Only 500 Greek SMEs applied for the EU's SME Instrument research program in its first three years. Worse: only 19 succeeded. Is Greek entrepreneurialism dead?

A few weeks ago I was invited to speak at the international inneco conference in Thessaloniki on the Greek entrepreneurial ecosystem and its untapped opportunities. As I pointed out, the obvious conclusion from the above, damning statistic is that Greek SMEs and start ups are simply not innovative enough, or at least not interested in internationalising.

Fortunately, that wouldn’t be true.

The economic crisis of 2008 is still underway in Greece, shrinking the internal market drastically and forcing companies to either go international or stay local and face the consequences of the crisis.

Since then, we have seen a lot of companies – particularly start ups - aiming for export and developing new technologies that could put them on the map across the European market. However, this was done without any support or strategy from public authorities.

Greek companies still have to face bureaucracy, tax policies that change every 1-2 years and limited infrastructure...

Greek companies still have to face the administrative bureaucracy, tax policies that change every 1-2 years, and limited infrastructure and incentives to help them grow.

Furthermore, most Greek entrepreneurs lack expertise and an entrepreneurial mindset. In my discussions with local stakeholders, I found out that less than 20% have a business plan and actually know how to use it.

Research & Development is underdeveloped - even in universities - and public bodies mostly focus on policy, instead of providing direct help to companies.

The key player in the Balkans

But it’s not all black; during my visit in Thessaloniki I met local stakeholders, ambitious entrepreneurs, fund investors and accelerators ready to turn the tide, determined to simultaeneously work in Greece and succeed globally. And even though there is much to be done, Greece is still the key player in the Balkans.

Moreover, there are signs of change:

the government recently announced EquiFund, a 260 million euro EIF-backed "fund of funds" to foster economic growth.

the Hellenic entrepreneurship award for 2017 are on their way

an ever-growing number of incubators and accelerators are ready to take in and accompany promising entrepreneurs in their adventures, following in the footsteps of success stories like Workable and Taxibeat

Of course, more could be done. Universities should run accelerator programs and push for the creation of spin offs of their R&D projects. Public and private bodies should focus on synergies to create hubs and clusters to foster the creation and potential of start ups.

Not only can this happen, it must. With a highly skilled and educated workforce, combined with Greece’s strategic geographic position, the country's entrepreneurial and start up environment could one day resemble Israel’s. The alternative is to watch the braindrain continue emptying the country of talent.

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