Shutdown of 2,500 SMEs in one year

The survey conducted by the Athens Small Industry Chamber highlights the rapid shrinkage of small businesses, as from 2009, with the onset of the crisis, up to and including 2012, such companies decreased by 7,747.

2013 will close with major losses as well, as 2,500 SMEs are expected to be lost compared to 2012, that is 6% of the capacity of the chamber. Predictions are bleak for 2014 too, as 41% of surveyed entrepreneurs believe they will be unable to meet their obligations.

The research was conducted during the first ten days of November and according to the results, 66% of entrepreneurs have been affected by the crisis with drastic turnover reduction and significant lack of liquidity due to the long repayment delay of debts from their customers and the lack of funding from banks.

The majority of small business is expected to proceed to reduce the general costs, while others will expand into new markets or reduce their staff.

However, the general view for the future is gloomy, as only 9% of respondents see improvement and 57% believe that the situation will worsen with greater losses for entrepreneurs and workers.

"The government, albeit belatedly, must support SMEs that are suffocating due to lack of liquidity in the market, and the continued imposition of unsustainable fiscal burdens. It is obvious that if SMEs receive support, as they are the backbone of Greek economy, they will be able to provide the engine for an economic recovery of the country," Athens Chamber of Small Industries chairman Pavlos Ravanis said.