MMEs are not just the vast majority of Greek companies. They are the core of the productive economy and therefore their support is not a guild request· is a national development priority.
The Small and medium-sized enterprises, the Timeless backbone of the Greek economy, are currently facing one Multi-front pressure environment which tests daily their sustainability and development prospects. Despite the positive macroeconomic indicators that are often presented, the picture in the real economy remains particularly difficult.
The new research of the Athens Chamber of Crafts (BEA), which was carried out in collaboration with KPMG, is coming to reflect with compelling evidence what small and very small businesses experience daily. 382 companies from nine main branches the economy and its conclusions leave no room for misinterpretation: entrepreneurship is faced with four large «syndromes» – increased operating costs, bureaucracy, difficulty accessing funding and lack of human resources.
The evidence is revealing.
In particular, accuracy continues to be the biggest enemy of small and medium-sized enterprises69% of enterprises say that the cost of raw materials has increased significantly over the last two years, while 65% considers that energy costs have a decisive impact on its viability.
More than half the companies (54%) were forced to limit their productive or commercial activity due to the energy burden, while 71% stated that it was unable to pass on the increases to the final consumer, absorbing costs and seeing profit margins shrink dangerously.
The second major obstacle remains the bureaucracy. Despite the significant digitisation of the State, 74% of companies consider administrative procedures to still significantly affect their day-to-day operation. One out of three members of BEA devotes more than ten hours each month only to fulfilling administrative obligations, while only 13% evaluates as highly effective the main digital platforms of the State. MyDATA, LABOUR and long-term regulatory compliance obligations, rather than simplifying the operation of businesses, often increase administrative weight, especially for very small enterprises with no qualified staff.
Financing
It is equally worrying to see the financing. 77% of businesses believe that access to bank lending and financial instruments remains difficult. Although 62% attempted to draw bank financing over the past two years, more than one in four (27%) saw his request be rejected. High interest rates, strict credit criteria and time-consuming approval procedures create a vicious cycle, depriving small businesses of the resources needed for investment, innovation and development.
Human resources
A serious problem arises and the lack of human resources. 74% of businesses say they have difficulty finding suitable staff, while 79% have already limited activities due to inability to staff. For 62% of businesses the lack of workers directly affects their productive capacity, while the problem is attributed to both low staff availability and lack of skilled skills.
The link between education and the labour market and the upgrading of vocational training is now becoming an issue of economic survival.
The basis of the economy
The findings of the investigation gain even more weight if one considers that SMEs account for around 90% of Greek entrepreneurship. It is companies that keep the market alive, support employment, strengthen regional development and form the key pillar of social cohesion. When these companies are pressured, the real economy is put under pressure.
It is no accident that BEA members themselves are calling for stronger representation towards the State, less bureaucracy, a fairer tax framework, better access to financial instruments, substantial advisory support, more training programs with emphasis on digital skills and Artificial Intelligence, as well as strengthening extroversion and international partnerships.
As the President of BEA pointed out, Constantine Damigos, undertakings do not seek preferential treatment. They call for a stable business environment that allows them to operate, invest, innovate and create new jobs. They call for fewer obstacles and more opportunities.
