Greece, a two-tier business landscape

Greek businesses fall into two distinct tiers, according to a new report by National Bank of Greece.

The profits and capital returns of large and medium-sized enterprises active in Greece appear to have bounced back to pre-crisis levels, while small businesses have failed to keep up, trailing their European peers by 45 percent in terms of operating profits and 15 percent in capital returns, so that their return on assets (ROA) ratio is 60 percent below the European average, compared to -25 percent before this decade's financial crisis.

On the other hand, the ROA rate among medium-sized and large companies - i.e. those employing more than 10 people - has returned to a level very close to the European average.

This has created the impression of a two-tier business sector in Greece, and the study notes that the gap between them means it is absolutely crucial to...

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