Mosxou Euaggelia (2460) Sassi Sofia (2509) Tatsi Stauroula (2526) Tsiakalou Sotiria (2540)

1.Introduction 2.Greek economic crisis 3.Greek crisis and worldwide crisis 4.Effects of Greek crisis on Greek economy 5.Greek crisis and private sector (SME) 6.Importance of private sector for Greek economy 7.Effects of Greek crisis on private sector 8.Future prospects 9.Conclusion

Private sector:  The part of the economy that is not state controlled.  Run by individuals and companies for profit.  In most free-market economies, the private sector is the sector where most jobs are held.

 A period of economic slowdown.  Characterised by declining productivity.  This is not a new phenomenon for Greek economy.

 Political, economic and social breakdown in Greece.  A direct result of the 2008 banking sector.  BUT it is an expected outcome of the current economic system, capitalism. In the late 2000’s:  The system reached a serious downturn.  Crisis in Greece caused by a combination of structural weaknesses of the Greek economy. This leads to: a crisis of confidence.

 The continuous drop in GDP led to a rapid reduction in domestic demand.  The sharp rise in unemployment among primary earners has raised the risk of poverty.  Rapid labor deterioration.  Strangling of the middle class.  Migration of younger.  Deterioration of public health.  The low productivity caused an increase in imports.

The recession has had a very negative impact on companies. It is important to enhance: entrepreneurship competition growth Access to sufficient capital is a difficulty faced by Greek SME’s. Financing is considered as a high risk activity!

Small and medium sized enterprises are the backbone of all economies and are a key source of economic growth, dynamism and flexibility.  The SME sector is a major source of inventions.  Small firms contribute significantly to creating and developing new fields of manufacturing.  The development of technology, has been created stronger economy and better standard of living.  Enhance internal economy by increasing competition in abroad markets.

The effects of the crisis are visible. The source of problem is connected with banking sector crisis.  It is more difficult for them to downsize as they are already small.  They have a weaker financial structure (i.e. lower capitalisation).  They are heavily dependent on credit and they have fewer financing options.

SMEs are the key generators of employment and income, and drivers of innovation and growth. Some of these can be summarized as follows:  Crisis mainly affects paid employment and especially employees and people working as assistants.  Crisis mainly affects construction and industry.  Substantial increase in part-time employment.

SME’s need specific policies and programmes.  Measures to enhance SME’s access to finance.  Measures aimed at helping SME’s to maintain their investment level.

The private sector is one of the most important factors in order to establish a powerful economy, BUT is confronted with difficulties because of recession. SO the goverment and the SME’s have to cooperate in order to deal with the existing situation.