i Entrepreneurship in Spain The figure of the entrepreneur has become a relevant factor that explains the process of growth and economic development. Rising unemployment rates have generated among institutional and private agents a significant interest in promoting entrepreneurship as a formula to eradicate this social scourge of unemployment. Active policies that favor business culture and initiative are being promoted in all areas. In the university world, academic research has multiplied the work on entrepreneurship, a term that includes a triple meaning: the figure of the entrepreneur, the business function, and the creation of companies. This versatile meaning must be based on a consistent theory about the company and the entrepreneur. This book presents specific cases of companies and entrepreneurs that have had their role throughout the history of Spain. The intention is to show the techniques and learning acquired by those agents, which have allowed a considerable advance in the knowledge of the structure and business development. This book brings together the research carried out by its authors with pri- mary sources and makes it accessible to a wide audience—S panish and Latin American— and will be of value to researchers, academics, and students with an interest in Spanish entrepreneurship, business, and management history. Juan Manuel Matés- Barco is Professor of Economic History at the University of Jaen, Spain. Leonardo Caruana de las Cagigas is Professor at the University of Granada, Spain. ii Routledge Studies in Entrepreneurship This series extends the meaning and scope of entrepreneurship by capturing new research and enquiry on economic, social, cultural and personal value creation. Entrepreneurship as value creation represents the endeavours of innovative people and organisations in creative environments that open up opportunities for developing new products, new services, new firms and new forms of policy making in different environments seeking sustainable economic growth and social development. In setting this objective the series includes books which cover a diverse range of conceptual, empirical and scholarly topics that both inform the field and push the boundaries of entrepreneurship. New Frontiers in the Internationalization of Businesses Empirical Evidence from Indigenous Businesses in Canada Fernando Angulo-Ruiz Contextualizing Entrepreneurship Theory Ted Baker and Friederike Welter Entrepreneurial Marketing and International New Ventures Antecedents, Elements and Outcomes Edited by Izabela Kowalik Entrepreneurship, Dyslexia, and Education Research, Principles and Practice Edited by Dr Barbara Pavey, Dr Neil Alexander-Passe, and Dr Margaret Meehan Entrepreneurship in Spain A History Edited by Juan Manuel Matés-Barco and Leonardo Caruana de las Cagigas Women and Global Entrepreneurship Contextualising Everyday Experiences Edited by Maura McAdam and James A. Cunningham For more information about this series please visit: https://www.routledge.com/ Routledge-Studies-in-Entrepreneurship/book-series/RSE iii Entrepreneurship in Spain A History Edited by Juan Manuel Matés- Barco and Leonardo Caruana de las Cagigas iv First published 2021 by Routledge 52 Vanderbilt Avenue, New York, NY 10017 and by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2021 selection and editorial matter, Juan Manuel Matés- Barco and Leonardo Caruana de las Cagigas; individual chapters, the contributors The right of Juan Manuel Matés- Barco and Leonardo Caruana de las Cagigas to be identified as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging- in- Publication Data Names: Matés Barco, Juan Manuel, editor. | Caruana, Leonard, editor. Title: Entrepreneurship in Spain : a history / edited by Juan Manuel Matés-Barco and Leonardo Caruana de las Cagigas. Description: New York, NY : Routledge, 2021. | Series: Routledge studies inentrepreneurship | Includes bibliographical references and index. Identifiers: LCCN 2020036186 (print) | LCCN 2020036187 (ebook) | ISBN 9780367649227 (hardback) | ISBN 9781003126973 (ebook) Subjects: LCSH: Business enterprises–Spain–History. | Entrepreneurship–Spain–History. Classification: LCC HD2887 .E58 2021 (print) | LCC HD2887 (ebook) | DDC338/.040946–dc23 LC record