Initial research on current situation of SMEs in Greece http://www.into-generation.eu/

1. SMEs in Greece
C t i t
SMEs in Greece
C t i t‐ Current environment ‐‐ Current environment ‐
In to Generation Project

2. SMEs in Greece 2014
‐ Estimates by Euro stat Data ‐
SMEs in Greece 2014
‐ Estimates by Euro stat Data ‐
**The data cover the business economy (industry, construction, trade and services) but not enterprises in agriculture, forestry, fishery and non‐market
services such as education and health.)
‐ Basic Figures ‐‐ Basic Figures ‐gg
653.944 SMEs or 99.9% of total companies
1.757.129 or 85.8% of the total employees
34 billion Euros or 72 1% of total value added34 billion Euros or 72.1% of total value added

3. SMEs in Greece
I t f E i C i i
SMEs in Greece
I t f E i C i i‐ Impacts of Economic Crisis ‐‐ Impacts of Economic Crisis ‐

4. SMEs in Greece
‐ Employment in SMEs ‐
SMEs in Greece
‐ Employment in SMEs ‐p yp y

5. SMEs in Greece
‐ Number of SMEs ‐
SMEs in Greece
‐ Number of SMEs ‐ff

6. SMEs in Greece
‐ Value added of SMEs ‐
SMEs in Greece
‐ Value added of SMEs ‐ff

7. With real GDP in 2013 estimated to be almost 23 % below its 2008 level, Greek
SMEs have borne the brunt of the economic crisis in recent years. In that period,
SME employment fell by 27 % or more than 630.000S e p oy e t e by 7 % o o e t a 630.000
Almost one in four of the SMEs that existed in 2008 closed down, reducing the
total volume of SME added value by a third of its 2008 levels.
While the downward trend slowed down in 2013, it has not been fully reversed yet.
In these difficult circumstances, Greece´s SBA* policy profile remains weak. There is
not a single area in which its performance is better than the EU average. It lags very
much behind this average in three areas ‐ second chance, access to finance and
internationalizationinternationalization
*Small Business Act for Europe (SBA) is the EU’s flagship policy
initiative to support small and medium‐sized enterprises (SMEs)

8. Briefly about SMEs in GreeceBriefly about SMEs in Greece
As as the case last ear there is the biggest gap bet eenAs was the case last year, there is the biggest gap between
Greece and its EU counterparts in terms of access to finance.
On a positive note, many indicators for the SME environment across the various SBA
i i l i i A l i d b 2008principle areas are improving. As a result, most areas improved between 2008
and 2013. Greece is in its sixth year of recession and the government has
h d three times i I hi f il i i h dchanged three times since 2009. In this fragile environment, it was very hard to
implement policy.

9. Current Economic Climate
in Greecein Greece
Th S ll E t i ’ I tit tS ll E t i ’ I tit t (IME GSEVEE) d t d survey thThe Small Enterprises’ Institute Small Enterprises’ Institute (IME GSEVEE) conducted a survey among the
owners of SMEs in Greece and was referred to the current economic climate current economic climate (2013).
According to this survey:
the 75.4 % of small businesses said that the situation worsenedworsened in 2013the 75.4 % of small businesses said that the situation worsenedworsened in 2013
retail trade retail trade businesses and microenterprisesmicroenterprises were the worst affected
the turnoverturnover of 75.8 % of them decreaseddecreased
pp

10. Current Economic Climate
in Greece
According to the survey the main problemsmain problems for SMEs are:
in Greece
According to the survey, the main problems main problems for SMEs are:
insufficient financial liquidity (61.6 %)(61.6 %)q y ( )( )
high taxation (56.4 %)(56.4 %)
low consumer demand (46.8 %)(46.8 %)
Few other problems that SMEs in Greece confront:
a) the blackblack marketmarket, b) nonnon‐‐existentexistent controlscontrols of the modes of pricing, c) dangerdanger ofa) the blackblack marketmarket, b) nonnon existentexistent controlscontrols of the modes of pricing, c) dangerdanger of
creation of oligopolistic markets, d) the problem of commercial rentals
e) bureaucracybureaucracy

