planning for those who want to create their own company. In addition, 23% turn to the support of family and friends, and 31% choose to go to financial institutions to obtain the necessary capital.

Other forms of financing, such as public support and subsidies or informal investment, also play a significant role, although to a lesser extent. The GEM 2023 Report highlights that 5.6% of entrepreneurs have resorted to informal investments, a figure that is at historically high levels; it indicates a growing interest in alternative sources of financing.

Motivations for entrepreneurship and dominant sectors

Regarding the reasons for starting a business, more than half of new entrepreneurs (54%) stated that starting a business is their main way of earning a living, although this reason has decreased significantly compared to the previous year, when 69% indicated it. On the other hand, wealth creation or access to higher incomes has taken center stage as a motivation, reaching 37.5%, while continuing the family tradition motivated 20% of new entrepreneurs.

The report also highlights that most of the businesses created in the Basque Country in 2023 are in the traditional services sector, with only 6% belonging to the industrial sector. This indicates a trend towards sectors that are less capital-intensive and more focused on retail, hospitality and other services. However, specialization in knowledge-intensive services is increasing, representing 20% ​​of new businesses.

Women's entrepreneurship and contribution to employment

A particularly positive aspect highlighted by the report is the disappearance of the gender gap in entrepreneurship. In 2023, the number of women who started businesses was equal to that of men, an evolution that highlights the increasing participation of women in the Basque entrepreneurial ecosystem.

Another encouraging fact is that entrepreneurship in the Basque Country is making a significant contribution to the labor market. 34% of new companies created in 2023 have at least one employee, and of these, seven out of ten offer permanent full-time contracts. Furthermore, half of the new businesses intend to formalize additional contracts in the next five years, reflecting the solidity of the projects and their ability to create stable employment.

Future prospects: a strong ecosystem

Despite the challenges facing entrepreneurs in the Basque Country, the Basque Observatory of Entrepreneurship has indicated that future prospects are strong. 7% of the population of the Basque Country declare their intention to create a business in the next three years, which suggests a promising outlook for entrepreneurship in the region.

However, significant obstacles remain. The report highlights that although almost half of the Basque population declares that they have the necessary skills to create a business, only 5.5% take the definitive step, and that fear of failure is one of the main reasons for not starting a business, especially among women.

Bizkaia Mikro

On the other hand, the Provincial Council of Bizkaia has increased its commitment to entrepreneurship in the territory, with the Bizkaia Mikro companythrough which microcredit financing is directed. The main objective of this initiative is to facilitate the development and consolidation of local microenterprises, which are a key sector for the territorial economy, and, at the same time, to promote the creation of sustainable and quality employment. The support aimed at microenterprises not only promotes their growth, but also helps to strengthen the economic and social fabric of Bizkaia.