Greece's largest employers' federation, SEV, this week expressed concerns over the performances by the country's small-to-medium business (SMEs) sector, compared to European averages.
By J. Kanoupakis
Greece's largest employers' federation, SEV, this week expressed concerns over the performances by the country's small-to-medium business (SMEs) sector, compared to European averages.
SMEs in Greece currently account for a whopping 87 percent of wage-earners in the private sector.
Nevertheless, according to a study compiled by the Hellenic Federation of Enterprises (SEV) and EY, which will be presented at a conference on Wednesday, the need for an economic and productive expansion of SMEs in Greece faces various obstacles, beyond the repercussions from the ongoing economic implosion.
Structural deficiencies still prevent SMEs' growth, according to SEV officials, with competitiveness suffering - compared to other European economies - due to the following main reasons:
- A high rate of fragmentation, with a particularly high percentage of very small businesses
- A low average number of employees per SME. For instance, the average business in Greece, regardless of size, creates 94 job spots, nine less than the EU average, with the gap increasing.
- A low added value, with this figure at one-third the EU average per SME in Greece.
- Lower production, on average, compared to the contribution to the country's GDP.