The number of Greek citizens starting a business have risen significantly, while business closure rates are falling and export activity is growing stronger, the Foundation for Economic and Industrial Research (IOBE) said in its “Entrepreneurship in Greece 2014-15” report released on Thursday.
The report noted, however, that this increased need for business activity was more the result of necessity and lacked innovation, while small and family businesses dominated, evidence that entrepreneurship in Greece remained shallow. IOBE said an improvement recorded in certain business activity indexes could be fragile, as conditions deteriorated in 2015 because of uncertainty, protracted negotiations, the imposition of capital controls and an economic contraction.
The survey showed that the percentage of population aged 18-64 currently at the early stages of business activity was 7.8 pct in 2014 from 5.2 pct in 2013, although it fell to 6.9 pct in 2015.
Mobilized by opportunity
Greek entrepreneurship mobilized by opportunity (30.5 pct), still very low compared with a 54.9 pct average innovative country rate, while the percentage of Greeks entering the business world because of necessity was 43.6 pct, sharply up from an innovative country average rate of 23.9 pct. Thus, Greece ranks at the bottom of an innovation list in the EU.
The percentage of population that suspended its business activity in 2014 was 2.8 pct in 2014, down from 4.8 pct in 2013, while the percentage of businessmen focusing exclusively in domestic customers was 41.8 pct in 2014, from 43.1 pct in 2013. The percentage of businessmen saying that their customers believed their product/services were innovative was 37.4 pct, down from a long-term average rate of 49 pct. Greek records one of the highest rates in established entrepreneurship among innovative countries (12.8 pct in 2014, reflecting the dominance of small and family businesses.
On employment, the survey said that the majority of established businessmen did not expect an increase in employment. A vast majority of established businessmen (94.6 pct) had an annual income less than 40,000 euros, only 4.1 pct had an income of around 40-60,000 euros. Up to 2009, a 80 pct of established businessmen reported an annual income of more than 60,000 euros.
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