11. Current Economic Climate
in Greecein Greece
This tallies with the fact that about 51.4 %51.4 % of SMEs have
difficulties paying difficulties paying their employees on timetime. The reports of the
Greek Labor Inspectorate confirm this. More than halfhalf of Greek
( )( ) h d dd d h b f ki hki hSMEs (50.5 %) (50.5 %) have reducedreduced the number of working hours working hours or
daysdays for some of their employees.

12. Estimations for 2014 and 2015Estimations for 2014 and 2015
For the years 2014 and 2015 does not show a major reversal of SME trends.
Total SME employment is expected to fall by another 106.000, the number of
SMEs may drop by another 40.000 and the forecasts are similar for the added y p y
value of SMEs.
However, the combined effect of the impact of the reforms
taking place and the recent more positive macroeconomic trends g p p
may result in a better situation than current forecasts suggest.

13. Estimations for 2014 and 2015

14. Estimations for 2014 and 2015

15. Estimations for 2014 and 2015

16. Estimations for 2014
The recession is expected to end and GDP is expected to by around 0.6 %.
The decrease in the rate of private consumption is expected to slow
2 %down to ‐2 %.
The public sector is expected to contribute more to investmentsThe public sector is expected to contribute more to investments
than it did in 20132013.
I iInvestments are also expected to rise because of the improved
capital sufficiency of the Greek banks Greek banks after their
it li tiit li ti hi h i fl d i h l i l llrecapitalizationrecapitalization, which is reflected in the relatively lower lower
lending interest rateslending interest rates to SMEs.

17. Estimations for 2014
InvestmentsInvestments are therefore expected to increase in 2014,InvestmentsInvestments are therefore expected to increase in 2014,
with a parallel increase in exports of goods exports of goods and servicesservices.
Given these positive expectations and the latest labor reforms to make the labor
market more flexible, unemployment is expected to fall to 26 %, i.e. lower than the
27.4 % it was in 2013.
The government has consistently implemented the SBA in
recent years, but postponed implementing some measures.
The government has consistently implemented the SBA in
recent years, but postponed implementing some measures.

18. Estimations for 2014
The following measures announced in 2012 were not
Estimations for 2014
The following measures announced in 2012 were not
implemented according to schedule in 2013:
.
• the youth entrepreneurship programme
(because the first round was extended);(because the first round was extended);
• a pilot project to help young people set up social cooperative businesses;
• the entrepreneurship in rural areas programme.

19. Knowledge Transfer
According to the latest SBA Fact SheetSBA Fact Sheet, the performance of Greece was negative as
compared to the European average regarding education and trainingeducation and training indicators
According to the latest SBA Fact SheetSBA Fact Sheet, the performance of Greece was negative as
compared to the European average regarding education and trainingeducation and training indicatorscompared to the European average regarding education and training education and training indicators. compared to the European average regarding education and training education and training indicators.
Lifelong learning and, in particular, ongoing professional training functionLifelong learning and, in particular, ongoing professional training function
mainly as a substitute for unemployment benefits, and they are not associated
with documented business needs at sectoral or local level or the needs and
interests of individuals.
Moreover, they do not have institutionally acknowledged results which would make them an attractive
learning path. At the same time, there is a lack of motivationlack of motivation, since they are not associated not associated with the learning path. At the same time, there is a lack of motivationlack of motivation, since they are not associatednot associated with the
protectionprotection / enhancementenhancement of jobs or remuneration.
For SMEs in particular, besides the typical types of lifelong learning, there
are informalinformal methods that take place within the same business
(learning by doing) (learning by doing) .
For SMEs in particular, besides the typical types of lifelong learning, there
are informalinformal methods that take place within the same business
(learning by doing) (learning by doing) .

20. Thank you!
teşekkür ederim!