“Small businesses are one of the main structural problems of the Greek economy,” said Gerd Heller in an article in Handelsblatt. That is why, as he notes, the government “is seeking to send a message to these companies, through tax breaks, attractive loans, and subsidies, that they can develop following the process of mergers, acquisitions, and partnerships.”

According to the article, today almost half of Greek companies (48.5% to be precise) employ less than 10 employees, while the corresponding average in other EU countries is 30%. In contrast, only one in five companies has more than 250 employees. Also, 56% of employment in Greece comes from positions in companies with a maximum of 5 employees.

Lack of competitiveness

This situation is estimated to be a clear disadvantage in terms of innovation, productivity, and liquidity. That is why, during the financial crisis and the current pandemic crisis, many companies have been and will be driven to bankruptcy, despite government support.

“We want to help small businesses grow,” Alexis Patelis, economic adviser to Prime Minister Kyriakos Mitsotakis, told Handelsblatt. “We can achieve this with the classic method of mergers, but at the same time with platforms that will contribute to the creation of business clusters,” he added.

According to the government plan, the financial staff of the Greek government is already working on a specific plan, which they intend to present to parliament in the summer. Through this and the incentives it will include, it is hoped that a wave of mergers, acquisitions and the creation of cooperatives will be triggered, which will gradually change the image of Greek entrepreneurship, making it more competitive and at the same time more resilient to future crises.

Towards a “green and digital economy”

“We hope that with this process we will increase the average size of Greek companies, in order to enhance their productivity and export potential”, notes on his part the Deputy Minister of Finance, Theodoros Skylakakis.

At the same time, it clarifies that the new framework – which will be part of the overall “Greece 2.0” plan – will include specific and strict criteria and controls that will ensure that the reclassifications are in line with the EU’s overall goals of turning to “green and digital economy”. It is logical, as in this process part of the funds from the Recovery Fund that the country expects will be utilized.

So, is the “death of the (Greek) salesman” just around the corner?

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