Local business landscape too fragmentary

The local business landscape is very fragmented

A woman buys groceries from a store in Athens, the capital of Greece. [AP]

Very small enterprises that have no employees except the owners and are active in low-productivity industries form the backbone of Greek business.

Merchants, food service entrepreneurs as well as freelancers occupy a large part of the domestic business map, while representing a type of entrepreneurship that usually has a limited degree of extroversion and is quite vulnerable to crises.

Provisional data from the Hellenic Statistics Office (ELSTAT) on employment demographics in Greece showed on Thursday that in 2020, when the coronavirus pandemic began, the number of active jobs exceeded one million to 1,012,019, up from 984,001 in 2019. Receipt. Almost 6 out of 10 firms—that is, 595,378 firms—employed no employees—that is, they were run by the owners themselves.

Also Read :  If the jobs market is so good, why so much talk of layoffs and rising unemployment?

Approximately 321,156 firms employed between one and four workers, while 49,340 firms employed five to nine workers. The above figures show that of all active businesses, 95% or 965,874 have 0-9 employees – meaning they are very small businesses.

These data once again highlight some of the problems of Greek entrepreneurship that are not the result of the crisis, but are timeless. For years there have been a large number of very small businesses operating in Greece, which have low productivity, relatively limited extroversion, and lag behind other European countries in terms of technology and innovation. . Usually, companies of this size are not able to implement large production investments, especially in times of crisis, while operating in industries with low added value that cannot compete on the ladder.

Also Read :  When will Asia's travel industry recover? Maybe as soon as 2023

Notably, while the number of subsidiaries of foreign companies operating in Greece is significantly low – considering all the companies operating in the country – their contribution to the Greek economy appears to be decisive. According to ELSTAT data, in 2020 these companies accounted for only 0.5% of all businesses, but their turnover in the same year reached 46.1 billion euros, representing 19.4% of total turnover. In 2020, a total of 3,691 such businesses were active, employing approximately 8% of their total workforce in their Greek operations in the same year.

Also Read :  Liz Truss is a 'crank theorist' whose experiments with the economy have caused 'appalling damage' - Euan McColm


Leave a Reply

Your email address will not be published.