Business environment in Greece is characterized by insecurity, lack of investment plans and lack of liquidity, while the number of small- and medium-sized enterprises closing down is increasingly growing, a survey by GSEBEE showed on Wednesday.

The survey, conducted by Marc, showed that one in four enterprises, around 180,000 SMEs, were leaving the door open to close down their businesses this year, of which at least 61,200 permanentl, with a loss of 240,000 job positions, of which 106,000 in the current half of the year.

Dimitris Asimakopoulos, president of GSEBEE, presenting the survey recommended the creation of a supplementary memorandum focusing on economic growth. “The economy and enterprises have stuck to the swamp of recession and will sink deeper if we fail to do something to change economic reality in the country. There is a danger of surpassing limits and the loss will be irreversible,” Asimakopoulos said.

The survey showed that the percentage of small enterprises fearing closure rose to 51.4 pct from 44.5 pct in the previous survey last year and 11.7 pct in July 2009. Almost nine out of 10 enterprises in the survey recorded a worsening financial condition, with turnover, demand, liquidity and new orders falling by more than 80 pct, while only 5.8 pct said investments were rising with 37.6 pct saying investments were falling. A 42.1 pct of enterprises said the suffered losses last year, while only one in five reported profits.

The survey said that every one new hiring in SMEs represented around seven dismissals, with 50 pct of enterprises facing problems in the timely payment of salaries and wages. The percentage of enterprises which cut wages jumped to 28.6 pct last year, from 19 pct in the previous survey.

A 27.8 pct of enterprises said they have outstanding debt on rent and bills to utilities, while one in three reported overdue payments to suppliers, tax agencies and banks.

A 54.2 pct of SMEs said the country will not avoid default, up from 45.8 pct in July 2011, while 33.8 pct said the country could overcome the crisis. Only 16.3 pct of respondents said they were in favour of early elections in the country.