SMEs are biggest employers

Almost half} (46.6%) of all employees in Greece work at very small businesses with up to nine staff, compared to a rate of 29.4% in the EU. In contrast, large companies employ approximately 16.5% of workers in Greece, compared to almost 35.6% in the EU.

The figures, recorded by Alpha Bank in its weekly bulletin citing EU data, highlight the productivity deficit in Greece. The bank’s analysts note that “productivity is a function of business size.” And they say, “The consequent increase in the average size of SMEs could create significant economies of scale, with the new, larger business models having higher leverage and the ability to invest in areas that will further strengthen productivity, making them more competitive.”

In the intermediate business categories, the differences between Greece and the EU are smaller. Small businesses, with 10-49 people, employ 24.8% of workers in Greece, compared to 19.4% in the EU, and medium-sized businesses, with 50-249 people, employ 12.1% of of workers in Greece and 15.5% in the EU. The general picture is that more workers in Greece are employed in micro and small enterprises than they are in the EU.