Humberto Medina, Junior Consultant at PROAreflects in a article in Top Comunicación on the growing business links between Spain and Latin America, an evolving symbiosis.
The link between Spain and Latin America has been growing stronger, little by little, in a way that is evident and to our common benefit. The strength of this link can be attributed to specific governments, to private enterprise, to international relations per se, or to the work of certain individuals.
But, to give justice to the strength of this bond, a part should also be attributed to what goes beyond the explicable, since the union between both parties is and will be an eternal and deep bond in every sense. Specifically and for the benefit of all, entrepreneurs and other actors have managed to recognise and create an ecosystem that has maintained a 92% increase in investment by Latin American companies in Spain over the last 10 years.
The IV LATAM Global Report 2021 tells us that, at present, 652 Latin American companies maintain investments in Spain, which directly connects them with 32,715 jobs generated in the country. An increase that shows not only a trend in favour of all, but also a clear commitment to this economic, social, political and cultural link.
To contextualise the situation between Latin America and Spain, only the United States, the United Kingdom and France have invested more than Latin American companies in Spain. We know, thanks to data from the fourth edition of the Global LATAM 2021 report, that the accumulated investment from Latin America in Spain is 47,168 million euros or 63,332 million euros if investments in holding companies are added.
As in previous cases between the history of both parties, Madrid has consolidated and recently re-established itself as the representative capital of this nexus. and last year alone attracted more than €21.85 billion in foreign investment. So why is there a perception that the potential of this link is not being fully exploited on both sides?
The rise of Latin American unicorns (start-ups that reach a valuation of $1 billion without having a stock market valuation) is a perfect example of one of the opportunities to feed back and enhance this relationship. In the absence of Spanish euros, US giants such as Tiger Global, Endeavor, General Atlantic and QED Investors have taken the lead investment in a sector in full growth and without a real ''ceiling''.
According to the study published in the International Journal of Knowledge and Technology Management, there are 41 Latin American unicorns in the global chartsa clearly low number for a market that supports almost 700 million inhabitants. They are companies that dance between sectors, with representatives in home delivery, fintech and services related to the modernisation of real estate, but, above all, they are companies that generate employment, promote progress and technological adaptation and maintain a modus operandi that strives to solve the social problems that keep the Latin American region semi-paralysed.
One of the obstacles that remains at the forefront of the conservative growth of the Spanish-Latin American link is the lack of communication generated by the social-political environment in the region. This uncertainty has established itself as one of the main barriers holding back foreign capital. Because of obstacles such as this and others, it is necessary to promote national and international hubs where European/Latin American business is the main focus, above all the sound generated by an environment that is less hostile than it appears to be.
For the link between Spain and Latin America to reach the levels it deserves, it is imperative that communication be one of the main pillars of its programme, because successful communication is itself the bridge to exponential progress.. When a company investing abroad focuses on a good external and internal communication strategy, the benefits generated spill over into every sector of its business. Good communication delivers additional value to the company in a foreign territory, helping to improve its profitability as well as that of its investors.
Communication must be adapted to the new channels, capable of generating an environment of trust for investors, customers, partners and all types of actors related to the business. In the face of any uncertainty or crisis that may arise, a good communication strategy is to able to digest and decide how to proceed in the client's best interestalways in the most meticulous and personalised manner. The ability to demonstrate affinity (both locally and abroad) with the values of the company is one of the fundamental objectives to achieve success and to look after mutual interests.
This can be achieved if there is a strict Coordination between the Communication and Human Resources departments.generating and monitoring content. Clearly, the use of successful communication is the key to bringing the link between Spain and Latin America to the levels it deserves, so when will a special focus on the optimal use of it be implemented?
The bond between both parties needs good communication to continue and exceed the expectations generated by the data of the last decade... but there is much more to achieve... much more to progress and communication presents the perfect platform to cultivate the exponential change that both Spain and Latin America need.