Businesses are making a dynamic comeback in the new environment that is taking shape in the economy, as as shown by the six-month data of GEMI, a record number – compared to the last years – of business start-ups is recorded, while the course of cancellations is restrained.

According to the data from the database of the General Commercial Register (GEMI), from the beginning of the year until July 14, 32,531 business activities were started, while in the same period last year 27,190 business activities were started and on the contrary, in the same period, the businesses that appear to be in bankruptcy, liquidation (D.O.Y.), solution – liquidation, under liquidation, conciliation process, deletion, deletion due to merger, compulsory administration and deletion due to division are 7,541, when the same period last year was 8,708 .

Entrepreneurship motivated by taking advantage of opportunities

From the comparison of the data, it appears that this year there is dynamism in the start of business activity, while as noted by the president of EBEA, Sofia Kounenaki – Efraimoglou, commenting on the APE-MPE on the impressive increase recorded in business registrations in relation to cancellations, “the fact is encouraging that the vast majority of new recommendations do not concern sole proprietorships, as was the case until recently. This is an element that signals the gradual transition from entrepreneurship of necessity to entrepreneurship motivated by the exploitation of opportunities.”

In particular, Mrs. Kounenaki – Efraimoglou stated: “The measures that have been implemented in recent years, as compensation for the negative consequences of successive crises in the Greek economy, as well as the experience of entrepreneurs from the years of the crisis, have created conditions for businesses to become more resistant to external influences. The fact that 4,424 new businesses have been created in the greater Athens area since the beginning of the year – compared to 1,546 that closed – shows increased confidence in the prospects of the Greek economy and a willingness to undertake new business initiatives.

As EBEA we strengthen this dynamic, supporting new businesses at their start, through our Incubator, providing information and training opportunities to our members, as well as opportunities to network and penetrate foreign markets, with numerous trade missions.

Equally encouraging is the fact that the vast majority of new recommendations do not concern sole proprietorships, as was the case until recently. This is an element that marks the gradual transition from entrepreneurship of necessity to entrepreneurship motivated by the exploitation of opportunities. The more this trend is consolidated, the greater the benefit for the economy and employment will be.”

Entrepreneurship is making a strong comeback

Businesses not only endured in the previous period, but are coming back dynamically as can be seen from the data of the six-month period of GEMI maintained by the EBEP, as the president of the Piraeus Chamber of Commerce and Industry Vassilis Korkidis notes in his statements to APE-MBE.

Mr. Korkidis pointed out that: “Businesses have withstood a period of fluid economic climate shaped by energy cost parameters as a result of the restart after the health crisis, but also of a war in Europe that continues. And not only did they endure, but they are returning dynamically to the new business environment, as it can be seen from the data of the six-month period of GEMI maintained by EBEP from 1-1-2023 to 30-6-2023, the balance of registrations and deletions maintains a strong positive sign with EPE, IKE, OE, EE and AE showing the largest number of entries. In particular, 309 companies were registered in the commercial section and 82 were deleted, in the manufacturing section 102 were registered and 26 were deleted, in services 337 were registered and 49 were deleted. In total, 771 companies were registered and 160 were deleted.

There are also “zombie” businesses

The president of the Professional Chamber of Athens and honorary doctorate PA.PEI. Yannis Hatzitheodosiou notes in his statements to APE-MPE that: “It may sound impressive that – as the GEMI figures show – there are more business start-ups this year compared to the previous year, but there are times when the numbers do not tell the whole truth.

On the one hand we have some business start-ups that were made, but not because of the improvement of the business climate but in an effort by some people to have a job that will bring them an income. This is why we see very small businesses opening that employ 1-2 people who usually belong to the entrepreneur’s family environment.

But the most important – as well as the most worrying – is that there are hundreds of thousands of “zombie” businesses. In other words, businesses that, although they appear in the data to be in operation, have essentially stopped their activity. And this paradox occurs because they are unable to cover the costs required to close a business.

Our concern must therefore be to clarify the landscape in business and to substantially strengthen the businesses that are one step before the “lock”. We must try to save as many as we can and help them grow and this can be achieved by implementing a regulation of all debts and by strengthening their liquidity as the majority of SMEs remain excluded from bank lending and from the financial programs of Recovery Fund and NSRF”.

Increase in the beginnings of artisanal productive branches, traditional and modern

For his part, the president of the Athens Chamber of Commerce, Pavlos Ravanis, comments to APE-MPE regarding the positive balance of registrations – deletions in manufacturing, crafts and technical professions that: “In the last two years, we have to accept that the situation is gradually normalizing in “business”. As a Chamber of Commerce, we are not pessimistic, nor do we take risks. However, we firmly emphasize that we owe it to our members to constantly claim and propose solutions for relief and recovery in the market.

The productive base of the economy, which is the small and medium-sized enterprise, must have priority in the support measures. This is also the axis, based on which we will discuss with the co-responsible for business issues, in the immediate future.

The data of the registrations of new businesses, of a craft nature, show an increasing trend and at the same time, the course of deletions appears to be restrained. A fact, of particular importance for our chamber, which is the “natural space” of craft, manufacturing businesses and technical professions, and an optimistic element, that the objects of activity, as the records show, belong to purely artisanal productive branches, so traditional, as well as contemporaries.

Indicatively, registrations for the period January 2023 until today are 371 more than deletions. The corresponding period of the year 2022 was 268 more.

Among the sectors with the most new business start-ups, in the current year, stand out: Bakery – confectionery, food items, clothing – footwear, jewelry, vehicle workshops, electricians – electronics, plumbing – refrigeration, construction work, metal constructions and wood – furniture . An increase can also be seen in ceramics, candle making and computer/digital applications and new technology services”.