February 23, 2012
The outlook for Greece’s small businesses is worsening as the country’s recession deepens, with more than half believing that bankruptcy is inevitable, according to a survey published on Thursday.
Owners are deeply pessimistic, with 60,000 enterprises forecast to close this year following some 105,000 business failures in 2011. Building contractors, retailers and small manufacturers are expected to be among the worst hit.
“Some 55 per cent of small entrepreneurs now think they will be unable to avoid bankruptcy – a view that clearly has an adverse impact on the business cycle,” said the bi-annual survey carried out by the Small Enterprises Institute, representing almost 800,000 businesses throughout the country.
The small family-owned and personal businesses that used to drive the Greek economy have been hard hit by the crisis, losing access to bank financing and supplier credit. After a stable first half in 2011, operating conditions deteriorated sharply in the third and fourth quarters, the institute said.