Salary workers can only expect contained benefits from next year’s shift in tax rates. [SHUTTERSTOCK]
Greece has one of the largest numbers of small and medium-sized enterprises as a percentage of its population among the countries of the European Union, but at the same time their productivity is the lowest in the EU.
This problematic feature of the Greek economy, highlighted from time to time by various studies, including that of the Pissarides Commission, is also cited in the Alpha Bank Economic Developments Bulletin, with data from the European Commission’s annual report on SMEs.
As Alpha analysts point out, low productivity is a result of the very small size of Greek enterprises, as well as the fact that they operate in sectors with low knowledge and technological intensity. Therefore, the challenge is to increase their size, shift to new sectors, and make investments in the technology sector.
“Rise in productivity,” the analysis states, “can come through increased investment in capital equipment, combined with the technological and digital upgrade that accelerated after the outbreak of the pandemic. To this end, it is crucial to utilize development tools, such as the Recovery Fund and the NSRF, and improve the access of Greek SMEs to capital and financing.”
The bank also showed that SMEs are present in the financing of the Recovery Fund: 265 SME loans have already been contracted for a total budget of 2.79 billion euros, while they have received €1.4 billion from the subsidy component.
Last year only 52.4% of Greek SMEs had at least a basic level of digital intensity, compared to an average of 72.9% in the EU, which places Greece in last place.
SMEs in Greece represent 99.9% of the number of enterprises in the non-financial sector, 84.7% of employment and 62.8% of real gross added value. According to 2024 data, for every 1,000 inhabitants, there are 79 SMEs in Greece, compared to an average of 58 in the EU.
“Despite the successive crises of recent years,” the bulletin reads, “SMEs have strengthened both in absolute numbers and in terms of employment and output, while it is estimated that the upward trend will be maintained in 2025.”