Half of the self-employed say they are experiencing difficulties due to interest rate increases and two thirds have raised prices

ECONOMY / By Luis Moreno

Inflation and the bitter medicine in the form of interest rate increases with which the European Central Bank (ECB) tries to combat it are hitting Spanish self-employed workers hard.. According to the latest quarterly barometer prepared by the ATA employers' association, half of self-employed workers are suffering difficulties due to the action of the ECB, either because the installments of the loans they pay have become more expensive or because they have not been able to obtain financing or renew. the one they already have due to the harshness of the conditions offered.

In this way, 29% of those surveyed by ATA state that the installment or monthly payment of the loan they pay has increased due to monetary measures to fight inflation. Similarly, 10.7% indicate that they have not been able to extend a credit already in force due to not being able to assume the new credit conditions and another 10% indicate that they have needed a loan, but have not obtained it due to the harshness of the conditions. On the other side of the spectrum, 44.1% of self-employed workers questioned by ATA stated that they did not have outstanding loans or had not noticed any changes.. Along the same lines, only 29.4% of the self-employed claim to have received a loan in the last year.

The sharp increase in costs brought about by inflation has forced most businesses to raise the prices of the products they sell in order to remain viable.. Thus, two out of every three self-employed workers have raised prices so far this year, in a context in which 85% of them have seen their expenses increase.. Likewise, half of those surveyed affirm that they will do so again in the fourth quarter of the year.

The increase in costs suffered by the self-employed has hindered the growth of their sales. Only a third of those surveyed have noticed that their activity has improved in 2023 and only one in four self-employed workers has recorded an increase in their turnover this year.. In this situation, more and more self-employed people are forced to work at a loss. “The decrease in turnover for many self-employed people and the increase in expenses has caused expenses to grow above income and every day they open their business, being aware that it is going to cost them money,” ATA reflects.

Political uncertainty

From the employers' association of the self-employed the message that comes is pessimistic. They point out that the political situation in Spain, with a government in office and an uncertain investiture on the horizon, generates instability in the Spanish economy.. In this sense, 81% of the self-employed have a negative or very negative perception of the situation of the Spanish economy in general and half affirm that the political climate is taking its toll on them.. They are also not optimistic about the prospects for the affiliation of the self-employed to Social Security for the fourth quarter, in the midst of a slowdown in employment throughout the country.

The majority of self-employed workers do not have workers under their care – only 44.5% hire – and those who do have them plan to maintain a workforce in most cases.. However, 22.4% point out that if the current situation continues, the number of workers on staff will have to be reduced.

Regarding the problems reported by self-employed workers, inflation (87.4%), taxes (84.8%), contributions (80%) and the price of fuel (75.6%) are the elements that most affect your activity. To a lesser extent, the rise in interest rates has also been noted, which affects 51% of those surveyed, and in rents, which affects 28.3%.. Furthermore, 40% of the self-employed declare they suffer late payments, 6.6 points more than in the June barometer.