available at https://lccn.loc.gov/2020036186 LC ebook record available at https://lccn.loc.gov/2020036187 ISBN: 978- 0- 367- 64922- 7 (hbk) ISBN: 978- 1- 003- 12697- 3 (ebk) Typeset in Sabon by Newgen Publishing UK v To our dear Gregorio Núñez Romero- Balmas, Professor at the University of Granada. For his continuous teachings, his permanent help, and his deep friendship. Much of the work in this book has come from his ideas and guidance. Thank you for everything. vi vii Contents List of Illustrations xi Acknowledgements xii Introduction 1 JUAN MANUEL MATÉS- BARCO AND LEONARDO CARUANA DE LAS CAGIGAS 1 Entrepreneurship and the History of the Company 9 MARIANO CASTRO- VALDIVIA Introduction 9 Which Example of Entrepreneur Should Be Disseminated? 9 What Do Case Studies Contribute? 13 Do Case Studies Support Entrepreneurship? 15 Do Case Studies Promote Entrepreneurial Culture? 16 Which Values or Sets of Values Can Be Determined from Case Studies? 18 Conclusions 19 References 19 2 Entrepreneurship, Strategy and Networks: The Development of Commercial and Financial Companies in Early Modern Castile 22 DAVID CARVAJAL The Commercial and Financial World at the End of the Fifteenth and Start of the Sixteenth Centuries 22 The Company in Castile: A Multiform Institution 23 The Keys to Castilian Entrepreneurial Success at the End of the Middle Ages and the Beginning of the Modern Age 28 Conclusions 37 References 38 viii viii Contents 3 Windmills, Not Giants. Competition and Monopoly on the Reinosa Route 41 RAFAEL BARQUÍN GIL Introduction 41 The Flour Traffic between Castile and Santander in the Mid- Nineteenth Century 43 Brokerage Revenues on the Reinosa Route 47 Wheat Prices in Castile 49 The Flour Traffic from Santander 50 Conclusions 51 References 53 4 Lacave & Echecopar: Strategies and Businesses in the Second Half of the Nineteenth Century 55 MARÍA VÁZQUEZ- FARIÑAS Introduction 55 The Origins of Lacave & Echecopar 57 The Commercial Expansion of Lacave & Echecopar (1852– 1862) 59 The Last Years of Lacave & Echecopar (1862– 1870) 63 Conclusions 66 Sources and References 68 5 The Sociedad Azucarera Antequerana, a Successful Company in Late Nineteenth- Century Spain 71 MERCEDES FERNÁNDEZ- PARADAS AND FRANCISO JOSÉ GARCÍA ARIZA Introduction 71 Antequera, a Different Sort of Municipality 71 The Founders 73 The Other Managers 76 The Construction of the Sugar Factory 77 A Growing Company 78 Conclusions 79 References 80 6 Small, Medium and Large Companies in the Supply of Water in Spain (1840– 1940) 82 JUAN MANUEL MATÉS- BARCO Introduction 82 Public Utilities in Spain 84 The Large Companies 85 Small and Medium- Sized Companies 88 Risk and Uncertainty in the Water Business 93 Conclusions 95 Sources and references 96 xi Contents ix 7 Credit Companies, Merchant- Bankers and Large National Banks. The Case of Andalusia (1800– 1936) 99 MARÍA JOSÉ VARGAS- MACHUCA Introduction 99 Private Banking in the Nineteenth Century: Banks of Issue, Credit Companies and Merchant- Bankers 100 Credit Companies in Andalusia (Nineteenth Century) 102 Banks of Issue in Andalusia 103 Private Bankers in Andalusia in the Nineteenth Century 105 The Private Banking (1900– 1936): Local Bankers and Large National Banks 106 The Territorial Expansion of the National Banking in Andalusia in the First Third of the Twentieth Century 107 Local Bankers’ Behaviour until 1936 109 Conclusions 112 References 113 8 The Private Period of Spanish Railways 1848– 1941: A Liberal Project to Modernise Spain 115 MIGUEL MUÑOZ RUBIO AND PEDRO PABLO ORTÚÑEZ GOICOLEA The Early Steps of the Spanish Railway System: The National Way and the Foreign Way 115 The Test of the Financial Crisis for the Companies 117 The Modernising Impact of the Railway 118 Spanish Railway Companies at the Beginning of their Decline: Circa 1900– 1913 121 The Change of Model: From the System of Concessions to Intervention, 1914– 1931 123 The End of the Concession System: 1931– 1941 127 Final Considerations 128 References 128 9 The Spanish Travel Agency Business in the Early Years of the Franco Regime 130 CARLOS LARRINAGA Introduction 130 The Decree of 19 February 1942 Regarding Travel Agencies 132 Travel Agencies in Spain After the Second World War 134 The 1950s: New Business Possibilities 138 References 142