The ongoing economic crisis is, expectedly, drastically affecting entrepreneurship in the country, according to the Entrepreneurship in Greece 2009-2010 annual report prepared by the Foundation for Economic and Industrial Research (IOBE).

The report is the seventh issued within the framework of its participation in the Global Entrepreneurship Monitor (GEM) research programme.

In 2009, the entrepreneurship index dropped to 8.8 pct from 9.9 pct in 2008, while in 2010 it dropped even further to 5.5 pct. It is worth noting that in 2009 roughly 180,000 people stated that they have closed their businesses due to insufficient profits.

The downward trend continues and it is being attributed to the adverse economic developments and the fear expressed by those planning to enter the business sector. It is indicative that the average business capital rose from 40,000 euros to 60,000 euros.

An alarming fact is that the capital in question is own capital and does not reflect banking credit based on business viability criteria.

Based on the available figures, roughly 1.6 million people are involved in business activities in Greece, while roughly 600,000 are in the early stages of entrepreneurship. In addition, roughly 1.2 million people plan to enter the business sector in the next three years, while opportunist entrepreneurship corresponds to 47 pct of the early stages entrepreneurship compared to 39.5 pct in 2009.

Superficiality, introversion and limited contribution to the creation of new jobs are again the characteristics of entrepreneurship in Greece.

Entrepreneurs in Greece occupy the top positions among their colleagues in the GEM countries as regards their self-confidence, knowledge, qualifications and previous experience needed to open a new business while, at the same time, they also occupy the top positions in the global listing as regards the “fear of failure”.