kathimerini.gr
Greece's SME Paradox: High Numbers, Low Productivity
Greece boasts the highest SME density in the EU but suffers from the lowest SME productivity; Alpha Bank's report attributes this to small size, low-tech sectors, and limited digitalization, advocating for increased investment and technological advancement to leverage funds like the Recovery Fund.
- What are the key factors contributing to the low productivity of Greek SMEs despite their high number?
- Greece has the highest percentage of small and medium-sized enterprises (SMEs) in the EU, but their productivity is the lowest. This is due to their small size and focus on low-tech sectors. The Alpha Bank report highlights this, suggesting increased investment and technological upgrades as solutions.
- How do the characteristics of Greek SMEs, particularly their size and sector focus, relate to their overall economic contribution?
- The low productivity of Greek SMEs is a systemic issue linked to their size and sector concentration. While they represent 99.9% of businesses, 84.7% of employment and 62.8% of GVA, their productivity lags significantly behind EU averages. In 2024, only 52.4% exhibited basic digital intensity versus 72.9% EU average.
- What policy interventions or structural changes could effectively address Greece's low SME productivity and promote sustainable economic growth?
- Greece's high number of micro-enterprises contributes to this low productivity. While these businesses are increasing employment and output, their productivity (€14,300 per employee) is significantly lower than that of small (€21,600) and medium-sized enterprises (€37,000). Increased investment in technology and access to funding, such as through the Recovery Fund, are crucial for improving productivity.
Cognitive Concepts
Framing Bias
The analysis frames the issue as a problem of size, sector, and technology adoption of Greek SMEs. While this is a significant aspect, the positive aspects of the high number of SMEs and their contribution to employment and GDP are also highlighted, offering a balanced perspective. The headline (if there was one) would heavily influence the framing, but based solely on the text provided, the framing is relatively balanced.
Bias by Omission
The analysis focuses primarily on the low productivity of Greek SMEs and their reliance on small businesses. While it mentions the digitalization gap, it doesn't delve into the reasons behind it or explore potential solutions beyond increased investment and access to funding. The social and economic factors contributing to low digital adoption are omitted. Furthermore, the analysis lacks a comparison of the support provided to SMEs in Greece versus other EU countries.
Sustainable Development Goals
The article highlights that despite challenges, Greek SMEs have shown growth in numbers, employment, and output. Government initiatives like the Recovery Fund and ESPA are being utilized, aiming to boost productivity and economic growth. However, the low productivity remains a concern, indicating a need for continued improvement.