Small and Medium Enterprises – The big dilemma of partnerships or shutdowns

Of the approximately 800,000 small and medium enterprises (SMEs) operating in Greece, more than nine out of ten are very small enterprises and employ up to 10 employees, while only 672 large enterprises have more than 250 employees!

A Ministry of Finance bill will be tabled in order to attempt to change this landscape through the tax incentives it gives to small and medium enterprises but also freelancers such as lawyers, accountants, architects, engineers to merge and set up a new company in order to survive, grow and join the " bright side "of the economy.

In addition, through mergers or acquisitions, they will have easier access to bank lending as they will show a stronger cash position.

The government hopes that the new corporate schemes that will be created will reduce tax evasion and especially bleeding in VAT, which is estimated at 6 billion euros per year.

The incentives focus on tax breaks, with the "heavy artillery" being a 30% tax deduction provided the partnership lasts at least 5 years.

What the market says

But how do small and medium-sized businesses respond to the government's urging? Is there a ground for the project to proceed and not just stay on paper?

The president of the Piraeus Chamber of Commerce and Industry (EBEP), Vassilis Korkidis, speaking to "NEA" newspaper acknowledges that "the Greek economy, more than ever, needs to grow by increasing turnover and attracting investment," but believes that there is a exaggeration in the management of the issue and the risks that lurk for small and medium-sized enterprises.

"They try to shake us up and warn us of future dangers, but also to give time to make important decisions about possible collaborations, before we are absorbed or closed under the...

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