Factories Close Down While More Cafes and Restaurants Pop up in Greece

Thursday, February 2nd, 2017
Last Update: 15:19

The Greek economy cannot generate added value products and services and is almost exclusively dependent on domestic consumption, a new study shows.

The study on Greek entrepreneurship that was conducted by Endeavor Greece shows that the Greek economy is still in search of a productive model that will generate added value products and open full-time, long-term job positions for Greeks.

Today, there are 50% less businesses opening each year compared to 2008. Furthermore, the new businesses opening are the typical entertainment and food facilities such as coffee shops, restaurants, souvlaki shops and snack stands. On the other hand there are no new industries or manufacturing endeavors and no technology businesses. Also, the new businesses opening cater almost exclusively to a domestic clientele. The only exception is tourism-related enterprises that cater to foreign customers.

The study was based on data from the General Commercial Registry (GEMI) and shows that 84% of businesses that opened between January and November 2016 have domestic orientation, such as food services and entertainment, retail and accounting/ consultant agencies. The corresponding figure in 2012 was 88%.

Specifically, in the January-November 2016 the number of new businesses registered by category were as follows:

• Restaurants, bars, catering, food retail: 5.613 new businesses, reduced by 41% compared to 2012. However, in 2106 there were 181 more businesses openings than closures.

• Retail: 3,200 new businesses, reduced by 49% compared with 2012.

• Construction: 1,320 new businesses, reduced by 25%.

• Processing: 1,192 new businesses, reduced by 29%.

• Accounting and consulting services: 966 new businesses, reduced by 16%.

• Financial services: 927 new businesses, reduced by 12%.

• Technology: 857 businesses, reduced by 27%.

• Food processing: 369 companies, reduced by 38%.

• Agricultural products: 233 companies, reduced by 25%.

• Energy: from 1,491 companies in 2012, in 2016 only 110 opened. This reduction by 93% is attributed mainly to the photovoltaics “bubble.”

The only two sectors that saw growth in the 11-month period are tourism with 1,347 companies opening, 31% more compared to 2012; and medical services that rose by 9%, partly attributed to the increasing deterioration of the public health system.

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