Michalos: “The small and medium-sized enterprises, are tested harder and…”

As confirmed by the findings of survey published by…
recently, the National Bank of Greece, the small and medium-sized businesses were those that have been tested and are tested harder by the climate of uncertainty in the market and the imposition of capital controls.
Constantine Μίχαλου*
The decline in sales in the third quarter of 2015 touched for the small and medium-sized enterprises 15% compared with the corresponding period of 2014. The rate is over 7 percentage points higher compared with the corresponding of big business, who saw their sales decrease by 7.8% in the same period. In an even worse position were the very small businesses, with a turnover of up to 500.000, who have seen their sales declining by 23% and their exports by 28%.
The sectors in which traditionally operate small businesses, such as retail trade, have experienced the biggest problems. An additional problem is the fact that small businesses have limited strength and alternative options.
These companies that, the majority of them do not have bank accounts abroad, they found themselves in a difficult comparative position, facing insurmountable obstacles to the payment of their suppliers and, by extension, to the production or marketing of their products.
The effects have already become visible: thousands of padlocks on the market, lost jobs, an additional burden on the insurance funds and the state. And as long as it continues the regime of capital controls, the situation gets worse as even these – finite – reserves and holdings of foreign bills would be exhausted.
The only option to reverse the situation, is the restoration of stability and confidence in the economy, in order to return deposits and to remove the capital controls. The achievement of this goal requires serious governance and bold reforms with a development sign. The only way I can survive the small and medium-sized entrepreneurship, which today is threatened with extinction.
*Constantine Michalos, president of athens chamber of commerce and the Central Union of Hellenic Chambers
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