The inability to find specialized personnel and delays in the delivery of raw materials and products are currently the two main factors shaping the business environment for folk-art craftsmen and tourism-goods businesses, as reflected in the new extensive study by IME GSEVEE. It should be noted that the findings of the research, through cross-referencing responses from suppliers and retail shops, reveal a sector that operates under intense seasonality and significant operational pressures, despite its cultural and economic value.
At the same time, these problems did not arise in a vacuum. The pandemic, disruptions in global logistics, the increased needs of tourist shops and geopolitical tensions have created an accumulated pressure on a sector traditionally made up of small family businesses with limited staff and high production demands.
Lack of workforce leads to a domino effect of delays
Five in ten wholesale businesses state that they cannot find staff, while seven in ten need temporary workers during peak season but cannot find them. Producing folk-art items requires specialized know-how, training time and stable work. In contrast, the labor market does not offer available craftsmen, resulting in slow order fulfillment and artisans working systematically over eighty hours a week.
These delays also affect the supply chain: 50% of suppliers fail to deliver on time to tourist shops. Delays range from two to eight weeks, hurting turnover and reliability towards partners. At the same time, delays in receiving raw materials — primarily from China, Turkey and Italy — intensify the issue, creating further barriers to production.
As highlighted in the study, understaffing and import disruptions have created a permanent operational “gap” that small businesses struggle to cover. The result is a chain of delays that begins in the workshop and reaches the shelves of island retail stores.
Liquidity pressure increases — seasonality hits in winter
Furthermore, winter remains the most challenging financial period for these businesses, as tourism seasonality dries up sales but not expenses. Eight in ten businesses state they face severe liquidity shortages, often managed by using reserves, borrowing from relatives, or delaying payments to suppliers.
To reinforce this point, 47% of businesses are forced to draw from cash reserves to cover ongoing needs, while only 13% have access to bank loans, highlighting the financing limits of very small enterprises in Greece.
The Technima – folk art – exhibits remain the sector’s steady pillar
In this difficult environment, the Technima exhibition continues to function as a central commercial institution. Nine in ten businesses participate every year, while about four in ten secure between 26% and 50% of their annual orders there. For some, this share exceeds 75%.
The exhibition is not just an order-taking platform but a pillar of networking, maintaining partnerships and monitoring market trends. Meanwhile, the debate remains open regarding a possible shift to an earlier month. Despite differing views, two-thirds of professionals insist on January, which has traditionally shaped their business rhythm.
Support for island retail — the other side of the study
On the retail side, tourist shops — primarily in the South Aegean, Attica and Crete — confirm the same challenges from another perspective. Sixty-three percent sell clothing items, 82% souvenirs and 86% jewelry, while most business owners have been active for more than 15 years.
Delays in product delivery have a direct impact on workload, as when deliveries fall outside scheduled timelines, businesses must restock, adjust orders and manage increased staffing needs in just a few days. At the same time, one in three shops struggles to find staff, a challenge particularly severe in island regions.
The IME GSEVEE study sheds light on a sector with strong roots, deep connections to Greek identity and a vital contribution to the country’s tourism product. At the same time, it reveals a reality of high pressure. Thus, folk art — traditionally resilient and multifaceted — is now called upon to respond to an environment requiring better organization, investment in human resources and an update of support tools. The transition to a more modern, competitive and sustainable model of entrepreneurship is a prerequisite for the sector to continue supporting tourism and passing on Greek cultural heritage to future generations.
