Greece, the country in South-east Europe, is well known for its democracy, western-civilization, and magnificent heritage sites. Establishing and evolving business in Greece has its own benefits and advantages. The main industries owning the stage in Greece are tourism, shipping, fisheries. The population size is 11 million, which provides great manual power.
Greece grabs rank 79th among 190 countries for starting a business easily according to the survey conducted by the World Bank. Athens, the capital of Greece provides a major boost to the economy of Greece.
|BENEFITS OF DOING BUSINESS IN GREECE||THE DRAWBACKS OF DOING BUSINESS IN GREECE|
|Low labour cost.||Strict usage of the Greek language.|
|Well educated and skilled workforce.||Dress Code.|
|High Income OECD.||High Investment requirement.|
|Comfortable working hours.||Low GDP.|
Advantages of Doing Business in Greece
Establishing a business has become easy after the wave of digital processing paved the way in Greece. Legal procedures are primarily conducted online which saves both time and resources.
Greece’s Byzantine bureaucracy changed corporate income tax to 24%. The country ranks 11th among other countries for starting a business at ease.
- High resource availability
It has a high production of oil and petroleum products. The high abundance of aluminium and copper minerals. Fisheries flourish extraordinarily as it serves as habitat to 476 fish species.
Moreover, Greece is the largest tobacco producer in Europe and the 5th largest Cotton producing country across the globe.
- Geographic Location
After Greece, you can easily access South-East Europe and the countries surrounded with the Black Sea. This makes the export game more efficient. Moreover, the vast available area of 131,957 square feet invites more industry setup and development.
- Public Sector Privatization
Many branches of the government are now accessible by the private sector. This gives an exemption to the private sector to expand its business in a more effective manner.
UK consultants, auditors, and Law firms are already opened for private sectors. Moreover, impactful startups are given high importance and support.
- Inviting UK and British links
Highly active UK companies in Greece are Dixons, Vodafone, British Airways, etc. Approximately, 35,000 Britishers are currently living in Greece. It remains to be the top market for British goods.
Liberty on import taxes on goods that are manufactured in the UK. It is the 43rd largest market for UK products.
- Tourism Hotspot
Greece is prominently known for its culture and philosophical theories. Moreover, the marvellous temples of Greece attract a large number of tourists.18 UNESCO World Heritage Sites are located in Greece.
Around 20 million tourists visit Greece which brings in foreign currency and also increases export in an indirect manner.
- Supports to your Business and Skills
Starting with business, you require a lot of external support to evolve and expand in your field. Greece’s working environment provides you with numerous aids like Daycare services which take account of your children while you are busy in your working hours.
You can easily update your skills with updating technology with the assistance of easy-accessible tutorial services. Computer schools are available with comfortable and manageable yet highly educating content to renovate your skills.
Disadvantages of Doing Business in Greece
- Small Business, small development
Small businesses in Greece don’t develop much as compared to high investment requiring businesses. The loan system for providing support to small businesses is less remarkable than high investing businesses.
- Corruption Hindrance
Corruption plays a major role in drawbacks when it comes to commencing with a new business. It is well spread from the public sector to private sectors. Many small businesses get hindered and constricted for further development due to limited economic power.
- Sovereign Debt Crisis
Due to the Sovereign Debt Crisis, the GDP rate of the country slammed down at a high rate. Both the public and private sectors are majorly affected in terms of economic strength. However, GDP raised to 28% after covering a huge drop of 8% in the past few years.
- Non-EU nationals difficulties
The foreign businesses find it difficult to set up a business due to limiting policy formats. Miscellaneous products and goods businesses are only restricted to the country citizens and are not accessible by foreigners.
Developing a profound business requires an extra amount of effort for foreigners as compared to the citizens.
- Property and Construction strain
Preparation of legal documents for construction compels a lot of time. Property landlords demand a high amount to sell their estates. Again the corruption hits the process in a dramatic manner. Greece ranks at 156th position in terms of property registration and at 146th rank for implementing contracts.
- Banks face a downhill economy
After the Sovereign Debt Crisis, Banks are influenced at a high phase of damage. Getting loans and credits for establishing a business compels a lot of statuses and authority. Serious liquidity factors affect the economic strength of the country.
- Taxes and Bureaucracy
The taxation system is non-friendly to developing businesses which can make it difficult to start up a highly profitable business. Greece Income Tax Code (ITC) 29% on profit of the total business.
- Limiting Exports and foreign trade links
Export of goods and products is mostly limited to the UK and British countries. Most developed countries have a UK origin which gives less profit to the Greek economy. This includes major companies like Vodafone, Dixon etc.
The perception among Greeks about UK products makes the blind belief of not accepting goods of other country production.
The economic condition of citizens of Greece dropped at a great level as an increase in unemployment after the Sovereign Debt Crisis.
This leads Greeks incapable of buying luxuries and hence this condition reduces the power of sales and product-brand development in Greece. Apart from Athens, no other state of Greece showed a remarkable economy after the Sovereign Debt Crisis.
- Lifestyle and Amenities
Greek has been on the list of developing countries for the past few years. This turns out to be a hindrance in living a luxurious life in the country. Several companies find it hard to promote their extravagance commodity in Greece.