The Greek debt crisis has been devastating to both the nation’s citizens and entrepreneurs. Nearly 25% of the citizens are classified as unemployed and over 110,000 businesses are on the verge of bankruptcy. These statistics are discouraging to many global business owners who are considering expanding in Greece, but there are a number of opportunities they can take advantage of as well.
Here are some ways you can take advantage of the Greek recession to grow your business.
Deep recessions can be a great time to buy new capital. Recessions often lead to deflation (a marked decrease in prices of goods and services). Cheaper asset prices mean lower startup and capital costs for businesses.
Deloitte Touche Tohmatsu Limited, one of the Big Four auditing firms, recently conducted a study on how the Greek debt crisis has affected capital values. Deloitte has found that many assets are available at considerable discounts. Some assets are selling for less than 50% their prices before the recession.
Organizations are Working with Entrepreneurs to End the Recession
Both government and nonprofit organizations recognize that entrepreneurship is the route to reversing the recession in Greece. The International Monetary Fund, the European Commission and the Greek government are trying to find ways to help entrepreneurs thrive so they can create jobs throughout the struggling Eurozone nation. Nonprofit organizations such as Endeavor Greece have also stated that they are committed to helping entrepreneurs develop new business models and acquire resources needed to reverse the economy.
Nonprofit and government agencies are more committed to ever to help businesses expand or launch startups in Greece. They can be great mentors and help you acquire the resources you need. Some agencies you may want to get in touch with include:
Business Development O.E.
World Business Council for Sustainable Development
Entrepreneurship and Innovation Programme
There are many other organizations throughout Greece and the European Commission that you can help you thrive.
Abundance of Skilled Workers Looking for Work
The overall unemployment rate in Greece is over 25%. The jobless rate for younger workers is even worse. About half of Greeks under the age of 30 are out of work.
These statistics may be discouraging for Greek workers, but they are a source of opportunity for entrepreneurs. You will be able to find a number of skilled people who are desperately looking for work. The European Council has already forced Greece to cut the minimum wage rate as part of the new austerity measures. This means you can pay slightly more than minimum wage and still be appealing to many workers who don’t have any other options.
Many Improvements Need to be Made
Although Greece still has a modern infrastructure, it is still behind other western nations technologically. Many tech businesses are starting to take advantage of the need for new developments during this recession. One business has recently started an app that people can use to rate taxis. This has helped many good taxi companies expand their business and forced other companies to improve their customers service model.
Greece is looking for ways to operate more efficiently and improve the quality of life of its citizens. You can grow a successful business by catering to those needs.
Grow Your Business in Greece – Yes or No?
There are many opportunities you can take advantage of in Greece in spite of the recession. Many organizations are encouraging entrepreneurs to flock to Greece while prices are low and demand for certain services remains high. However, you will also need to be realistic about the fact that the recession may continue for a while and adjust your revenue expectations accordingly.
About the Author: Andrew Mitchell is a business and financial advice writer. He also has a blog where he shares advice on forex trading, such as spotting forex trading scams.